Chinese Companies and the International Engineering Contract Market in the 21st Century

in the 21st Century

21世纪的中国公司和国际工程承包市场

Author : CHENG Hongqun

http://www.malaysian-chinese.net/publication/articlesreports/articles/1009.html Introduction 介绍

The international engineering contract market is a platform for competitive bidding for various kinds of engineering projects by corporations from different countries of the world. These corporations are legal entities appointed by the host governments to undertake specific engineering projects according to international procedures and regulations.

国际工程承包市场是给来自世界不同国家的公司提供为各类工程项目竞标的平台。这些公司是由东道国委任的，按照国际程序和规章制度开展具体工程项目的法律实体

The application of advanced technology has enabled building contractors from the West to corner a major share of the overseas market for large engineering projects. They are expanding their scale to improve their technology and management, and to strengthen their competitive power in the international engineering contract market. Economic globalization has increased the competition in bidding for international engineering projects. In 2003, the overseas contract value of the top 225 global contractors was $139.8 billion (Reina and Tulacz. 2004).

先进的科技可以使来自西方的建筑承包商因承建大型的工程项目，而在海外市场垄断一大部分市场份额。他们扩大自己的规模来提高他们的科技和管理水平，并且加强他们在国际工程工包市场的竞争力。经济全球化使得国际工程项目的竞标竞争力加

大。在2003年，前225位的全球承包商的海外承包合同总价值是1398亿美元（Reina and Tulacz. 2004）

International contractors, including Chinese companies, compete to enlarge their share of the global contract market by means of various strategies. After joining WTO, Chinese companies face more challenges as well as more opportunities than before. This paper analyses the current situation and trends of the international contract market as well as the character of Chinese companies. It will propose measures that may assist Chinese companies in bidding for international projects.

国际承包商，其中也包括中国的公司，都在通过各种策略竞相扩大他们在全球承包市场的份额。加入世贸后，中国公司比之前面临着更多的挑战和机会。这篇论文着重分析国际承包市场当前的状况和发展趋势，以及中国公司在其中所扮演的角色。此文也将提出一些建议和措施，有可能给予投标国际工程的中国公司一些帮助。 The International Engineering Contract Market 国际工程承包市场

A build-operate-transfer (BOT) contract is an agreement between an investing company and the host government by which the former will build and operate an engineering project for an agreed period before transferring ownership and management rights to the host government. The company has the responsibility to raise the necessary capital in the international market and enjoys management rights and profits during the contract period. The BOT mode also includes two other forms such as build-own-operate (BOO) and build-own-operate-transfer (BOOT).

BOT（建造-营运-移交）合同是指投资公司和当地达成协议，即投资公司在将所有权和管理权移交给当地前的一段时期内负责建造和营运一个工程项目。投资公司在合同规定时期内，有义务增加在国际市场时所必需的资金，并且拥有这段时期

内的管理和获得此时所有收益的权利。这种BOT模式也包括了两种其他形式，例如BOO（建造-拥有-经营）和BOOT（建造-拥有-经营-移交）。

As a form of management and investment, BOT allows a company to mobilize capital resources to build an infrastructure in a country and in turn to allow the host country to assume ownership after the period of contract. With economic globalization and the availability of increasingly advanced technology, the number of capital-intensive projects that will come into the contract market is likely to increase. The BOT mode is an innovative form of development that guarantees the dependability of projects and allows the contracting companies to gain ready access to the financial market, and at the same time yields economic benefits to both contracting parties (Reina and Tulacz, 2004).

作为一种管理和投资的形式，BOT允许一个公司调动中心资源在一国建设一项基础设施，并在合同规定期后允许该国接管此设施。随着经济全球化和实用的先进科技的增长，承包市场中的资本密集型项目量也有可能出现增长。BOT模式是发展出的一种创新的形式，它保证了项目的可靠性，同时产生的经济利益对双方均有益处(Reina and Tulacz, 2004)。

BOT is widely used in more than 100 countries and is becoming increasingly popular especially in Eastern European. It involves international co-operation and requires knowledge and experience in engineering, technology, law, finance and a host of related fields. It is characterized by substantial capital investments ranging from several hundred million to billions of dollars, and an extended period of operation lasting from 10 to 40 years.

BOT已经被广泛应用于世界上的100多个国家，尤其是在东欧，变得越来越流行。它涉及到国际合作，需要工程、科技、法律、财政和一系列相关领域的知识和经验。它

的显著特征就是从几千万到几百亿美元不等的大量资金的投资，以及从10到40年长时间、持续性的操作时间。

In September 1999, the international construction industry federation revised and published new contract terms including clauses governing the work of design, building and delivery of projects. The new terms require that contractors be competent in a range of expertise in designing, bidding, building and even post-delivery servicing of construction projects.

1999年9月，国际建筑工业联盟修订和发布了新的合同条款，涵盖了分配设计、建造和交付项目等工作的各项条款。新的条款要求承包商在设计、投标、建造甚至是建筑的售后服务等一系列的方面具有专门技术，以胜任承包后的工作。

International engineering projects include not only civil engineering but also other specialized areas of work such as investment planning, project design, technological consultation, international financing and purchase, recruitment of labour, project management and staff training.

国际工程项目不仅包括土木工程，而且还有其他诸如投资计划、项目设计、技术咨询、国际金融、人员招聘、项目管理和员工培训等许多专业领域的工作。

The international engineering contract market is a typical buyer's market and competition is intense. Of the leading 225 global contractors, the proportion from developed countries such as US, Europe, and Japan declined from 81 percent in 1991 to 67 per cent in 2003, while the share of revenue fell from 92 to 87 per cent (童继生 / Tong Jisheng, 2003; Reina and Tulacz, 2004). International contractors have to compete in the world market through their own strength in such areas as funding, experience, technology, management, cost and services.

国际工程承包市场是一个典型的买家的市场，并且竞争是激烈的。 领头的225个全球性承包商，来自发达国家的比例，例如美国，欧洲在和日本，从1991年的81%下降到2003年的67%，而收益份额从92%降到87% (童继生，2003年; Reina and Tulacz, 2004)。 国际承包商必须通过他们自己的在以下几方面的能力在世界市场上竞争：资金、经验、技术、管理、费用和服务。

With the increasing number of large-scale projects coming into the global contract market, international engineering corporations are paying greater attention to improving their management and enlarging the scale of operation in order to be competitive. In 2003, the turnover of the top 225 global contractors increased by 20 per cent over that in 2002, and the average rate of profit also rose slightly. This could be the result of merging among international engineering companies. In future, mergers and joint operations between major corporations may become more common as they seek to adjust their corporate structure to improve their overall strength and competition.

随着大量的大规模项目进入全球性承包市场，国际工程公司对改进他们的管理和扩大经营规模给予了更加深入的关注，以提高自身竞争力。在2003年，名列前茅的225个全球性承包商的营业额比2002年增加了20%，并且平均赢利也微微有所上升。这可能是国际工程公司相互合并的结果。今后，各大公司之间的兼并和联合会变的越来越常见，这是他们为了寻求修整公司结构，以提高整体水平和竞争力的结果。

China's Entry into the International Market 中国进入国际市场

China first entered the international construction market in 1979 and had since recorded many achievements. Chinese companies initially carried out engineering projects in the Middle East and North Africa in the 1980s, and subsequently expanded to more than 180 countries and regions including developed countries. Of the 225 leading global contractors in 2003, 47 were Chinese (Reina and Tulacz, 2004). Although ranked only below the US and Europe in terms of number, the contract value of Chinese contractors was only $8.3 billion or a mere 6 per cent of $139.8 billion of the contract value among the global contractors. Among European countries, Sweden's Skanska AB alone, whose contract value was $26.6 billion, exceeded the combined contract value of 47 Chinese companies. Although China ranks among the top 20 in the global construction industry, it

is facing increasing competition in the domestic market. With China's entry into WTO, the domestic construction market is becoming rapidly \"internationalized\".

中国在1979年第一次进入国际建筑市场，并自此以来获得了很多成绩。中国公司最先承建的工程项目是在20世纪80年代的中东和北非，随后扩展到全球180多个国家和地区，其中还包括发达国家。在名列前茅的225个国际工程公司中，有47个是中国的公司(Reina and Tulacz, 2004)。尽管排名仅在美国和欧洲之后，但是中国公司承包的合同价值只有83亿美元，只占了全球承包商1398亿合同价值的6%。在欧洲国家里，瑞典的斯堪雅建筑集团（Skanska AB）单独一家的合同价值就有266亿美元，远远超出了47家中国公司合同价值的总额。尽管中国在国际建筑工业领域排名在前20位，但它面临着国内市场一直增长着的竞争。随着中国加入世贸组织，国内建筑市场开始迅速变得“国际化”了。

Chinese international engineering projects are mainly concentrated in building construction, communications and transportation, petrochemical industry, and power industry. Their respective percentage shares of the contract value in 2003 were 28.7, 24.7, 20.6, and 6.9 per cent. In addition, manufacturing industry accounted for another 8.6 per cent, and the remaining 10.5 per cent was contributed by projects in sewage disposal, electronic communications industry, water supply and others (李启明 / Li Qiming et al 2001).

中国国际工程项目大部分集中在土木工程、交通运输、石油化学工业和电力工业方面。他们各自占了2003年合同总价值的如下份额：28.7%，24.7%，20.6%，和6.9%。此外，制造业占了另外8.6%的份额，其余的10.5%的份额则被污水处理、电子通讯、供水等其他工业所分占。

Despite considerable progress in the international market in the past three years and with projects in more than 180 countries, Chinese companies are still largely

concentrated in their traditional markets of Asia and Africa. In 2003. half of their contract value was derived from projects in Asia, almost a fifth in Africa. 8.4 per cent in Europe. 4.7 per cent in North America, and only 1.2 per cent in Latin America. In terms of countries and territories, more than four-fifths of the projects are in Pakistan. Sudan. Algeria, and . In the case of Malaysia, the contract value as mere 1.1 per cent of the total (童继生 / Tong Jisheng, 2003).

尽管在过去3年里国际市场中取得了重大成果，并且在180多个国家中承接了项目，但中国的公司仍然大部分专注于他们传统的亚洲和非洲的市场。2003年，一半的合同价值是由在亚洲的工程项目创造的，大约五分之一在非洲，8.4%在欧洲，4.7%在北美，只有1.2%在拉丁美洲。在国家和地区方面，有五分之四的项目是在巴基斯坦、苏丹、阿尔及利亚和。至于马来西亚，仅占了1.1%的合同价值。

More than 1.600 Chinese companies have the required qualifications to carry out international engineering contracts but the dominant ones are large-scale enterprises, such as China State Construction Engineering Corp (CSCEC). The total contract value of the 47 Chinese companies that ranked within the \"Global 225\" in 2003 contributed 60 per cent of the total international contract value of all Chinese companies with the top ten accounting for almost 40 per cent (Reina and Tulacz. 2004).

超过1600家中国的公司拥有所需要的专业资格，去开展国际工程承包，但是只有大规模的公司才能占据优势地位，比如中国国家建筑工程公司（CSCEC）。2003年，在“全球225”中的47家中国企业的合同总价值占了当年中国所有公司国际合同总价值的60%，其中的前10家企业创造的价值几乎占了总价值40%的份额。

After several decades of competition, more Chinese enterprises are able to compete successfully in bidding for large projects. In 2003, the aggregate value of individual

projects with a minimum contract value of $50 million amounted to $6,630 million. Among these projects, the contract value of 18 projects exceeded $100 million.

经过数十年的竞争较量，更多的中国企业有能力成功的竞争到大项目。2003年，单个项目合同价值最低为5千万美元的项目，加起来合同总额一共有66.3亿。在这些项目之中，有18个项目的合同总值接近1亿。

Some Chinese companies have won contracts in Europe and America. The American subsidiary of CSCEC won a bid to build a high school and the technical centre worth $21.9 million in September 2002. In 2003, it was awarded contracts to build a subways station in New York and a hotel project management in Manhattan. The China Metallurgy group was awarded a contract by an America company in 2004 to build a factory for $402.5 million.

有些中国公司在竞标中赢得了欧洲和美国的承包合同。2002年9月，CSCEC在美国的子公司竞标成功了修建一所中学和一幢科技中心的项目，价值两千一百九十万。2003年， 此公司又签订了承建纽约地铁站和曼哈顿一个酒店项目管理的合同。2004年，中国冶金集团也于一个美国公司签订了承建一所价值四亿零两百五十万的工厂的合同。

Along with the growth in the demand for energy in China, Chinese petroleum and natural gas companies are bidding for projects with large contract values in the petroleum chemical industry. These companies are making progress in developing their overseas services. Three regions in North Africa, Central Asia and South America and centring respectively at Sudan, Kazakstan, and Venezuela, are emerging as important markets for these companies. Similarly, in heavy and mining industries, Chinese companies are venturing overseas to bid for projects. In 2004, Baoshan Steel Corporation signed an agreement with a Brazilian corporation, which is the world's biggest iron ore producer, to conduct a feasibility study for a 150 million integrated iron and steel complex. A similar

contract was concluded with Angola whose contract value is $200 million (李启明等 / LiQiming tVa/,2001).

伴随着中国对能源需求的增长，中国的石油和天然气公司正在竞标合同总值很大的石油化工工业的项目。这些公司在提升他们海外服务方面做出了着重大的成绩。北非、中亚和南美的三个地区，其各自的中心：苏丹、哈萨克斯坦、委内瑞拉对这些公司来说形成了重要的市场。相似的，在重工业和采矿工业方面，中国公司敢于在海外进行项目投标。2004年，宝山钢铁公司与巴西全球最大的铁矿石公司就共同实施价值1.5亿美元的综合钢铁冶炼厂达成了协议。一个合同总价值为2亿美元的相似合约以与安哥拉达成一致结束。 Strategies of the International Engineering Companies of China 中国国际工程公司的策略

In recent years, China has increased its share of contracts for large-scale international engineering projects though the absolute volume is relatively low compared with those of foreign corporations. At present, total global engineering contracts are worth about $1,000 billion each year. The overall contract value of international engineering projects of Chinese companies was about $13.8 billion in 2003, accounting for 1.3 per cent of the total international project contract value. Chinese companies are still not able to compete with those from many countries. Their contracts are also relatively small. The contract value of the 47 Chinese companies within the top 225 global contractors in 2003 was only $8.3 billion, whereas that of the six Korean companies in this elite group was $2.7 billion. Clearly, it is only through strengthening their competitiveness that Chinese companies will be able to win a larger share of the international market and to raise their turnover and profits.

近几年，尽管中国公司在绝对容积方面与国外公司比较还是相对较低，但其在大型国际工程项目中承包的份额已有所增长。目前，每年全球工程承包项目的总值可达10000亿美元。2003年，全部中国公司参与的国际工程项目的合同价值为138亿美元，只占的到全球总量的1.3%。中国公司的竞争力在和其他国家的公司比较时，还是稍显不足。他们的承包的合同规模通常也比较小。2003年，名列全球前225名国际承包商中的47家中国公司的合同总价值只为83亿美元，然而，这其中的六家韩国公司的总值却已达到了27亿美元。显而易见的，中国公司只有加强他们自身的竞争力才有可能扩大在国际市场中自己的份额以及提高营业额和利润。

In the increasingly keen competition for international engineering projects, financing ability is one of the key factors in deciding the outcome of bids. Most international engineering companies are capable of handling project financing and project management. However, most Chinese companies still keep to traditional management style. Not all companies possess the necessary qualifications and can only bid for projects in the domestic market. In the face of changing circumstances, these companies should rationalize their management structure by getting rid of useless assets, optimize the use of capital, and to adopt advanced management techniques (崔旭旺 / Cui Xuwang, 2004). They should aim at becoming integrated multinational corporations capable of dealing completely in design, building and management whether in domestic or foreign markets.

国际工程项目承包的激烈竞争还在逐渐加剧的情况下，融资能力成为影响投标结果的关键因素之一。大多数国际工程公司能够处理好项目资金和项目管理问题。可是，大多数中国的公司却还是保持传统的管理方式。不是所有的公司都控制着必要的技术，因此他们只能投标国内市场中的的项目。在外部环境不断改变的情况下，这些公司应该通过摒弃无用的资产、优化资金的使用以及适应先进的管理技术等方式，尽快使自

己的管理体系合理化。他们应该朝着不论在国内还是国外市场，都能够完全自主设计、建造和管理的方向，成为综合性公司。

Both profits and risks are high in the international engineering contract market, especially for large-scale projects involving substantial investments and long construction time. It is vulnerable to delays and damage by unforeseen events. International projects of Chinese contractors are confined largely to developing countries where the relative absence of political and economic stability may multiply the risks to investment. Terror attacks on Chinese contractors in Middle East in 2004 are not only reminders of the importance of securing but also brings great damage to Chinese companies. The urgent need to establish an insurance system is obvious.

国际工程承包市场中，高收益和高风险是并存的，尤其是那些投资巨大、建筑费时的大规模项目。这些很容易受到无法预料的事件的侵害，导致工期拖延和建筑损坏。中国承包商的国际项目很大一部分在相关的政治和经济不是很稳定的发展中国家，这无疑加大了投资的风险。2004年发生在中东针对中国承包商的恐怖袭击，不仅提醒了我们加强防御的重要性，也要记得他给中国公司带来的重大损失。很明显，现在迫切需要建立一种保险体系。

In the competitive market, it is indispensable for Chinese international contractors to utilize modern managerial skill to improve their management. Much depends on the competence of professional personnel in a diverse field of expertise in management, finance, insurance, law, foreign languages, and familiarity with international practices. One of the basic needs is the ability to constantly upgrade their knowledge through training and exposure to new ideas (刘颖琦 / Liu Yingqi and 李海开 / Li Haisheng, 2004).

在充满竞争的市场中，利用现代管理的技巧来提升他们的管理是必需的。这些大多依靠在管理、财经、保险、法律、外语等各领域方面专家的专业能力以及对国际惯

例的熟悉。通过培训和让他们接触新的思想，从而不断地提升他们的知识容量是一项最基本的要求。

Technological innovations play a crucial role in the development of the construction industry. In this regard, there is a considerable technological gap between companies in China and elsewhere. It is imperative that Chinese companies pay full attention to technological innovations and adopt advanced technology in order to switch from labour-intensive to intelligence-intensive methods based on scientific and technological progress.

技术革新在建筑工业的发展中扮演着一个重要的角色。就这一点而言，中国公司和国外公司有着相当大的技术发展差距。这就说明，中国公司要给予充分的精力关注技术革新和采取先进的技术，在科学和技术进步的基础上，使自己从劳动密集型向智力密集型转变。

Information and communications technology is the leading technology in the 21st century. A successful international engineering company must exploit the ability to access and to utilize all types of information management in the course of its operation and management as well as to arrive at scientific and accurate decisions.

信息通信技术是21世纪的主打科技领域。一个成功的国际工程公司在经营和管理的过程中，必须开发出可以访问和利用各种信息的管理系统，也是为了做出更加科学和精确的决策。 Conclusion 结论

With the spread of economic globalization, competition for international engineering projects is becoming increasingly intense. Chinese international engineering companies will have to face this competition within the terms of WTO. A sure way to

meeting this competition and to succeed is for Chinese international engineering companies to be fully aware of new developments and changes in the international project contract market and to adjust their management strategies accordingly.

随着经济全球化的传播，国际工程项目承包的竞争力变得越来越激烈。中国的国际工程公司再加入世贸后，将会面临这样的竞争力。去应付这样的竞争力以及能在这种条件下成功的一个可靠的方法就是：能够清醒的意识到国际工程承包市场的新的发展和变化，并学会相应的去调整他们自己的管理策略。 References 参考文献

1. REINA, Peter and TULACZ, Cary J. 2004. The scope is more important in the increasing international engineering contract market, Engineering News-Record (New York), August 23: 7-10.

2. 崔旭旺2004. ＜浅析我国开拓国际工程承包市场的对策＞,《施工企业管理》，第3期：34-37页(CUI Xuwang 2004. Analysis of the countermeasure for our country to exploit international project contract market, Construction Enterprise Management, 3: 34-37).

3. 李启明、万源、吴德华2001。＜2000年度国际市场最大225家承包商和200家设计公司市场分析＞，北京﹕《建筑经济》(LI Qiming, WAN Yuan and WU Dehua 2001. Market analysis of the biggest top 225 contractors and 200 design companies of international market in 2002, Construction Economy, 11: 36-39).

4. 刘颖琦、李诲升2004。＜国际工程承包商经营市场分析及发展趋势＞，《重庆大学学报》（社会科学版，重庆），第10期，第2号：32–34页(LIU Yingqi and LI Haisheng

2004. Business market analysis and development tendency of international project contractors, Journal of Chongqing University (Social Sciences Edition), 10(2): 32-34.

5. 童继生2003。＜国际工程承包市场：形式与机遇＞，《建筑经济》，第12期﹕4-9页（北京）(TONG Jisheng 2003. The International Engineering Contract Market: Opportunity and Challenge, Construction Economy, 12: 4-9). Opportunity and challenge. Construction Economy, 12: 4-9).