If a total price contract is adopted, the total contract price shall not be adjusted unless it can be adjusted as agreed in the contract.
Because no matter which contracting mode is adopted, these risks are unpredictable to the contractor, and have little correlation with the Contractor’s management level and decision-making ability, but are closely related to the general environment during the construction period.
When the total construction period of the project allows, the General Contracting Bidding of the project is generally carried out after the preliminary design is completed and the preliminary design review is completed.
The contract subject is simplified, the contract relationship is simple and clear, and the owner’s construction process management responsibility, audit workload and the number of risk sources are greatly reduced, which is conducive to the owner’s initiative management.
Through this general contracting mode, which brings together highly specialized and familiar labor division units, it helps to reduce communication links, improve project work efficiency and construction speed, scientifically and reasonably allocate project duration and realize project optimization.
The owner and the EPC contractor may agree on the measurement rules and pricing methods of EPC in the contract.
(2) The general contractor shall bear internal implementation risks, such as management risk, quality risk, safety risk, risk of change due to drawing quality, risk of conflict between professional designs, risk of mismatch between drawings and project progress, etc..
The owner and EPC contractor are encouraged to use insurance means to enhance their ability to prevent risks.
General contracting refers to the contracting of the whole process or several stages of the design, procurement, construction and commissioning of the construction project by the general contracting enterprise entrusted by the owner according to the contract.
It is recommended to use the model text of EPC contract formulated by the Ministry of housing and urban rural development in conjunction with relevant departments.
In order to better analyze and solve the problems, first of all, from a fair and reasonable point of view, we analyze the respective responsibility distribution of both parties of the EPC contract as follows: (1) The owner shall bear the external environmental risks, such as the risk of demand change, such as policy risk, such as the risk of specification change, such as the risk of price rise.
Communication channels are more direct.
The contents of the bidding documents require that the owner shall prepare the bidding documents for the EPC project according to the characteristics and needs of the bidding project, mainly including the following contents: (1) instructions to bidders; （2） Bid evaluation methods and standards; （3） Main terms of the proposed contract; （4） As required by the employer, list the objectives, scope, design and other technical standards of the project, including clear requirements for the content, scope, scale, standard, function, quality, safety, energy conservation, ecological environment protection, construction period, acceptance, etc.
(the above is quoted from the general contracting management measures of the Ministry of housing and urban rural development) compared with the traditional separate bidding mode for design and construction, the general contracting mode is the integration of design and construction and equipment procurement, and other contracts are the same, such as cost consulting Entrusted services such as project supervision and special projects such as municipal supporting facilities are still entrusted by the owner alone.
For such problems that will be encountered and faced regardless of any construction mode and selection of any contracting enterprise, it is appropriate to be borne by the owner.
For an enterprise’s investment project in the form of EPC, it shall contract out the EPC project after approval or filing.
The EPC project general contracting mode simplifies the design, construction, procurement and other contracts signed in the past into EPC project general contracting contracts.
of the project; （5） Data and conditions provided by the owner, including hydrogeological, engineering geological, topographic and other survey data completed before contract awarding, as well as feasibility study report, scheme design document or preliminary design document; （6） Format of tender documents; （7） Other materials required to be submitted by the bidder.
The owner may put forward the requirements for performance security in the bidding documents and require the bidding documents to specify the contents to be subcontracted according to law; Where there is a maximum bid price limit, the maximum bid price limit or the calculation method of the maximum bid price limit shall be specified.
(from GB / t50358-2017 code for general contracting management of construction projects) for the owner, compared with the traditional mode of separate bidding for design and construction, the advantages of EPC mode mainly include: simple and clear contract relationship.
Therefore, the management and control problems encountered in the general contracting mode will also be encountered in the traditional separate bidding mode of design and construction.
(quoted from the general contracting management measures of the Ministry of housing and urban rural development) in the bidding stage of general contracting, the owner shall complete the project approval, approval or filing procedures before contracting out.
(quoted from the general contracting management measures of the Ministry of housing and urban rural development) therefore, when the general contracting mode is adopted, the design is generally divided into two parts for bidding, one part is the scheme and preliminary design content, which are completed before the general contracting bidding, and the other part is the construction drawing design, which is included in the General Contracting Bidding scope.
(quoted from the general contracting management measures of the Ministry of housing and urban rural development) the scheme and preliminary design unit may participate in the General Contracting Bidding of the project proposal, feasibility study report, preliminary design document preparation unit and its evaluation unit of the government invested project, and generally shall not become the general contracting unit of the project.
Therefore, the behavior of wanton registration and insincere bidding is reduced to a certain extent, and the pertinence and effectiveness of bidding are improved to a certain extent.
The specific risk sharing contents shall be agreed by both parties in the contract.
EPC project general contracting mode is a contracting mode integrating design, procurement and construction.
However, because the EPC mode is an integrated form of design and construction, the scope of bidding and contract agreement are different from the traditional mode, so the possible ways to solve the same problems are different.
EPC is the general contracting mode, which is the integration of design, procurement and construction (EPC is engineering, procurement and construction).
(quoted from the general contracting management measures of the Ministry of housing and urban rural development) the risk borne by the owner (I) the part where the fluctuation range of the prices of main engineering materials, equipment and labor exceeds the range agreed in the contract compared with the base period price at the time of bidding; （2） Changes in contract price caused by changes in national laws, regulations and policies; （3） Changes in project cost and construction period caused by unforeseen geological conditions; （4） Changes in project cost and construction period due to the owner; （5） Changes in project cost and construction period caused by force majeure.
(the above is quoted from the general contracting management measures of the Ministry of housing and urban rural development) the total price contract should be adopted for the general contracting of contracts and measurement enterprise investment projects, and the general contracting of government investment projects should reasonably determine the form of contract price.
The EPC mode is suitable for projects with clear construction contents and mature technical schemes.
In principle, for a government invested project that adopts the general contracting method, the general contracting project shall be contracted out after the preliminary design approval is completed; Among them, government investment projects that simplify the approval documents and approval procedures in accordance with the relevant provisions of the State shall contract out the EPC project after completing the approval of the corresponding investment decision.
If the tenderee of a government investment project discloses the completed project proposal, feasibility study report and preliminary design documents, the above units may participate in the bidding of the EPC project and become the EPC unit after bid evaluation and award according to law.
At the same time, when bidding for EPC project, the bidder needs to complete a certain depth of drawing design when preparing bidding documents, and the bidding cost of the bidder increases significantly.
