Analysis of the CSPC

In recent years, with the improvement of China's macroeconomic environment, professional project management contract (PMC) got great development. Many companies have engaged in relevant project management of a wide variety projects throughout all over the world. CSPC nanhai petrochemical project mainly including utilities, auxiliary facilities and the port, wharf, railway construction and other facilities. This project adopt the internationally used PMC model. Bechtel U. S.

Company and Sinopec Engineer- ing Institute (SEI) form a consortium (abbreviated BS), as a representative of the project management contractor for the owner for the entire management of engineering construction One of the central purposes of this paper is to introduce the CSPC nanhai petrochemical projecet managemet contract. The second major purpose of my paper is to contrast the different between Chinese contractors and the United States Contractors.

Project Background

Nanhai petrochemical project is building the joint venture by the China National Offshore Oil Corporation(CNOOC) and Royal Dutch Shell Plc(RDSA), ,the joint venture established in huizhou, guangdong province. This is by far one of the largest foreign investment projects in China, with a total investment of 4. 3 billion dollars. The foreign investment is the Royal Dutch Shell group, accounting for 50% of the shares; Chinese investors is the CNOOC of 50% stake. The project by the management contractor BS to engineering project planning, capital allocation, the whole process of project schedule, engineering quality and safety management.

Bechtel is the one who has a one hundred - year - old family business. Since its establishment, has been in the seven continents 140 countries and regions in 20000 building engineering construction. Existing staff of 41000 people, 2000 revenue of 14. 3 billiondollars. China Sinopec Engineering Institute(SEI) which is mainly composed of survey and design is a national company, mainly engaged in the project feasibility study, design, project contracting, project management and other services. Analysis of the Nanhai petrochemical project management contract 1. What is the PMC?

This pattern is refers to the Project owner to hire a company (general engineering company for a considerable strength, or consulting company) on behalf of the owner of the whole process of Project Management, the company in the Project is referred to as "Project Management Contractor (Project Management Contractor, also referred to as PMC)". When choosing the model management project, the owner has only retain a small portion of the capital construction management power to make decisions, and the key issues and the vast majority of project management are borne by the project management contractor.

2. Why Choose PMC? Project Management model with the Owner of his Management Project (the Owner Project Management), with the Project Management company Management (PMC) on behalf of the Owner, the Owner and Project Management company personnel of integrated Project Management team (IPMT). The project of the south China sea opted for PMC project management mode. Nanhai petrochemical choice of PMC model is mainly the following reasons. (1)Project scale and the complexity of process technology.

Nanhai petrochemical project is different from a single product production device, the project is in the green space construction, project size, complex process. Must be borne by the experienced professional project management company. (2)Both sides of the joint shell and China national offshore oil corporation either do not have enough experienced project implementation personnel to undertake this scale and complexity of super-large petrochemical projects.

Whether the project definition phase peak of more than 300 various kinds of project design, procurement, contract and project management personnel, or the project implementation period of more than 1400 all kinds of project managers. A total of 25000 peak period of project construction site construction personnel. (3)The joint venture company's core business is the production and sales, the joint venture company or any party in the short term, it is impossible to recruit the scale of the project management of human resources and risks of doing such a large organization.

Bechtel company by professional project management company, China Sinopec Engineering Institute and foster wheeler complexes of project management on behalf of CSPC project management execution has become inevitable. Through the project management contractor prequalification and tender. (4)PMC organization and integration of various project management resources and professional experience, ability can use itself to the implementation of the project integration management. (5)PMC have global integration and management of oversize project need skill and ability of resource.

(6)The choice of PMC is advantageous to the owner financing, reduce the risk of loan project implementation evaluation level. 3. The main task of the contractor China SEI familiar with domestic engineering standards and specifications, responsible for the preliminary design documents (PDP), the coordination and domestic standards of local government management and the Shell of the integration of engineering standards. Responsible for managing the design of the part of the common engineering and service facilities, procurement and construction management.

Bechtel company in the United States is one of the most famous engineering contractors in the international, there's a very rich abundant global project management skills and resources, management and comprehensive ability, responsible for project execution procedures, schedule, manpower recruitment, cost estimation and control, procurement, construction management, and to coordinate the relationship between owner, and is responsible for the foundation design of ethylene and most utilities, Bechtel as BS the leadership of the party, is a leader in project management.

4. Contrast the contractor analysis of China and the United States