Enablers That Help Foreign Architectural, Engineering, and Construction Firms Win Construction Contracts in China

With China’s fast economic growth and entry into the World Trade Organization (WTO), more foreign architectural, engineering, and construction (AEC) firms are expected to venture into this huge and attractive market. This paper explores the important strategies to help foreign AEC firms clinch construction projects in China. Using a questionnaire survey approach complemented by in-depth interviews, it was found that firms need to pay more attention to the market and working conditions in China and to strengthen their own capabilities. To win projects in China, foreign AEC firms should also be able to offer project financing services. The findings are useful to foreign AEC firms because it may help them win projects in the Chinese construction industry.     

Disputes and Dispute Resolution Systems in Sino-Foreign Joint Venture Construction Projects in China

There has been a sharp increase in the number of Sino-Foreign Joint Venture (SFJV) construction projects in the People’s Republic of China since the 1990s. Despite the Chinese Government’s new measures for boosting foreign involvements, entering into the construction market remains problematic for many foreign contractors. One of the problems concerns construction disputes. In light of this, this paper reports a study on disputes and dispute resolution systems in SFJVs. A questionnaire survey of 41 practitioners in the field was carried out. The main purpose was to identify the most common sources of disputes and the most commonly used dispute resolution methods in SFJVs. Results show that the sources of construction disputes can be classified into three categories: contractual, cultural, and legal matters. The most commonly used dispute resolution methods are mediation and arbitration. These findings will give both Chinese and foreign contractors invaluable insights into disputes and dispute resolution systems in SFJV projects.     

Risk Assessment for Construction Joint Ventures in China

The construction industry in China is developing toward the international procurement practice, and such development has attracted many foreign firms into the Chinese construction market through the formation of Sino-foreign joint ventures. Joint venture has become an important sector in the Chinese construction industry. However, the difference in management systems, technological practice, and cultural background among the partners within joint ventures brings difficulties to the function of joint venture. A significant degree of risk is involved in joint venture investments. Thus, foreign firms increasingly intend to spend more effort in studying proper strategies of managing risks in their joint venture businesses. Based on a survey, this paper establishes a risk significance index to show the relative significance among the risks associated with the joint ventures in the Chinese construction procurement practice. Real cases are examined to show the risk environment faced by joint ventures. The paper also investigates practical applications of risk management in the business of joint ventures.     

Comparative Study of the Variables in Construction Project Briefing/Architectural Programming

Briefing is the process by which client requirements are identified, clarified, and articulated in the early design stage of construction projects. It is crucial to the successful delivery of construction projects. Considerable research has been conducted in briefing during the past two decades. However, researchers consider many current briefing practices to be inadequate, and little research has been done in sufficient depth to explore briefing variables in the construction industry. This paper introduces a comprehensive framework of the variables that have an impact on construction project briefing. A questionnaire survey was conducted to validate these variables among project managers and architects in Hong Kong, the United Kingdom, and the United States. The results indicate that although no significant differences existed between the samples in the United Kingdom and the United States on the variables for construction project briefing, the views of the samples in Hong Kong deviated from the two Western countries. The Western professionals have more positive answers to most statements in the questionnaire. The findings have significant implications for industry practitioners in producing their guidelines for the briefing process and for writers in drafting how-to briefing guide for construction projects.     

Factors Affecting Construction Project Outcomes: Case Study of Vietnam

Due to the demand for built products from foreign investors and the growing economy, Vietnam’s construction industry experiences strong growth. While some of the construction projects are successfully executed, others faced difficulties. The aim of this study is to examine the factors that lead to successful outcomes in construction projects in Vietnam. Using the case study research design, three successful projects and another three unsuccessful projects were investigated. Data were collected from face-to-face interviews with several project participants in each project and archival data. The results show that major enablers that lead to project success are foreign experts’ involvement in the project, government officials inspecting the project, and very close supervision when new construction techniques are employed. A factor which leads to poor performance is the lack of accurate data on soil, weather, and traffic conditions. The findings may be useful to construction professionals operating in Vietnam to put in place factors that can lead to good project performance. For foreign practitioners entering Vietnam’s market, the study may assist them in focusing on the more important factors to achieve good project outcomes.     

Legal Risks Faced by Foreign Architectural, Engineering, and Construction Firms in China

The extensive opportunities in China’s construction industry are expected to attract many foreign architectural, engineering, and construction (AEC) firms to her shores. However, these foreign firms may face many legal risks and obstacles, mainly because of the differences in culture and operating environment from their home countries. This study investigates the legal risks that foreign AEC firms encounter when operating in China, and how these risks are managed. Data were collected from 21 foreign (non-Chinese) AEC professionals who have extensive experience in China. Legal risks faced by foreign AEC firms in China include: difficulty in complying with the innumerable laws and regulations at the central, provincial, and local levels of the government; keeping up with new laws and regulations that are constantly being enacted; seeming reluctance of Chinese business associates to enter into binding contracts; and lack of sanctity of contracts and contractual obligations not being carried out fully, leading to disputes. Based on the research findings, a framework for managing legal risks is proposed for use by industry practitioners. The framework recommends to practitioners several measures to manage the legal risks. These include relationship-based strategies like establishing close relationships with the Chinese government officials and Chinese business associates and careful selection of Chinese business partners. It is recommended that foreign AEC professionals adopt the mindset that in China, the contact is to be continuously negotiated and reinterpreted. To achieve this, industry practitioners should provide a substantial contingency sum. It is also important to emplace permanent staff in China so that they can understand the local environment and monitor the changes taking place there.     

Development Model for Competitive Construction Industry in the People’s Republic of China

This paper identifies and analyzes the open-policy trend of the Chinese construction industry, which is characterized by trade liberalization, the underlying principle of the World Trade Organization (WTO). Compared to the construction industries in the United States, Japan, and the U.K., the construction industry in China is less developed in its legal framework, industrial structure, technological level, and international market share. To develop a competitive construction industry, the Chinese construction industry needs not only to accommodate appropriate international practice, but also to adapt and adopt it according to the market environment in China. A model to enhance the performance of the Chinese construction industry is proposed. The model consists of six modules: defining government’s role, opening up the construction market and establishing a competitive mechanism, promoting design institutes’ services and empowering professional bodies, encouraging technological innovations, upgrading employees’ educational level, and adopting multiprocurement routes. Recognizing China’s recent accession to the WTO and the attendant boost to its economy and industry development, the paper gives a timely evaluation of the post-WTO Chinese construction industry and proposes a model for its development. The model may serve the needs of academics, Chinese construction policymakers, construction enterprises, design institutes, and foreign contractors.     

Automation of Quantity Surveying in Construction Projects

The preparation of a complete and concise project document is a critical issue facing professionals, developers, and contractors working in the building industry. The lack of an accurate, fast, and effective method for estimating the bill of quantities creates problems during the design, tender, and construction supervision of construction projects for designers and contractors practicing in Saudi Arabia. The capability of a computer-aided drafting (CAD) based system to interface with local data, either from the designers and contractors, or from manufacturers and commercial libraries, that allows for the estimation of the building bill of quantities in a more rigorous way is also lacking. The availability of an accurate and automated method to produce the bill of quantities from such libraries creates a benchmark in professional construction practice. This paper presents a computer program developed by the writer. This program is a third-party achievement that automates the aforementioned task and complements the standard AutoCAD system, which is not capable of extracting the project data pertinent to performing an automated bill of quantities. The program is written in C-language and has the capability to interface with other databases possessed by the designer or contractor. The AutoCAD has been taken as the base software because this is a cost-effective CAD software. Though Archicad, Design + available softwares can perform the automated quantity survey, it should be remembered that these packages are very expensive and used by fewer people compared with AutoCAD, which is used very widely.     

Impact of Green Building Design and Construction on Worker Safety and Health

Sustainable, or “green,” rating systems, such as the United States Green Building Council’s Leadership in Energy and Environmental Design (LEED), are leading to changes in the way owners, designers, and contractors approach the design, construction, and operation of buildings. The processes and features included in green design and construction may have positive and/or negative impacts on construction worker safety and health. This paper presents the findings of a research study of the impact of green building design and construction practices on construction worker safety and health. Occupational Safety and Health Administration (OSHA) recordable and lost time injury and illness data from green projects (as identified by LEED) and from nongreen projects was collected through a structured questionnaire survey. The data collected was analyzed to test for the presence of a difference in OSHA recordable incident rates (RIRs) and lost time case rates (LTCRs) between green and nongreen projects. It was found that there was suggestive, but inconclusive evidence of a statistically significant difference in the RIRs of the green and nongreen building projects included in the study. No statistically significant difference was found between the LTCRs for the green and nongreen projects included in the study. The study findings provide valuable information to the construction industry for the purposes of project safety planning and the assessment of safety and health on projects.     

Models for Predicting Project Performance in China Using Project Management Practices Adopted by Foreign AEC Firms

China is a new market to many international architectural, engineering, and construction (AEC) firms and it is not known what would be the likely project outcomes, based on different project management (PM) practices adopted. This research developed and tested five models to predict the likely project success levels, based on PM practices adopted by foreign AEC firms in China. Based on data obtained from 33 projects, multiple linear regression (MLR) models for predicting the performance of foreign managed projects in China were constructed. The models were tested against 13 new cases, and the results show that they are able to predict project outcomes with some level of accuracy. The models show that certain scope management practices can be used to predict owner satisfaction, profit margin, and cost and quality performance of the project. Construction industry practitioners who are managing projects in China may benefit from the findings by focusing more on upstream management, like managing project scope, in order to ensure project success. It is recommended that construction industry practitioners use the MLR models to make preliminary assessment of the possibility of project success based on the type of PM practices they intend to adopt in China. From the results, they can then decide if they should change their practices or abort the project.     

Determinants of International Architectural, Engineering, and Construction Firms’ Project Success in China

As China becomes a member of the World Trade Organization, many international architectural, engineering, and construction (AEC) firms are undertaking or expected to undertake projects there. This study identifies the significant factors that contribute to the successful performance of projects undertaken by international AEC firms in China. Data were collected using structured questionnaires from foreign (non-Chinese) AEC firms that have completed projects in China. Personal interviews with 27 experts were also conducted to supplement and test the survey findings. The findings reveal that the variable that affects the most number of success measures is the AEC firm’s ability to understand the client’s requirement. Achieving this brings about good project quality performance and owner satisfaction. Furthermore, firms that have superior product or service quality would also achieve better project performance. The interviewees also exhorted the importance of having core competencies as a critical success factor for projects in China. Practitioners may use the findings to help them manage their projects in China, so as to achieve higher levels of success.     

Risk-Based Safety Impact Assessment Methodology for Underground Construction Projects in Korea

Safety of construction projects may be affected by various factors such as types and scale of projects, construction methods, safety management procedure, climate, site conditions, etc. Among them is the quality of design in relation to safety. Presently, however, designers typically are not involved in construction safety. They are often uncertain of their responsibilities in relation to construction safety and fail to be responsible for avoiding or reducing safety-related risks. In this study, the concept of safety impact assessment to achieve “design-for-safety” in the design phase is introduced. For this purpose, a safety impact assessment model was devised, and a methodology using the risk-based safety impact assessment approach for open-cut type underground construction projects in Korea is suggested. The suggested methodology includes a safety information survey, classification of safety impact factors caused by design and construction, and quantitative estimation of magnitude and frequency of safety impact factors. A checklist which can be easily used for assessing the safety performance of design products is also proposed. A real-world case study on the safety impact assessment of a subway construction project in Korea is also provided in the paper.     

Owners Respond: Preferences for Task Performance, Delivery Systems, and Quality Management

Twenty years ago, public owners did almost all of their own design work and project inspection, but this is no longer the case. Innovative construction ideas of 15 years ago are now considered mainstream, and newer ideas are taking their places. Fifteen years ago, the concept of fast-track construction was still being researched and many federal agencies refused to fund it; today, most large federal projects call for some sort of fast tracking. These systems allow construction input into the design process of construction projects. Whoever performs tasks such as scope development, prebid cost estimates, and quality assurance can significantly affect the quality of the project, as can which delivery system is used. The Construction Institute of ASCE sponsored a survey of construction owners to determine what delivery systems are used in their projects and whom they select to perform various tasks. The survey also sought to ascertain the owners’ satisfaction level with the performance of the individuals and systems they choose. This paper, written for practitioners and researchers, describes the results of that survey.     

Strengths, Weaknesses, Opportunities, and Threats: Case Study of Consulting Firms in Shenzhen, China

After China became a member of the World Trade Organization, Chinese architectural, engineering, and project management consulting firms faced competition from not only their domestic competitors but also from foreign firms. As most Chinese consulting firms are used to operating under a protected setting, they may face difficulties competing in the globalized environment. This research involves a strengths, weaknesses, opportunities, and threats (SWOT) analysis of Chinese consulting firms based in Shenzhen; investigates how they respond to opportunities and threats; and recommends how foreign firms can respond to Chinese consulting firms’ SWOT. The case study research design is adopted. Using semistructured interview questions, face-to-face interviews were conducted with 23 Chinese consulting firms based in Shenzhen. Foreign firms’ responses are investigated through a case study of a U.S.-based consulting firm operating in China. The SWOT analysis reveals that Chinese consulting firms are lagging behind foreign firms in design and technical capability; experience in international projects; general and project management ability; and financial capacity. Industry practitioners from outside China who are contemplating entering the Chinese market can leverage on Chinese firms’ strengths by forming joint ventures with them. Foreign industry practitioners can take advantage of Chinese firms’ weaknesses by offering superior products and services which would improve their competitive advantage.     

Risk Management in International Construction Joint Ventures

This paper identifies the risk factors associated with international construction joint ventures (JVs) from and “integrated” perspective. The risk factors are grouped into three main groups: (1) Internal; (2) Project-specific; and (3) External. It examines the most effective mitigating measures adopted by construction professionals in managing these risks for their construction projects in East Asia. Based on an international survey of contractors, it was found that the most critical risk factors exist in the financial aspects of JVs, government policies, economic conditions, and project relationship. When entering a foreign construction market in the form of a JV, a foreign construction company could reduce its risks if it would carefully select its local partner, ensure that a good JV agreement is drafted, choose the right staff and subcontractors, establish good project relationships, and secure a fair construction contract with its client.     

Development Strategies for Chinese Design Institutes

China is gradually opening up its engineering construction services sector to overseas contractors and consultants as part of its move towards joining the World Trade Organization (WTO). Traditionally, design institutes have operated as state-owned enterprises (SOEs), and for them, China’s accession to the WTO in 2001 presents both a threat as well as an opportunity. Given the market conditions in China, most of the design institutes are restructuring their organizations to cope with the increasing competition. Through a pilot investigation, the strengths, weaknesses, opportunities, and threats of the Chinese design institutes are identified. Based on the analysis, this paper proposes development strategies for the sustainable growth of Chinese design institutes and suggests approaches for collaboration with foreign contractors and consultants. A case study is presented to demonstrate the practical application of these strategies.     

Forms of Collaboration and Project Delivery in Chinese Construction Markets: Probable Emergence of Strategic Alliances and Design/Build

Changes in regulations to allow foreign contractors to qualify as wholly foreign-owned “construction enterprises” came into effect in September 2002 as one of the steps taken by the Chinese government to honor its World Trade Organization commitments. Emerging markets have a significant impact on the strategic planning of contractors; based on an electronic survey covering foreign contractors, clients (foreign investors), and design institutes, the design/build procurement route in conjunction with strategic alliances has been found to enable foreign contractors to enter the Chinese marketplace. The writers present a strengths, weaknesses, opportunities, and threats (SWOT) analysis to inform readers where opportunities for development might be found and to warn of threats to entry. The research also found that mutual trust, synergistic strengths and complementarities, market demand for services, flexibility for both parties, and minimum change of top managers were ranked as the top five critical success factors for strategic alliances between foreign contractors and design institutes. Finally, medium-sized, state-owned, and large-sized design institutes were ranked as the first, second, and third preferences, respectively, for strategic partnering by foreign contractors.     

Knowledge and Reasoning for MEP Coordination

The coordination of mechanical, electrical, and plumbing (MEP) systems is a major challenge for complex buildings and industrial plants. The process involves locating equipment and routing connecting elements for each building system. This multidiscipline effort is time-consuming and expensive and requires knowledge regarding each system over the project life cycle. Current practice requires representatives from each MEP trade to work together to identify and resolve interferences. Effective MEP coordination requires recalling and integrating knowledge regarding design, construction, operations, and maintenance of each MEP system. Currently, designers and constructors use tailored CAD systems to design and fabricate MEP systems, but no knowledge-based computer technology exists to assist in the multidiscipline MEP coordination effort. The paper describes results from a research project to capture knowledge related to design criteria, construction, operations, and maintenance of MEP systems and apply this knowledge in a computer tool that can assist designers and builders in resolving coordination problems for multiple MEP systems.     

Awarding Construction Contracts on Multicriteria Basis in China

China’s entry to the World Trade Organization (WTO) will allow both domestic and overseas construction firms to compete under the same market conditions. This development will lead to a more rigorous participation from overseas construction professionals in the Chinese construction market. Nevertheless, this participation can only be effective or successful when there is a proper understanding about the construction procurement practice in China. The Chinese construction practice has its own characteristics, such as governmental regulations, professional qualification systems, and procurement systems. These characteristics present a different practice in awarding construction contracts from that in the West. This paper investigates the characteristics of construction business environment in China and identifies the key parameters used in assessing contractors’ competitiveness for awarding construction contracts in the market. The parameters are useful tools for assisting contractors in identifying their strength and weakness, thus reengineering actions can be adopted for improving competitiveness. A case study is used to demonstrate how these multiple parameters are used in the process of awarding contracts in the local market.     

The puncture laser dissectomy application for the discogenic lumbosacral radiculitis

How many times have you been asked to participate in a meeting, forum, or task force to address a community health issue in the last few years? Opportunities seem to crop up almost weekly as non-profit organizations acclimate to meet changing needs and health systems continue to adapt to market forces. But participating in ongoing community projects, or even attending periodic meetings, draws time away from practice and professional obligations and limits an already modest supply of personal time. Is involvement in a community collaborative effort worth the time? And, if so, what are the benefits and challenges to physicians, health systems, and communities from this type of investment?