Procurement Cost Control in EPC General Contract Project

Key words: 
• EPC /
• procurement management /
• cost control /
• ABC analysis /
• lean production

Abstract: Procurement cost control in EPC projects has been the prime focus of our project teams. In this investigation, we analyzed the factors which had affected procurement cost in the thermal power projects by using the ABC analysis, and reviewed the practice effect of the lean management method in the Jiangxi Datang International Fuzhou power plant EPC project. The results point out the key equipment and materials which we should pay more attention to, and emphasize the important of reducing cost through the promotion of procurement management. Finally, it summarizes out three major means of procurement cost control in EPC projects. This work provides some guidance for procurement cost control in EPC projects.