Part 5-2, Advanced Civil Engineering Construction，台科大高等土木施工學教材(2021)

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/) (mtkaoforum31@gmail.com)1)

5:The Modern Construction Industry and its Major Players.
1)  Frontage Players: general contractors, consulting engineers, architects, specialty contractors, labor gangs,  investors.

2)      Supporting Entities:

(1). Banks

Banks offer credit lines, grant loans, and acting as agents to collect or pay bills, draft, and cheques to companies or individuals doing business related to construction and engineering.

Banks issue guarantee letters or cheques to the clients for bid bond, performance bond, advance payment bond, and warranty bond at the request of construction entities such as construction companies, design consultants, professional engineers, and architects.

In many cases, banks will issue letter of credit for contractors to buy equipment, material and service required to complete the project. There will be overdraft facilities for companies to pay outstanding amount reasonably required in performing contracts with ultimate owners, the main contractors or upper tier contractors.

Banks will evaluate the profitability, sizes, collateral, and reputation of the company, and grant them amount of credit and rates of premium and interest; there will be fluctuation of their offer over time.

There is possibility that the banks agreeing to offer loans for BT, BOT, or BOO projects, based mainly on feasibility, completion guarantee, and the ultimate owner of the projects. Usually commercial banks need backups of fund, investment companies or even state.

When construction related entities wouldn't obtain the credit lines as required or they're sharply reduced the existing credit amount, it's pushing them toward insolvency. The consequence usually is very serious and could probably invoke chain reactions for subcontractors and sub vendors for several times the amount main contractors indebted.

(一個組織或公司拿不到額度時，就要垮了；營造業情形常有一家公司垮了，因轉包的關係，社會遭到的衝擊，金額會是原來公司的好幾倍)

If the state won't go for rescue, banks, subcontractors, vendors, their employees will be induced for great damages like the case happened to the second biggest contractor, Carillion of UK. But normally in a democracy, no sane politicians will vote continuing to finance the troublemaker, that's why banks are cautious in Taiwan.

(如英國第二大營造公司Carillion倒閉的情形)

(2).  Insurance Company

All the construction contracts need insurance company to provide coverage for damages to property and persons related to the projects unless it happens due to excepted risks.

The employers wish themselves and the contractors to be compensated for maximum and paying minimal fee. The public work owners are big customer so they will prescribe what they want in the contract document, and supposed insurance companies and the follow contractors will comply the stipulation.

(公家機關是工程保險最大顧客，保險業出保單會尊重他們的需求)

However, in many occasions the crooked contracting parties seeking improper profit will ask acquiescent insurers to provide conforming policies with internal agreement deleting the critical clauses demanded by the employers. Though the insurance companies are more law abiding but there are brokers sticking to the old way doing business, its a headache for employers and reasonable contractors.

(有些營建公司會與保險業者勾串，正是保單以外再加附加條款，藉以省錢)

Compensation to the contracting parties when perils occur spelled another trouble for contractors, too. The appraisers' proffer can be wide ranged and unpredictable. On the other hand, some of the contractors in Taiwan didn't invest sufficient in construction facilities to avoid risk but later come up with plump figures for compensation and made money with obvious and intentional negligence of the insurers.

(理賠時，有些承包商會與鑑定人勾串，在災損範圍與金額上做手腳)

There were stories that the re-insurer like Lloyd's of London rejected to re-insure tunnel work construction of Taiwan in 90's as many "names" losing so much money. We don't know the root reasons of tunnel failure are the result that they're too hard to drill or the peril mostly caused by insured, appraisers and insurers yet.

(有一陣子倫敦的再保公司不敢受理台灣的隧道工程，出險率太高，有些小組成員破產)

In the United States, the project surety is issued mainly by insurance company or bondsman for the full contract amount or its double. It's under different philosophy that in US, the employers want to be guaranteed for a completed project so the insurer or bondsman need to provide greater than or equal amount of project value to convince the employers that they've ability to finish the works.

And in place like Taiwan, the employers demand pay immediately an amount considered to be their loss in the project with reservation that they can claim the difference of their loss later. Once people in Taiwan advocated that the insurance company can issue policies to serve as performance bond or for other purpose but found it difficult to implement, so it only remained on the law.

The insurance companies provide so much in the construction projects, they're indispensable, but many in the industry including high ranking persons have wrong concept toward the insurance; biggest problem is they can't distinguish the difference between contingency cost and insurance premium paid, the mistakes come from that they considered everything can be covered by insurance.

(保險對營建工程很重要，但有些大公司負責人把風險成本與要保事項混為一談，機關裡編列預算的也認為不能清楚定義的風險不是風險。)

They recognize there should be price escalation and it has been covered by inflation formula, and any other risk shall be identified and priced in the work items so there's no proper position for the risk that can't be named but a veteran constructor will perceive  that it is a cost finally will happen according to his understanding of the market and industry.

(有機關編預算的認為風險不發生，就會讓廠商賺到；但施工有經驗的認為對某些工程，某些風險雖說不出，但卻發生一定的風險成本)

(3). Investment Company or Fund

The international investment company or fund strolled around the globe seeking opportunity for investment in infrastructure projects as they felt they should be lucrative. But they were meticulous in Taiwan for such investment as they cared about the risks like design, construction and operation that can go wrong during construction phase.

(國際投資公司或基金對基礎建設有興趣，但在台灣比較保守，能否順利完工是考量)

The tedious regulations imposed by the government and "not in my backyard" populism would also aggravate the budget and deadline problem. And as projects procrastinate, the impact could range from returns that are lower than expected, to bankruptcy in the most extreme cases.

So the international investment company or fund including Japanese trading houses have to wait until recent that they start to buy shares of solar power plants, wind mills and sewage system when they see government and grass root are more matured with regards to PPP initiative.

(最近幾年國際投資公司或基金，還有日本商社，曾購買台灣的太陽能發電廠、離岸風電與汙水系統等PPP工程股分，是開始)

The international investment company or fund, despite its low investment in infrastructure projects here bring in another risk mitigation concept: placing more emphasize on unanticipated and disadvantageous market changes in demand or supply, and the long term interest rates and the underlying asset value; subject to variation in the so called risky macro environment.

In Taiwan the real estate business elicit capital and people for its high growth and profitability. Developers are busy to hunt lands, deal with building codes, handle design and construction, sell house and mansions, that they're not so interested in PPP initiative as released by the government, otherwise there will be forces pulling the government for un-conventional procurement. That's the reason why international investment company or fund only settle themselves, in stock and security investment.

(4). Operator

After completing the public facilities, the government agencies or the private plants or building owners need people to do operation, functional checks, servicing, repairing or replacing of necessary devices, equipment, machinery, building infrastructure, and supporting utilities in industrial, business, governmental, and residential installations. The requirement hasten the delivery of the company operating for new facilities while many of the owners don't have experience and also restrained by financial condition.

They're O&M companies, inseparable part of construction industry, always working under the poor financial conditions as politicians and capitalists over the world are good at dispense money for new fund buildings and facilities but less generous for their operation and maintenance.

(世界上的政客與資本家對新建工程都較有興趣，前要投入運轉、維修會較計較，但也證明這部分市場被低估，O&M 公司大有可為。)

The Engineers and the Contractors alike need the Operators' feed back to get sufficient knowledge for new facilities. And it's a tendency that the government prefer to using public–private partnership for O&M of the facilities to solve problems of increasing financial constraint and employees admission.

Over the years, the owners, government or private will ask the contractors to offer engineering, construction, plus O&M; there will be different models, and more sophisticated management contract will include improvements in efficiency and performance.

As it evolved, the Operator may be required to collect bills on behalf of the utility company, and may accept some collection risk, especially the clients are governmental, and the customers will be general public.

(未來的O&M可能會包括向消費者收費，這是管理系統的一部分，經營者由服務出發，擴大工作範圍，是生存所要有的態度)

Engineers of next generation must think about whatever will he be, it will tell that an engineer of tomorrow won't be confined for doing structural calculation; that only realizing the profession is service oriented, i.e. to follow money's lead, he has future.

(專業在未來是以服務為基礎，說的再簡化就是跟錢走)

3)      Third Party Participants: notaries, law firms, inspectors, laboratories, certifiers, appraisers, unions, arbitrators

The modern construction contract bring in piles of paper plus those un-printed storing in the computer, most of them presented as letters, reports, records, sketches, lists, certificates, diagrams, affidavits, pamphlets, photos, books, all of them filled with words, lines, symbol, sound, totem enough to decide the success or failure of the projects, though nobody is able to read through.

(電腦的發明帶給營建業基本改變，除了紙本，還有大家可能不會去看的軟體，都是文字、線條、符號、聲音、圖騰，但事情發生都是決定工程成敗的因素。)

It's more than computer technology that the frontage players, supporting entities and participants of construction contracts all help to fuel the flame by asking more document. For example, when contractors want to get loans, the banks may ask them to get reports from law firms to examine the contract conditions and to testify that the conditions are fair. Or in the case that the clients may demand the records of successful operation in completed facilities, certain laboratories may be asked to do the inspection works and submit the reports accordingly.

(各方對加大單一工程需要的文件量，都是幫兇；但簽約者外圍的參與團體，所做的文件卻與工程有直、間接的關係)

When the required documents bearing the names of the supposed unbiased and independent party and showing the subject party has met the requests are received by person in charge of the enquirer, it will be deemed as true and authentic. And as it evolves, there will be development such as:

(某些文件上面有當事者的名字，就成了一種證明，敘述的事實就成為要求文件者責任上最佳的去處，但也因此，就發展成：)

* The party which demand information only trust issues from certain parties, because the former now depend on the latter for legitimization problem that theoretically could be surfaced for each document from strangers or aliens.

* Though that the the verifying party shall be independent and only responded to the requesting party, but the demanding party will have a big say to recommend the "right" verifying party; and in most of the cases, the requesting party will conform.

* If the verifying party has long working relationship with the requesting party, he would have more confidence on and become easier to what he is required to verify, though they are independent and neutral. It happens to law firms, inspectors, laboratories, certifiers, appraisers, and arbitrators.

The industry reward frequent customer, so big companies that always have more chances to contact third party participants will find it's easier and more swiftly to work out require document demanded by their clients; it's the same that the so called independent parties or organizations enjoying prestige in their domain also receive more recommendation from establishment, thus more opportunities for their works.

(所有的行業對常客都有益處，大公司因常接觸這些獨立驗證機關，所以他們要求的文件很快就被處理；這些常替大公司出證明的獨立驗證機關也因此會得到較多工作機會)

Languages and culture should be the problem but not the only, the reality of the world is that the westerners will go to international arena using contracts, codes, standards, specification and practice the same as what they're doing in their homeland, if that's not enough, also out-flanked by parties or organizations claimed to be independent to ensure adaptability.

(西方人參與國際競爭所用的契約、規範、標準也都是他們在本土使用同樣的東西，這些獨立單位也是，等於是主包商外圍的幫手，雖說是獨立單位。)

As a first timer Asian contractor to go out to compete international giant, he would have encountered invisible barricades, sometimes deadly in performing the works, because he may be strong technically together with his subcontractor and vendors but he wouldn't be familiar to and get supported by the western third party participants who historically are not accustomed to working with oriental minnows.

(反之，如果是亞洲包商到國際上，他與這些獨立驗證機關彼此陌生，那時他們就是真正的獨立機關)

Despite its laissez-faire appearance, 21st century capitalism is complicated in its work division, in construction industry there's no exception that the added value are invented to the extent that will outweigh the substantial works in the form of "norm", "standard", and "proof", out of the mutual distrust created by the businessman

(21世紀資本主義表面上是放任自由，但在國際營建業，許多新創造出來的附加價值卻是抽象與間接，較實體東西更為昂貴，以"正規"、"標準"、"驗證"的方式出現，競爭上加大了西方國家與東方國家間的競爭距離。)

4) Stakeholders: Public, Authority, Neighborhood and Locals.

(1). Public

The public is volatile and can't be reliable that one day it's warm and next day cold. Technical people have to leave the job to convince the public to politicians, who, seems to be invincible for some time, but many of them ebbed after elections, and it's a war of attrition that politician's career life expectancy is lower than the technical people like us, from which we may find comfort.

The professionals in Taiwan all but lose their prestige facing public, the media, councilors and TV host will be much louder in all technical aspects. Because the public demand 100% perfect over construction projects: budget, progress, durability, aesthetic, and functional for all purpose, that only politicians will be answerable.

The politicians will take chance at the expense of the professionals, who will be depicted as pedant never knowing the true requirement of the people. And then the public will be awaken learning politicians won't meet their commitment; but the professionals has been tainted during the process that their credit will never be recovered though the media, councilors and TV host as accomplice also will go to hell.

Infrastructure construction is always associated with corruption, and some of the professionals are not innocent in the scandal, giving impression that engineers may be not cleaner than the pandemic officials and councilors. The industry also have problem when supervision is not in place, collusion would happen that's why the public will be always suspicious.

(2). Authority

The Authority referred here means the government agencies responsible to award permits, edit regulations that the owner and his contractors shall be observed for planning, design, construction, occupation and operation during initial, completion or operation phases.

Land acquisition for public works shall be local government's responsibility, and usually they don't do well and procrastination is unavoidable, maybe 5% of recalcitrant landowner will stop 100% of the works for commencement, and it's daily life you see in Taiwan.

Safety measures are among the critical issues the government will interfere and the contractors have to follow though always overdone. Traffic diversion plans around the site in congested towns and area can be critical which the foreign companies coming to Taiwan will have difficulty to think about; but the commuters are sacrosanct.

And disposal for wasted and surplus material shall be subject to the stipulations of local government; in general, the cost of excavated soil dumping is calculated by people close to mafia and hardly the outcome is rational.

Utilities authority poses another problem for the developers and the contractor; outstanding drawings and missing locations cause the digs and laying delaying and costly and sometimes dangers emerged. License for buildings and plants shall go through the utility authority to ensure links with existing system. In Taiwan utility company is called company, but people would think it's a kind of authority, not least they are run by government.

The fishing, agriculture and irrigation cooperative surely are the juridical association member-ed by ordinary people, but they are born with rights for fishing, agriculture and irrigation in their premises, to which any encroachment shall be bought with exorbitant price through hard negotiation.

In rural area down to the village level, public or private project investors shall work amicably with the authority.

(3). Neighborhood and Locals

The mentality of Nimby (Not in my back yard) affected construction very much; nuclear power plants and its refusal treatment can't be solved. Roads, parks and sewers can't be built in many places as people don't want be disturbed even for short time. The stories may be dated back when the ex-ruling party and regime abuse the power conscript land and suppress people against construction.

And now it goes another extremity, for example, people don't want to accept any deflection or slight damages in their house when the excavation nearby produce them even within the tolerable value. Some of the people consider the contractors will abuse like before, and exercise extra judicial means to stop the works. It happens in chemical and power plants the neighborhood always cemented together to bar or interrupt construction and operation.

The governments of all level are relatively weak because the officers and councilors need votes; temples and churches for their grass root nature always sided with neighborhood defying the legitimate development. It's devastating but foreign and sometimes people from big city not well aware they don't stand on the moral high ground when they discover god and priest are in the opposite front.

Many people even started to miss gloomy days of martial law and thought any sort of construction back then wouldn't have any problem. But it's democracy that people have made choice and nothing is more important than liberty and egalitarianism embraced by the people; so that the developers and contractors have to have patience and take it soft to convince the neighborhood and locals for their cooperation.

 PART 5-1, Advanced Civil Engineering Construction

台科大高等土木施工學教材(2021)

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/) (mtkaoforum31@gmail.com)1)

1)  Frontage Players: general contractors, engineers and consultants, architects, specialty contractors, labor gangs, investors.

(2) Consulting Engineers

a. The difference regarding business ethic and work attitude between the professionals and occupational is that the former are dutiful, intelligent and conscientious toward their clients and the latter just following the orders from bosses and formen. 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 punishment.

When engineers’ 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.

If we trace history, we will know that professional engineering service was originated from craftsmen, lawyers, engineers or the partnership those individuals formed. 

c. When it comes to modern days, for all the complex nature not only require advanced technology; but also need proposals with exceptional commercial skill to enhance chances of as-planned completion. So, it calls for all sorts of bright people offering more inclusive solutions.

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 have more room to accumulate experience, possess data, search for information, so in a better position churn out proposals.

Yes, only they are big, a company can have lots of talents adhered to share office equipment and software cost; the same is true for the expensive supporting costs for chores, such as, financing, accounting, or administration. It’s important because it will free engineers’ mind so they are able concentrate on professionalism; considering the contradictory situation that the professionals have to be bothered by those chores if they have to do the works by individuals or small companies.

d. So, a lot of clients today when want to make award of the engineering jobs of complicated nature, they will feel more comfortable to engage the business with sizable and reputable companies, to relieve their responsibilities from the beginning.

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 argument's 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 virtue like vision, responsibility, work attitudes. But actually money is behind, if contradiction not solved the result will be exodus of high minded people, or the cooling down of remaining people's passions 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; 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, and expressway. 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.

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 freely 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 awarding the contracts to government funded consultants as many public works can be carried out with minimum cost and completed in time desired by the officials and end users.

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 introduce further procrastination and induce secondary damages.

(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?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。)

(3). Architects

a. On the other hand, recent earthquakes and associated perils shook the generally untroubled profession for liability as the latest enacts and verdicts hold them accountable for supposed wrongful design and supervision years after buildings completed, fair or not, the profession needs to be big at least for more risk absorbing capability, though it can hardly grow under the law that it can't be organized into company.

b. In reality, since the architects are short of profit sharing scheme with employees, that they have difficulty to keep fellow employee's royalty and recruit bright new ones. Ironically when the hired shrewd enough to see the situation not favorable to them will try to start their own business and worsen the competition in a small market.

And now in Taiwan, the new comers granted architects' licenses are in high number, but real estate boom is over; competition among architects, most of them small, is very serious.

So many architects in Taiwan are nervous and plead to relevant government agencies:

1. The fees allowed for public building design are calculated as fix percentage of  construction price, and now both the percentage and final construction cost are low so petitioners requested an improvement. 

2. That the cooperation with reputable international architects shouldn't be necessary as local architects are artfully good and technically competent. For officers fantastic with lavish building outline and avant-garde design should ask local rchitects to implement. Current practice inviting foreign architects playing protagonist and forcing their local partner shoulder contractual obligation are not acceptable. Though, many private developers still court international architects because the "names" will boost the house sale. 

3. The architects consider the responsibility of supervision during construction shall not on their side and shall be rectified with clearer definition in the laws.

Traditionally, the market is small for Taiwan architects that they have to be more internationalized.

(4). Workers, Labor Gangs and Subcontractors

a. In Taiwan, that General Contractors did not own equipment and hired technicians and labors for actual construction. They would sub-let the labor work to subcontractors or worker gangs for the reason of convenience and so finally they would lose ability to deal directly with labor; sort of degeneration or eutrophication！

There might be craftsmanship existed among the labors to guarantee work efficiency and quality; but the contractors in Taiwan will prefer to replace the subtle labor management with simple rate and quantity relationship, and leaving gang leaders the responsibility to recruit workers and pay workers at almost fix rate wages. By doing so, general contractors would transfer the risk of income fluctuation to the labor gangs and subcontractors.

Originally main contractor may allocate the works to different gangs such as rebar, form work and concrete pouring, but still took care of coordination and supervision works required for the said structure construction; and now main contractor might ask one sub-contractor to undertake whole works so as to save cost for engineers required for coordination. The process continued, main contractor's role reduced, that in some cases, the workers at site had to be smart enough to do the works autonomously.

b. Though engineers will draw plans, pen proposal, and check mistakes; construction work has to be carried out by labors, technicians and foremen with hands, and it's them to materialize white collar's ideas for all difficult, dirty and dangerous work environs. The practice had historical background dated back from the days that labors were in over supply and their salaries were suppressed, work condition miserable. At then, management of main contractors were able to leave the drudgery to people with social class distance far away from them.

Work division in Taiwan construction industry become vertical like fault line in many cases, i.e. a sub-tier will do in situ construction; the other maybe the main contractor offering the name, provide guarantees, and maybe take care of documentary works. It allows certain type and numbers of people venturing to obtain profit while the other parts have to trudge for mere survival all the way. A reason that people like to gamble on construction business

c. But there is demography change, technology evolution, and managerial transcending in 21st century, now the labors reluctant to stay at for hard labor. Crews shrink and members are aged, they demand safety, reject toil, fall short in dexterity, hesitated to commit in works as their forerunner. So the contractors signing up the construction contracts can't find enough gangs and workers for their projects even with TCN (third country national) joining the team.

The work conditions at construction sites, compared to factories and service sector are bad. The parallel was like coal mines of Taiwan in 60's: unsafe, hard, and expensive to extract, the workers were aged and diminishing. Contrary to what bureaucrats thought of that it was the exploitative owner-labor relationship hurting the industry, the mine owner actually coddled the old men until the end of operation.

(5). Specialty Contractor

a. First the specialty works was defined as special project requirement introduced from outside the country, they fetched prices and rates equal to international level which many Taiwanese contractors deemed unfair. So there had been strong tendency in Taiwan, everyone from client, consultants to contractors will encourage those dared to imitate the imported technology and break the oligopoly: foremen and fellow labors learnt the construction method, equipment and plants made in local, so was the material to corner the market replaced by those reachable in Taiwan.

b. As the result, most of the international specialty contractors withdrew from Taiwan, and the natives took over; the stories happened to work items such as diaphragm wall, grouting, travelling wagons, system form works, and cable and tendons, all taking places within very few years.

To certain degree the locals created wonders; many of them endured failures and finally smack technical Okays. But financially it's not Okay for companies having done R & D works so much and only received puny overhead and profit because even among the winners the contention is harsh.

c. In general, the companies doing the specialty works in Taiwan can't distinguish with ordinary sub-contractors, instead, many of them under pressure that their equipment, plants and crew must undertake next job to continue the business. So they're forced to bid the total tender package as other general contractors if they're lucky enough also to be qualified.

Then the borderline between the specialty and general contractors is blurring and either it's the cause or the fallout that specialty contractors are not respected for their expertise. The industry will cease to progress technically because the people exhausted fighting international colleagues only attained mere survival in the event they could win. So they wouldn't have motives and strength to go for another round of invention.

When the specialty contractors have little prospect to grow and go for international, it's not advisable for the freshman to develop their career in such companies.

(6). Investors

a. The investors play key roles in construction projects as they have vest-in interest for success of investment. For public projects there will be elected officers and administrative in government agencies speaking of requirement in details but they have to be confined by opinions from experts, media, and councilors. For private business, it seems like the investors have tremendous power searching for maximal benefit, but they have to be bound by laws, regulations and the same-public opinions, the hidden rule of democracy.

b. Investors in developing their projects must meet higher than standard rate of return, also from beginning, they have to decimate risk and uncertainty that fund and banks behind relentless to pursue. Among the concerns, quality and in time completion shall be most critical, but that's only fundamental. In the case of real estate developers, they must consider buyers or tenants' requirement for buildings; and for plant owners they must consider purchasing contracts for product and stability of the market. Because long term investment security is now desired, the frontage investors should pay additional premium to guard their principle and the eventual capital holders are assured and pleased.

c. It's 21st Century, in order to deliver the projects, or to get hedged when odds do happen, cost paid to notaries, law firms, inspectors, laboratories, appraisers, and certifiers can be regarded as more important than expenditures for tangible object such as concrete and steel, despite they only add up puny protection for investment, complete reversal of material scarce yesterdays.

Public clients tend to be more difficult; though they may not quantize the risk and seek coverage, but everything must be definite at day one or they have to go through onerous procedural justification. Theoretically, consensus must be collected before set up project goal, but the political requirement: compromise, prejudice and well wish will overshadow the implementation and take away the experts' opinions. Election and office change further complicated the matters as politicians and voters are not predictable, sometimes U-turn is necessary, projects hard to finish is everywhere over the world.

d. Investors, private and public, are now asking the professional companies to work for them as PCM, a good system but occasionally not functional because the clients don't really delegate powers. The other extremity is the government agencies don't have their own people installed in the high positions of the project to determine how their true demand will be met in concert with financial capability known to insiders.

For ordinary case, little can't be programmed according to records and data available at the hands of officials holding the powers of budget approval, progress control and performance audit; it means the non-professionals can claim their means based on statistic and bureaucracy is workable and better entrusted by the public to manage national coffer.

However, the attitude said above is a kind of hubris under which the professionals are frustrated and muted. Because the construction market isn't always the same that the routine will not always be routine; only the professionals will offer solutions to overcome the blocks huddling the launch of construction works.

 

 PART4, Advanced Civil Engineering Construction

台科大高等土木施工學教材(2021)

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/) (mtkaoforum31@gmail.com)1)

4. Of the macro-Economy and Construction Industry

1). A quick developing economy really needs good infrastructure to keep bustling, or to lose momentum. Consider the case 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.

(國家經濟要發展，基礎工程要好，印度因道路、電廠、港口欠佳，成長少了好幾個百分點) 

2). Construction of infrastructure projects for its diverse requirement will stimulate demand of building material, construction machine and tools, furniture, and services like advertisement banking. On the other hand, when social and economic developments come up, the construction industry will be benefited, for example, people are more affordable for new houses.

(營建業與其他產業發展相輔相成) 

3). Important government posts in young democracies need participation of civil engineers. Often they hold positions up to the cabinet level drawing national development plans for years and decades. It is the term “technocrats" applicable for those people that their expertise is hardly to be replaced under regimes of different ideologies. Possibly their political life will outlive the politicians promoted them.

(國家開始建設須重用土木工程師，不論意識形態，技術官僚成為內閣重要職位，乃至掌大權) 

4). However, construction people sometimes risked to become accomplices of powerful people stealing public money. The reason is that infrastructure contracts usually involve tremendous sums and require different sub tier companies to perform the works, therefore the illicit money is easy to hide and parking convenient. And when a regime runs out of cash there will always be wicket foreign governments or syndicates eager to provide loans and aids without strings in the name of infrastructure development for bad  political intention further damage the country. 

Thus 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 advantage of the countries' limited fortune. Under simple calculation, money spent will never buy equal value of infrastructure, and contractors are blamed as scapegoats.   

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 suicides, imprisoned, indicted in more than 10 countries.

((基礎工程合約金額大，包括各類材料、設備與子工程，是貪汙、洗錢最好工具，土木工程師可能成為政客輔助犯。許多資源富裕國家因政客胡亂建設、借錢，瀕臨破產，巴西的Odebrecht以工程回扣誘騙許多國家的總統、總理、議員、部長、要人，讓他們自殺、囚禁、起訴，背營建業惡名) 

(http://mtkaoforum31.blogspot.com/2019/04/allen-garcia-odebrecht-4-17-odebrecht.html)

5). Contractors always excuse themselves for the need to continue business as the reason to be the collaborators of the kleptocracy; but the cruel truth is they enjoy lucrative contracts and believe their political masters will cover them up forever. But in the long run the systematic fraud will have destabilized the economy and country, the politicians will no longer hold up the regime and the professionals forsaking their principles will be expended before anything will happen. 

Professionalism should be the only antidote to fight the greedy and impunity behind the organized corruption. Ethic education has to be enforced since the early days of engineers training.  Of course, it needs time, patience plus a little bit of luck to work out a fair system in a society still in obscurity. 

Unlike many developing world, Taiwan escaped endemic corruption during and after the days massive infrastructure projects are under construction. There was time that people had to build everything from scrap with their own hands, the mere money dispensed by the then authorities could only pay subsist livings of surplus rural labor and retired soldiers withdrawn from Mainland in 50's. And the factional politics followed the period hardly allowed the people involved for public expenditure had leisure and chance to scrounge for personal gains, compared to what happened in other third world country.

 (營建廠商以求生存作為不得不參與共謀理由，但實質上卻是貪圖基礎工程利潤並認為不會被抓到，結果是害己害國。工程師養成時，即需教導專業精神是對抗貪腐唯一解方。營建業淪為貪腐淵壑，在台灣，比起許多亞非拉國家尚不算太嚴重)

6). An engineer trying to promote top notch infrastructure projects sometimes may feel frustrated because the resistance from general public is so much. Under the circumstance, he should realize public works should always be kind of choices by their eventual owners and not to be imposed by the experts as pure scientific matter. 

The civil engineers should realize the efforts he rendered explaining the idea for new construction or to comment upon the existing unfit things will not be in vain, because each time he gives reasoning, persuasion and novel idea following professionalism, he can shake, crumble, and change public perception incrementally. And finally it will be crystallized in truth’s favor, the process though taken long, also prove that everything related to construction is not simple logistic yes or no. 

On the other hand, the civil engineer should realize all the information offered to public will only be considered as brute data instead of precise evidence, which can be refine or redefined as environment and situation will change from time to time.

(公眾選擇公共工程非基於其數理、科學，應做如何決定即做決定，故工程師應尊重其最後選擇，不能自認已做最好之專業建議而堅持自己建議不能被取代。

營建工程非絕對科學，工程師所有努力，一經提出，縱不為接受，即可有動搖、粉碎成見，並改變公眾概念之效果。

土木工程師提出之訊息，都可稱為是粗淺數據，有機會隨環境與時代變化再改進或修正，所以是人文，而非物理、科學。)

5.  The Modern Construction Industry and its Major Players

1)      Frontage Players: general contractors, engineers and consultants, architects, specialty contractors, labor gangs, investors.

(1). General Contractors

In most of the 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.

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.

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 most 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.

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 compel 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 taps 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。)

 PART3, Advanced Civil Engineering Construction

台科大高等土木施工學教材(2021)

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

3. How will young man start his professional career?

1) Young professionals must try to learn from the beginning the ways that political institutions, social establishment, and commercial interest groups exert influences on each other and make their compromise to make the government operational and the economy functioning in the real world. 

In a democracy or open society, the elite, instead of accumulation of people, must settle and conclude for what to do in terms of government policies, economic agenda and social behaviors for now and future. And engineers are part of them and not those to be informed and ruled, so will be involved in the process contributing intelligence. 

So as professionals, it's essential to know who the ultimate stakeholders are. Understand their strong feeling or wanting to wish something to happen and knowing that there will be the most sensible and efficient way to meet public interest by social norms, market rules, and not the least, regulations and laws.

 

Never mind the possibility that bad side of humanity always have chances to get through in an open society and free market; and trust that the corruption and rent seeking will be diminished under long practice of liberalism and democracy. 

A young beginner has to think bigger than what he will have learnt from the textbook which present to him maybe a serene technological realm; rather, he has to learn reasoning, contention and compromise that always happening in a bustling world from the outset. 

We trust that candid engineers with sufficient secularity knowledge will be able to save the industry and the world one day.

2) The professionals don't produce, manufacture or build, they only offer design report and solutions based on professional knowledge accrued through education and training. The services provide plans and procedures to bring about machine, house and other complex things; and are required and valuable more than the clients would recognize.  

The professional knowledge isn't the same as common sense and experience derived in daily life by any person. It's of professionals' the pride made them distinguished from ordinary people, however, the exercise of them so as to apply the concept, principle and information learnt correctly, need professional " skill", the ability leading to success.  

World Economic Forum (WEF) in 2020 consider the most important professional " skill" consist of the ability for: 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. 

Finally, the professional has to exercise good "judgement" based on experience, analysis and endeavors to accomplish missions assigned to him by the project. It's the most difficult parts for the professionals because only a humble and experienced engineer believes this's an uncertain world that only through endless efforts the probability of success will possibly rise up. 

3) Right altitude shall be most important for freshmen; and they've to be steadfast when offered elementary skill and details. Always the new starters don't appreciate the facts that technology advances only going through repetitive working on simple topics in the boring assignment.

Young people must know right attitude breed passions, which kindled with appropriate conceptualization and inflamed by curiosity will drive them for decent performance and further inspire innovation and creativeness. Also when they consider themselves fully engaged in the industry they will be able to tell what is good and bad, right and wrong, full-hearted or cold shouldered for their career. Then it's time for them to be in a position to solve problems lately and retain a prominent position in the industry. 

Though engineers take time to be mature, which is in great difference with many other professions; they must determine what they will be at early stage according to their awareness and capability: consultant or contractor, technical or managerial, domestic or international, employed or boss. It means people shall identify his own personality and recognize the ability to adapt is rather limited before coming to age, say 30s, in a turbulent world. 

Besides, young man also needs to be bound by degrees of the objectivism; so in most of the cases he has to obtain as many as possible licenses, certificates, and academic degrees in line with many countries' system.  

4) The young student must understand that the modern construction industry essentially is governed with human distrust: terms of contracts, laws, certificates, checks, guarantees, tests, investigations and reports, are used to stimulate the antagonism between, and also to protect, parties with confronting interests. 

There is an accelerated and gravitated tendency, especially in the developed countries that the added value allocated in the name to protect the benefit of final owner/investor has outweighed the expense throw in for engineering and construction. The outcome is that the engineers lose its importance playing their roles and professionalism rooted at trust and confidence between the clients and engineers reduced while legal and financial people commanding.

Young professionals with less confrontational mentality may strive to turn the tendency back so that non engineer's gradual domination on the industry to prove the technical world is still belongs to the engineers. 

5) Young engineers shall trust the systems and accept the lead of the higher-up with patience from the moment he join the organization employ him. In his tenure as a team member people will learn to cultivate personal character, discipline and professional strength, and to lead an engineering team when time ripen.

Even in a relatively small engineering company, there's still requirement to be a good leader, which at least will be:

(1) Create a steady and sound work environment, face difficulties with resolutions so that the professionals will work efficiently.

(2) Find the new customers and win their trust.

(3) Reward those who work hard with decent pay.

(4) Adopt strategies for development that the Company needs.

(5) Recruit people of high talent and take the lead in competition

(6) Let the people in the team do what they are able to do

6) Unlike manufacturing or IT industries, construction business has its origin and background attached to history, culture and custom of the vernacular country. So the contracts and the trading systems used for engineering related contracts also need to have tight link with human affairs and common sense of the vernacular country. 

To be a successful engineer one has to secure more humanity characteristics and know more about social behaviors, and pay respect to tradition and conventional wisdom which may be dismissed as redundancy soon to be discarded in the process of modernization. Eventually, engineering is an art rather than a science, if your approaches to the clients, colleagues or even competitors are in more civil ways from the young days, you're successful.

PART2, 台科大高等土木施工學教材(2021), Advanced Civil Engineering Construction

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

2. The income distribution change in the total economy last few hundred years; and its implication to the earning and social status of professionals:

1) The ratio between the income through personal capability and efforts, and that from investment and bequests (between generations) does change since the industrial revolution; and how it influences the allocation of talent between generations. 

(1) Labor income: salary, remuneration, bonus, prize. Capital income: profit, dividend, interest, rent and royalty. 

(2) Prior to the industrial revolution, the income generated from bequest was high compared to that from laboring in Europe and US. The ratio kept constant for 100 years until World War I and a downward trend started cutting the figure by half until it surged again in 1980. Now it reaches the same level as 1790. The same u curve could also be obtained for the ratio between capital and income.

(3) Before industrialization, farmland was main source of wealth and income in Europe and US, and government bonds issued in countries able to manage fiscal policies well also provided alternatives for investment. Otherwise there’s no mean that personal talent or professional skill would earn a decent income for individuals.

(4) So in the old days that the only way people to remain in or ascend to high society had to go through inheritance or marriage. When after World War I the professionals continued to increase their income and wealth by their own merit, people started to herald it as the beginning of a new era of more inclusive capitalism and trust the trend would not revert. But what happened between 1980 and now proving that it was just a transitory deviation. 

(5) Proper income in 19 Century means at least you have to obtain 20 to 30 times of average national income, and only top1% rich people would achieve it. Professions like lawyer, accountant and engineer would get at best 10 times of average national income and considered as slightly better than the “poor”.

(6) Bonaparte Napoleon first noticed the problem and agreed to give high pay to reward his ministers so that they might match the aristocrats for respectable living, which means an income no less than 50 to 100 times of average national income.

2) Continuous technology improvement makes economy flourish and life better; still some people in each social class need to struggle for livelihood and survival as distribution inequality persist.

(1) Technology is a major driver of productivity and economic growth creating prosperity. The top riches no more need so many people to attend them and mid income people can enjoy comfortable life far better than many of their forbearers in higher centile of income.

(2) Exploring the effects of technology on income and wealth will find inequality aggravated after years 2000. The undisputable root causes are advancing technology and borderless globalization marked as The Second Machine Age. Would people like Luddites during the first industrial revolution fear that the skills of their craft would go dumb so this time their commotion justifiable, or really the smart machine and AI would create more jobs and enhance life quality?

(3) The computer/digital revolution is a major driver of inequality: It favors more skilled over less skilled; it increases the return to capital owners over labor; it enables or turbo-charge globalization, reducing employment and constraining wage-able services; it increase the income advantages of superstars and the super-lucky; it generates rents in highly imperfect markets.

(4) As we understand now, progress in sensor technology allows machines to detect and respond to their environment; additive manufacturing displaces labor while reducing waste in materials, lowering the costs of customization and allowing for producing on demand(opposed to forecasted demand); the most surprising is in artificial intelligence (AI), machines uses learning algorithms and high speed network access to massive databases to perform complex tasks without the benefit of algorithms that tell them precisely what to do.

(5) In the fundamental feature of market systems, most people including engineers gain their income by selling their labor, if they’re rendered technologically redundant or no longer command an income adequate to provide a socially acceptable standard of living.

3) What will a young civil engineer choose to be? Occupational, professionals or super managers considering their restrained income compared to capitalist and renter (or rent seekers)? Is it correct to borrow “meritocratic extremism” to justify the tremendous pay difference among the individuals?

(1) The engineering services need to obtain their clients’ trust and confidence, distinguishing them with the manufactured products and/or services by ordinary people. Compared with workers, clerks and other occupational, the professionals place much attention to guarantee the quality of their output and refrained from remuneration based on quantity completed especially within specific time. He thinks and acts on behalf of his client and always consider himself is unique in delivery of art, crafts and services committed to the client. 

(2) But now that significant share of the income shaped by skill-biased and capital augmenting technical change; the professionals of conventional definition may not be in a steering position, that software, tradable programs and even AI will do much of the engineers’ job diminishing their clout in retaining work opportunities and sharing income .     

(3) Is actually income generated by digital capital shared with certain kinds of complementary human capital, including innovators, entrepreneurs, and top executives? Among them, the super managers with winner take all mentality popular in US deserve our attention because they may pride themselves with “meritocratic extremism”, nose in the air.

4) Will it be practical for engineers to follow code of engineering ethic in terms of faith, integrity, law abiding, and conduct of secrecy at the era when digital economy and artificial intelligence is about to dominate.

(1) Engineering ethic request the engineers to take responsibility toward society, environment and the colleagues. As FIDIC maintains: To be fully effective not only must engineers constantly improve their knowledge and skills, but also society must respect the integrity and trust the judgement of members of the profession and remunerate them fairly. And it’s the brief requirement.

(2) The “information technology intensity of a company”-as measured by the ratio of its IT capital stock to its total stock –rises in modern engineering company demanding more return than from human capitals previously formed by employed engineers.

(3) When the income generated by digital capital becomes more significant, at the same time corporate governance practices and social norms will also change allowing more rent-seeking behavior because there will be less humanity control by smart machine and AI. Will it be the same easy to and simple for professionals to follow code of engineering ethic when their sharing in total company income much less than before.

5) Can “Engineering as a Vocation” be honored in Taiwan when material reward is meager compared with devotion paid? Can the passion, inspiration and rationality as a professional be kept as the vocation is life time choice?

6) Lines from “Capital in the Twenty-First Century” by Thomas Piketty, “Le Pere Goriot” by H Balzac, to tell how the excellent brains were paid by ruling class historically.

“Your annual income will be 1,200 Franc when you’re in 30’s without giving up rob of blending. You can get married with daughter from gristmill collecting rent 6,000 livre annually. If you’re lucky you can have 5,000 Franc annual incomes as a public attorney, and you can married with mayor’s daughter. If you don’t mind to do something under table, you could become general attorney at your 40s. But allow me to remind you, there’re only 20 general attorneys in entire France, and the number of the people thirst for the jobs maybe more than 20,000, among them many clowns ready to sell out their relatives and friends. If you don’t do this; you can be a lawyer, spend 1,000 franc every month to borrow a small office; for 10 years you must keep relationship with the people, kiss any solicitor you know's rob and beg him to reward you some cases, in addition, you need to bow to every people you meet in the court as a lawyer. Tell me can you tell the names of 5 lawyers younger than 50 in Paris who have had annual income more than 50,000 Franc?”  (Vautrin said to Rastignac)

台科大營建系 Advanced Civil Engineering Construction 英文教學大綱

 Advanced Civil Engineering Construction

1. Pre-words: Young men drift off to see the world after graduation always have feeling of curiosity, strangeness, and sometimes nervousness. Engineering graduates are feeling better because they’re considered to be more promising in term of income and status compared with other social groups. Teachers in the classroom and classmates of congeniality continue to say so, though they may not be sensitive enough to the economic changes since turn of century. And it is true that the wealth generated by investment, ventures and rent collecting has been more prominent and professionals are not sitting on the upper rungs of social ladder as comfortable as before. This course try to impart knowledge based on the facts taking place everywhere, and also render brief introduction to construction industry, with the hopes the students who may devote their entire life for civil engineering will not fall into category of “lumpen professional”  and know how to adapt in an ever changing economic system. 

(前言：年輕畢業生出校門後對事物常持好奇、陌生及不安之心，但工程師因其薪資、地位較佳，會較有信心。然世事已有變化，雖其師長、同學未能察覺，本世紀以來相較於專業技能，資本、投機，或尋租之利得或創造之財富，已更豐厚。故專業工程師只要努力，即能功成名就之觀念，大有疑問。本課程告訴期待以工程做為終生志業之學生種種社會現象，並對營建業作一簡單介紹，盼同學們能了解一直變化中之工作環境，作最好之調適，切勿陷入徒有專業技能，一輩子卻窮酸無助之困境)

2. The income distribution changes in the total economy last few hundred years; and its implication to the earning and social status of professionals.

(從分配與地位來看，專業才能在現代經濟中扮演的角色)

1) The ratio between the income through personal capability and efforts, and that from investment and bequests (between generations) does change since the industrial revolution; and how it influences the allocation of talent between generations.

(工業革命以來，個人才能與努力所得，相對於資本、財產報酬占整體所得比重的變化。)

2) Continuous technology improvement makes economy flourish and life better, still some people in each social class need to struggle for livelihood and survival as distribution inequality persist.

(因科技持續進步，經濟興旺，人們生活改善，但不同社會階層在每一個階段還是有不同的生活與生存問題。)   

3) What will a young civil engineer choose to be? Occupational, professionals or super managers considering their restrained income compared to capitalist and renter (or rent seekers)? Is it correct to borrow “meritocratic extremism” to justify the tremendous pay difference among the individuals?

(工程師作為資本家與收租者之外的選擇：職業、專業、超級經理人？極端才能主義是否能用來合理化薪資的高度不均？)

4) Will it be practical for engineers to follow code of engineering ethic in terms of faith, integrity, law abiding, and conduct of secrecy at the era when digital economy and artificial intelligence is about to dominate.

(工程師在數位經濟與人工智慧時代，是否或如何信守，誠信、正直、守法、保密等專業倫理規範。)

5) Can “Engineering as a Vocation” be honored in Taiwan when material reward is meager compared with devotion paid? Can the passion, inspiration and rationality as a professional be kept as the vocation is life time choice?

(以工程做為終生志業，在台灣是否可行？如果無窮的專業付出只能換得有限物質報酬，是不是還能維持作為工程師的熱情、靈感與理性？)

6) Lines from “Capital in the Twenty-First Century” by Thomas Piketty, “Le Pere Goriot” by H Balzac, to tell how the excellent brains were paid by ruling class historically.

從湯瑪斯.皮凱提的「二十一世紀資本論」或巴爾札克的「高老頭」，字裡行間，我們可以知道歷史上統治階級薪酬上如何報答第一流頭腦。 

3. How will young man start his professional career?

(年輕人如何學習去做一個優秀工程師)

1) Try to understand the ways that political institutions, social establishment, and commercial interest groups exert influences on each other and make their compromise to function the government and sustain the economy growth. Never mind the possibility that bad side of humanity always have chances to get through in an open society and free market; only trust that a simple-hearted beginner will be able to save the world one day.

(要去瞭解現實世界上政治機關、社會既有建制、工商利益團體是怎樣從想辦法發揮影響力，到終能解決分歧，讓政府持續運轉、經濟成長的抗衡與折衝過程。

2) Young professionals need to equip themselves “knowledge” through education and training; “skill” to apply correctly the concept, principle and information learnt; finally, to exercise good “judgement” based on experience, analysis and meaningful attempts to deliver any project assignment it may be.

(專業人士執業需要具備「知識」、「技能」和「判斷」：「知識」須經由教育與訓練取得；「技能」就是將學習得來的概念、原則和資訊應用在實務，獲致成果；「判斷」成敗的關鍵在對經驗、分析與有意識努力的尊重。)

3) Right altitude shall be most important for freshmen; they’ve to be steadfast when offered elementary skill and details and must determine what they will be in the near future at earlier stage according to awareness and capability: consultant or contractor, technical or managerial, domestic or international, employed or boss.

(態度最重要，從草根細節學起，並依性向及能力，及早定位自己要扮演的角色：顧問或施工、技術或管理、本土或國際、員工或經營者？) 

4) The young student must understand that the modern construction industry essentially is governed with human distrust: terms of contracts, laws, certificates, checks, guarantees, tests, investigations and reports, are used to stimulate the antagonism between, and also to protect, parties with confronting interests. Young professionals with less confrontational mentality may strive to turn the tendency that non engineer’s gradual domination on the industry to prove the technical world is still belong to the engineers. 

(作為「工程師」，要了解因為人性趨向「互不信任」，現代工程必須要有契約、認證、查核、保證、試驗、調查、報告等繁文縟節，以保護各方參與者的權益。且專業工程師應避免「非工程師」藉誇大人性弱點，涉入、甚至支配工程事業。)

5) The young engineers shall trust the systems and accept the lead of the higher-up with patience from the moment he join the organization employ him. He needs to cultivate personal character, discipline and professional strength, and to lead an engineering team when time ripen.

(從加入專業公司開始，即耐心接受管理，培養品格、鬥志，與堅強的專業實力；適時挺身而出，承擔責任，領導團隊。)

6) Unlike manufacturing or IT industries, construction business has its origin and background attached to history, culture and custom of the vernacular country. So the contracts and the trading systems used for engineering related contracts also need to have tight link with human affairs and common sense of the vernacular country.

(與生產或資訊業不同，營建業植根於所在國歷史、文化、風俗，契約與交易習慣，須與人文與常識緊密連結。)

4. Of the macro-Economy and Construction Industry

(總體經濟發展與基礎工程)

1) A fast developing economy needs infrastructure to keep momentum. Consider the case in IT-savvy India, the dilapidated roads, ports, and power systems often slash several point GDP off every year.

  (國家經濟要發展，基礎工程要好，印度因道路、電廠、港口欠佳，成長少了好幾個百分點)

2) For example, a housing boom will boost and upgrade the demand of  building material, construction machine and tools, furniture, and services like advertisement, and banking. Also when social and economic developments come up, the construction industry benefited from growth of other businesses. 

  (營建業與其他產業發展相輔相成)

3) Civil engineers always hold important government positions in young democracies for years and decades because they draw up long term development plans and their expertise is hardly to be replaced even under regimes of different ideologies. 

  (國家開始建設須重用土木工程師，不論意識形態，技術官僚成為內閣重要職位。)

4) Construction people sometimes risked to become accomplices of people in power stealing public money. Because infrastructure contracts usually involve tremendous sums and require many sub tier companies to perform the works, so that the illicit money is easy to hide and their parking is handy. The harm can't be controlled as there are wicket government officers of developing countries eager to laundry money in the name of infrastructure construction.

  (基礎工程合約金額大，包括各類材料、設備與子工程，是貪汙、洗錢最好工具，土木工程師可能成為政客輔助犯)

5) Contractors always excuse the need to survive as the reason to be part of the scheme, plus the cruel truth that the construction contracts are lucrative, and most of the times impunity works under the coverage of the powerful. Systematic fraud will have devastated the entire economy and the civil engineers blamed as conspirators of the scam. Professionalism should be the only antidote to fight the greedy and impunity behind the organized corruption.

  (營建廠商以求生存作為不得不參與共謀理由，但實質上卻是貪圖基礎工程利潤並認為不會被抓到，結果常是身敗名裂，專業精神是對抗貪腐唯一解方。)

6) An engineer should realize what and how to do of public works should always be the choices of the people and shouldn’t feel frustrated when he encountered resistance to his proposal which he considered most logic and sensible. He must appreciate that each time he gives reasoning, persuasion and idea, he can shake, and change public perception incrementally and it finally will close to the best solution. It's an achievement.

  (營建工程非絕對科學，故工程師應尊重公眾對公共工程之選擇，其努力，縱然不為接受，即可改變他人成見，不能自認已做最好之專業建議，而感愠怒。)

5. The Modern Construction Industry and its Major Players

(營建業與主要參與者)

1) Frontage Players: general contractors, engineers and consultants, architects, specialty contractors, labor gangs, investors.

  (第一線工作者：主承商、顧問公司、建築師、專業承商、勞務承攬、業主)

2) Supporting Entities: banks, insurance company, bondsman Investment Company or fund, operator.

  (間接參與者：銀行、保險公司、保證人(美式)、投資公司或基金、代操作者)

3) Third Party Participants: notaries, law firms, inspectors, laboratories, certifiers, appraisers, unions, arbitrators

  (第三方參與者：公證人、律師事務所、稽查、實驗室、驗證師、鑑價師、工會、仲裁人)

4) Stakeholders: public, authority, facility user, neighborhood and locals.

   (利害關係人：公眾、主管與權責機關、設施使用者、鄰里與地方人士)

6. Features of Construction Industry explained in 5M:

1). Man:

(1) Power to drive Individuals and Organizations to achieve Business Goal

(驅使個人或組織達成事業目標的動力。)

(2) Managerial cadre, Professional, Occupational.

(管理幹部、專業、一般工作者的不同。)

(3) Disciplines, expertise, project based management, functional department oriented management

(不同專長、技術，專案導向管理系統、功能部門導向管理系統)

(4) Personal and organizational behaviors, coordination and communication under high or low context culture.

(個人與組織行為、高低情境文化下的協調與溝通)

(5) Labor laws, quality, incentives, unions, big bosses.

(勞動法令、素質、激勵手段、工會、大老闆)

2) Machine

(1) Prototype, bespoke; portable, fixed.

(制式與訂製；移動與固定式)

(2) Operation, maintenance and repair.

(操作、維護、修理)

(3) Rental and owning.

(租賃與自有)

(4) Construction method and machine selected.

(施工方法與選用機械)

3) Material

(1) Local, traditional construction material as first choice.

(優先選用當地、傳統材料)

(2) Material and Equipment to be incorporated into Project.

(安裝在工程的永久性設備與設施)

4) Money

(1) Payment: cash, in kinds or goods (barter), deferred (BT), franchise revenue (BOT, PMI).

(付款方式：現金、原料或實物【以物易物】、延遲付款【BT】、特許收入【BOT,  PMI】)

(2) Standard international contracts to regulate: FIDIC, NEC3 (New Engineering Contract3), AIA(American Institute of Architects), JCT forms of Contract(Joint Contract Tribunal)...etc..

(國際範本契約： FIDIC, NEC3【New Engineering Contract3】, AIA【American Institute of Architects】, JCT forms of Contract(【oint  Contract Tribunal】...etc.。)

(3) Money beget Money.

(錢滾錢)

5) Market

(1) Contractors with Lemming Mentality

     (旅鼠心態的承商)  

(2) Style of Competition: Lowest Bid, Evaluated Lowest bid, Value for Money.

(競標類別：最低標、評估最低標、物超所值的有利標)   

(3) Elements of Competition.

(評比的考量)

(4) Defying the International Norms.

 (對國際實務與慣例的挑戰)

 

1105/2020斜張橋-結構分析、設計、施工與維護探討會中，以高屏溪斜張橋施工為主題，本人作為主持人與引言人的發言：  

台灣經濟快速發展，基礎建設的臻於完善，與其本身龐大的需求，是決定性的因素之一。在世界營建市場，我們國家建設的規模與雄偉，也曾成為亮點與焦點。在此之前，80年代我們榮工到中東、東南亞承攬海外工程常遇到，幾年後一直活躍於國際舞台的許多歐、美、日、韓廠商卻絡繹於途的到台灣尋求機會。在前一個十年，筆者於許多場合談判合作的朋友，或是在國際大工程招標說明會認識的競爭對手、常在台北見面，說明了台灣營建市場的吸引力。

從台北捷運、二高、焚化爐，獨立電廠、北宜隧道等，到擁有無限商機的私人建築工程，台灣的建設工程不只求多、快、好，像台北101大樓，與現在談到的高屏溪斜張橋、除了先進技術，民眾要的還有能夠振奮人心，展示社會發達狀況的美觀瑰麗工程。相對的，我們也相信這些至真、至美的建設，記錄了我們這個世代工程師曾經有過的擁抱現實，憧憬理想的過程，亦將傲然矗立於歷史中。

高速公路南二高高屏溪斜張橋，為國道建設工程局起造，中華顧問工程司設計，並由泛亞(30%)、利德(20%)、日本大成((30%)，日本川田鋼鐵(20%)四家國內外廠商聯合承攬。標價21億3千6百萬新台幣，比我們的估價少了許多，但日商大成在全盤戰略性需求下做出特殊的考量，我們則在賠損不超過某些限度下，做了一些配合。最重要的是我們知道，在日本包商為成本考量無法派出大批人員的情況下，泛亞與立德承諾派遣我們的橋梁施工菁英到註定不會有利潤的工地。

所以泛亞派到工地的代表是李全茲先生，後來我們的副總經理，他曾經在印尼13年，包括蘇門答臘的深山叢林，與泗水的龐雜都會區工地；還有方賢健先生，在沙烏地大小外國工地待過13年，也是我們今天斜張橋施工的主講者。我們認為這個工程投標、簽約、施工、到保固，各個階段都需要許多從各國來的不同資源，從組織、人性與文化出發，我們預測有一些技術與管理的困難，需要去克服：

*施工與設計的結合：

-許多風洞、混凝土橋面支撐與推進、主塔、鋼橋節塊的分塊與焊接、鋼纜等的主要數據，必須留待施工階段，方法與機具定案，構件完成後才能決定、輸入。

-設計目標，如承載力、服務性、使用壽命等的實現，須各項施工細節(保護層、構造物角度、構件接合平整度、變形量、飾條)精準達成，得到各級領班、技術工的充分合作。

*本地藍領技能與資源的最大限度利用:

-對本土協力廠商準備投入工地機具、器材、人員質量的合理、客觀評估，並提供關鍵物件；不以廠商報價外表顯示的效率作為預設的合作條件

-足以反映機具、設施、人工需求的合理單價與計價

-圖說的協助解讀

-對有特殊功能需求的負重、運輸、升降、滑動等工具或機械，以國際市場為搜求範圍，由主承商在有限時間中承購，運抵工地

*異國公司組成JV，必須面對的溝通與效率問題：

-因各成員公司原來在本國產業分工扮演的角色不同，個別工程師必須在身分與歸屬感上作相當幅度的調整

-對契約、工務程序，與實務要求，工作認知上的歧異

-情境文化的差異

-由群體合作，隨時能期待總公司技術支援的國內工作習慣；轉為必須發揮個人能力，工地就是最後層級的的海外工程作業方式