Contractual Governance of Cost Risk Allocation in Power Engineering Projects under the EPC (Engineering, Procurement, and Construction) Contracting Model
Abstract
Cost risk allocation remains a key challenge in EPC-mode power engineering projects, where technical, market, and operational uncertainties can affect project delivery and lifecycle costs. This study investigates contractual governance mechanisms for optimizing cost risk distribution, using the DART (Definability, Affordability, Responsibility, and Transferability) framework to analyze responsibilities and dynamic pricing adjustments. While the research focuses on traditional EPC project management, the methodology is particularly relevant for electromagnetic engineering projects, such as antenna array installation, RF distribution networks, and high-frequency propagation infrastructure, where cost, schedule, and risk coordination are critical. The proposed framework integrates lifecycle cost management, multilevel performance supervision, and transparent contractual mechanisms to improve risk allocation efficiency and reduce disputes. By combining EPC contractual governance with engineering project management principles, the approach provides an effective strategy for managing cost and performance risks in complex electromagnetic infrastructure projects, ensuring reliable project execution and optimized resource utilization.