(Part 2, NTUST, 5908701)

Part 2, Advanced Civil Construction, 台科大高等土木施工學教材(2023) 

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/)

(mtkaoforum31@gmail.com)

3. Construction Industry and its Significance to Total Economy:

1).  An economy develops quickly if there is good infrastructure, or to lose momentum.

(1).  Quick developing economy really needs good infrastructure to keep bustling, or to lose momentum. Several years ago, in IT-savvy India, the dilapidated roads, ports, and power systems often slash several point GDP off every year while Japan, Asian tigers, and China seem not to be bothered by poorly or untimely construction of infrastructure for their economic success.

Understand the Infrastructure development is important in poverty alleviation and has a multiplier effect to enhance the efficiency and quality of manufacturing, Indian government create plans to build road network, railway, airport, power station and transmission line, to improve the connectivity between the states. The annual high economic growth rate is forecast making India now the 5th largest economy in the world. 

Always the countries begin to build infrastructure works before setting up their light and heavy industry, and service sector; and it means civil engineers will benefit from economy prosperity and then mechanical, electrical and chemical engineers. 

2).  Infrastructure projects construction stimulates demand of building material, machine and tools, furniture, and services; thus, speed up industrious development. And when economy grows, the construction market thrives.

(1).  Construction of infrastructure projects requires not only industrious product and machines but also augmenting services such as engineering, advertisement, house sales, financing transactions creating economic growth and upgrading. 

Construction will become the locomotive of the domestic economy. It’s also the reason that the state will always support the construction in terms of budgeting, resource allocation and nurture of the industry to ensure the development of the country and regions. 

(2).  On the other hand, when social and economic developments come up, the tax revenue and personal income will increase, the public and private work boom will be ensued, as individuals are more affordable to pay the mortgage and government will have more money to improve the environment that people live in.

(3).  When a country encounters an economic downturn, the quickest way to introduce a recovery and to reduce the pressing unemployment rate shall be spending as much as possible in the infrastructure as the transaction will always remain in the region. 

3).  Young countries need civil engineers to draw national development plans for years and decades up to cabinet level. It is the term “technocrats" for people with expertise hard to be replaced under different regimes. 

Possibly the political life for those technocrats will outlive the politicians embracing rival ideology for each other. Usually in a society with political parties hostile against each other, the technocrats, handling public affairs can still be allowed to stay neutral; so the plans, designs, budget and regulations they draw will be respected.

It's particularly true when the government of a state is gripped in the hands of group of conviction politicians that the technocrats may be assigned for the management of big national projects or state run enterprises. Their chance of success is high because always such kind of governments in certain developing economies will designate strategy project or industries as national pride. The means will include money and talents concentration and foreign competition fending off; and it will translate into the career longevity of the engineers. 

4).  Construction people sometimes risked to become accomplices of powerful people stealing public money. The infrastructure contracts usually involve tremendous sums and require different sub tier companies to perform the works; the illicit money is easy to hide and park. The contractors are easily to be blamed.   

(1).  Contractors always excuse the need to survive as the reason to be part of the kleptocracy, but the truth is construction contracts can be lucrative, and most of the times doesn’t show flaws. Therefore, contractors always believe the politicians are  powerful enough, and  able to protect the business man until the last moment. 

In the final reckoning, the politicians will sacrifice the contractors without hesitation, and only then the contractors will know the protection they really have is ephemeral.

 The Politicians always collaborate with the riches, so that power and wealth begat more power and wealth to allow ruling class stay forever; at least they hope so. History will tell that the exploitation of the ruled and the squander of the natural resource will finally have an end. 

(2).  There will be limit that the Powerful and the riches can spoil the nation in theory, as the economy in a country has its size. But in reality, the harm can't be controlled as there are wicket foreign governments eager to provide unstringed loans and aids in the name of infrastructure development to the irresponsible regime who may surrender everything to cash in for the cost required for ruling.  

Therefore, many developing countries with abundant resources can be end up in debt and poverty, the so-called resource curses; because the politicians and their cronies will take every advantage of the countries' limited fortune. Under the circumstance the money spent will never buy worthy and required infrastructure and civil work contractors are highly blamed.  

The bad story of construction conglomerate, Odebrecht of Brazil demonstrates the farce/tragedy in the past few years: presidents, premiers, ministers, parliamentarian, businessman and people of significant suicided, imprisoned, indicted in more than 10 countries. (http://mtkaoforum31.blogspot.com/2019/04/).

In some countries, the resources are poor but the politicians still ravenous, even will use their control of the access to the market and the people to make money. It’s so called gate keeping country.

(3).  Professionalism should be the only antidote to fight the avarice and impunity behind the organized corruption. Ethic education has to be enforced since the early days of engineers training. Of course, it needs time and patience to take effect especially in a society of obscurity.

4.  Young Engineers Must Determine the Earlier the Better in their Career, based on Personality, Talent or Linkage, to Work as:

1).    Consultant or Contractor.

2) Technical or Managerial cadet. 

3) Domestic or International figure. 

4) Employed or boss.

Before to make certain for what you really want to be, people have to understand your own:

a. Personality - introvert or extrovert, competitive or temperate, simple or sophisticated, like to work in solo or in group, daring or scrupulous, acute or blunt, commanding or compliant, polemics or suave, etc.

b. Capability - knowledge, expertise, proficiency, logic, skill, common sense, morality quotient, etc.

c. Background and experience – family, friends, teachers, seniors, neighbors, etc.

Objectively, one’s education and training are also essential for the choices, and the followings shall be considered:

a. Expertise: geotechnics, structure, architecture, hydrology and irrigation, roadwork, coastal and marine, mechanic, electric, HVAC, etc.

b. Disciplines: planning, design, construction methodology, survey and set out, supervision, drafting, progress, quality assurance and control, cost control, quantity survey, machine and plant control, contract administration, litigation, inventory, first aid, financial management, accounting, information, administration, etc.

c. Diploma, licenses, certificates, on job training, etc.

d. Professional " skill": complex problem solving, critical thinking, creativity, people management, coordinating with others, emotional intelligence, judgement and decision making, service orientation, negotiation, and cognitive flexibility, though not to be stringently followed but meaningful in the practice.

Subjectively, Young engineers with appropriate attitude, inspiring leadership, sensitive to the humanity, knowing the industry trend and market change, are the winners among the professionals.

5.  The Modern Construction Industry and its Major Players:

    

1).  Frontage Players:

(1) General Contractors:

a. In most countries (markets), general contractors are leaders of construction industry commanding critical portion of resource and exercising vast influence in democratic government and authoritative regimes alike. Wherever their interests go, the construction tycoons can decide how infrastructure projects are done, and affect politic at different levels.

Given the imagination that big construction company always have the clout to maneuver for what they want, young talents flock to them before they know the industry. The stories of power and money associated with construction projects are tellingly true from country to country as the industry get momentum to grow and prosper before any other business have chances to evolve.

b. However, in countries like Taiwan, the wary authority and public are too eager to see the competition flared among the contractors and always think it's a good way to save government expenditure. So, every contracting procedure related to public works from budget allocation till their completion is mired with details presumed to plague constructors so public interest can be safeguarded. There it develops a mentality that the consultants responsible for design and supervision can be more trust-able to protect public interest in the ceaseless feuding with pigheaded contractors.

As a result, the bureaucrats and public prefer to ask the contractors to do the works according to what had been specified on the drawings, i.e. pure construction; they believe they would be able to prevent collusion by squeezing the space normally granted to designer and contractor for settling the ensuing conflict.

c. The purposed regulation as explained above existed so long has weaken the contractors; besides, in a society much influenced by Confucian culture, the traditional teaching that the scholars are superior to any other social classes further reinforce the prejudice that the employees of constructors working outdoors under all-weather would be secondary to pedants shouting instructions in the air conditioned rooms.

Finally, the employees of general contractors have to do the grinding part of the works to ensure punctual completion and well-functioning of the projects, which is nerve raking throughout entire contract period. And in return construction engineers only received diminishing amount of pay under constant annoyance that the threshold for tenderer to cross is lowered time after time allowing more people to contend.

d. It's true that general contractors in Taiwan were not so privileged compared to the coddled consulting firms because of some historical and cultural reasons. However, constructor of the 21st century should not only be able to deliver timely and quality completion of the projects, he needs also to give the clients solutions for challenges and risks brought by exceptional design, complicated operation and maintenance systems, special environmental protection requirement, unique financial arrangement; and it means, the imbalance between the images of general contractors and consulting firms now tilts a little bit toward the former.

It's also good for general contractors in Taiwan that the procurement laws and regulations overhauled in recent years: design and build contracts are welcome; division of business lines now blurred; BOT or BT style of contracting are taken and design consultants can be put under sovereignty of general contractors; projects become more sizable and fit for companies with bigger assets; labor law is more sensible thus favorable the contractors' employees who used to work in onerous long hours.

The trend compels owners, governmental or private, to accept more reasonable and liberal form of contracting, so that the constructors can pursue expertise and efficiency they need for true competition. Obviously, general contractors burdened with less red tape and enjoyed elevated status, are the biggest winners in the change

(綜合承商簽約金額龐大，掌握資源，對基礎工程是否、或如何施作有影響力，甚至介入政治。在許多國家，工程先於其他產業發展，為錢與權力結合之最明顯例證。

台灣之工程業，自早期因公眾將成本經費置於優位，政府主其事者亦鼓勵競爭，故設計監造者必站在施工者對立面，土木營造必與機電設備承商分業。因此於初期，綜合承商受眾多限制，只能按圖施工，再加上儒家思想認不動手設計者需有高學歷，較為尊重，顧問公司工作者相對有優越感。

目前新形勢，統包盛行，工程漸趨複雜化，綜合承商空間較前為大，其經理人與工程師需付較重責任，相對權力、薪酬與社會地位也將提高，此發展應為正面。)

(2) Consulting Engineers:

a. The difference between the professionals and occupational regarding business ethics and attitude is that the former's must be dutiful, intelligent and conscientious for their clients and the latter do their works following the orders. To honor and guard the professionalism, the professional decisions in no way should be compromised, twisted and altered by particular one's interest, thronged opinions, or any form of punishment.

When engineers' re trusted and confided with responsibilities for safety, functioning, aesthetic, durability, budgeting and sturdy completion of construction projects, their judgement, opinions, and integrity must be respected, and most important, their service must be remunerated fairly as it's the backbone to support the idea that the professionals are the brains of their client.

b. The professionalism allotted to engineers usually include investigation, feasibility study, planning, design, supervision, project management and other services related to civil and building works, both public and private. In Taiwan, how the engineering service is practiced is sanctioned in "Professional Engineer Act":

    Article 7 A professional engineer shall practice the profession in any of  

      the following manners:

      1. Establish an engineering office organized as a sole proprietorship or                            partnership. 

      2. Establish a professional engineering consulting firm or be hired by one.

      3. Hired by a profit-seeking enterprise or entity, other than those mentioned   in            the preceding      

      subparagraph, which is required by law to hire a licensed professional engineer.

c. If we trace the history, we will know that professional engineering service was originally taken by individual engineers or the partnership they formed. In modern-days, projects for all complex nature not only require advanced technology; but also need proposals with exceptional commercial skill to augment chances of as-planned completion or to seek ways of meaningful mitigation. So, it takes kind of "omniscient "corporation consisting of bright people who are able to offer inclusive solutions at all times.

Apparently, the professionals can well exercise their knowledge and skill disregard what their choice to sign the contracts in "proprietorship", "partnership" or "corporation", but the industrial reality is that a corporation big enough may be better to accumulate experience, possess data, search for information, and churn out proposals.

Yes, only they are big they can have lots of talents adhered to share office equipment and software cost and are more affordable to meet the client's fastidious demands. Besides, financing, accounting, and administration rendered by big corporation will support the engineer for activities now needed to be more expeditious but intact, which can hardly be found in partnership and small company.

It's understandable when the clients want to make award the engineering jobs of multi-discipline nature, they feel more comfortable to engage with organizations of size and reputation. But such an observation shall not be over interpreted as that the big corporation doesn't have any problem in performance and cost.

d. So, a lot of clients today when want to make award of the engineering jobs of multi-discipline nature, they feel more comfortable to engage with organizations of size and reputation. But such an observation shall not be over interpreted as that the big corporation doesn't have any problem in performance and cost.

But it’s just a trend and shall not be over interpreted as that the big corporations may have their own problem in performance and cost.

e. We all know the professionalism stems from individualism and entails characteristics unique to each professional: vision, responsibility, work attitudes, which shall be prerequisite to shape a concerted team undertaking sophisticated engineering works in competition with individual or more coherent partnership for efficiency and responsiveness.

Remuneration to the professionals remains a big problem in managing engineering companies as people always view their own performance impeccable and believes they are entitled for more than regular salary and bonus. The arguments often focused in profit sharing, and stays at every junction where company elite flaunt their eminence. People may imagine there could be a terminal arbiter in big engineering company busy to dole out verdicts to assure everybody's material and vanity reward will be met, but that's not realistic. 

For small engineering companies, the bosses usually grumble for the employees’ impatience to demand profit sharing before showing their contribution; but the hired will also complain their performance is never recognized.

The wish wise men may be there for positive intervention is a pipe dream in the real world; instead, egocentric human nature will prevail. Discords and disputes always happen between the quarreling parties, and the burst out usually take the form that people arguing over things abstract and philosophic like vision, responsibility, work attitudes, but money is behind, if contradiction not solved the result will be exodus of high minded people, or the cooling down of remaining people's motives to learn new skill and knowledge.

Modern professionals’ firms will use options such as extended partnership or stock warrant awarding to employees to keep their loyalty. It's important because many people consider the company's gain is only possible with their affectionate engagement and they're deserved to share profit as partners. The idea is different with the bonus and prizes scheme applied for companies to sell material, product, or simple services; requiring employees clinging to positions and to do more or less countable works.

The idea is different with the bonus and prizes scheme applied for companies to sell material, product, or simple services; which only ask employees sticking to positions and to do works countable and not unique for individuals. It may not be suitable for sizable and sophisticated consultancy; but a practice in Taiwan for national enterprises.

f. In Taiwan, the government handled the importation of construction technology closely during the days that the resources were scarce, and many of the engineers were trained on jobs like dam, petrochemical complex, expressway and military installations. To counter balance the more advanced international companies, the government then sponsored big consulting and construction firms with the view that they could be reliable and competitive to carry out public work for the future.

Years after, the government was forced to withdraw from the construction companies sponsored as private contractors won over contention. However, the public consulting firms still remain and dominant in the engineering market, as they still receive the trust and patronage of government agencies anxious to launch infrastructure projects.

The arrangement can solve remuneration problem in many professionals’ firms, however, it's not elixir for small engineering companies, the bosses of which always grumbled that the employees are impatient to demand profit sharing before showing contribution; but the hired complained their performance not recognized all the time.

g. The government funded consultants pay their engineers of salary, bonus and dividends similar to what has been arrayed in other public enterprises of much less professionalism content. The practice omit that the services originally are individual-oriented and in the case of corporation the people must fetch not much less than their colleagues under sole proprietorship or partnership. Over time the side effect not pay enough to professionals will appear: efficiency discounted, talent lost to other industries, projects other than routinely implemented need to be done by international consultants.

The government funded consultants are more obedient to follow contract terms arbitrarily interpreted by public servants short of flexibility in forecasting project requirement and rectifying them later. So, the government agencies prefer to award sizable engineering works to government funded consultants and thus strengthen their dominant position in the industry despite private design firms always crying foul saying that the state shouldn't interfere the market.  

It's nothing wrong in a society actually embraces egalitarianism and hates to pay some of professions high price to continue the practice contracting with government funded consultants for low cost and in time delivery of engineering works as a safety play of the officials..

But when technology bred domestically may not be sufficiently advanced as the result of individual's lacking of incentives because there’s only one buyer for the public works-the government. The foreign consultants or architects will be eager to fill technical gap but only at dear prices. 

And any attempt that the government agencies to ask affiliated firms to bridge the difference in terms of price and contractual obligation will only to bring further procrastination and induce secondary damages as the one who really have to deliver the works will have leeway to dodge their responsibility.

(專業工程師掌握工程成敗、經費、品質良劣，業主賴之。早期設計、監造，係由具自信與自尊之個人技師、工匠或專家個人名義或形態擔任，現大工程須為擁百、千人之顧問公司承擔，惟台灣之技師法，仍要求專業人員在其能力、判斷、與倫理對業主負責，由字句語義，可看出立法原意，然在實務上，工程變成大而複雜，如何讓團隊發揮效率，又不出錯，是顧問公司經營挑戰。

但台灣工程發展壯大經過，可看出從早期技術須由國外引進時，都由政府統一辦理，以圖利用及掌控有限之資源；或因社會變遷，民間實力增強，故政府力量就由施工方面撤退，但因信心關係，在設計顧問業仍為其掌握。故台灣在工程產業仍有廻異於先進國家之處，此可由公共工程費率、合約條件、乃至顧問公司經理與資深工程師薪酬等看得出來。)