Awarding construction contracts on multicriteria basis in China

Shen, L Y; Li, Q M; Drew, D and Shen, Q P (2004) Awarding construction contracts on multicriteria basis in China. Journal of Construction Engineering and Management, 130(3), pp. 385-393. ISSN 0733-9364

Abstract

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.

Item Type: Article
Uncontrolled Keywords: China; competition; contracts
Index terms: construction market, construction procurement, qualification, market condition, regulation, World Trade Organization, construction professional, competition, China, competitiveness, procurement system, case study, construction firm, construction contract
Subjects: organization, data collection methods, contract type, educational resources, market analysis, political science, contractual arrangements, institutional frameworks, economic and policy analysis, Geography, professional development
Topics: Governance, Education, Research Practice, Business Strategy, Procurement, Information Management, Geographical Context
Descriptive scope: 3 PCE

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here