Research on Budget Control Issues and Strategies in EPC Projects Implemented in People’s Republic of China

Introduction . The global practice of implementing investment projects distinguishes EPC and EPCM contracts as the most promising strategies for implementing complex infrastructure and industrial projects. In Russia, the EPC contracting scheme is the most common one in the oil and gas industry, largely in implementing foreign projects in the Russian Federation. In other industries, the development of the EPC market in the Russian Federation is in its infancy. The article looks into the problems during implementing investment and construction projects in People’s Republic of China and which should be considered in the Russian Federation. The aim of the study is to identify the existing problems of the EPC contract and set forth some ways of addressing them. Materials and Methods . A comparative analysis of the construction project management methodology based on signing an EPC contract has been performed. Research Results . Based on the analysis of the problems of controlling the budget of the EPC contract in China, a methodological guide for working with the budget of the EPC contract has been developed. Discussion and Conclusion . Enterprises that have signed an EPC contract need, most importantly, to standardize the project's budgeting management system, to improve project change management, to optimize supply chain management of material resources, to develop an algorithm of addressing the problem of exceeding the budget limit and to improve the budget assessment mechanism accounting for the current actual situation. It is assumed that owing to the above measures, the effectiveness of budget control of general contracting enterprises of EPC contracts will be enhanced.