Market structure of the construction industry in Hong Kong

This study examines the market structure of four different sectors within the construction industry in Hong Kong. Market concentrations, expressed in terms of Herfindahl-Hershamann indices (HHIs) and number equivalents (HNEs), are calibrated for the top five contractors and compared with those of the local property industry. The study reveals the following ascending order of market concentrations: private building, public building, property development, and civil engineering. Our explanation is that technological and capital requirements have imposed a strong barrier to entry into the civil engineering sector, resulting in a concentrated market. Conversely, the lack of technological demand and supply in the private building sector has led to easy market entry and exit. Building contractors thus compete intensely on cost reduction rather than technology improvement, leading to poor construction safety and product quality. The paper concludes that the Government, being a major client of construction works and regulator of the industry, can assume a more active role in promoting the overall competitiveness of indigenous local contractors in Hong Kong.     

Factors affecting contractors’ risk attitudes in construction projects: Case study from China

Risk-based decision making (RBDM) is critical in successful construction project management, in which decision makers’ attitudes towards risks play an important role. Most previous studies in construction project risk management have been focusing on the factors contributing to the success of risk management, but little attention was given to factors significantly affecting decision makers’ risk attitudes in construction projects. To improve RBDM, we investigate the critical factors affecting contractors’ risk attitudes in construction projects in China in this research. Literatures reviews, interviews and questionnaires are used for the identification of factors affecting contractors’ risk attitudes. Statistical methods of ranking analysis and factor analysis are also implemented for verification and further analysis. The results show that the most important three factors are: “consequences of decision making”, “engineering experience”, and “completeness of project information”. Results from factor analysis on the identified critical factors reveal that they can be grouped into four categories, namely: (1) knowledge and experience; (2) contractors’ character; (3) personal perception; and (4) economic environment. The significance of this research is that the findings do not only provide decision making support for contractors by deepening their understandings of the factors that affect their risk attitudes, but also serve as a useful reference for further studies under this topic.     

The impact of contractors’ attributes on construction project success: A post construction evaluation

The success of construction projects is a fundamental issue for most governments, users and communities. In the literature that deals with construction project success and causes of time and cost overruns in the construction industry, there is some literature that highlights the role of the contractors in project success. While most studies rank contractors’ success attribute from tendering, prequalification, and a long term historical perception perspective, this paper aims to study the impact of contractors’ attributes on project success from a post construction evaluation perspective to identify what critical success factors (CSFs) that greatly impact the success of project. In an attempt to understand and investigate this impact, a questionnaire survey is used to establish construction professionals’ perception of CSFs of contractors that greatly impact on the success of construction projects. Factor analysis reveals nine underlying clusters namely :(i) safety and quality; (ii) past performance; (iii) environment; (iv) management and technical aspects; (v) resource; (vi) organisation; (vii) experience; (viii) size/type of pervious projects; and (ix) finance. Logistic regression techniques were used to develop models that predict the probability of project success. Factors such as turnover history, quality policy, adequacy of labour and plant resources, waste disposal, size of past projects completed, and company image are the most significant factors affecting projects success. Assuming that project success is repeatable, these findings provide clear understanding of contractors’ performance and could potentially enhance existing knowledge of construction project success.     

The performance of contractors in Japan,the UK and the USA: a comparative evaluation of construction cost

Globalization of the world economy demands that performance comparisons are undertaken at an international level. A new research protocol has been developed for comparing contractor performance internationally by combining the appropriate characteristics of two established approaches in order to balance the requirements of comparability and representativeness. This new approach is used to reveal some important international performance characteristics among Japanese, UK and US contractors. Building costs in the UK, when adjusted for exchange rate fluctuations, are significantly higher than those in Japan and the USA. Furthermore, cost certainty and client satisfaction are higher in Japan than in the UK, but there is no significant difference between Japan and the USA. Disparities in cost performance between the three countries are believed to originate from differences in the relationships between contractors and clients and also in the construction process.     

The impact of Chinese economic reforms upon the construction industry

The increase in economic activity in China has generated and will continue to generate a heavy demand upon the construction sector. The author studies the impact of the economic reforms upon the construction industry and the consequences of fulfilling an overheating demand. The new types of construction companies and ventures in China are identified and analysed. Both local and international private sector construction companies are needed to tackle the burgeoning demand. L'essor des activites economiques en Chine a suscite et continuera a susciter une forte demande dans le secteur du batiment. L'auteur etudie l'impact des reformes economiques dans le secteur du batiment et les consequences d'une reponse a une demande animee. Les nouveaux types de societe de construction et d'association en participation en Chine sont identifies et analyses. Des societes de construction du secteur prive, tant locales qu'internationales, sont necessaires pour repondre a une demande bourgeonnante.     

Competitiveness assessment system for China's construction industry

How can competitiveness be defined and measured within China's construction industry to evaluate the overall performance and also allow enterprises to assess and improve their competence? The Competitiveness Index for the Construction Industry (CICI) is a new single index that can measure relative competitiveness of the construction industry at China's provincial level. The principles and process of the system development are elaborated. Using the CICI, the competitiveness of the construction industry in ten target provinces and/or municipalities is evaluated, the competitiveness of Shandong Province's building sector is further analysed, and the system's limitations and further research work are identified. It is concluded that currently there is no so-called ‘powerful province/municipality’ in the construction industry, that according to the status quo and the tendency of development, it is most probable for Jiangsu, Zhejiang, and Shandong provinces may be the first to achieve this goal, and that the indicators of Relevant industries and Structure are the bottleneck that hampers enhancing the competitiveness of Shandong's building sector.

Comment la compétitivité peut-elle être définie et mesurée dans le secteur de la construction en Chine pour évaluer les performances globales et pour permettre également aux entreprises d'évaluer et d'améliorer leurs compétences? L'indice de compétitivité de l'industrie de la construction (CICI) est un nouvel indice simple qui peut mesurer la compétitivité relative de ce secteur au niveau provincial chinois. Les principes et processus de développement du système sont élaborés. Au moyen du CICI, on évalue la compétitivité de l'industrie de la construction dans dix provinces et (ou) municipalités; la compétitivité du secteur du bâtiment de la province de Shandong fait l'objet d'une autre analyse tandis que sont identifiées les limitations du système et que sont décidés des travaux complémentaires de recherche. L'article conclut en disant qu'actuellement il n'existe pas ce qu'on pourrait appeler des provinces/municipalités puissantes dans l'industrie de la construction et que, conformément au statu quo et à la tendance de développement, il est vraisemblable que les provinces de Jiangsu, Zhejiang, et Shandong soient les premières à atteindre cet objectif et que les indicateurs du Relevant industries and Structure constituent le goulot d'étranglement qui empêche d'améliorer la compétitivité dans le secteur du bâtiment de Shandong.

Mots clés: système d'évaluation, compétitivité, industrie de la construction, marchés de la construction, performances de la construction, indicateurs, productivité, police publique, entreprises nationalisées, Chine     

The evolution of the Chinese construction industry

The evolution of the governance of China's construction industry is examined. The reasons for uncertainty in governmental management along with its impact on industry performance are considered. Recent changes arising after the 9th National People's Congress, including a series of restructuring of government bodies and changes in responsibilities are discussed. Government intervention is being simplified and reduced, leading to increased stability for the construction industry.     

China's construction industry: From planned economy to market economy

The Chinese GNP in 1993 was 13.4%, against 12.7% in 1992 and this paper highlights the role of the construction industry in China and pinpoints those areas that will have new legislation following the introduction of the Construction Industry Development Act as well as issues dealing with reform and international practice.     

Improving rural labourers' status in China's construction industry

The state of human resources in China's construction industry presents significant problems for the national economy and for the efficiency of the construction industry. This paper considers policy and practical questions for improving the quality and efficiency of the large rural workforce in construction. Labourers from rural areas form 90% of the national workforce, yet 90% of them lack any formal job training. The existing problems besetting labourers from rural areas include low-quality outputs, low wages, poor living and working conditions, and high mobility. The proposed remedy needs to include: training provisions for labourers from rural areas to improve their working skills and overall quality; creating organized labour to increase the stability of the workforce; creating a proper labour-cost system; and developing a more complete labour market. Some privately owned Chinese construction companies are setting an example of innovative leadership in improving training and working conditions for labourers from rural areas and consequently are benefiting from increased profits.     

Improving rural labourers' status in China's construction industry

The state of human resources in China's construction industry presents significant problems for the national economy and for the efficiency of the construction industry. This paper considers policy and practical questions for improving the quality and efficiency of the large rural workforce in construction. Labourers from rural areas form 90% of the national workforce, yet 90% of them lack any formal job training. The existing problems besetting labourers from rural areas include low-quality outputs, low wages, poor living and working conditions, and high mobility. The proposed remedy needs to include: training provisions for labourers from rural areas to improve their working skills and overall quality; creating organized labour to increase the stability of the workforce; creating a proper labour-cost system; and developing a more complete labour market. Some privately owned Chinese construction companies are setting an example of innovative leadership in improving training and working conditions for labourers from rural areas and consequently are benefiting from increased profits.     

Correlates of the length of the relationship between main and specialist trade contractors in the construction industry

Although there is a growing literature on the factors associated with the length of interorganizational relationships, there seem to be few empirical studies related to the subject in project-based industries such as construction. In this study we looked for correlations among the length of the relationship between main and specialist trade contractors, control methods and the number of rival speciality contractors in the Turkish construction industry, drawing on the data provided by a study of 27 specialist trade contractors. Correlation analysis was used to investigate the relationship. The results demonstrate that the length of the relationship between main and speciality contractors is inversely related to the number of rival specialist trade contractors, but directly related to the flexibility of control exercised by the main contractor.     

Culture and foreign companies' choice of entry mode: the case of the Singapore building and construction industry

Recent studies have shown that culture has an effect on the choice of foreign investment venture structure. Cultural distance has been identified as a primary determinant in the selection of shared control over wholly foreign owned investment. The data from these studies indicate, however, that individual cultural characteristics of investor countries may be more important than the difference in culture. In this study, a sample of Singaporean building and construction firms is utilized to explore whether joint venture (JV) formations correspond more to the uncertainty avoidance dimension of the investor's culture than to cultural distance. The results show that an investor's cultural aversion to risk may be more influential in explaining the propensity for firms from certain countries to engage in JVs, rather than other cultural factors.     

建筑施工企业代建政府投资建设项目会计核算探讨

代建制在我国实施以后,国家财政部对代建单位在代建制项下业务的会计核算办法未做具体的规定。本文根据代建制业务的特点,对建筑施工企业代建政府投资建设项目业务的会计核算办法提出自己的建议。     

The Last Planner System in China's construction industry — A SWOT analysis on implementation

The Last Planner System™ (LPS) is well-documented in the literature, and has sometimes been used to represent lean construction or lean project management. LPS aims to achieve reliable workflow by encouraging foremen to have a sense of ownership of the project programme and to build-in their commitment into it. This study reports on the perceptions of Chinese building professionals of the application of LPS in Chinese construction projects. It reveals that several components of LPS have already taken place in large Chinese construction firms. Further, this study employs a SWOT analysis to examine the possible strength, weakness, opportunity, and threat factors that might have an impact on implementation of LPS in construction projects in China.     

浅析建筑施工行业机械伤害

随着材料科学及设计制造技术的发展,工程机械上采用了许多新技术、新材料、新结构,要求机械的技术保障于管理工作更科学、更完善。为此作为工程机械的组织管理人员及操作人员,要逐步树立"安全是最大的效益、事故是最大的浪费",使安全工作从防范工伤事故为主,向全面做好劳动者健康安全工作的转变,进而充分体现对劳动者生命价值的尊重,促进劳动者自身价值的提升。本文就建筑施工行业机械伤害问题进行讨论。     

Chinese investment in the Australian construction industry: the social amplification of risk

Chinese companies are investing heavily in overseas construction and property assets. In Australia, and in many other countries such as the United States and United Kingdom, this has generated an emotive and polarized debate about the risks and opportunities posed to local industry and to wider national interests. To explore the social and cognitive mechanisms which people are using to make sense of this new global phenomenon, Kasperson’s Social Amplification of Risk Framework (SARF) was mobilized, through semi-structured interviews with senior Australian construction industry leaders. The results show that the SARF is a valuable lens to explore perceptions of risk and opportunity associated with Chinese Foreign Direct Investment (FDI), although it represents a rather linear view and underplays the importance of power, collaboration and social media in forming perceptions. They also show that senior practitioners in the Australian construction industry are taking a highly rational, commercial and pragmatic approach to increasing FDI. Despite some concerns around non-compliant materials, labour standards and safety standards, Chinese FDI is seen as inevitable and crucial to the development of Australia’s construction industry. Surprisingly, given negative media coverage of Chinese FDI in Australia and a lack of experience in working with Chinese investors, we found little evidence for the social amplification or attenuation of risk. Knee-jerk regulatory reactions which are advocated by many groups are generally seen as risky and we conclude that the nature of Chinese – Australian business experiences over the near future will have a major effect on whether those perceptions eventuate as negative or positive. It is recommended that the best way to mitigate any risks and maximize the opportunities is not to withdraw and oppose Chinese FDI but to build collaborative links to improve direct interactions between Australian and Chinese firms, underpinned by targeted risk and opportunity management protocols.