The owner’s preparation for the early stage of the project is insufficient.
After negotiation of procurement, construction and other contracts, the general contractor shall sign the contract and manage the project contract.
The experience in optimizing design of EPC projects and cost saving of construction enterprises leads to insufficient understanding of the advantages of EPC projects, insufficient clarification of bidding, design, procurement and project construction, and neglect of the importance of applying management technology tools and information technology.
Such as whether the preliminary design enterprise can participate in the EPC project.
However, there is no clear understanding and mature thinking on how to integrate and how to build the project organization structure.
The understanding of EPC project management mode is not in place.
The standard projects deviate from the international common mode..
Lack of experience in the advantages of EPC projects.
The traditional engineering management concept of construction enterprises is deeply rooted and difficult to change in the short term.
The EPC contract price becomes the total price of E (Design), P (Procurement) and C (construction).
“However, the local laws and regulations are not uniform.
Strong dependence on traditional construction management mode.
The documents and regulations of various ministries and local governments promoting EPC projects are not uniform.
2、 Traditional concepts and habitual thinking are difficult to change.
This will result in the general contractor not being allowed to work in one place and another.
Article 22 of the audit law and the regulations for the implementation of the Audit Law Article 20.
For example, the Construction Law (Articles 24, 29 and 55), the contract law (Article 272), the regulations on the quality management of construction projects (Articles 26 and 27), and the regulations on the implementation of the Bidding Law (Article 29).
Article 10 of Chapter II stipulates that if the tenderee of a government invested project discloses the completed project proposal, feasibility study report and preliminary design documents, the above-mentioned units may participate in the bidding of the general contracting project of the project, and become the general contracting unit of the project after bid evaluation and determination according to law.
On December 23, the Ministry of housing and urban rural development of the people’s Republic of China issued the measures for the administration of general contracting of housing construction and municipal infrastructure projects.
After the owner has set the bidding conditions for the project, he will apply them mechanically.
According to the measures for the administration of general contracting of housing construction and municipal infrastructure projects issued by the Ministry of housing and urban rural development of the people’s Republic of China, “the general contracting unit shall have the engineering design qualification and construction qualification corresponding to the project scale at the same time, or a consortium of design units and construction units with corresponding qualifications.
Lack of targeted legal documents related to EPC mode.
First, the policy environment needs to be further improved, coordinated and unified.
At the same time, they lack a comprehensive understanding of EPC and still operate according to the management mode of EPC, resulting in deviation in implementation, and it is difficult to give full play to the advantages of the joint control of the cost of EPC and the systematic, coordinated and unified design.
The project implementation scope provided by the EPC project owner is not clear, the functional requirements and standards are not perfect, which affects the project settlement, or many terms of the contract version are incomplete, or the rights and obligations of both parties are not clear, which strongly requires the approval of the EPC contractor, resulting in many disputes in the follow-up work.
Therefore, some enterprises have given up the EPC projects requiring fixed price bidding and chose to participate in the bidding of some similar rates.
However, local laws and regulations are not uniform, and Zhejiang, Hubei, Guangdong, Hunan and other provinces and cities are allowed to participate; Beijing and Shanghai are not allowed to participate.
However, there is no thinking of “integration” and “customer service” on how to generate project benefits in the process of overall project planning and integration.
Inertia thinking and concept of the owner.
Such as the qualification requirements of the general contractor.
Some owners are “EPC” and EPC.
The risk tolerance of EPC project is insufficient.
Guangxi, Guangdong, Hubei, Hunan, Jilin, Shanghai, Zhejiang and other provinces and cities allow enterprises with a single qualification to undertake EPC projects; Beijing (in the field of assembly and construction) and Tianjin (but not prohibiting the formation of consortia with a single qualification) need to have two qualifications at the same time.
Project managers of construction enterprises know that EPC needs to realize the integration of design, procurement, construction and other stages.
However, the legal provisions based on the EPC contract lack pertinence in the bidding rules, market access conditions and contract price settlement of the EPC project.
Therefore, it is still unclear whether the development mode of EPC business is the integrated innovation at the company level or the seamless connection of small front-end and large back-end, which is confusing.
The construction enterprises lack the idea and experience of EPC project risk assessment, which is reflected in the lack of market direction, insufficient bidding quotation and easy to get out of control in the implementation process.
Inertia thinking of construction enterprises.
In particular, in December 2017, the bidding law was revised, which did not involve the general contracting of the project, leaving market participants at a loss.
In the field of civil architecture, conceptual design, scheme design and architectural design are still the key links that the owner can not fully let go, and are also one of the practical problems encountered in the promotion of EPC mode.
Affected by the traditional construction mode, some owners do not determine the EPC contract price according to the general project budget, but according to the traditional construction mode, the “intelligent value” of the general contractor’s scheme optimization and overall coordination in the whole process of project implementation cannot be reflected.
Many construction enterprises expand the EPC project business, generally follow the traditional construction management mode, do not establish the corresponding project management system, do not understand the EPC project management mode, and lack professional management team, resulting in poor management ability and poor implementation effect.
The inertia thinking and concept of the owner are vague.
