Causes Analysis and Countermeasure Study on the Loss of Project General Contracting

    Introduction   In tecent years, the domestic power market is drying up and competition is intense. Under the condition of low price and high risk, loss of projects cannot be avoided.

    Method   This paper analyzed the cost constitution of general contracting, defined the relationship between sales, costs and profit, and putted forward the concepts of "invisible loss and expicit loss" . On the basis of above work, we analyzed the reasons of loss in detail at every stage. At last, we proposed countermeasure for the project loss.

    Result   The research shows that contractors should change the past, extensive management, in order to pursuant to the requirements of invitation documents and adapt to the new situation of project management. It is helpful for enterprises to improve anti-risk capability and financial profit.

    Conclusion   This paper can also provide guidance for general large engineering project.