Forms of collaboration & project delivery in Chinese construction markets: the probable emergence of strategic alliances & design-build

Xu, T.J., Bower, D. and Smith, N.J. (2005) Forms of collaboration & project delivery in Chinese construction markets: the probable emergence of strategic alliances & design-build. Journal of Management in Engineering, 21 (3). pp. 100-109. ISSN 0742-597X

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Abstract

The regulation that allows foreign contractors to qualify as wholly foreign owned 'construction enterprises' has come into effect since Sep 2002, as one of the steps of the Chinese government to honor its World Trade Organization (WTO) commitments. Strategic planning decides project deliveries of a foreign contractor, whereas emerging market of project deliveries may have significant impact on the strategic planning. Based on an electronic-survey covering foreign contractors, clients (foreign investors), and design institutes, design-build delivery has been found prevalent in foreign contractors’ projects in China. A SWOT analysis of foreign contractors has been conducted. Collaboration with design institutes is essential for foreign contractors’ sustainable growth, given the current construction environment in China. Among the various forms of collaboration, strategic alliance is revealed as the most appropriate form of collaboration for foreign contractors in China. Mutual-trust , synergistic strengths and complementarities, market demand for the services, flexibility for both parties, and minimum change of top managers have been ranked as top five critical success factors for strategic alliances between foreign contractors and design institutes. Finally, medium-sized, state-owned, and large-sized design institutes are rated as the1st, 2nd, and 3rd respectively in the strategic partner selection of foreign contractors.

Item Type:	Article
Copyright, Publisher and Additional Information:	© 2005 ASCE. This is an author produced version of a paper published in ASCE Journal of Management in Engineering. Uploaded in accordance with the publisher's self-archiving policy. Full details in ASCE's Civil Engineering Database are available from http://cedb.asce.org/cgi/WWWdisplay.cgi?0523660
Keywords:	Engineering firms; Strategic planning; Design/build; China
Academic Units:	The University of Leeds > Faculty of Engineering (Leeds) > School of Civil Engineering (Leeds)
Depositing User:	Professor Denise Bower
Date Deposited:	12 Feb 2008 11:30
Last Modified:	08 Feb 2013 17:06
Published Version:	http://dx.doi.org/10.1061/(ASCE)0742-597X(2005)21:...
Status:	Published
Publisher:	ASCE
Refereed:	Yes
Identification Number:	10.1061/(ASCE)0742-597X(2005)21:3(100)
Related URLs:	http://cedb.asce.org
URI:	http://eprints.whiterose.ac.uk/id/eprint/3625

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