Economic reforms in the Chinese construction industry - cost management implications

Smith, PV; Ding, GK

Economic reforms in the Chinese construction industry - cost management implications

Smith, PV

Ding, GK

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Publisher:: Pertubuhan Ukur Jurutera & Arkitek Brunei (PUJA)
Publication Type:: Conference Proceeding
Citation:: Innovating and sustaining: challenges and opportunities, 2012, pp. 1 - 13
Issue Date:: 2012-01

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Field	Value	Language
dc.contributor.author	Smith, PV https://orcid.org/0000-0001-5825-2014	en_US
dc.contributor.author	Ding, GK https://orcid.org/0000-0003-2697-9395	en_US
dc.contributor.editor	-	en_US
dc.date	2012-07-07	en_US
dc.date.issued	2012-01	en_US
dc.identifier.citation	Innovating and sustaining: challenges and opportunities, 2012, pp. 1 - 13	en_US
dc.identifier.uri	http://hdl.handle.net/10453/23241
dc.description.abstract	The People's Republic of China was formed in 1949 with an economic system based on a planned centralized economy controlled by the government. Under this system, the construction industry was characterized by tight government controls that included the financing of projects and the allocation of design and construction works to state owned enterprises. There was no competitive bidding system with projects priced according to fixed standard price norms published by the government. In 1978 the government introduced fundamental economic reforms aimed at shifting from a planned centrally controlled economy to an open-door market driven economy. These and other ongoing reforms have resulted in a remarkable transformation of the Chinese economy and construction industry over just three decades. This paper examines the impact of these changes on Chinese construction cost management practices and the role of the Cost Engineer. The research methodology for this paper was based on a review of English and Chinese literature and industry interviews in Beijing. The research found that the economic reforms have had a profound effect on Chinese cost management practices and has seen the rapid rise of the Cost Engineering profession. The industry has shifted to a more western open market system and has embraced competitive bidding and market pricing. This has placed tremendous pressure on cost management professionals to adapt and has heightened the need for improving cost engineering education and certification programs.	en_US
dc.publisher	Pertubuhan Ukur Jurutera & Arkitek Brunei (PUJA)	en_US
dc.relation.ispartof	Innovating and sustaining: challenges and opportunities	en_US
dc.relation.ispartof	Pacific Association of Quantity Surveyors Congress and Board Meeting	en_US
dc.title	Economic reforms in the Chinese construction industry - cost management implications	en_US
dc.type	Conference Proceeding
utslib.location	Brunei Darussalam	en_US
utslib.location.activity	Brunei Darussalam	en_US
utslib.for	120203 Quantity Surveying	en_US
dc.location.activity	Brunei Darussalam	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/e-Press
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
pubs.organisational-group	/University of Technology Sydney/Strength - CBI - Centre for Built Infrastructure
pubs.organisational-group	/University of Technology Sydney/Strength - CCDP - Contemporary Design Practice
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.finish-date	2012-07-10	en_US
pubs.place-of-publication	Brunei Darussalam	en_US
pubs.start-date	2012-07-07	en_US

Abstract:

The People's Republic of China was formed in 1949 with an economic system based on a planned centralized economy controlled by the government. Under this system, the construction industry was characterized by tight government controls that included the financing of projects and the allocation of design and construction works to state owned enterprises. There was no competitive bidding system with projects priced according to fixed standard price norms published by the government. In 1978 the government introduced fundamental economic reforms aimed at shifting from a planned centrally controlled economy to an open-door market driven economy. These and other ongoing reforms have resulted in a remarkable transformation of the Chinese economy and construction industry over just three decades. This paper examines the impact of these changes on Chinese construction cost management practices and the role of the Cost Engineer. The research methodology for this paper was based on a review of English and Chinese literature and industry interviews in Beijing. The research found that the economic reforms have had a profound effect on Chinese cost management practices and has seen the rapid rise of the Cost Engineering profession. The industry has shifted to a more western open market system and has embraced competitive bidding and market pricing. This has placed tremendous pressure on cost management professionals to adapt and has heightened the need for improving cost engineering education and certification programs.

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http://hdl.handle.net/10453/23241