2. The contradiction between design, procurement and construction is effectively overcome, which is conducive to the reasonable connection of design, procurement and construction, effectively realizes the progress, cost and quality control of construction projects in line with the construction project contract, and ensures better investment benefits.
3. The subject of construction project quality responsibility is clear, which is conducive to investigating the project quality responsibility and determining the undertaker of the project quality responsibility.
4. Eliminate cost overruns. In the initial stage, the public sector and private enterprises, private enterprises and the government jointly participate in the project establishment, feasibility study, facilities, financing and other project construction processes, which ensures the technical and economic feasibility of the project, shortens the preliminary work cycle and reduces the project cost.
Only after the project is completed and approved by the government can the private sector begin to benefit. Therefore, PPP mode is conducive to improving efficiency, reducing project cost, and eliminating project completion risk and capital risk. The research shows that compared with the traditional financing mode, PPP projects can save 17% of the cost for government departments on average, and the construction period can be completed on time.
5, is conducive to the transformation of government functions, reduce the financial burden. The government can get rid of the heavy work and change from the provider of infrastructure services in the past to the role of supervisor, thus ensuring quality and reducing the pressure on the government's budget.
6. Promote the diversification of investment subjects. Using private sector to provide assets and services can provide more funds and skills for government departments and promote the reform of investment and financing system. At the same time, private sector participation in the project can also promote the innovation of project design, construction and facility management processes, improve work efficiency and spread the best management ideas and experiences.
7. Government departments and the private sector can learn from each other's strong points, give full play to their respective advantages and make up for each other's shortcomings. The two sides can form a long-term goal of mutual benefit and provide high-quality services to the public at the most effective cost.
8. Integrating all parties involved in the project and forming a strategic alliance play a key role in coordinating the different interests of all parties.
9. Reasonable risk allocation. Different from BOT and other modes, PPP can realize risk sharing in the early stage of the project. At the same time, because the government shares some risks, the risk distribution is more reasonable, which reduces the risks of contractors and investors, thus reducing the difficulty of financing and improving the possibility of successful project financing. While sharing risks, the government also has certain control rights.
10 is widely used. This model breaks through various restrictions on the introduction of private enterprises to participate in public infrastructure projects, and can be applied to urban heating and various municipal utilities such as roads, railways, airports, hospitals and schools.
Extended data
In developed countries, PPP has a wide range of applications, which can be used for infrastructure investment (such as water plants and power plants) and many non-profit facilities. Beijing is going to build six Olympic venues through legal tender, and we think PPP is an excellent way.
It is difficult for Olympic venues to balance their own funds, and the government needs to invest in an appropriate way to make the project commercialized. Similarly, Beijing is preparing to build urban railways on a large scale, and PPP is also the most effective way.
The legal, policy and regulatory basis for the popularization of EPC general contracting mode in China.
Legal basis: in order to strengthen the integration with international practice, overcome the traditional contract mode of "design-procurement-construction" and further promote the general contracting system of the project,
Article 24 of China's current "Construction Law" stipulates: "It is recommended to implement general contracting of construction projects, and it is forbidden to contract construction projects in pieces. The contracting-out unit of a construction project may contract out the survey, design, construction and equipment procurement of the construction project to the general contractor, and may also contract out one or more of the survey, design, construction and equipment procurement of the construction project to the general contractor;
However, a construction project that should be completed by one contractor shall not be divided into several parts and contracted out to several contractors. This provision of "Building Law" provides a concrete legal basis for the implementation of EPC general contracting mode in China's construction market.
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