COST MANAGEMENT IN PURCHASING PHASE OF OVERSEA EPC PROJECT

Cost management in purchasing phase is the theme and core aspect of project cost control,and total purchasing cost consists of direct cost and indirect cost.It is summarized that factors influencing purchasing include market competition relationship,project complexity,quality standard,construction period,price fluctuation of raw materials,components and equipments,purchasing quantity,terms of payment and EPC general contractor's purchasing management ability.It is suggested to carry out early market survey and establish market information mechanism; to prepare feasible material purchasing plan,reasonable purchasing budget and cost estimation; to collect information and data and classify different materials.