Project general contracting mode

According to the process content and financing operation, the general contracting mode can be divided into 1 and E+P+C mode (project procurement and construction)/turnkey contract.

EPC (the combination of engineering (design) and procurement (construction)) means that the general contracting enterprise undertakes the design, procurement, construction and commissioning services of the project in accordance with the contract, and is fully responsible for the quality, safety, construction period and cost of the contracted project. It is the most important project general contracting mode in China at present.

Turnkey general contracting is an extension of the general contracting business and responsibility of engineering procurement and construction, and ultimately it is to submit a project that meets the use function and has the use conditions to the owner.

2.E+P+CM mode

EPCM (Combination of Engineering, Procurement and Construction Management) is one of the most popular engineering payment and management modes in the international construction market, and it is also one of the general contracting modes currently implemented in China. The EPCM contractor is entrusted by the owner or determined by bidding, and the contractor directly signs a contract with the owner to be fully responsible for the design, material and equipment supply and construction management of the project. According to the investment intention and requirements put forward by the owner, select and recommend the most suitable subcontractor for the owner through bidding to complete the design, procurement and construction tasks. The design and procurement subcontractors are responsible for EPCM contractors, while the construction subcontractors are managed by EPCM contractors instead of signing contracts with EPCM contractors, and the construction subcontractors have a direct contractual relationship with the owners. Therefore, EPCM contractors do not have to bear the construction contract risks and economic risks. When EPCM general contracting mode implements one-time total quotation payment, the economic risk of EPCM contractor is controlled within a certain range, the economic risk undertaken by the contractor is relatively small, and the profit is relatively stable.

3, design+construction general contracting (D+B)

Design-construction general contracting means that the general contracting enterprise undertakes the design and construction of the project according to the contract, and is fully responsible for the quality, safety, construction period and cost of the contracted project.

4. According to the different scale, type and owner's requirements of the project, the general contracting of the project can also adopt the methods of design-procurement general contracting (E-P) and procurement-construction general contracting (P-C).

Figure: Main ways of general contracting of projects

1, project BOT mode

BOT(build-operation-transfer) means that the government or its authorized government departments, after a certain procedure and signing a franchise agreement, grant the right of financing, investment, construction, operation, management and use of specific infrastructure, public utilities or industrial projects in an exclusive country to domestic and/or foreign nationals and private enterprises within a certain period of time, and the government reserves the permanent ownership of the projects, facilities and related natural resources; Private enterprises set up project companies to invest, develop, build, operate and manage franchised projects in accordance with the franchise agreement signed between the government and the project company, so as to pay off project debts, recover investment and profits with operating income, and hand over projects and facilities to the government free of charge at the expiration of the franchise period. Sometimes, BOT mode is called "temporary privatization". BOT mode has been practiced in the National Gymnasium, National Convention Center and Beijing Wukesong Olympic Basketball Hall. The government provides a franchise agreement for the construction and operation of the project, requiring investors to undertake the design, investment, construction and operation of the project, and make commercial profits in a limited time. After the expiration, the venue needs to be delivered to the government.

The development direction of BOT:

1), BOO (build-own-operate) means: build-own-operate.

Once the project is completed, it will be owned by the project company, and the local government will only buy the project services.

2) Boot (build-own-operate-transfer) means: build-own-operate-transfer.

The project company owns the ownership of the completed project facilities and is responsible for their operation. After a certain time, the project will be handed over to the government.

3) BLT (build-lease-transfer) means: build-lease-transfer.

After the project is completed, it will be leased to a third party within a certain period of time, and the investment and operating income of the project will be recovered by leasing in stages, and then the ownership will be transferred to the government.

4) BTO (build-transfer-operate) means build-transfer-operate.

The public nature of the project is very strong, which is not suitable for private enterprises to enjoy ownership during the operation period. After the completion of the project, the ownership must be transferred, and then the project company will maintain the operation.

5) ROT (reconstruction-operation-handover) means: repair-operation-handover.

If the damage is found after the project is used, the owner of the project facilities shall carry out maintenance, recovery, rectification, operation and handover.

6) DBFO (design-construction-financing-operation) means: design-construction-financing-operation.

7) Bt (Build-Transfer) means: Build-Transfer.

8) Boost (build-own-operate-subsidize-transfer) mode: build-own-operate-subsidize-transfer.

9) ROMT (Repair-Operation-Maintenance-Transfer) means: Repair-Operation-Maintenance-Transfer.

10), Roo (rebuild-own-operate), that is, repair-own-operate.

2. BT mode of the project

BT is the abbreviation of English Build and Transfer, which means "build-transfer", and it is a mode for the government or developers to use the contractor's funds to finance construction projects. BT mode is a transformation form of BOT mode, which refers to the process that the project company hands over the operation of the project to the owner after general contracting, financing and construction acceptance, and the owner pays the investor the total investment of the project plus a reasonable return.

Using BT mode to raise construction funds has become a new project financing mode.