A project management system (PMS) for construction projects in China : a comparative study approach based on foreign invested industrial projects in Guangzhou

Abstract

Considerable amounts of time and money was invested in the construction industry every year throughout the world. The Anglo-France tunnel, the Jubilee Line Extension in England, the Light Rail System in Malaysia and the ?-Resund crossing between Denmark and Sweden are few of the examples. However, the problems of time and budget overrun seem quite common. Particularly in China, the projects with size over RMB5 million were reported having a budget overrun by at least 20% in 1995. Many foreign organisations also came across difficulties in managing Chinese construction projects. Therefore, the development of construction project management system for Chinese construction industry is important in reducing these adverse effects. However, the development of the modern construction project management in China only began after implementation of the "Chinese Style Market Economy System" since the early 1980s. The aim of this study is to develop an appropriate construction project management system applicable to Chinese construction projects. This research is also the result of a Teaching Company Scheme project which draws on the experience of the external industry partner with a range projects in China. In particular, it includes a comparative analysis of two similar foreign invested Joint Venture industrial projects in the Guangzhou Economic and Trade Development District. By combining this comparative study, experiences and analysis of other projects, and the relevant review of related processes and techniques on construction project management, this research has developed and produced a management tool in the form of a project management handbook. Identification of the handbook as an appropriate vehicle for the construction management procedure followed the analysis, ranking and categorisation of the construction project management problems identified in China. Subsequently, these problems were divided into "Government Determined" and "Project Manager Controllable" categories. Then the viable and feasible solutions which had been formed for the "Project Manager Controllable" problems were collated. A variety of options for presenting these pitfalls and appropriate avoidance procedures was considered. Various formats were considered and an appropriately structured Handbook was identified as the most viable, usable and portable solution. This handbook is developed to help engineers, project managers and foreign construction practitioners who are inexperienced in working with Chinese construction projects. In addition, with use of the handbook, the local Chinese construction practitioners will benefit from using the project management techniques, standard forms and checklists provided for various phases of construction projects. Also, this study has reviewed the current status of the Chinese construction industry. This included the latest constitutional requirements on construction projects, including the Law of Construction, the Construction Supervision Ordinance, the Tender and Bidding Administration Ordinance and the Client Responsibility Ordinance. The typical Chinese construction practice which involved the formation of a Preparation Office is also studied in detailed. Through the identification of good practice and analysis of construction projects, this study also identifies the most significant problems such as the complex design approval process of a construction project in China. Therefore, this allows the construction practitioners to be aware of and alert to the problems in a Chinese construction project, and to direct more effort towards the problem areas in terms of detailed planning and close monitoring. This should minimise the impact and risk on these peculiar difficulties of the management of construction projects in China.