Empirical Study on the Performance of EPC Contractor Management Module: A Chinese Case

 

Authors: Zhang Jing-xiao; Bai Li; Su Chuan-chuan

 

Abstract

 

The home-and-abroad literature review shows that calculating the performance coefficients between EPC Program and its management module has not been found from the EPC contractor's viewpoint. It is emphasized that management is the main source of benefit, and the essence of EPC module is a kind of instrument producing the performance or benefit. This article, from the EPC contractor's point of view, builds EPC management function performance model, analyzes EPC management income distribution patterns of EPC management module, and constructs Markov state transition matrix by using expert scoring method and AHP method to calculate the performance contribution stability of EPC contractor's management module and to predict the stability of the EPC performance management module. The empirical study of the Branch Company of the 20th China Metallurgical Corporation shows that although the performance coefficients (0.13,0.06,0.3,0.2,0.31) in the module do not meet the pattern of "E-P-C" in EPC management, in which the additional values of the three elements appear decreasing, the coefficients satisfy the pattern of a “smiling” curve, by which it means that a shape of “high at two ends, low in the middle” reflects a relationship between the importance attached to the module and the performance income coefficients resulted from the module. Judging from common sense, it is the construction module (C) that should be at the bottom of the “smiling” curve, not the procurement m- dule (P). The company, therefore, should adjust its focus in the management module to raise its base line in the procurement module so as to create a more reasonable performance income distribution curve.

 

Source: IEEE Xplore