EPC (Engineering, Procurement, Construction) means that the general contractor is responsible for the entire process of design, procurement, construction and installation of the project, and is responsible for trial operation services. The essence of EPC general contracting is to give full play to the integrated management advantages of the general contractor, integrate the organization of engineering design, construction, equipment procurement and other processes, and promote the close integration of design and construction. Through the integrated management of design, procurement and construction, the The optimized allocation of shared resources adds value to the project, thereby earning more profits. The most commonly used EPC general contracting method at present is that the design institute (engineering company) completes the project design for the general contractor and subcontracts the construction and equipment manufacturing to various professional subcontractors. Based on the characteristics of the EPC general contracting project, when determining the construction subcontract There are often no formal design drawings before contracting, which determines the diversity of construction subcontracting pricing methods. Depending on the project, the following pricing methods are generally used:

This pricing method is highly applicable and can be applied to any project. Its characteristic is that before the final project quantity is determined in the preliminary design stage, bidding and contract negotiations can be conducted to identify construction subcontractors and carry out construction preparations as soon as possible. The advantage of this pricing method is that it is easier to select subcontractors in the early stage, so that the project can start construction as soon as possible. The disadvantage is that the workload is heavy in the later stage, and disputes may arise when the two parties determine the project price due to company interests and personal business skills.

The fixed total price valuation method is suitable for projects designated by the construction unit as subcontractors or subcontractors by subordinate units of the general contractor, or for projects with finalized designs where it is easier to determine the contract price. When there are no formal construction drawings, the fixed total price method generally adopts a lump sum estimate. Most subcontractors designated by the construction unit choose this pricing method, and the general contractor has less risk. The defects in its EPC bid will be transferred by the subcontractor, and the price will be borne by the subcontractor regardless of whether it is over- or under-reported. The contractor's profit margin is compressed, and the subcontractor's risk is greater, because the design is under the control of the general contractor, and the subcontractor cannot control its own destiny. Subcontracting by subordinate units of the general contracting unit is an internal transaction, and the risks are digested internally. For some final designs, there are formal drawings before the cost is determined, which can be calculated and determined, and the risks for both parties are small.

Because the EPC general contracting project is a preliminary design general contracting project, the structural type and building area (volume) of the building (structure) have been determined before there is a formal blueprint. More suitable for unit price contracts similar to bill of quantities quotations. Using a fixed unit price, the contract can estimate the quantity unit price contract and the pure unit price contract. The estimated project quantity unit price contract is based on the project quantity bill and the project unit price list to calculate the contract price. Usually, the general contractor proposes a total project quantity estimate table, listing the sub-project quantities, and the subcontractor fills in the unit price based on this. The total price of the final project should be calculated based on the actual completed project quantity. The unit price of the sub-projects in the contract is multiplied by the actual project quantity to arrive at the total project settlement price. Using an estimated quantity unit price contract allows the contractor to have a clear idea of ​​the scope of the work it is bidding for. This type of contract is generally suitable for situations where the nature of the project is relatively clear, but the tasks and their required standards cannot be completely determined. When this kind of contract is adopted, the project quantities are calculated uniformly, and the subcontractor only needs to fill in the appropriate unit price, and the risk is relatively small. With a fixed unit price contract, the subcontractor quotes not the total price, but the unit price. The unit price is multiplied by the quantity of work approved by the general contractor before the total price of the project is summarized. This total price is a conceptual thing, or just It is a general reference value provided by the general contractor when comparing the bids of various subcontractors, so as to select the final subcontractor. It also prevents subcontractors from receiving additional revenue through what is commonly known as an unbalanced quote. The EPC fixed unit price valuation method is based on the detailed preliminary design. The quantities of each sub-item of the project will not change significantly, which is conducive to the accuracy of the quotation. This contract form is mainly suitable for cases where there are no construction drawings, the quantity of the project is unknown, but there is an urgent need to start construction. Urgent projects. The advantages of the fixed unit price pricing method are that the interim and final settlement payments are relatively simple, the settlement workload is small, and the final contract price is determined quickly.

Adjustable unit price contracts and fixed unit price contracts have similar advantages and disadvantages. The biggest difference between the two is that in an adjustable unit price contract, the unit price quoted by the subcontractor when bidding is not fixed. Under certain conditions agreed by both parties to the contract, , the unit price can be adjusted. For example, labor costs or material prices can be adjusted according to changes in the price index to a certain extent. In an adjustable unit price contract, the risk of changes in the quantity of work is still borne by the general contractor, but the unit price is handled more flexibly. That is, the price risk or a certain type of unpredictable risk caused by changes in the price index is not borne by the general contractor or the general contractor. One of the subcontractors shall bear the responsibility alone, but it shall be jointly borne by the general contractor and the subcontractor by adjusting the unit price. This pricing method is suitable for periods when the project construction period is long and prices fluctuate greatly.

In actual engineering project contracting, the general contractor should reasonably choose the contract pricing method based on the specific conditions of the project and its own strength, and fully understand the characteristics of various pricing methods, and actively innovate on the contract pricing method. , thereby effectively controlling risks and ensuring smooth implementation of the project.