1 Foreword At present, with the deepening of social specialization and diversification of project investment, various types of contracting methods have appeared in the power industry, and EPC contracting methods for power projects have become a trend. EPC pays attention to the contractor's participation in the whole process, and pays more attention to the thoroughness and integrity of its services. In this way, the contractor or contractor consortium is the only responsible subject for all the design, construction and procurement of the whole project, and bears most of the risks. The contract price and duration are fixed. As soon as the key is turned, the owner will get a well-equipped engineering facility, which can be put into operation immediately. For EPC-type cost management, its theoretical basis is the whole process cost management theory, which is a phased intervention work mode different from the traditional electric power technology and economy specialty. It is precisely because the contractor's business face extends forward (for the construction unit) or backward (for the design unit), which expands the scope of cost management and makes it possible and inevitable to control the cost of the whole construction process. Based on the experience of working in enterprises, the cost management of typical power EPC projects is discussed below. 2 EPC project cost management system 2. 1 Before the EPC contract was signed, the cost management work had already started. Generally speaking, we should pay attention to the following aspects: (1) Before quotation, we should guide the owners legally, reasonably and reasonably according to the contract pricing form and adopt a fair and convenient pricing model for both parties, which is particularly important for investors outside the industry. (2) Pay attention to the setting of contract terms. The conclusion of the contract embodies the principle of fairness, and both parties bear the risks. Through professional calculation and analysis, the risk can be quantified and reflected in the quotation. (3) In terms of organizational structure, a professional team should be set up, and the professional scope should include cost, project management, contract management, legal specialty, etc. 2.2 After the signing of EPC contract, the focus of this paper is the comprehensive management of expenditure line after the signing of EPC contract. The basic cost management system after the signing of EPC contract can be represented by figure 1 Of course, numbers only represent the thinking system of cost control. Different stages of control have different methods and characteristics, which will be introduced one by one below. 3. Cost control in the design stage 3. 1 Basic ideas The key work of cost control lies in the early stage. The design with high quality and sufficient depth can greatly reduce the changes in work and is very effective in controlling the progress and cost. In practice, the input control in the design stage is often not in place, mainly because in the current engineering construction environment, the overall progress of the project is often the first, the input in the design stage is insufficient, and the task of quality assurance is heavy, let alone design optimization. In addition, although the design optimization greatly affects the investment of the project, its development time can affect the distribution of benefits after optimization. If the design optimization takes effect before the EPC contract, then when the EPC contract is won through optimization, the means of making profits through design optimization will be lost, and the profits of EPC contractors will come from the control during the project implementation. 3.2 Control Mode 3.2. 1 The concept of quota design is: in the design stage, the project cost is controlled by compiling the design quota, and the design quota index is decomposed into specialties, so that it can be implemented layer by layer and the responsibilities are clear. For EPC projects, the difficulty lies in whether the accuracy of design quota can meet the requirements of cost control. That is to say, it is impossible to meet the cost control requirements of EPC projects if it is only controlled by the standard of "three calculations not exceeding" (budgetary estimate not exceeding, budgetary estimate not exceeding). However, from a technical point of view, due to professional restrictions, cost management can not issue effective design limits, the management of quantity and price has not been standardized, and the initiative is still in the hands of designers. This article will not be repeated. 3.2.2 Optimize the design and deepen the design. This work is similar to the idea of quota design. However, in view of the difficulties in compiling and implementing the above-mentioned design quota, various types of optimization design and deepening design work can be adopted. For EPC contractors, if design outsourcing (which is rare for engineering companies whose design units are transformed), they can adopt the way of design bidding to optimize the scheme before signing the contract; For self-supporting design, the short-term lies in the effective implementation of internal incentives and organizational performance, and the long-term lies in the optimization of the system, the accumulation and inheritance of experience and the sustainable development of human resources. 3.2.3 The application of advanced concepts-constructability and constructability, allows experienced construction experts to participate in the implementation of the project as soon as possible, can make full use of their construction experience, provide information for early decision-making, and appropriately influence the owners, planners, designers and suppliers of materials and equipment, thus generating maximum benefits, shortening the project construction period, improving the overall quality, and improving the operability, maintainability and reliability of use. EPC general contractor has the dual identity of designer and builder. Compared with the traditional DBB construction mode, the consistency of interests in the two stages makes the general contractor more motivated to design and manage the whole process. Therefore, EPC mode, a special contract structure, determines the necessity of its constructability research. The extension from the construction stage to the design stage, that is, the research and application of constructability in the design stage, has become a feasible strategy for the general contractor to avoid construction risks, improve design quality and reduce costs. 4 Cost control of subcontracting The management of project cost is not only an investment behavior, but also a market economy relationship behavior. Any cost should be reflected and measured through the contract. If the design work mentioned above is quantity control, it is price control. Therefore, in the stage of subcontracting bidding, we should pay attention to the setting of contract measurement and pricing principles, pay attention to the fairness and moderation of contract terms, do a good job in contract planning, and avoid the risks brought by human activities in the construction process, especially for projects with long construction period. 4. 1 construction bidding for the construction bidding stage, how to set the contract terms, how to avoid the risks of EPC general contractor in the bidding process, and how to affect the final cost will not be studied in depth here. As far as cost management is concerned, the focus is on the choice of pricing methods to ensure that both parties bargain on a fair and feasible platform. Attention should be paid to the following aspects in the construction stage. (1) system selection. Whether to adopt power engineering budget system or list form depends on the characteristics of the recipient. For contractors in the power industry, sometimes the habitual budget system can avoid the problems caused by unclear understanding in settlement and process. (2) unit price or total price. Distinguish the characteristics of blocks and different construction sections, and set them separately. Most installation works should be the total price, and most civil works should be the unit price. (3) Budget estimate depth and budget depth. It also depends on the customary operation and the characteristics of different construction sites, as well as the conditions generated in the project stage. However, in the actual operation process, the project is often in the stage of preliminary design depth construction subcontracting bidding. Of course, for the subsequent bidding, you can use the budget depth valuation as needed. 4.2 Equipment Selection and Bidding Generally speaking, for power projects, the purchase price of equipment and some main materials accounts for about 60% of the project investment, so it is very important to control the cost of this part. The control points to be noted are as follows: (1) In the equipment selection stage of the design process, in addition to fully considering the equipment performance, we should also consider the influence of the price and its transportation conditions on the project progress, and finally choose the equipment with high cost performance. (2) In the process of equipment bidding, make a good bidding work plan to prevent improper bidding behavior. For some equipment and materials with insufficient competition, there will often be situations that greatly exceed the expected price. In the bid evaluation method, we should fully foresee the irregularities and reasonably arrange the relationship between the bidding progress and the overall project progress. It is often impossible to get a satisfactory price by bidding with time.

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