Strategies for optimizing EPC project cost management via analytic hierarchy process: a case study approach

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.