Design Optimization and Procurement Cost Control of EPC Project

Key words: 
• design optimization /
• contract risks /
• taxation planning /
• variation management

Abstract: EPC projects focus optimization management. This paper addresses procurement and design cost control in project management, identify the critical points and risk points in this perspective and analyzes them. This paper describes the critical points and risk points in the process of design optimization management, and analyzes the essential points from the perspectives of contract management and risk management. Meanwhile, this paper emphasizes the importance of taxation planning in controlling the procurement cost. The role and initiative of the design team are critical to design optimization. An optimization group is set up to address the issues related to the benefits of concerned parties in the process of project execution. The contract is the embodiment of contract spirit, as well as the most effective means of binding on concerned parties of the project. Design management and procurement management are the focuses of project execution, as well as the hardest part of the project execution. To plan well is the prerequisite of all the later tasks.