【Haichuan EPC】How to create a risk checklist for the entire lifecycle of an EPC project

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EPC Project Full-Cycle Risk Checklist (Essential for Practical Use) Signing the contract is just the first step in a long journey. During project execution, it is necessary to remain vigilant regarding risks at all times. Phase 1: Before bidding and signing (critical! ) · Is the project legal? Are the approval, authorization, and record-filing procedures complete? (Government project: Has the preliminary design been approved?) ) · Have the owner’s requirements been made clear? Can it be used as evidence in a trial? · Did you read the geological survey report carefully? Are there any “surprises” underground? · Can the fixed total price cover it? Has the risk fee been calculated properly? · Is the risk allocation under the contract reasonable? Has anyone made you take the blame for something you shouldn’t have? · Are the payment terms favorable? Are the nodes clear? Do you need to put up upfront funds? (Government project; advance payment is strictly prohibited!) ) · Is the settlement based on the audit? If so, try to cancel it; otherwise you might be severely punished. Phase 2: Project execution in progress (keep an eye on it! ) · Is there a disconnect between design and construction? Designers need to understand construction, and constructors need to understand design; only through deep integration can costs be saved. · Has the purchase been “designated”? If the owner recommends a supplier, it is necessary to assert one’s right to make choices and to negotiate, and to clarify who will be held responsible if there are problems with the designated supplier. · Is subcontracting legal? Remember the iron rule: the main project must never be subcontracted! It’s illegal to divide it. · Is the visa change timely? Any changes by the owner must be confirmed in writing and go through the proper procedures; it is not sufficient to rely on verbal agreements. · Have the process documents been kept on file? Meeting minutes, contact forms, inspection records… these are all “evidence” in the future, so keep them well! Stage 3: Settlement during warranty period (the final step!) ) · Are the settlement documents ready? Is it complete and valid, and can it prove that you have fulfilled your obligations perfectly? · What to do in case of a dispute? It is preferable to follow the review or mediation mechanisms stipulated in the contract, as this is faster and cheaper than going straight to court. · Is the warranty responsibility clear? When does the warranty period start? What to insure? Keep it in mind. 03 When working on EPC projects and wanting to make money without making mistakes, remember these three points: 1. Don’t use the mindset of a general contractor for construction when undertaking work as a general contractor for projects. The way of thinking needs to change. 2. The contract is the “master switch” for risks. Spending an extra hour on reviewing contracts on the front end can save 100 hours of back-and-forth on the back end. 3. Cost engineers are not responsible for quantity calculation; they act as the \"chief financiers\" in charge of managing money. Control costs dynamically from start to finish. I hope this guide will help you make EPC projects run more smoothly and earn more!