International project management mode and its development trend

Project management is a systematic management activity that effectively plans, organizes, controls and coordinates the whole process of project construction according to objective economic laws. From the content point of view, it is the whole process management of project construction, that is, the whole process management from project proposal, feasibility study and analysis, engineering design, engineering construction to completion and production. In nature, project management is the micro-foundation of fixed assets investment management, and its nature belongs to the category of investment management. Project management mode refers to taking the managed object as a system, and through certain organization and management methods, the system can run normally and ensure the realization of its goals.

In recent years, some international advanced engineering companies, such as Berkeley, Flower, Foster, Wheeler, KBR, AMEC, JGC, Looms, etc. Some mature project management methods have been introduced to meet the needs of large-scale and integrated project construction, large-scale project financing and project risk diversification.

Traditional project management mode (DBB mode)

That is, the design-bidding-construction model. This management mode is the most common in the world, and it is adopted by the World Bank, ADB loan projects and projects based on FIDIC contract conditions. The most prominent feature is that the implementation of the project must be carried out in the order of design-bidding-construction, and another stage can only be started after the end of one stage. In DBB mode, the main three parties involved in the project are the owner, architect/engineer and contractor.

Advantages: strong versatility; Can freely choose consulting, design and supervision parties; All parties are familiar with the standard contract text, which is beneficial to contract management, risk management and investment reduction.

Disadvantages: the project can only be handed over to the owner through three links: planning, design and construction, and the project cycle is long; The owner's management cost is high, and the initial investment is large; It is easy to cause more claims when changing.

Construction project management mode (CM mode)

Also known as stage contract method, the owner hires a consultant with rich construction experience at the beginning of the project, that is, CM manager, to participate in the project and be responsible for the management of the whole design and construction process. It broke the continuous construction mode of bidding after the design drawings were completed. Its characteristic is that the owner and the project manager and engineer entrusted by the owner form a joint team to organize and manage the planning, design and construction of the project. After the partial (single) project design is completed, the part will be invited for bidding and awarded to the contractor. If there is no general contractor, the owner will directly sign a contract with the contractor for each single project.

Its advantage is that it can shorten the cycle from planning, design, construction to delivery to the owner, save construction investment, reduce investment risk, and the owner can get benefits earlier. Because of the high contracting cost caused by the bidding of sub-projects, it is necessary to analyze and compare, study the number of sub-projects and choose the joint point.

Proxy CM mode

CM unit is the owner's consulting unit, and the owner signs consulting service contracts with CM unit, and the owner signs all engineering construction contracts and supply contracts with multiple construction units and materials and equipment suppliers respectively. CM unit has no command over the design unit, and can only put forward some reasonable suggestions to the design unit, so there is a harmonious relationship between CM unit and design unit. This is also an important difference between CM mode and whole process construction project management. CM unit has a coordinated management relationship with many construction units and suppliers of materials and equipment.

The agent construction unit under the agent construction mode is usually a professional agent construction unit or consulting unit with rich construction experience.

Non-proxy CM mode

This mode, also known as risk CM mode, belongs to the organizational structure of management contracting mode. Owners generally do not sign construction contracts with construction units, but in some cases, they may sign contracts with a few construction units and suppliers of materials and equipment for some professional engineering contents and special materials and equipment. The contract signed by the owner and CM unit includes both CM service content and engineering construction contract content; CM unit is to sign contracts with construction units and suppliers of materials and equipment, and manage the agreements.

Although CM unit directly signs contracts with subcontractors, the bidding and signing of each subcontractor by CM unit is open to the owner and must be confirmed by the owner before it becomes effective.

As the CM unit got involved in the project earlier (generally in the design stage) and did not undertake the design task, the CM unit can not directly quote the price of the specific project to the owner, but can only quote the CM fee. The cost of the project itself is the sum of the contract prices of the CM unit, subcontractors and suppliers in the future.

When the owner signs a CM contract, the contract price is not a definite specific data, but mainly determines the pricing principle and method, which is essentially a special form of cost plus reward contract.

When the non-agent CM mode is adopted, the owner cannot directly control the project cost, which is very risky. Therefore, the owner often requires that a "total price" including the total project cost and CM fee be determined in advance in the CM contract, and it is stipulated in the contract terms that if the actual total cost exceeds the "total price", the excess part shall be borne by the CM unit; On the contrary, the remaining part belongs to the owner, or is divided by the owner and CM unit according to a certain proportion.

Design-build mode (DBM mode) and turnkey mode (TKM mode)

Design-build method means that only the entity selected by the owner is responsible for the design and construction of the project after the project principle is determined. The design-construction contractor is not only responsible for the cost of the design stage, but also can select subcontractors through bidding or use the company's professionals to complete the project, including design and construction. In this way, the owner first chooses a professional consulting organization instead of the owner to study and formulate the basic requirements of the proposed project, and authorizes a person with sufficient professional knowledge and management ability to contact the design-construction contractor as the owner's representative.

Turn Key Method is a special design-build method, that is, the contractor provides the owner with a full set of services including project feasibility study, financing, land purchase, design, construction and handover to the owner after completion. Keep a single contract responsibility in the project implementation process, consider the construction factors in advance at the initial stage of the project, reduce the management cost, reduce the changes caused by design mistakes and negligence, and reduce the claims to the owners. However, the owner cannot participate in the selection of architects/engineers, and the owner's representative plays a supervisory role, so the engineering design scheme may be affected by the interests of the builder. Owners have less power to monitor this.

Build-operate-transfer model (BOT model)

The build-operate-transfer model is called BOT model. BOT mode is a project management mode that arose abroad in 1980s and relied on private capital to carry out government infrastructure projects or privatize state-owned infrastructure projects. The government opens the domestic infrastructure construction and operation market, authorizes the project company to be responsible for fund raising and organization construction, and is responsible for the operation and repayment after completion, and then hands it over to the government free of charge after the agreement expires.

BOT mode does not increase the foreign debt burden of the host country, but can also solve the problem of insufficient infrastructure and construction funds. Project sponsors must have strong economic strength (big consortium), and the pre-qualification and bidding procedures are complicated.

Project management contractor (project management contractor)

PMC mode for short. That is, the owner hires a professional project management company to manage and serve the whole process or several stages of project organization and implementation on behalf of the owner. Due to the different participation and responsibilities of PMC contractors in project design, procurement, construction, commissioning and other stages, PMC mode has greater flexibility. Generally speaking, PMC has three basic application modes:

The owner selects design units, construction contractors and suppliers, signs design contracts, construction contracts and supply contracts with them, and entrusts PMC contractors to manage the project. In this mode, PMC contractor, as an extension of the owner's management team, manages and controls the quality, safety, schedule, cost and contract of the project on behalf of the owner. This situation is generally called project management service, that is, PM (Project Management) mode.

The owner signed a project management contract with PMC contractor. The owner selects the design unit, construction contractor and supplier (or part of them) through designation or bidding, but does not sign the contract. PMC contractors sign design contracts, construction contracts and supply contracts with them respectively.

The owner signs the project management contract with the PMC contractor, and the contractor chooses the construction contractor and supplier independently, signs the construction contract and supply contract, but is not responsible for the design work. In this mode, PMC contractors usually ensure that the project cost does not exceed a certain limit (that is, general contracting or limited contracting) and ensure that the project is completed on time.

The international upstream bank divides the project into two stages, namely, the early stage and the implementation stage. In the early stage of the project, the task of PMC contractor is to manage the early stage of the project on behalf of the owner, including: optimizing the project construction scheme; Optimal management of project risk; Review design documents and organize the completion of design; Assist the owner to complete all aspects of government approval; Put forward the list of imported equipment and materials and their suppliers; Put forward the project implementation plan and complete the project investment estimation; Prepare bidding documents, conduct pre-qualification and complete bidding and evaluation.

In the project implementation stage, the winning contractor is responsible for the detailed design and construction, and the PMC contractor is responsible for all the management, coordination and supervision of the project on behalf of the owner until the project is completed. The main work includes: compiling and issuing unified engineering laws and regulations; Design management, coordinate technical conditions to ensure consistency and interaction between contractors; Procurement management; Construction management and coordination; Cooperate with the owner to prepare for operation and organize trial operation and acceptance; Hand over all project data to the owner, etc.

PMC mode generally has the following characteristics:

Contracting design management, investment control, construction organization management and equipment management to PMC contractors, and separating heavy and trivial specific management work from the owner's hands, will be beneficial to the owner's macro-control and better achieve the project construction goals.

The management force is relatively fixed, and it can accumulate a whole set of management experience, and constantly improve and develop, so that experience, processes and personnel can be passed down and accumulated, and a professional management team can be formed. At the same time, it can greatly reduce the number of management personnel of the owner, which is beneficial to the personnel placement after the completion of the project.

Reducing project cost through engineering design optimization. According to the actual situation of the project, PMC contractor will make a comprehensive technical and economic analysis and comparison of the whole project by using its own technical advantages, and optimize the whole design based on the principles of perfect function, advanced technology and economy.

Engineering procurement construction model (EPC model for short)

This model is also called integrated design and construction model.

This model first appeared in the United States in the 1980s, and attracted the attention of the owners who wanted to determine the total investment and construction period as soon as possible, and its application in the international project contracting market gradually expanded. FIDIC has compiled the standard EPC contract conditions in 1999, which is beneficial to the popularization and application of EPC mode. EPC model is especially suitable for factories, power plants, oil development and infrastructure projects.

In the traditional contract mode, materials and engineering equipment are usually purchased by the general contractor of the project, but the owner can reserve the right to purchase some important engineering equipment and special materials. The name of EPC mode highlights procurement, and the procurement of materials and engineering equipment is entirely the responsibility of EPC contractor.

The contractor bears most of the risks.

Under the EPC mode, the contractor's contract scope includes design and bears design risks.

In FIDIC clause, the risk of "an experienced contractor's unpredictable and unreasonable natural force" is borne by the owner, and in EPC mode, this risk is also borne by the contractor. This undoubtedly greatly increases the risk of the contractor in the process of project implementation.

Some clauses in EPC standard contract conditions also increase the risk of contractors. For example, the "field data" in the EPC contract conditions stipulates: "The contractor shall be responsible for checking and interpreting these data (provided by the owner). The owner does not assume any responsibility for the accuracy, sufficiency and completeness of such data ... "

The owner or the representative designated by the owner shall manage the project.

EPC mode is that the owner does not hire "engineers" to manage the project, but manages the project by himself or by appointing the owner's representative. According to the EPC contract conditions, if the owner's representative is appointed for management, the owner's representative shall be the owner's plenipotentiary.

The basic starting point of EPC contract conditions is that the owner rarely participates in project management, because the contractor bears most of the risks of project construction, and the owner focuses on completion acceptance. However, if a representative of the owner is appointed, it will be different. In some practical projects, the owners designate project management companies as their representatives to conduct comprehensive and strict management of the implementation of construction projects from design, procurement to construction.

Fixed lump sum contract in EPC mode

The EPC contract is closer to the fixed lump sum contract. In international engineering contracting, the fixed lump sum contract is only used for small-scale and short-term projects. However, EPC mode is generally suitable for projects with large scale, long construction period and high technical complexity. In EPC mode, the owner rarely allows the contractor to adjust the price because of the cost change.

There are not many underground concealed works involved in EPC mode, and the work area that the contractor can't survey before bidding can't be too large, otherwise the contractor can't judge the specific engineering quantity, which increases the risk of the contractor.

As the contract stipulates that the contractor shall be responsible for all the design and undertake all the responsibilities of the project, the owner cannot interfere with the contractor's work too much. If the completed project is required to achieve the "expected project purpose in the contract", the contractor shall be deemed to have fulfilled the obligations in the contract. When selecting a contractor, we should highlight the review of the contractor's past performance, the review of technical documents in the tender and the review of the quality management system.

As lump sum contract is adopted, the interim payment can be made monthly or by installments, and the specific amount of each payment or the percentage of the contract price can be agreed in the contract.

modality for co-operation

This model first appeared in the United States in the mid-1980s, and began to attract the attention of the architectural engineering circles in Britain, Australia, Singapore, Hong Kong and other countries and regions in the mid-1990s.

The partnership mode is that the owner and the parties involved in the construction project reach a short-term or long-term agreement on the basis of mutual trust and resource sharing; On the basis of fully considering the interests of all parties involved, determine the same construction project objectives; Establish a working group, communicate in time, avoid disputes and lawsuits, cooperate with each other, * * * solve problems in the process of project implementation, * * * share project risks and related expenses, and ensure the realization of the goals and interests of all parties involved.

The partnership agreement is not only an agreement between the owner and the construction unit, but also needs to be signed by all the participants in the construction project, including the owner, general contractor, subcontractor, design unit, consulting unit and main material and equipment suppliers. Partnership agreements generally focus on the three major objectives of construction projects, as well as engineering change management, dispute and claim management, safety management, information communication and management, and public relations.

trait

All parties involved in the partnership model must be completely voluntary. All parties involved have a unified understanding, adopt an attitude of cooperation and trust in action, and are willing to share risks and related expenses and solve problems and disputes.

Because in the partnership mode, all parties involved in the project should share risks and resources, even the important information resources of the company, the identification, support and decision-making of the senior management of the participants are the key factors.

The partnership agreement is not a contract in the legal sense, so the partnership agreement and the project contract are two completely different documents. After the project contract is signed, the parties involved in the construction project sign a partnership agreement through discussion and consultation. This agreement does not change the rights and obligations of all parties concerned within the scope of the relevant contract, and all parties concerned must still earnestly perform the contents of the relevant contract. The partnership agreement mainly determines the common goals, division of tasks and code of conduct of all parties involved in the construction project, and is a programmatic document of the working group.

The partnership model emphasizes the sharing of resources, and information, as an important resource, must be made public to all interested parties. To ensure that the design data, investment, progress, quality and other information of the project can be obtained by all parties involved in a timely and convenient manner.

Applicable conditions of partnership model

Projects in which the owners have long-term investment activities. Such as large-scale real estate development projects and government infrastructure construction projects. Because of the long-term continuous construction projects as a guarantee, the long-term cooperation between the owner and the construction unit, supervision unit and other parties has a foundation, which is conducive to increasing the understanding and trust between the owner and the parties involved in the construction project, so signing a long-term partnership agreement has good results.

Projects involving national security or secrets and projects with extremely urgent time limit are mainly based on the common goals and good cooperative relations between the owner and the project participants.

Complex and uncertain projects. This kind of project will often produce more contract disputes and claims, which will easily lead to contradictions and even disputes between the owner and the construction unit, and affect the realization of the objectives of the whole construction project. If the partnership model is adopted, it can coordinate the relationship between the parties involved and effectively avoid and reduce contract disputes.

Projects funded by international financial organizations. Often involving foreign contractors, contract disputes and claims often occur and the amount is large. This kind of project adopts partnership mode, which is easily accepted by foreign contractors and operates smoothly, thus effectively preventing and handling contract disputes and claims, avoiding arbitration or litigation, and better controlling the objectives of construction projects.