Research on Key Risk Factors and Risk Transmission Path of Procurement in International Engineering Procurement Construction Project

Abstract

As the core link of Engineering Procurement Construction (EPC) projects, procurement involves a huge amount of money and has a wide range of influence. Once the procurement risks of EPC projects occur, it is easy to cause a domino effect, which can have a huge impact on the cost, schedule and quality of the construction project. Therefore, this paper took international EPC projects as the research object, identifying 25 risk factors related to procurement through case analysis, literature analysis and expert interviews. Integrated Interpretative Structural Modelling (ISM) and Cross-Impact Matrix Multiplication Applied to Classification (MICMAC) method was used to establish the interrelationships between risk factors. Based on the results, procurement risk transmission paths for international EPC projects are developed, and key risk factors are found. Moreover, corresponding risk management suggestions are put forward. The research results impel contractors of the international EPC projects to pay close attention to the key risk factors in the project procurement process. After recognizing the risk transfer path, contractors can take measures to avoid risk to reduce the possibility of project failure as soon as possible. This research can provide support for managing procurement risk in the international EPC project.