An empirical study on incentives of strategic partnering in China: Views from construction companies

Lu, Shaokai; Yan, Hong

doi:10.1016/j.ijproman.2006.08.004

Cited by 41 publications

(40 citation statements)

References 36 publications

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“…Hence, the chosen sample was regarded as truly representative of the survey population given the scarce number of construction projects procured with the TCC/GMP approach in Hong Kong (about 20 as cited by Chan et al, 2007a). The similar snowball sampling technique was also applied in the field of construction management research by Lu and Yan (2007) to study the benefits of construction partnering in Mainland China where partnering was not popular at that time.…”

Section: Empirical Questionnaire Surveymentioning

confidence: 99%

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Chan

Lam

et al. 2011

International Journal of Project Management

112

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The construction industry is often characterized by the traditional adversarial working relationships between contracting parties. There has been a strong call for applying target cost contracts to align the interest of owners and contractors together. By doing so, it aims to achieve a win-win situation under a partnering arrangement within the construction industry. Even though a multitude of research studies have been undertaken on target cost contracts (TCC) or guaranteed maximum price (GMP) contracts, not many of them have focused on the risk management and analysis of these procurement strategies. This paper aims to identify, rank and compare the key risk factors encountered with these forms of procurement based on an empirical questionnaire survey geared towards the clients, contractors and consultants in Hong Kong. Despite the limited number of completed TCC and GMP (TCC/GMP) construction projects in Hong Kong, the chosen sample was perceived to be truly representative of the survey population. A four-level data analysis framework was applied in this paper, including descriptive statistics, Kendall's concordance test, Spearman's rank correlation test and Mann-Whitney U Test. The research findings showed that the client group, contractor group and consultant group are in general agreement on the impact of individual risks. The identification of the key risk factors and their relative significance are important in the risk management of target cost contracts and guaranteed maximum price projects, which, if properly done, would enhance the value for money throughout the whole procurement process. This research study also helps various key project stakeholders to equip with better knowledge and understanding of TCC/GMP scheme by paying close attention to those This is the Pre-Published Version. (Final Accepted Manuscript), Volume 29, Issue 6, August 2011, Pages 751-763 2 high-risk factors and then the implementation of appropriate risk mitigation measures in a proactive manner. International Journal of Project Management (IJPM)

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Section: Empirical Questionnaire Surveymentioning

confidence: 99%

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Chan

Lam

et al. 2011

International Journal of Project Management

112

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“…Additionally, Lu and Yan (2007) cited that Chinese contractors are more likely to access technology through strategic partnering. Moreover, China has sufficient human and material resources for complex construction projects, however it still lacks the advanced technology and management skills for maintaining the consistent quality of projects (Lu 2015). While complementary technology is one of the key factors for improving the quality of construction projects, we need to know more about transferring technology from other partners.…”

Section: Complementary Technologymentioning

confidence: 99%

“…It is significant that China's economic policy now focuses on the industry perspective (Lu 2015). The market economy and policy economy are accommodating.…”

Section: Policy-based Perspective Comparisonmentioning

confidence: 99%

“…Due to the strict policies protecting domestic companies, the key to entering China's construction market is to cooperate with local companies. A previous study proposed the incentive of strategic partnering in China from a construction companies' point of view (Lu, Yan 2007). It proved that the willingness of host national companies was an important factor for successful partnering.…”

Section: Introductionmentioning

confidence: 97%

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Success Factors for Taiwanese Contractors Collaborating With Local Chinese Contractors in Construction Projects

Kao

Huang²,

Hsu

et al. 2016

Journal of Business Economics and Management

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Abstract. Regional trade cooperation has become an important component of construction industry due to the Free Trade Agreement. This segment of the market presents many challenges for construction firms. Establishing suitable international partnering relations is an effective strategy for adapting to the additional unpredictability of international markets. This research integrates the Balanced Scorecard system with Fuzzy Analytic Hierarchy Process for comprehensive and quantitative evaluation of the relevant bilateral cooperation. Commercial cooperation across the Taiwan Strait is selected as a case study for determining the evaluating methodology. After examining data from Chinese firms, 12 factors for partner selection are identified. The factors are compared with practical conditions of worldwide and local markets to establish their viability. The methodology provides a framework for evaluating potential partners when attempting to enter foreign markets. Additionally, it identifies critical factors for developing optimal market entrance strategies, contracts, and risk management; results can also be golcally (globally and locally) tailored to promote the efficiency of international cooperation.

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“…Partnering involves the parties of a construction project working together in a trustful and open environment, so that they can deliver the project efficiently with little dispute (Richard, 2004, Erik W. Larson, 1994, Carolynn et al, 2000. The applicability of partnering, incentives for strategic partnering, construction dispute management, and pre-construction projection partnering have been described elsewhere (Lu and Yan 2007b, Lu and Yan 2007a, Steve 1999and Paul et al 2003.…”

Section: Introductionmentioning

confidence: 99%

Stability Analysis of Cooperation between Owners and Contractors in the Construction Market

Qin

Fang

Tang³

2010

Journal of Asian Architecture and Building Engineering

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In a price-driven, low-bid system a cooperative contract may be helpful in reducing problems that arise from competitive bidding. In this article, the authors examine the stability of cooperation between owners and contractors through a repeated game model with provident partners. Firstly, the profits of defecting and cooperating partners are compared to determine whether there is motivation to defect. This comparison is achieved by using a dynamic model to calculate the loss and recovery of trust. Secondly, the authors examine the relationship between stability and its influential factors under the condition of partner changing. The authors' examination reveals that stability of cooperation correlates negatively with both the recovery velocity of trust and the probability of undiscovered defection, but has a positive correlation with the number of consecutive defections. Furthermore, the possibility of extra profit is the key motivation for unilateral defections under the condition of fixed partners. The authors conclude by proposing methods for maintaining the stability of cooperation.

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An empirical study on incentives of strategic partnering in China: Views from construction companies

Cited by 41 publications

References 36 publications

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Success Factors for Taiwanese Contractors Collaborating With Local Chinese Contractors in Construction Projects

Stability Analysis of Cooperation between Owners and Contractors in the Construction Market

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