Plant Projects encompassing EPC(Engineering, Procurement and Construction) works are known highly value-added. In this reason, The Major trend of Korean Overseas construction has shown an increasing number of the awarded plant projects since 1990. The...
Plant Projects encompassing EPC(Engineering, Procurement and Construction) works are known highly value-added. In this reason, The Major trend of Korean Overseas construction has shown an increasing number of the awarded plant projects since 1990. Therefore, it is time to focus on analyzing factors related to plant projects. There are key factors to carry out EPC Projects such as specialized skills, information networks, construction management and so on. These factors should be linked systematically to maximize profits.
According to OCIS(Overseas Construction Information Services)of ICAK, The awarded value of plant projects is $ 4,836mil(total $ 6,200mil) in 2002. We can see the major construction trend is that plant projects hold the larger portion of the total in recent years.
In response to above trend, Questionnaires were used on 59 overseas projects including plants to analyze key factors affecting profitability. As a result of the study, upper 20% of risk factors are disadvantageous contract terms, decision of the project appraiser, over-competition and low skills. We can extract proper measures to avoid major risks by gathering data from questionnaires. The first measure is to increase engineering and claim-managing capabilities. second one is to improve construction management and to produce project experts. The last one is voluntary cooperation(coordination) to avoid over-competition.
Considering major risk patterns so far, We should enhance risk management skill and make the most of the past overseas construction experiences to attain a substantial global market share.