Research on Cost Management of Old Residential Area Renovation Projects under EPC Mode

Abstract

Under the strong impetus of the current urbanization renewal policies, the renovation projects of old residential areas across the country are showing a rapid development trend characterized by large-scale and high efficiency. To effectively control investment risks, construction units generally choose the EPC (Engineering, Procurement and Construction) general contracting model as the core contracting mechanism for old area renovation projects. Although this model helps significantly reduce the financial risks for the construction party, it also poses higher requirements for the general contractor to implement cost control in the complex and ever-changing old area renovation projects. Given the dual constraints of the government's strictly approved budget framework and the expected social and economic benefits, cost management has become the primary control link in the project management of EPC general contractors. This study, with the EPC model as the research background, selects the D old residential area renovation project as a specific case. Through a research approach combining literature review and questionnaire survey, it systematically identifies the multi-dimensional factors influencing the cost management of such projects. Based on the research findings, the research team has constructed a scientific and standardized evaluation system for the cost management factors of EPC model old residential area renovation projects, aiming to accurately identify and screen out key influencing factors, thereby providing theoretical basis and methodological support for the subsequent refined management implementation. This research achievement has significant practical significance for improving the cost control level of the EPC general contracting model in old residential area renovation projects. Finally, corresponding management strategies are proposed based on the identified key construction cost influencing factors.