Research and control of the Risk of EPC Contractor Based on the Supply Chain

Engineering, Procurement and Construction (EPC)/Turnkey Contract is mature in developed countries, like America and European countries. But to China, it's a relatively new thing. The wide use of EPC Contract will meet a lot of problems. In order to solve management problems of the EPC contract, the construction industry began to introduce supply chain management ideas, theories and methods. As distinguishing feature of construction industry, the construction project supply chain risks are unique. The risks will be very costly. How to control the contract risk is the most important thing to the contractor. This article starts from the correct understanding of EPC supply chain and its risk characteristics. At first, EPC supply chain are defined, a EPC supply chain management model is established, and on the basis of relevant theory of general supply chain risk and its management, combining with characteristics of general contracting EPC supply chain, the general contracting EPC supply chain risk is identified and analyzed. Then, the principles of making general contracting EPC supply chain risk assessment index system are determined. Finally, from the perspective of system management and comprehensive risk management, the comprehensive risk management framework for general contracting EPC supply chain is built, at the same time its corresponding support conditions are analyzed in order to achieve effectiveness, integrity and value of risk management, and to improve the risk management.