On the international engineering contracting few notes

[Paper Keywords] international contract tender preparation Contract Management

[Abstract] Now, the era of global economic integration, the overseas construction market for China's construction enterprises to provide a broad development platform, but also out of the country will inevitably face many unknown risks, opportunities and challenges. This paper describes the domestic construction enterprises from contracting international engineering preparatory to performance of the contract management process Some considerations.

China's reform and opening up, the number of domestic road construction companies is increasing, management ability and level also increased, many companies began to go abroad in the world to carry out engineering contract business. Thirty years, accumulated a lot of international engineering contracting project construction and management experience, but also learned much, especially last ten years time, China's accession to WTO, along with the arrival of the era of global economic integration, the market for China's overseas engineering construction enterprises to provide a wider space and opportunities, coupled with domestic road construction contracts increasingly fierce market competition, the emergence of "adequate" situation, many units have to go abroad in order to survive, to overseas contract projects, but from the position of the parties participating in the construction project on Look in the international engineering contracting market for a long time are also the buyer's market, even though the name listed "triangular relationship", but the owners as funders, and certainly still in no position to shake the boss, he hired the consulting engineer is nominally middleman , in fact, the agent of the owners, contractors ranked in the final position, which makes construction enterprises is bound to face a lot of unknown risks, opportunities and challenges. since there are so many unknown factors as how companies contracted projects abroad, and how gain a foothold in overseas money, I participated in the international project management as the one in this talk about a few ideas and experience.

1 out of the country's first step is to set up an international, technology-based, innovative, complex management team, so as to the project with a high level of management and decision-making.

And the team must work together, and if said level of expertise, technological level of Chinese companies is very high, everyone's skill levels are high, but when you really work together when a project does not depend on it alone, requiring is the ability to control the project integrated in most overseas success of the project depends on the basic level of the management team, which is why many construction companies to go abroad consensus, however, due to various reasons, we always work hard to develop in line with international Project management requires talent, companies understand international project management, well versed in international business, master twelve foreign languages ​​(especially English skills, familiar with technical expertise, good long business management, can be hard round talent, is less and less, so go out and want to get out of the business must first strengthen personnel training base, and continuously improve the overall quality of their personnel, reserve force, pending timing.

(2) The second stage is that bid.
This step can be said that the success of the entire project contracting is the most critical step, in order to compete in the international construction market to get a place, not only to squeeze a protected local units, but also beat the experts gathered in the international team, great difficulty may conceivable. This requires us to cast a good standard. How can this be done, after years of practice, but also summed up a lot of experience in bidding must first have chosen, rather than see the mark on the cast, and what live are wanted and if blind bidding, there is a great risk, in the end not only did not harvest, but also a waste of resources, outweigh the benefits. then we must combine their units and advantages of the various factors, weaknesses, carefully study the owners tender documents and project characteristics, and strive to do to create profits, but also for the company and the country to win a good reputation from the above points determine if they are suitable for this landmark. secondly to make standard, the underlying premise to do thoroughly understand the tender documents, to clarify the key factors, such as project scope, boundaries, time, currency, exchange rates, terms of payment, taxes, use of norms, laws, arbitration and other related content, followed by the country where the project is to be carried out on a detailed study and market research, study on the project site including the natural environment, such as topography, hydrogeology, meteorology tides, natural disasters, etc., in addition to the host country must understand the laws, regulations, folk customs, social stability and project funding sources, the credibility of the owners and management features, etc., second is to conduct research on the local construction market, including supply and demand of local labor resources, material resources, supply and demand, machinery purchase and leasing, transportation capacity, availability of daily living supplies, taxes and clearance, subcontracting, prices, money, banking services, water supply, etc. In each of the above aspects of the conditions for completion of investigation and study, and then began to do standard, would be gains for the entire project, to achieve a multiplier effect. As for tender Quote aspects of strategy, this there are many, such as unbalanced quotation method, protected from the long memory, the sudden price method, etc., depending on the circumstances companies can adopt a more flexible approach, in which the author does not enumerate here, but it is recommended lose money do not offer the sale, at least not lose money quote signed agreement.

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3. International project bidding process also includes bargaining negotiation stage.

This phase is generally agreed but not yet formally accepted the owners contractors conditions and prices quoted before. Owners through price negotiations to participate in the application form from all contractors and choose the lowest price quoted several conditions are the same contractors, asking them to re-offer , or separately bargaining negotiations with them, you can achieve the underlying purpose low sentence and select a contractor for the final official (ie, the final sentence marked ready at this stage, as a contractor, the negotiations purpose of the transaction should be contributed to the project, and to fight to get the project to create the conditions for future formal contract be seen, the quality of the work of the bargaining negotiations, the project could play a decisive role in transactions, therefore, contractor negotiations to be taken seriously, make careful and detailed arrangements for setting up, must not careless, sloppy addition, the contractor must pay attention to absolute secrecy, once mastered your main competitors offer conditions and prices, you may become losers.

4 signed a formal contract after entering the contract performance stage.
This is also the success of the project is the vital link, the so-called performance of the contract is a contract both parties fully and actually fulfill the contract obligations and responsibilities for their rights to create conditions for the realization of the subject construction contract basis. this stage many things, mainly in the following aspects of this brief few precautions.

5 Construction Management.
Contractor project contracts signed with the owners after the period stipulated in the contract must organize construction forces (personnel, machinery) entered the construction site work, study drawings, preparation of construction organization design, quality and safety and environmental protection measures and inspection schedule for the projects submitted approval of the Engineer, the formation of laboratory tests carried out preliminary work related. Arrangements for full-time staff of relevant norms, regulations must not delay the work carried out in advance (such as geology supplementary surveys. Strict, scientific materials and equipment procurement plans, materials and equipment to carry out market research and inquiry work, active and serious procurement compliance quality standards of the construction materials and machinery and equipment, and in accordance with the construction schedule date approach to work.

6 Quality management.
Contractors to ensure project quality is one of important obligations, which requires contractors must be strictly in accordance with the design, construction norms organization to ensure project quality meets the requirements of the contract, to win the competition in the international contracting credibility, dominate the market. Quality is engineering projects and business life, basically determines the ability of the business in this market did not continue to survive. Many enterprises in China contracted projects in Africa, as the project quality assurance in place, after completion of the project, the local government and the owners have tried to retain our hope to continue to serve the cause of their country's infrastructure, which is for sure the best quality of our work.

7 Contract Management.
This task is in fact the whole process throughout the project, although only a few words, but the content is complex, but the domestic construction enterprises generally contractual and legal concepts rather weak, negligent management of the contract, it is difficult to adapt to the foreign contract management concepts and methods, the results are the results of the project would be profitable but lost money. Anti incur losses are not infrequent, China's overseas engineering contractors in the Middle East market, often due to the implementation of the contract was not strictly outsourcers counterclaim, causing fruitless, unprofitable objective facts, which requires attention to implementation of the project construction enterprises in the process of contract management, set up a dedicated contract management team. repeated studies analyzing contract documents, carefully worded, the implementation process closely rely on contract terms , seize the opportunity claims. fully prepared to prevent and reduce the losses caused due to breach of contract, seeking compensation on economic and duration, reduce risk and protect yourself and improve economic efficiency.


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