1.0.1 This code is formulated with a view to improving the management level of engineering contracting projects, promoting the scientific, standard and legal management of engineering contracting projects, and bring the management of engineering contracting projects in line with the international conventions.
1.0.2 This code is applicable to project management by the project organization of engineering procurement construction (EPC) enterprise after signing the EPC contract.
1.0.3 This code is a basic criterion for standardizing the management of engineering contracting projects.
1.0.4 The EPC enterprise shall establish quality management system, occupational health and safety management system as well as environmental management system covering the overall process of design, procurement, construction and commissioning so as to ensure the quality, function and characteristic of product and service and to meet the requirements of contract and relevant parties.
1.0.5 The EPC enterprise shall establish a project manage system covering the overall process of design, procurement, construction and commissioning so as to improve the efficiency and benefit of project execution.
1.0.6 Responsibility system of project manager and accounting system of project cost shall be adopted for engineering contracting projects.
1.0.7 Advanced project management technology and project management method shall be adopted for engineering contracting projects.
1.0.8 The management of engineering contracting projects shall not only comply with this code, but also meet the requirements of the relevant national laws and regulations and compulsory standards.
2 Terms
2.0.1 Engineering project
Engineering project means a lump-sum undertaking, which needs a given amount of investment and goes through a series of procedures including decision-making and execution (design, construction, etc.), with a clear objective of forming fixed assets under certain constraint condition.
2.0.2 Engineering procurement construction (EPC) contracting
The EPC enterprise, entrusted by the Owner, undertakes the overall process or several stages of the engineering construction projects, including design, procurement, construction, commissioning, etc.
2.0.3 Employer
A party or its qualified legal successor, stipulated in the Contract Agreement, who has the qualification of project contracting-out subject and is capable of paying project price. The Employer in this code is also referred to as the Owner.
2.0.4 Contractor
A party or its qualified legal successor, stipulated in the Contract Agreement, who is accepted by the Employer and has the qualification of EPC subject. The Contractor in this code is also referred to as the EPC Contractor.
2.0.5 Subcontractor
A qualified party to whom the Contractor contracts out partial engineering or services of the EPC project according to the provisions of the EPC contract. The Subcontractor in this code is also referred to as a subcontractor.
2.0.6 Project manager
An entrusted agent of the legal representative of the EPC enterprise for the EPC project.
2.0.7 Project management team
A project management organization established and led by the project manager under the authorization and support of the legal representative of the EPC enterprise.
2.0.8 Responsibility system of project manager
A responsibility system for the management objective of the EPC project, with the project manager as a responsibility subject.
2.0.9 Responsibility documents of project management
Documents where the legal representative of the EPC enterprise, according to the project contract and enterprise operation objective, states the quality, safety, cost, schedule and other control objectives which the project manager and project management team shall reach.
2.0.10 Project stakeholders
Project stakeholders mean individuals or organizations who participate in the project or whose interests have direct or indirect relation with the project.
2.0.11 Project management
All activities involved in the continuous processes of project, where all-round planning, organization, monitoring and controlling are conducted for the project and the knowledge, skill tool and technology of project management are applied to project activities so as to achieve the project objective.
2.0.12 Project management system
The project management system is an organic whole which consists of different project management elements, aiming to realize the project objective and guarantee the project management quality; usually, it includes organization structure, duty, resource, procedure and method. The project management system shall form a document.
2.0.13 Project initiating processes
A process where a project is formally approved and entrusted for execution. The project initiating processes refers to a process where the project manager is appointed and the project management team built under the general contract.
2.0.14 Project planning processes
A process where the optimal plan is selected, according to the project objective, from a variety of alternative action plans to realize the project objective. The output of project planning processes is a project plan.
2.0.15 Project management plan
The project management plan means an internal document for project organization, which is proposed by the project manager, approved by the EPC enterprise manager and has the support and guidance of enterprise.
2.0.16 Project execution plan
The project execution plan is prepared according to the contract and approved project management plan, for the management and control of project execution.
2.0.17 Earned value
Budgeted cost for work performed, which is a yardstick to determine the project progress and completion condition. The earned value has the double characteristics of reflecting both the schedule and cost of project.
2.0.18 Project executing processes
A process of executing the project plan. Most of the project budget will be consumed during this execution process to produce project products.
2.0.19 Project controlling processes
A process where the deviation of actual value and planned reference value is determined according to the regularly measured and monitored project progress; if necessary, corrective measures shall be taken to ensure the realization of project objective.
2.0.20 Project closing processes
The formal taking-over and ordered end-up of project. The project closing processes include contract closing and project management closing.
2.0.21 Engineering; design
A process where the Owner's requirements is interpreted into project product description, namely the process where the engineering project design document is prepared according to the contract requirements.
2.0.22 Procurement
A process where goods and services are obtained from outside execution organization to complete the project, including procurement of equipment and material as well as design, construction, labor services, etc. The procurement in this code refers in particular to the procurement of equipment and material.
2.0.23 Purchasing
A process from accepting requisition document to signing and issuing purchasing order, including enquiry supplier selection, enquiry document preparation, quotation document acquisition, bid evaluation, contract negotiation, procurement contract signing, etc.
2.0.24 Expediting
Coordinating and urging the supplier to deliver documents and goods in accordance with the schedule stated in the procurement contract.
2.0.25 Inspection
Evaluation of conformity which is made on the basis of observation and judgment as well as measurement and test (as appropriate).
2.0.26 Transport
An activity where the procured goods are delivered timely and safely to the place stated in the contract.
2.0.27 Construction
A process where the design documents are turned into project products, including erection, installation, tests on completion, etc.
2.0.28 Completion
The engineering erection and installation are completed according to the contract provisions and the design requirements, and pass the tests on completion; after completion, the erection and installation shall be confirmed by the Owner who will sign and issue a taking-over certificate.
2.0.29 Tests on completion
Tests which shall be carried out, after the completion of engineering erection and installation and before the taking-over of the Owner, by the Contractor according to the contract provisions.
2.0.30 Tests after completion
Tests which shall be carried out, after the taking-over of the Owner, by the Owner according to the contract provisions.
2.0.31 Commissioning
All tests (including examination and certification of contract targets) which are organized, after finishing tests on completion, by the Owner or the EPC enterprise according to the contract provisions.
2.0.32 Project scope management
A process to guarantee that the project covers and only covers all works required, mainly including the management of scope planning, scope definition, scope verification and scope change control.
2.0.33 Project schedule management
A process to ensure the project can be completed as scheduled in the contract, mainly including activity definition, activity sequencing, activity duration estimating, scheduling, schedule control, etc.
2.0.34 Project schedule control
Measurement, analysis and prediction for schedule and its deviation on the basis of schedule; if necessary, corrective measures shall be taken or change of schedule shall be managed.
2.0.35 Project cost management
A process to ensure the project can be completed within approved budget, mainly including resource planning, cost estimating, cost budgeting, cost control, etc.
2.0.36 Estimating
A process where the required resources and costs for completing the project are estimated. During the project executing processes, initial control estimate, initial approved cost, first check estimate, production check estimate shall be normally prepared.
2.0.37 Budgeting
A process where the initial approved cost is assigned to accounting code and unit activity or work package, and is superposed according to the schedule to obtain the cost budgeting (reference) plan.
2.0.38 Project cost control
Measurement, analysis and prediction for cost and its deviation with cost budgeting plan as a reference; if necessary, corrective measures shall be taken or change of cost budgeting (reference) plan shall be managed to control the project cost within an acceptable range.
2.0.39 Project quality plan
One of the quality planning results which states the quality standards related to the project, how to satisfy these standards as well as what procedures and relevant resources shall be used and when these procedures and resources shall be used by whom.
2.0.40 Project quality control
A part of quality management, which is dedicated to satisfying the quality requirements and monitoring the specific project results to determine whether they comply with the required quality requirements and to take corresponding measures to eliminate or avoid reasons for unsatisfactory performance.
2.0.41 Project human resource management
A process to ensure that all project participants can be employed most efficiently, including organization planning, personnel selection, team development, etc.
2.0.42 Project communications management
A process to ensure the project information can be timely and properly generated, collected, analyzed, distributed, stored and subject to final processing in order to coordinate the internal and external relations of project, exchange information with each other, eliminate misunderstanding and obstruction, solve conflicts and guarantee the realization of project objective.
2.0.43 Project information management
A part of project communications management, including the management of the collection, analysis, sortation, processing, storage, transmission, application, etc.
2.0.44 Project risk management
A process to identify, analyze, respond to and monitor project risk, including maximize the effect probability of positive events and minimize the effect probability of negative events.
2.0.45 Project safety management
Management on the safety factors throughout the project execution, including formulating safety policy and goal as well as planning and controlling factors related to personnel, matters and environmental safety during the project executing processes.
2.0.46 Project occupational health management
Management on the occupational health factors throughout the project execution, including formulating occupational health policy and goal as well as planning, managing and controlling occupational health for the project.
2.0.47 Project environmental management
Analyzing, predicting and assessing factors which may have environmental impact during the project executing processes, proposing strategies and measures for preventing or relieving bad environmental impact, and tracing and monitoring these strategies and measures.
2.0.48 Project contract administration
Management on the signing, execution, change, termination, default, claim, dispute settlement of project contract.
2.0.49 EPC contract
A contract which the EPC enterprise signs with the Owner to undertake the overall process or several stages of the engineering project, including design, procurement, construction, commissioning, etc.
2.0.50 Procurement contract
A supply contract which the EPC enterprise signs with the supplier; the procurement contract is also referred to as purchasing order.
2.0.51 Subcontract
A contract which the EPC Contractor signs with the Subcontractor.
2.0.52 Time for completion
The total time, stipulated in the contract, from the commencement date to the completion date (including any extension approved according to the contract provisions).
2.0.53 Defects notification period
The period from the completion date to the date when the Owner is entitled to give defects notification according to the contract provisions (including any extension approved according to the contract provisions).
2.0.54 Examination and certification
Examination of the contract targets according to the contract provisions; after passing the examination, the Owner shall give a confirmation and sign and issue a examination certificate. After the defects notification period stated in the contract expires, the Owner shall sign and issue a performance certificate.
3 Content and Procedure of EPC Management
3.1 EPC Management Content
3.1.1 The EPC management shall include the project management activities of the project management team as well as the project management activities in which the functional departments of EPC enterprise participates.
3.1.2 The scope of the EPC project management shall be stipulated in the contract. The change of scope proposed and approved according to the contract change procedure shall also be listed in the scope of project management.
3.1.3 The main content of EPC project shall include project manager appointment, project management team building, project planning and project plan preparation; design management execution, procurement management, construction management, commissioning management; project scope management, schedule management, cost management, equipment and material management, fund management, quality management, safety management, occupational health management, environmental management, human resource management, risk management, communications and information management, contract management, site management, project closing, etc.
3.1.4 If the Owner employs a project management organization or supervision organization, the project management team accept the management of the project management organization or supervision organization and coordinate with its work according to the contract provisions.
GB/T 50358-2005 The following standards are cited：
