The Global Problem Facing Chinese Construction Firms

China’s production cost are dramatically lower because of less strict regulations on safety and health. If we were to do the math and the retail price of a product is $49.99 and the material cost of the product is $4.04. If the company hired a manufacturing company that is in china then the manufacturing cost would be about 96 cents depending on the manufacturer, if you add the material cost to the production cost, then the total cost of the product for the customer would be $5.00. If the customer was buying 1 million units then the cost to build the product will be 5 million dollars. If the customer were to move production America then there would be an additional $400,000 for the entire order. Increasing the number of large scale construction projects in America will cause death and injury rates to increase. Around 4,679 people were killed in 2014 because of construction related accidents. Increasing the number large construction projects could cause the number construction related deaths and injuries to increase dramatically("Commonly Used Statistics."). “The leading causes of worker deaths on construction sites were falls, followed by electrocution, struck by object, and caught-in/between. These "Fatal Four" were responsible for more than half (58.1%) the construction worker deaths in 2014*”("Commonly Used

In most of the cases, when it comes to implementing a business idea into reality then hiring a construction contractor becomes an essential need. However, we also cannot hire any commercial builder for the task because this is not an investment that we make every day since it involves a lot of money where we do not want to take any risk. In that case, hiring the best construction agency is very important so that we are going to get a quality and productive result in the end.

Due to the large increase in globalization, many organizations relay on international business for competitive advantages. However, offshoring a business has never been easy especially if there are a lot of cultural, environmental and economical differences. China’s opening up to the world has not only made China’s economy stronger but it has also given many advantages to the outside world as well. Some of those advantages include cheap labor cost, risk sharing, economies of scale and less operational cost but to achieve these advantages it may takes plenty of time to observe new location, cultural training, and understanding of international business. As written in the article, “Red China, Red Tape: How to Start a Business There,” China

In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.

In Algeria a partnership with a local company is required by law (see LEGAL ENVIRONMENT FOR FOREIGN INVESTMENT AND PARTNERSHIPS section 4.2) Also the competition from companies coming from emerging markets such as China represent a strong competition thanks to their very low prices. In addition to that, many bids are based oh the lower price rule, meaning that the project is offered to the contractor offering the lowest price. At this strategy, Chinese contractors are very good, and seem to be advantaged by the Algerian bidders.

Specialist contractors – generally known as subcontractors – perform the majority of the work on commercial construction projects. It is common for a typical construction project to utilize dozens of subcontractors, with 80-90% of the work of most building projects in the U.S. being performed by subcontractors (Hinze and Tracey 1994). The performance of the subcontractor is critical to project success (Arditi and Chotibhongs 2005; Gray and Flanagan 1989). Commonly, subcontractors have to perform work on multiple projects simultaneously (Sacks 2004), but with limited resources, each subcontractor strives to maximum its workload at any given time for optimum resource utilization (Mathews et al. 2003; O'Brien and Fischer

By 1984, they were producing more than $1 million worth of rice and a range of side products, including rice wine. Their residential earning was up to about $200 a year. (Prager 52 ) This meant that they could begin replacing their mud-and-straw hats with solid brick houses. Shanghai today is a vast construction site with more than 20,000 projects, with 27,000 companies building bridges, tunnels, flyovers, ring roads, hotels, villas, golf courses and also public housing. This sparked national growth of about 10% a year.( 53 ) The Chinese now are going home

KPMG’s Global China Practice (GCP) is a subsector company, established in September 2010, to assist Chinese businesses that plan to go global, and multinational companies that aim to enter or expand into the China market. The GCP team in Beijing comprises senior management and staff members responsible for business development, market services, and research and insights on foreign investment issues. There are currently over forty China Practices in key investment locations around the world, from Canada to Cambodia and from Poland to Peru. These China Practices comprise locally based Chinese-speakers and other professionals with strong cross-border China investment experience. They are familiar with Chinese and local culture and business practices, allowing them to effectively communicate between the firms’ Chinese clients and local businesses and government agencies.

This report provides detailed market analysis, information and insights into the Brazilian construction industry including:

The In recent decades Chinese construction firms have become important and influential players in the international market, over last decades, especially in developing countries in Asia, Africa and Latin America (Zhao, et al., 2009). The Chinese government?s strong support and encourag encouragement es has facilitated Chinese construction firms to explore pursue the overseas markets. The data from the China Statistics Yearbook (2015) displays states that the international turnover value produced by Chinese construction firms increased from $17.468 billion dollars in 2004 to 142.411 billion dollars in 2014; their overseas contracted value grew from $23.844 billion dollars in 2004 to $191.756 billion dollars in 2014; and

The construction of new homes involves multiple trades, subcontractors and suppliers involved at different stages in the project. Optimising the supply base has been identified as a basic function, and the first step in allowing companies to work closer in a more manageable way. JHHB over time rationalised its supplier base to one, and in some instances two suppliers for most trades and vendors, the result of this consolidation was a reduction in suppliers by over 40%. After identifying that some of the existing supplier’s policies didn’t align a small number of new suppliers were introduced, although the majority of suppliers were sourced from the existing pool of suppliers. Trent and Monczka (1999) caution that, by excluding new supplier’s and sourcing exclusively from an existing pool of supplier’s new opportunities and innovation may not be realised.

The amount of competition in this industry is apparently quite high, as all of the construction firms are working hard to make as much profit from this emerging market segment. There is a never-ending list of identical companies running the race of being successful in this market, but not everyone can be the market leader of their industry.

Nowadays, the growth of construction industry’s productivity is slow, unlike the manufacturing sector, where standardization of components, mechanisation and innovation greatly enhance the rate of production, that is because of the procedure of construction industry is more complicate and always take longer time than manufacturing sector. Therefore, the supply to meet the needs and demand of housing and infrastructure is a very slow process.

INTRODUCTION The construction industry is often known as a very highly fragmented industry with a

Nowdays, the construction sector in Malaysia is one of the very important and can contribute to the country's economic rise. Various employment opportunities available to the parties involved in the construction -based business can also help economic growth. In the next 30 years, the construction industry in Malaysia will continue to increase due to the increasing demand for transport, education, housing, water supply and others. This is assumed by the Construction Industry Board Malaysia (CIDB) for construction sector rising nowadays.