Forms of Collaboration and Project Delivery in Chinese Construction Markets: Probable Emergence of Strategic Alliances and Design/Build |
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Authors: | Tianji Xu N J Smith D A Bower |
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Affiliation: | 1Vice President (BD), Jurong International Constructors (SZ), Beijing 2207, The Exchange Beijing, 118 Jianguo Lu Yi, China 100022. E-mail: tianji88@yahoo.co.uk 2Professor, Head of School of Civil Engineering, Univ. of Leeds, Leeds LS2 9JT, U.K. E-mail: n.j.smith@leeds.ac.uk 3Senior Lecturer, Construction Management Group, School of Civil Engineering, Univ. of Leeds, Leeds LS2 9JT, U.K. E-mail: d.a.bower@leeds.ac.uk
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Abstract: | 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. |
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Keywords: | Engineering firms Planning Design/build China Construction industry |
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