Risk Analysis of EPC Project Based on ISM

Engineering, Procurement and Construction (EPC), is the general way for a constructor to deliver the construction or project products. According to the construction contract, the constructors conduct the project's engineering, procurement and constructing. A number of qualitative and quantitative risk analysis methods have a current problem which is lack of systematization and strategy in risk analysis. It is necessary for EPC project to clear the relationship among different risks before risks appear because the probability of some risk may be changed if one risk event occurred. Aiming at this, Interpretive Structural Modeling (ISM) method which is the most effective solution for the problem was introduced into the risk analysis of EPC project. 11 main risks of the EPC contractors summarized via group brainstorming were assessed by ISM method. Then a Risk-Structure-Figure was set up which shows a clear relationship among the 11 risks. The conclusion is of great value to the quantitative risk analysis, such as Analytical Hierarchy Process (AHP), etc.