How do construction enterprises transform into EPC?

DB mode is mostly used in general contracting of construction projects in the West and Japan.

EPC (Engineering Procurement Construction) and DB (DesignBuild) are widely used.

Large construction enterprises often have both construction and design capabilities.

One is to accelerate the implementation of EPC, and the other is to cultivate the whole process of engineering consulting.

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Therefore, if you want to participate in EPC more, it is the first choice for construction enterprises to obtain the corresponding design qualification and change to the mode of engineering company.

In recent years, with the accelerated development of EPC, more and more construction enterprises begin to undertake and participate in EPC projects, and take the transformation to EPC as their development goal.

In 2019, the Ministry of Housing and Urban Rural Development and the National Development and Reform Commission jointly issued the Administrative Measures for General Contracting of Housing Construction and Municipal Infrastructure Projects (JSG [2019] No.

Traditional design institutes should transform to foreign design firms, specializing in scheme design and preliminary design.

1 ► The difference between EPC and DB refers to EPC, and many people’s first reaction is equivalent to EPC of design, procurement and construction, but in fact, EPC is just one of the EPC models.

For the other tens of thousands of primary and secondary construction general contracting enterprises, they are still hesitating on the road of transformation.

This method has a great impact on the existing mode of general contracting.

A detailed analysis is made in The FIDIC Contracts Guide, which is summarized in Table 1.

There are great differences between the two.

It is hoped that the construction drawing design will be separated from the current traditional design institute and completed by the general contracting enterprise.

How to complement the design weaknesses has become a practical problem that construction enterprises must face in the process of transformation.

2 ► The general office of the State Council issued the Opinions on Promoting the Sustainable and Healthy Development of the Construction Industry (GBF [2017] No.

At present, more than 700 construction enterprises with super grade construction qualification basically have Class A design qualification, and have completed transformation in terms of design qualification.

3 ► From the perspective of international mature practices and the reform goals of China’s construction industry, the problems existing in the transformation of construction enterprises towards EPC will certainly increase efforts to continue to promote EPC and force the upgrading and transformation of the construction industry in the future.

The international general contracting mode also includes design and construction general contracting (DB), design and procurement general contracting (EP), procurement and construction general contracting (PC), etc.

It can be seen from the promulgation of a series of policy documents that the general contracting of construction industry in China has basically been finalized as the international DB model, that is, the scheme design and preliminary design are completed by the owner, the construction drawing design and construction are completed by the general contracting enterprise, and the ternary management system of the owner, the general contracting enterprise and the whole process engineering consulting enterprise led by the architect responsibility system is adopted.

In fact, before this, the Ministry of Housing and Urban Rural Development has been promoting the reform ideas of general contracting, (whole process) project consulting management, architect responsibility system and the development of professional design firms for the transformation of the construction industry.

in Japan has 8000 employees officially signing contracts with the company, of which about 1/10 are architectural designers, mainly engaged in the design of construction drawings and on-site deepening.

Therefore, construction enterprises generally lack design ability, design experience and design management awareness.

12).

I think the main reasons are as follows: the general contracting mode is not fully promoted, which leads to the lack of motivation of enterprises..

At the same time, through the implementation of the architect responsibility system, architects should lead the whole process of project consulting management.

19 document.

However, at the initial stage of the implementation of EPC, the term “EPC” which has been used in China is too popular, leading to the addition of “(EPC)” to the name of most EPC projects, creating the so-called “EPC model with Chinese characteristics”.

In July 2018, the Ministry of Housing and Urban Rural Development replied to the request of Shanghai Municipal Commission of Housing and Urban Rural Development and Shenzhen Municipal Bureau of Housing and Urban Rural Development for instructions on reform work such as the pilot project of preparing construction drawing design documents by EPC enterprises, and agreed that the pilot project should be prepared by EPC enterprises.

Table 1 Differences between DB mode and EPC mode.

Even if there are problems in the design drawings, they can be solved through the design change contact list, and the cost is borne by the owner.

Since then, the pace of reform has been increasing.

First, it is clearly proposed that government investment projects that adopt the general contracting mode should, in principle, be contracted after the preliminary design is approved; Second, the EPC units participating in the bidding should have both engineering design qualification and construction qualification appropriate to the project scale, or form a consortium; Third, encourage design units to apply for construction qualification, or construction enterprises to apply for design qualification.

The new media official account of “information in the field of construction and investment” subscribed by hundreds of thousands of people is a platform for engineering business cooperation! Gather the latest policies, industry trends and practical experts of investment and construction industry to share! Welcome to forward, learn and share! Win win cooperation platform Under the traditional construction general contracting mode, the construction enterprise only needs to construct according to the drawings.

For government invested projects, it is clear that the government should take the lead in implementing general contracting.

19) in 2017 on the top-level design of the EPC construction model, which put forward two major directions for improving the project construction organization model.

However, due to the status of the Ministry of Housing and Urban Rural Development and the lack of support from relevant ministries and commissions, the direction of the reform of the construction industry was formally established after the issuance of the GBF [2017] No.

For example, Kajima Construction Co., Ltd.