Xiong, B; Skitmore, M; Xia, P; Ballesteros-Pérez, P; Ye, K and Zhang, X (2019) Impact of corporate credit scoring on construction contractors in China. Journal of Construction Engineering and Management, 145(4): 05019002, ISSN 0733-9364
Abstract
In an attempt to enhance the trustworthiness of contractors and reduce corruption, the Chinese government has launched a construction contractor credit scoring (CCCS) scheme in Beijing to evaluate the compliance and integrity of contractors registered in the construction market. The contribution of this paper to the body of knowledge is to analyze how the incorporation of CCCS may affect general contractors' present and future competitiveness through a case study in China. This paper analyzes the procurement of 158 building projects tendered in Beijing involving 2,071 local general contractors active in the market. The results show that (1) the contractors' CCCS scores are important for being awarded large and mega project contracts; (2) CCCS scores have a generally positive effect on future corporate financial income; and (3) contrary to expectations, the policy does not increase the CCCS of companies. Finally, the changing trend in contractors' CCCS scores is observed to be highly correlated with their initial values (the scores of higher CCCS scoring companies increase faster on average than that of other companies). The final remarks address ways to better implement CCCS schemes in the future and avoid the potential risks involved in their use.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | China; construction contractor; credit scoring; policy evaluation; project procurement |
| Index terms: | case study, integrity, Beijing, competitiveness, income, construction market, compliance, general contractor, policy evaluation, corruption, project procurement, construction contractor, China, body of knowledge |
| Subjects: | market analysis, professional ethics, health safety and environment, Geography, economic analysis, contractual arrangements, knowledge management, policy studies, data collection methods, practitioner |
| Topics: | Legal Issues, Business Strategy, Health and Safety, Geographical Context, Research Practice, Information Management, Roles and Professions, Procurement, Governance |
| 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