Baggett, B L (1988) Analysis of the role of financial engineering in the marketing of major international construction projects. DBA thesis, George Washington University, USA.
Abstract
The term "financial engineering" was coined in the construction industry to describe the putting together of a project financing package by a contractor as part of the total effort to win a contract. This study analyzed the key elements of the financial engineering process for major international construction projects. The period 1978-1986 was selected for study because of the availability of industry data and because financial engineering became prominent in the industry after 1978. Important trends in the international construction market during this period were analyzed using available data to determine the activities of individual contractors and of nationality groups. The key financial resources and types of financial engineering arrangements used in the tendering process and the impact of the international debt crisis on the construction industry were studied. An attempt was made to identify the competitive financial advantages held by differing groups and nationalities. Strategies used by selected international contractors to counter these competitive advantages were also analyzed. In addition, new financial engineering methods that emerged during this period were reviewed, including countertrade arrangements, debt equity swaps, and privatization agreements. The methodology of the study included computer analysis of pertinent industry data, case studies of three large international construction projects that represent major prototypes of project financing used in the industry, and interviews with major participants in the preparation of financial engineering arrangements for large overseas construction projects.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Lauter, G P |
| Index terms: | international construction, marketing, agreements, construction industry, privatization, case study, tendering process, package, competitive advantage, construction project, methodology, international construction project, financing, interview, strategy, prototype |
| Subjects: | industry analysis, management, contract formation, modelling and simulation, data collection methods, business, market analysis, tendering, research methods, production management, contractual arrangements, economic analysis, strategic management |
| Topics: | Procurement, Project Management, Engineering Principles, Contract Administration, International Construction, Research Practice, Business Strategy |
| Descriptive scope: | 4 PCTE |
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