Zhen-Yu Zhao

Situation and Competitiveness of Foreign Project Management Consultancy Enterprises in China

At the end of the World Trade Organization transition period for China in 2006, the foreign project management consultancy sector entered a new era. Massive construction project development in China created a huge demand for various project management consultancy services, which has attracted an increasing number of foreign project management consultancy enterprises (FPCEs). Using the strengths, weaknesses, opportunities, and threats (SWOT) analysis framework, this paper identifies the FPCEs’ SWOT in China. A multifacet qualitative approach including a literature survey, statistical data review, regulation and policy studies, and semistructured interviews is adopted to investigate these factors. A total of 26 SWOT factors are identified. A SWOT strategies matrix is proposed to assist FPCEs in forming appropriate strategies.

Corporate social responsibility for construction contractors: a China study

Purpose Corporate social responsibility (CSR) practice and research regarding construction contractors are comparatively limited. The purpose of this research is to identify a series of CSR issues that reflect the major components of CSR, and to determine the perceived importance of these factors in the context of construction contractors. Design/methodology/approach A CSR indicator framework was developed based on stakeholder theory. CSR stakeholders and their corresponding CSR performance issues in construction contractors are classified into two levels, i.e. project level and organizational level. This is followed by a questionnaire survey to investigate the perceptions on relative importance of CSR issues of four key stakeholders in typical construction projects in China, i.e. construction contractors, clients, design and engineering consultancy and supervision firms. Findings The study highlighted a number of factors, e.g. “quality and safety of construction”, “occupational health and safety” and “supplier/partner relationship” were highly regarded; however, their relative importance varied according to the type of responding organization. Research limitations/implications The findings indicated the major concerns of the different parties in construction projects, thereby providing a pathway for construction contractors to improve their CSR practice. Originality/value The priorities of various stakeholders described in this paper provide a useful reference for construction contractors in the selection and adoption of criteria for CSR performance. A better understanding of perceived priorities of CSR factors from different participating parties also serves useful inputs to construction contractors in their stakeholder management process.

How Australian construction contractors responded to the economic downturn

The Global Financial Crisis (GFC) in 2008 had a significant impact on the world economy and the construction industry was no exception. This study investigates the major impacts of the 2008 GFC on the Australian construction industry and, in particular how the Australian construction contractors responded to the economic downturn. A total of 35 senior managers from the Top 100 Australian construction companies were interviewed. The findings indicate that construction companies, particularly the large ones were not affected in any significant way but are expecting some difficult financial times over the next few years and are taking actions to minimize the upcoming adverse impacts. The most common strategy adopted by Australian construction contractors is to concentrate on core business while avoiding aimless bidding. Similarly, great focus is placed on retaining human resources in order to maintain the skill set so that the company can respond quickly when market conditions improves. The research findings will provide construction contractors with insights on how to establish and sustain competitive advantages during economic slowdown and become more resilient in the future.

The Future of Sustainable Building Assessment Tools: A Case Study in Australia

Sustainability issues in built environment have attracted an increasingly level of attention from both the general public and the industry. As a result, a number of green building assessment tools have been developed such as the Leadership in Energy and Environmental Design (LEED) and the BRE Environmental Assessment Method (BREEAM), etc. This paper critically reviewed the assessment tools developed in Australian context, i.e. the Green Star rating tools developed by the Green Building Council of Australia. A particular focus is given to the recent developments of these assessment tools. The results showed that the office buildings take the biggest share of Green Star rated buildings. Similarly, sustainable building assessments seem to be more performance oriented which focuses on the operation stage of buildings. In addition, stakeholder engagement during the decision making process is encouraged. These findings provide useful references to the development of next generation of sustainable building assessment tools.

Chinese Construction Industry: Governance, Procurement and Culture

The past two decades have witnessed the rapid development of China’s economy. Since the “open door policy” was implemented in 1978, ushering in a period of economic reform, China has achieved remarkable success in economic development. To accommodate the rapid expansion in demand for building and infrastructure, China’s construction industry has achieved extraordinary growth and has formed the backbone in China’s economy. The objectives of this study are: to review the Chinese construction industry; to identify the weakness of the industry; and to identify opportunities for the foreign firms. This study will be a key source for outsiders seeking to understand this enormous market.

Agglomeration and Competitive Position of Contractors in the International Construction Sector

The international construction sector is an important contributor to international economic cooperation, and recent decades have witnessed the dramatic development of the Engineering News Record (ENR)’s top 250 or 225 international contractors (TICS250) in the global market. World agglomeration and competitive positioning has a significant influence on engineering companies’ selection and development of their international markets. Based on the location quotient index and the Boston Portfolio Matrix, an agglomeration level and competitive positioning model is presented for international engineering contractors. Assessment methods are introduced to quantitatively analyze the competitive statements of international contractors collected from the ENR, the main focus being on the difference in agglomeration levels between 13 contractors from 2009-2013. The competitive positions and diversified changes of contractor clusters in 9 different industries from 13 countries are also analyzed to highlight the differences in their agglomeration levels and competitive position. The study establishes referential methods for contractors to understand their development patterns and competitive statements in the global market and is of a significant importance for developing relevant strategies.

Defining Sustainability Requirements for Design-Build (DB) Contractor Selection in Public Sector Projects

The design-build (DB) delivery system is an effective means of delivering a green construction project and selecting an appropriate contractor is critical to project success. Moreover, the delivery of green buildings requires specific design, construction and operation and maintenance considerations not generally encountered in the procurement of conventional buildings. Specifying clear sustainability requirements to potential contractors is particularly important in achieving sustainable project goals. However, many client/owners either do not explicitly specify sustainability requirements or do so in a prescriptive manner during the project procurement process. This paper investigates the current state-of-the-art procurement process used in specifying the sustainability requirements of the public sector in the USA construction market by means of a robust content analysis of 40 design-build requests for proposals (RFPs). The results of the content analysis indicate that the sustainability requirement is one of the most important dimensions in the best-value evaluation of DB contractors. Client/owners predominantly specify the LEED certification levels (e.g. LEED Certified, Silver, Gold, and Platinum) for a particular facility, and include the sustainability requirements as selection criteria (with specific importance weightings) for contractor evolution. Additionally, larger size projects tend to allocate higher importance weightings to sustainability requirements. This study provides public DB client/owners with a number of practical implications for selecting appropriate design-builders for sustainable DB projects.

Sustainability Reporting in Construction Contractors: A Case Study

Construction activities have significant impacts on the environment, economy and society. As a result, sustainability has become an agenda in construction related business. This is evidenced by an increasingly number of construction related companies adopting sustainability reporting practice. Construction contractors are no exception. This study aims to investigate the sustainability reporting practices adopted by top Chinese contractors active in the international arena. The focus is placed on those Chinese contractors ranked top 50 by the Engineering News Record (ENR) top 225 international contractors. The results showed that the sustainability reporting practices of these top Chinese contractors, in terms of both approaches and the depth, varied significantly however there is a clear trend of growing level of disclosure of sustainability related information. Similarly, environmental sustainability seems the predominate focus of sustainability reporting exercises of top international contractors from China. These findings help to assist senior management of construction contractors to form business strategies to facilitate disclosure and other sustainability related practices.

Critical Success Factors for Refurbishment Projects

Refurbishment of the existing buildings has attracted a growing attention due to its associated benefits such as sustainability and cost. However, the delivery of refurbishment projects is not also successful. This study aims to explore the critical success factors for refurbishment projects. Results showed that the following factors are regarded as most important when undertaking a refurbishment project: effective forward planning, excellent communication, excellent ability to change, detailed due diligence/site investigation/document control, healthy contingencies (client and builder), and excellent project team experience. This study revealed that investment into refurbishment project sector is steady and some individuals have begun to notice a rise in the amount of refurbishment projects in the market. This study concludes with a discussion and recommendations for professionals undertaking refurbishment projects in the future.

Does project culture matter? A comparative study of two major hospital projects

Purpose - Cultural issues in the construction industry have attracted growing attention from both practitioners and academia. However, there are few studies on culture issues at the project level. The influence of project culture has not traditionally been on the research radar. This research aims to investigate the impacts of project culture on the performance of construction projects. Design/methodology/approach - A case study approach, utilising questionnaire surveys, in-depth interviews and review of project documents, was employed to investigate project culture and its associated impacts in two major hospital projects. Findings - The results indicated that project culture played an important role in achieving harmonious relationships between project participants and better project outcomes in terms of schedule, functionality, satisfaction with the process, satisfaction with the relationships, environmental issues addressed commercial success, further business opportunities and overall performance. Case 1 outperformed Case 2 in these performance indicators. Similarly, it became clear that the project’s culture should be developed from the outset and sustained during the project period. Furthermore, it was also highlighted that the project culture should be translated to all levels of the supply chain i.e. sub-contractors and suppliers. Practical implications – The findings enabled the client to understand the role of project culture and actively commit towards the development and maintenance of the project culture from very early on. It also helps project teams to understand how to deal with cultural issues at the project level. Originality/value- This study is one of limited empirical studies that offer in-depth insights of how project culture affects the performance of construction projects. It is also the first study of hospital projects on the research topic.