As well-known foreign construction companies have landed in China, some internationally popular construction management models have been introduced one after another, and the "Project Management Contract (PMC)" is one of them. This model means that the project owner hires a company (usually an engineering company or consulting company with considerable strength) to manage the entire project process on behalf of the owner. This company is called the "Project Management Contractor (Project Management Contractor) in the project, also referred to as for PMC)". When this model is used to manage the project, the owner only needs to retain a small part of the infrastructure management force to make decisions on some key issues, while most of the project management work is undertaken by the project management contractor.
The work content of PMC can generally be divided into three types according to the scope of work of PMC: one is to manage the project on behalf of the owner, and also undertake the design/procurement/construction of some outside and public facilities (hereinafter referred to as the general manager) Contracting model/EPC) work, this work method has high risks for PMC, and the corresponding profits and returns are also high. The second is as an extension of the owner's management team, managing EPC contractors without undertaking any EPC work. The corresponding risks and returns of this PMC model are lower than those of the previous type. The third is to serve as the owner's consultant, supervise and inspect the project, and report unfinished work to the owner in a timely manner. This PMC model has the lowest risk, close to zero, but the return is also low.
According to the internationally popular project phase division method, the project can be divided into two stages, namely the preliminary stage (also called the definition stage, FEL or FEED) and the implementation stage (also called the EPC stage, i.e. design /Procurement/Construction Phase). The preliminary stage refers to the stage before the detailed design begins. The preliminary stage includes all engineering activities before the detailed design begins. Although the workload of this stage only accounts for 20-25% of the total engineering design workload, the impact of this stage on the entire project investment is As high as 70-90, so this stage is very important for the entire project. In the early stages of the project, the PMC's task is to manage the project on behalf of the owner. Mainly responsible for the following tasks: Optimizing project construction plans; optimizing project risk management, diversifying or reducing project risks; providing financing plans and assisting owners to complete financing work; reviewing process package design documents provided by patentees, and proposing uniform policies to be followed by projects Standards and specifications, responsible for organizing or completing basic design, preliminary design and overall design; assisting owners to complete relevant approval work for all aspects of the project by government departments; proposing a list of equipment and material suppliers, proposing a list of imported equipment and materials; proposing a project Implement the plan, complete the project investment estimate; prepare EPC (or EP) bidding documents, pre-qualify EPC (or EP) bidders, and complete bidding and bid evaluation.
During the project implementation phase, the winning general contractor is responsible for executing detailed design, procurement and construction work. At this stage, PMC is responsible for the management, coordination and supervision of all projects on behalf of the owner until the project is completed. It is mainly responsible for the following tasks: preparing and issuing unified project regulations; designing management and coordinating technical conditions, and being responsible for the details of certain parts of the overall project. Design; procurement management and provide procurement services for the owner's domestic purchases; cooperate with the owner in production preparation, organize device assessment and acceptance; hand over all project information to the owner.
The advantages of the PMC model are optimized through project design to achieve the lowest cost during the project life cycle. PMC will use its own technical advantages to conduct a comprehensive technical and economic analysis and comparison of the entire project based on the actual conditions of the project location, and optimize the entire design based on the principles of complete functions, advanced technology, and economic rationality.
After completing the basic design, a certain contract strategy will be adopted and an appropriate contract method will be selected for bidding. First, the project needs to be decomposed into several work packages. The following principles should be followed when subcontracting: divide by region (devices that are arranged closely are placed in one package); reduce and simplify interfaces; limit a certain amount of investment to each package. Resolve or reduce the risks brought by EPC.
The three contract forms that are mainly considered are EPC, EP C, and E PC. In addition, there are other contract forms such as fixed unit price contracts (including service contracts) and lease contracts. PMC will comprehensively consider which contract form to adopt based on factors such as the design depth, technical complexity, construction period, and project volume of different work packages, thereby saving investment for the owner as a whole.
Reduce investment through PMC’s multi-project procurement agreement and unified project procurement strategy. A multi-project purchase agreement is a supply agreement signed between the owner and the manufacturer for a commodity (equipment/material). The manufacturer who enters into this agreement with the owner is the sole supplier of such goods (equipment/materials) in the project. The owner obtains discounts in terms of price, daily operation and maintenance through this agreement. Each EPC contractor must purchase corresponding equipment in accordance with the agreement provided by the owner. Multi-project procurement agreements are an important part of PMC's project procurement strategy. In the project, it is necessary to select an appropriate amount of product categories to avoid placing too many restrictions on the EPC contractor and affecting its enthusiasm. The PMC shall also be responsible for promoting cooperation among contractors in line with the owner's goal of reducing total project investment, including obtaining a reasonable amount of export credits and fully complying with program requirements.
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