Strategies for optimizing EPC project cost management via analytic hierarchy process: a case study approach
Year: 2025
Type: article
Abstract: Due to significant gaps between target and actual costs, difficulty in achieving target profits, and systemic issues in the EPC project management faced by companies, this study employs a case study to investigate these challenges. Unlike previous studies based on the Analytic Hierarchy Process (AHP) that focus on isolated phases of EPC cost management, this paper aims to develop a strategy for optimizing the entire cost management processes. The study divides the project cycle into five stages – bidding, design, procurement, construction, and settlement – and conducts a unified analysis across these stages. Initially, key cost-driving factors are identified through literature review, expert consultation, and a questionnaire survey. An AHP model is then constructed, incorporating five first-level indicators and fourteen second-level indicators, with their respective weights calculated. Finally, based on the results, targeted optimization strategies are proposed and successfully applied in the project’s second phase. The findings provide a framework for improving cost management in the Company’s EPC projects and offer valuable insights for similar building EPC projects. By embedding AHP into the full-cycle cost management process, it contributes to methodological innovation and the theoretical advancement of EPC project management.
Authors: Yuzi Yang, Zhijie Huang, Yiyang Chen, Lijun Luo, Fuchang Li
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,165
OpenAlex ID: W4410414642