China's nuclear power projects generally adopt the general contracting model (usually called the EPC model). The general contractor in nuclear power engineering works for plant owners, and assumes primary risks throughout the construction process. Chinese general contractors in nuclear power projects, though they are experienced in project management, must further strengthen their cost control measures to maintain competitiveness in the rapidly evolving nuclear energy market. In this context, by drawing on the Total Cost Management (TCM) framework released by Association for the Advancement of Cost Engineering (AACE), adopting a structured cost system management method, by applying the fundamental principles and methodologies of cost management, specific issues arising during the cost management process can be effectively tackled. Nuclear power engineering projects can strengthen cost risk control, achieve comprehensive coverage of cost management, refined control, and effective avoidance of cost risks by doing so, better addressing market changes and challenges, and improving investment returns and economic benefits. Currently, there is very little literature content in the Chinese nuclear power field based on the TCM framework application. This thesis is based on the "TCM Framework Manual" released by AACE, to explore a comprehensive strategy of cost management guided by actual problems and centered on risk management as the ideology of core guiding, with the aim of providing a more scientific and efficient cost management solution for the construction of nuclear power engineering in China.

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Construction Cost Risk Management of Nuclear Power Projects Based on the TCM Framework

  • Yi Li,
  • Peng Liu

摘要

China's nuclear power projects generally adopt the general contracting model (usually called the EPC model). The general contractor in nuclear power engineering works for plant owners, and assumes primary risks throughout the construction process. Chinese general contractors in nuclear power projects, though they are experienced in project management, must further strengthen their cost control measures to maintain competitiveness in the rapidly evolving nuclear energy market. In this context, by drawing on the Total Cost Management (TCM) framework released by Association for the Advancement of Cost Engineering (AACE), adopting a structured cost system management method, by applying the fundamental principles and methodologies of cost management, specific issues arising during the cost management process can be effectively tackled. Nuclear power engineering projects can strengthen cost risk control, achieve comprehensive coverage of cost management, refined control, and effective avoidance of cost risks by doing so, better addressing market changes and challenges, and improving investment returns and economic benefits. Currently, there is very little literature content in the Chinese nuclear power field based on the TCM framework application. This thesis is based on the "TCM Framework Manual" released by AACE, to explore a comprehensive strategy of cost management guided by actual problems and centered on risk management as the ideology of core guiding, with the aim of providing a more scientific and efficient cost management solution for the construction of nuclear power engineering in China.