2023年2月27日 星期一

 (Part 1, NTUST, 5908701)

Part 1, 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)


1. The Change in Professional’s Earning and Social Status since Industrial Revolution; the Tendency the Young Engineers Drifting to the Unpredictable World Need to Know:


1). Comparison between the income through personal capability and efforts and that from investment and bequests. It changes since the industrial revolution and has influenced the allocation of talent.


(1). Prior to the industrial revolution in Europe, the ratio between the wealth generated from investment and bequeath was high compared to that generated from laboring (through personal capability and efforts). The ratio dropped significantly during the world war I and reached its lowest in 1970s symbolizing technology improvement was on the way and general public including professional had shared the benefit. But the figure raised up slightly in the years around 2010 - a possibility that it might be caused by affection of digital technology and globalization.

(2).  Proper income in 19 Century means at least you have to obtain 20 to 30 times of average national income, and only top 1% people would achieve it so as to be considered as riches. Professions like lawyer, accountant and engineer would get at best 10 times of average national income and considered as slightly better than the “poor”.

(3).  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 marry 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 knows 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)


2). How the excellent brains were paid by ruling class who dominate the economy and the industries historically? 


(1).  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).  Before industrialization, farmland was main source of wealth and income in Europe and US, and government bonds issued in countries able to manage fiscally. There’s no means that personal talent or professional skill would earn a decent income for individuals. (The only way people to remain in or ascend to high society had to go through inheritance or marriage.)

(3).  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 trusted the trend would not revert. But what happened between 1980 and now proving that it was just a transitory deviation.

(4).  Globalization facilitates the fluidity of the commodity/service in the international market and set the cap in every economy for wages. One of the reasons the said ratio continues to go down after 1980s.


3). What will a young civil engineer choose to be? Occupational, professionals or super managers. Is it correct to borrow “meritocratic extremism” to justify the tremendous pay difference between capitalist/ rent seekers and hard-workers?


(1).   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.

(2).   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.


4). Technology improvement makes economy flourish and life better, still some people in each social class has to struggle for livelihood and survival as distribution inequality persist. Will the engineers whose expertise and knowledges be replaced by digital software and artificial intelligence fall in the category in their life time?


(1).  As technology improves, the mid income people can enjoy comfortable life far better than many of their forbearers in higher centile of income.

(2).  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. 

(3).   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.     

(4).   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.

(5).   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.

6). 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)  The professional tomorrow: Let AGI (Artificial General Intelligent) to take over and accept “Le Droit à la Paresse” (“The Right to be Lazy”) while living on Universal Basic Income dispensed by the government; or become 21st century Luddites against automatic machine? ) 

(1).  Artificial General Intelligence; Strong AI, weak AI, Open AI, generative AI, ChatGPT, Bard.

(2).   Speed over Safety: 

-   For example, Deepfakes can defame, impersonate, and spread disinformation to harass or cheat the people and things can be corrupted faster as technology advance.

-   The way tech companies monetized connectedness: by slowly warping our news feeds to optimize for engagement

-   AI-oriented Bing search engine will drive more traffic and revenue, to publishers and the advertisers.

(3).  The right to be Lazy and Universal Basic Income.

(4).  Luddites.

  

6).   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?


2. How will Young man Start his Professional Career


1) To learn how the government operates and the economy function in the real world and the existence of political institutions, social establishment, and commercial interest groups:


(1).  Young professionals must learn the way that political institutions, social elites, and interest groups interact and influence with each other and make the government operational and the economy functioning through compromise. 


In a democracy or open society, still the elite instead of general people, will settle and conclude for government agenda, economic plans and procedural norms. And the engineers are those who command and not commanded. They will and have to contribute their intelligence during the course. 


As professionals, it's essential for the engineers to know who are the ultimate stakeholders, their feeling or wishes for something to or not to happen, and choose for the public for the most sensible and efficient way to meet their expectation according to the custom, 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 decimated under long practice of liberalism and democracy. 


(2).  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 a candid engineer with sufficient secularity knowledge will be able to save the industry and the world one day.


2) Construction business is attached to history, culture and custom of the country and society. A successful engineer has to know humanity, social behaviors, tradition and conventional wisdom; not dismiss them as redundancy soon to be discarded in the process of modernization. 


(1).  Civil engineering is always considered as sort of physical science. The employees or managers of construction companies usually need to have engineering expertise; this is especially true in developing countries where the non-mechanical knowledge could be underwhelmed in the academy and the work place.


Unlike manufacturing or IT industries, construction has its origin and background in history, culture, custom, geography, and even memory, it links to human affairs, conventional, reflective but also transformative and thus require both rational approach and sentimental interpretation. 


So, even people proselytized by modern engineering teachings must understand that the contracts and the trading system for construction can be functioning only when they conform to the traditional market behavior as it’s a collective mindset of the society. 


(2).  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 are meaningful. 


(3).  An engineer sometimes may feel frustrated when he encountered resistance trying to promote top notch infrastructure projects but fails to convince the general public. However, he should realize the implementation of public works should always be kind of choices rather than direct conviction that pure scientific matter will rule.


The civil engineers should realize the efforts he rendered explaining the new idea or criticize the existing unreasonable things will not be in vain, because each time he gives reasoning, persuasion and novel idea, he can shake, crumble, and change public perception incrementally and it finally will be crystalized in his favor, the process further demonstrate the construction industry is not a yes or no scientific verdict.


On the other hand, the civil engineer should also know all the information give 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.


3) Engineering is an art rather than a science: approaches to the clients, colleagues or even competitors should be more civic and in tight link with humanity and common sense.


It's easy for an engineer, to accept science and engineering fundamental in school and become a good expert afterward; but one has to grow to lead his company and industry for a successful career. In doing so, he needs to widen his visions and secure more humanities concern because the "construction" is an art rather than a science in nature.


Only because the "construction" is to serve with the human needs and its realistic business nature, the communication between the involving parties is critical. Client, colleagues, and even competitors must be linked and coordinated in a civilize way or the said cold science will result in wasted money and time.

 

However, people living in a real world should not be too sentimental and a civil engineer also should be logic and scientific for all the adaptation.


4) The corruption and rent seeking will be hard to diminish in the construction business, however, it will be reduced in an open society and free market. An engineer will only be prosperous to learn reasoning, contention and compromise in a bustling democracy. 


(1).  Definition: “Rent-seeking” is the act of growing one's existing wealth by manipulating the social or political environment without creating new wealth (Wikipedia).


(2).  An engineering decision shall not be bent or twisted facing force, power, or unjustified persuasion made by public, prestigious, client or third parties. 

 


5) The professionals don't produce, manufacture or build, they offer design solutions based on knowledge accrued through education and training. Plus, it requires good "judgement" based on experience, analysis and creativity, distinguishing them from ordinary people.


So, 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.


6) Right altitude shall be most important for freshmen: steadfast when offered elementary skill and details, passionate with curiosity breeding innovation and creativeness leading to maturity, and trust the systems and accept the lead of the higher-up with patience.


(1).  Always the new starters don't appreciate the facts that technology advances only going through repetitive working on simple topics in the boring assignment at the beginning of their career. 


People dream about the prospect to be doyens in the field but lack the passion to learn expertise through the hard work. Sometimes they’re excusable for being exploited by the lackluster leaders in the early stage of their career. For this, they’ve to see if the passion of their colleagues, alumni and people surrounded still there, and decide whether or not themselves to stay. 


Though the defiance to the establishment, either the organizations or the higher-up usually happens, young engineers modest in their approach at workplace will be able to develop the leadership, and attain the knowledge required for professionalism and humanity. 


And it means the kind of gracious start will grant them prominent positions in the industry and help to grip the trend of market change.


(2).  Because people always want to judge the other people in simplest and quickest; engineers must try to obtain as many as possible licenses, certificates, and academic degrees in their young days.


Though success in passing examination and enduring the training may not guarantee the achievement in the career, the tendency is that the diplomat and certificates will help people a lot in a busy business world.  


7) Young engineers must understand the modern construction industry essentially is governed with human distrust: terms of contracts, laws, certificates, checks, guarantees, tests, investigations and reports, are used to instigate the antagonism between, the parties with confronting interests.


(1).  There is tendency, especially in the developed countries that the added value allocated in the name to protect the interest of ultimate owner/investor has outweighed the expense spent for the engineering and construction of the projects. 


Insouciantly, the engineers have lost their importance playing their roles and the professionalism rooted at trust and confidence between the clients and engineers dissipated while legal and financial people stepping in.


(2).  Young professionals with less confrontational mentality have to strive to turn the tide so that “non engineer’s” encroachment and domination on the industry should be reduced so as to prove that the technical world still belongs to the engineers.


2023年2月5日 星期日

(Curriculum, NTUST, 5908701) Advanced Civil Construction

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

(mtkaoforum31@gmail.com)

 台科大高等土木施工學教材(2022)

Brief for Semester Start from Feb. 2023


1. The Change in Professional’s Earning and Social Status since Industrial Revolution; the Tendency the Young Engineers Drifting to the Unpredictable World Need to Know:

(工業革命以來,專業人才相對於其他階層,其收入與社會地位的變化;將以工程做為終生志業,奉獻一切的年輕工程師應該了解:)


1) Comparison between the income through personal capability and efforts and that from investment and bequests. It changes since the industrial revolution and has influenced the allocation of talent.

(收入係因個人能力與努力而來,與由投資或遺贈而來,兩者消長之比較,自工業革命以來變化很大,影響到人才之歸依。)

2) How the excellent brains were paid by ruling class who dominate the economy and the industries historically? 

(歷史上經濟與產業宰制階級,如何報償第一流頭腦?)

3) What will a young civil engineer choose to be? Occupational, professionals or super managers. Is it correct to borrow “meritocratic extremism” to justify the tremendous pay difference between capitalist/ rent seekers and hard-workers?

(年輕土木工程師要選擇:一般職業、特殊專業,或超級經理人?既得利益者是否可以極端的菁英優越感,來合理化資本家/尋租者,與辛勤工作者龐大的報酬差距?)

4) Technology improvement makes economy flourish and life better, still some people in each social class has to struggle for livelihood and survival as distribution inequality persist. Will the engineers whose expertise and knowledges be replaced by digital software and artificial intelligence fall in the category in their life time?

(技術的進步讓經濟發展,生活舒適,但所得分配不能平均,讓任何時候,任何階級,都有人為生活掙扎,為生存擔心;同樣的如果今天的工程師,他的專業、知識,那天為數位軟體與人工智慧取代,是不是也要成為無所依靠者?)

5)  The professional tomorrow: Let AGI (Artificial General Intelligent) to take over and accept  “Le Droit à la Paresse” (“The Right to be Lazy”) while living on Universal Basic Income dispensed by the government; or become 21st century Luddites against automatic machine?  )

(專業工程師的明天:讓強大的AGI接手一切,然後同意法國名言「人們有權變懶惰」,靠政府發給的基本生活補助過活;或成為21世紀,搗毀一切自動化機器的盧德派抗議派工人? )

6) 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?

(「工程成為一種志業」的想法,在台灣收入相對付出不多的情況下,能持續為大家尊重?專業工程師賴以保持動力,所必要的熱情、靈感與理性能夠維持下去嗎?)

2. How will Young men Start his Professional Career?

(年輕人如何學習去做一個優秀工程師?)

1) To learn how the government operates and the economy function in the real world and the existence of political institutions, social establishment, and commercial interest groups.

(要了解現實世界中,政府如何運行,經濟是如何作用;以及政治組織、社會階級和商業利益團體的存在。) 

2) Construction business is attached to history, culture and custom of the country and society. A successful engineer has to know humanity, social behaviors, tradition and conventional wisdom; not dismiss them as redundancy soon to be discarded in the process of modernization. 

(工程事業植基於歷史、文化與社會習慣。成功的工程師必須知道人性、社會行為、傳統,與常識;不能認為在現代化過程這些都是累贅。)

3) Engineering is an art rather than a science: approaches to the clients, colleagues or even competitors should be more civic and in tight link with humanity and common sense.

(工程學很大的成分是藝術,而非科學:與業主、同事甚至競爭者溝通,應該是文明,且與人性與常識有更大的關係。)

4) The corruption and rent seeking will be hard to diminish in the construction business, however, it will be reduced in an open society and free market. An engineer will only be prosperous to learn reasoning, contention and compromise a bustling democracy. 

在工程產業中,貪污與尋租,現實上無法根絕,但在開放社會與自由市場中,卻會輕緩。工程師只有在活潑的民主制度中,藉反覆的說理、競爭,與妥協中獲得成功。)

5) The professionals don't produce, manufacture or build, they offer design solutions based on knowledge accrued through education and training. Plus, it requires good "judgement" based on experience, analysis and creativity, distinguishing them from ordinary people.

(專業工程師並不親自生產或建造,他們係以由教育與訓練累積的知識,提出設計方案。與一般人不一樣的地方,就是能基於經驗、分析,與創意,而提出好的判斷。)

6) Right altitude shall be most important for freshmen: steadfast when offered elementary skill and details, passionate with curiosity breeding innovation and creativeness leading to maturity, and trust the systems and accept the lead of the higher-up with patience.

(對新進工程人員而言,正確的態度,包括學習基本功夫、深入細節時的沉穩;由好奇心孕育出改革、創新進化到成熟時的長保熱情;以及相信制度、接受先進前輩指導的耐心。)

7) Young engineers must understand the modern construction industry essentially is governed with human distrust: terms of contracts, laws, certificates, checks, guarantees, tests, investigations and reports, are used to instigate the antagonism between, the parties with confronting interests.

(另一方面,現代工程產業的複雜,很多是建立在人與人間的互不信任,契約條件、法律、證明、檢查、測試、保證、調查,報告等需求,更不用說挑起利益衝突者間爭議,再去協調解決的機制。)

3. Construction Industry and its Significance to Total Economy:

(基礎工程與總體經濟發展的關係:)

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

(有好的基礎建設,經濟發展可以快速。)

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. 

(進行基礎建設會刺激建材、機具與工具、家具與各項服務的需求。當經濟發展快速,營建市場繁榮。)

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. 

年輕國家需土木工程師擬定多年國家發展計畫,直至內閣層級,故不同,甚至是敵對的政權會用同樣的技術官僚。)

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.   

(工程師有時會淪為竊國政客的貪汙共犯,此因工程契約牽涉金錢數額龐大,又需多層包商共同完成工作,故容易藏錢。)

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

(年輕工程師應依其個人特質、才能與背景儘速決定其職場選項:)


1) Consultant or Contractor. (顧問公司或施工廠商) 

2) Technical or Managerial cadet. (技術或管理專業。)

3) Domestic or International figure. (國內或國際工程。)

4) Employed or boss. (受雇者或老闆。)


5. The Modern Construction Industry and its Major Players:

(現代營建業組成與參與者類:)


1) Frontage Players. 

    (1)    General Contractors

    (2)    Consulting Engineers

    (3)   Architects

    (4)   Workers, Labor Gangs and Subcontractors

    (5)   Specialty Contractor

    (6)   Employers

2) Supporting Entities.

    (1)   Bank

    (2)   Insurance Company

    (3)   Investment Company or Fund

    (4)   Operator


3) Third Party Participants: notaries, lawyers, inspectors, laboratories, certifiers, 

appraisers, unions, arbitrators


4) Stakeholders

    (1)   Public

    (2)   Authority

    (3)   Neighborhood and Locals


6. Remuneration, Feeling of Fulfilment, and Chances of Promotion in Different Entities(在性質不同工程單位,可能遇到的狀況:待遇、滿意感,晉升機會)

1) Academy 

  (1) Nationalization and bureaucratization of educational institution.

  (2) Fate, connections, and politic play significantly in the assignment and promotion

        of faculty positions.         

  (3) Inspiration, heart and soul are still required in developing scientific and   

        engineering theories      

  (4)   Limited monetary remuneration augmented with infrequent plaudits complete 

        full reward scheme of scholars

2) Professional entities such as architects and consulting firms

   (1)  The remuneration for working at architects and consultants is based on  

          expertise not be quantified. 

   (2)  The managers of architects and consulting firms are critical for a work 

          environment for efficiency and competition; deserving high income

   (3)   Gains such as profit, dividend, interest, rent and royalty are offered to the 

          employees in the form of company stock, partnership, or special agreement

   (4)   The rates and prices of consultancy contracts are low by international  

           standard,  their pay expected continue to grow in Taiwan

3) Construction firms

    (1)   Contractors command more resources than any other players in the industry  

          and the pay difference among their staffs is determined by contribution

    (2)   The construction companies are under marginal pressure to meet the 

          requirement

    (3)   EPC will allow the constructor to do the design and build works, and so the 

          construction firms are better to nurture the professionals, technical or 

          managerial 

    (4)   Specialty contractors if have more control on expertise shall be more dominant 

          as the nature of the works when economy evolved and the project sophisticated

4) Government Employees 

     (1)  In many Asian countries, the government employees are prestigious despite its 

           low salary and retrained power. The reasons may be the employment is 

           permanent and accessible by the graduates inexperienced but good at 

           examination

     (2)  But as the economy grows the government enact laws and regulations, much 

          less flexible for civil servants making them not so comfortable and hesitate to go 

          after the government posts

5) Bosses or self-employed

      (1) The rigor and aggressiveness to found an enterprise will only attach to a 

         young brain; so, people have to determine whether to be boss or self-employed at 

         early stage of life

      (2)  Though a contractor needs capital, follow engineers, business connections, 

         access to resources for execution; in Taiwan the sub-let system and high context 

         culture in favor of collaboration between the individuals will allows new comers 

         to become entrepreneurs before they’re matured

       (3) Construction people often risked to become accomplices of authority, super or 

         sub tier contractors stealing public money. The fraud can be exposed and those 

         ones forsaking ethic principles would be sacrificed. 

       (4) Unlike many developing worlds, Taiwan escaped endemic corruption during 

         and after the days massive infrastructure projects are under construction. If you 

        want to be a boss in Taiwan, the risk is smaller

7. Features of Construction Industry explained in 5M:

(以人、機、料、錢,市場說明營建業特質:)

1)  Man

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

       - Nature of Power

       - Organization

       - Leaders

       - Power Distance

      (2) Managerial cadre:

       - Inflated Titles for Professionals

       - Recruitment

       -        Manage self-motivated and highly intelligent workers

       - Professional and Occupational

      (3) Project-based or Department-oriented(functional) Management:

       - Diploma Over-Trump Proficiency

       - Company’s Shrived HQ

     (4) Personal and organizational behaviors:

       -        Company Culture related to Size

       -        High and Low Context Cultures

     (5)  Labor laws, quality, incentives, unions

      -         Labor and Taxation Laws in Taiwan

      -        Taiwan’s Scrupulous Professionals

2)  Machine

     (1)  Prototype, bespoke; portable, fixed

     (2)  Operation, maintenance and repair

     (3)  Rental and owning

     (4)  Construction method and the machine/plant selected

 3)  Material

     (1)   Local and Conventional Material shall be chosen for Construction

     (2)   Green Construction

     (3)   Material and Equipment incorporated into Permanent Project

     (4)   Nominated Subcontractor


4)  Money

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

     (BOT, PFI)

     (2)   Standard international contracts to regulate: FIDIC, NEC3 (New Engineering 

     Contract3), AIA(American Institute of Architects), JCT forms of Contract(Joint  

     Contract Tribunal) ... etc.

     (3)   Non-technical People to Control Money.


5)  Market

     (1)   Contractors of Lemming Mentality

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

     (3)   Elements of Competition

     (4)   Defying the International Norms


8.  Working Overseas(海外工程):


1)  Evolution of International Construction Projects: 

    (1) Stag 1: Free Movement of Construction Resources across the Borders.

    (2) Stage 2: Work Hard vs Work Smart!

    (3) Stage 3: Investment Security Trump Everything and in Favor of the  

     Establishment.

2)  Distribution of Added Value under the New Construction Market Order:

    (1) "Labor"

    (2) Between technical and commercial professionals

3)  Chances for Taiwanese Construction Industry to go for Overseas Market.

4)  Adjustment Imperative for Company System and Policy.

5)  Assignment of People to Run Overseas Works.  

6)  Mental Readiness for Construction Companies to undertake Overseas Business.

7)  License, Registration, Special Permit for Foreign Contractor.

8)  Acknowledge of difference and handicaps:

9)  Unmanageable Risks: 

10) Manageable Risks (with care and monetary provision):


2022年11月20日 星期日

 

土木產業經營環境中之文化與歷史因素

2022土水學會年會,土木工程論壇(11月19日)

 



2021年台灣發生358,190件交通事故,2990人死亡;同年日本發生305425件交通事故,2636人死亡。日本的人口數是台灣的5倍,但交通事故與死亡數卻少於台灣,這值得大家來探究原因。

 

台灣的道路安全規則、交通標誌、道路設計與施工,運輸載具,乃至危難急救設施,規劃、投資與執行都較先進國家標準為高;但每年的交通事故與死亡數在這種情況下,仍然大大的超越先進國家,這表示技術與管理之外,造成混亂的原因,或許用路人、權責單位以及社會大眾的習慣、心態與觀念有關。

 

我們常看到交通管理單位抱怨用路人圖方便、快、忽視標誌,不守規則,造成交通混亂;社會大眾則指責權責單位觀念不當,如在車道規畫、設計,獨尊「汽車」,邊緣化機車與行路人,導致大家爭先恐後,交通擁擠,大小車輛與用路人,無人是贏家。


抱怨、指責發展到最後,交通單位各級承辦人只注意自己是否已盡警告之責,如是否已在各種規則中齊備罰則、在危險地段設置適當標誌、應該做的宣導是否都做了?但不去探討真正事故原因,及背後的文化、歷史與習慣因素,只盼望嚴格的交通法律、清楚的號誌、平坦的道路,讓上路的車輛都能保持最好狀態等,可以解決所有問題,是不對的。我們的交通事故發生率,可能還有一段時間,會是日本的五倍。  

 

 

同樣的,在營建產業我們也看到類似的情形,各級政府重視建設投資,認其成效為執政成敗的具體指標;權責單位制定可堪比擬工程先進國家水平的技術與管理法規,涵蓋了對人、錢、技術、材料、工程品質與進度的掌控;業者在恐落人後的競爭心態下,也力做出比其他國家同業更大的努力。看來這應是一個生機蓬勃的產業,但社會大眾對公私工程,尤其一些個別、災難性的結果,並不滿意;產業相關人員,不論產、官,學對經營環境的不滿,也到達頂點。

 

從文化與歷史觀點出發,社會大眾對公共事務,常欠缺耐性,認為政府必須針對問題,即刻以好制度與政策進行匡正。但「應然」不是「實然」;數字、邏輯與知識,而非傳統上類似「有志者事竟成」的主觀期望,才是公共工程決策與推動的根據。公眾認為解決公共事務糾葛困難,可有仙丹靈藥,因而鄙視專家與當事者意見,採用的許多治標方案 ,往往造成時間與成本的浪費。

 

目前工程經營環境的問題,有業者造成的,如低價搶標,壓制專業、剝削勞工、漠視風險,行有不得時,以非典型手段迫使業主放棄許多管制手段,甚至在品質、進度上妥協;也有工程機關的因循作法,如以其已在契約與管理制度上,作嚴格要求與詳盡規定,來證明自己已盡責,無視實務上問題是否發生,或如何解決?

 

但不論業者、機關,或工程成敗攸關其利益之社會大眾,其思維或行為影響產業者,皆根源於文化、習慣與傳統,或如:關心私人問題甚於行業尊嚴或機關榮譽;對他方過度防備、互不信任;不求精確、漠視標準;麻木不仁,欠缺同理與同情心;逢迎媚俗,致決定者得能淩越專家;不講是非,只論層級地位…。

 

故工程經營環境是否能改善,不只是業者、機關所面對的問題,社會大眾,尤其是意見領袖,都要從傳統思維跳脫出來,以客觀的態度看這個現象,或許目前激烈變動的資源與分工關係,帶來的危機,為解決問題,大家思維上或能跳脫窠臼,反能達成產業的現代化與國際化。

2022年8月28日 星期日

 海外工程與國內工程的距離

本文亦登載在營建知訊480期(112年一月號)


高銘堂  中興工程顧問社執行長/臺科大營建系兼任教授


國際工程產業趨勢 不容忽視

國際包商承攬海外工程,依本身條件與能力,在生態位階上約可分三個層次:一、以人員與施工機械在國家之間的實質移動,通常在劇烈競爭下,爭取市場;二、對另一國家的政府機關或公司團體,提供技術與知識,換取報酬;三、藉資本與事業經營,自創工程機會與附加價值。

在每一個經營層次中,為保障交易順利,法律專家與工程師都會盡其所能,以工作的內容與特性,選擇對他們來說,最有效、最公平的契約。以FIDIC契約範本為例,幾十年來,由單純的土木施工或機電建造契約,進化到設計與施工、整廠統包,或是設計、施工再加上操作,乃至應貸款銀行要求,包括投資條款的契約,說明了多年來世界各國工程因其需求內容、工作環境,與商業考量變得複雜化,所有的參與者,從公司到個人關注的層面,要比以前深廣。

我們的營建業幾個世代以來,有驚人的進步,而先進國家的工程公司,長久受益於既有建制,相對於新興經濟體營建廠商而言,早有領先,近年來他們更因所在國金融與商業的開放、進步,而在經營層次上有明顯的提升。他們的成功可溯源到他們對市場經營環境穩定性的重視,尤其對法治的期待,才能在不承擔不合理風險的狀況下,得到發展。

臺灣的營造市場不大,如果還要據之對外擴張,承包商就要陷於如夸父逐日,力竭消渴的絕境。但本土從業人員,基本上對國際工程還是要堅持有意義的參與。也因如此,工程師們就要去了解國際工程產業的趨勢如何,其他國家的公司經營者在想些什麼?認真思考,才不致流於妄自尊大或菲薄。

筆者早年的工作,是爭取海外工程業務,後來有幸加入泛亞工程公司,見證國內基礎建設的蓬勃發展,並在那段時間,與國際廠商合作施作國內重大工程。在過程中,常須因應外國夥伴的思考模式與行事習慣,調和既是聯合,卻有相當程度是對立的微妙關係;更因此憶及當時到其他國家,以海外廠商身分與當地夥伴折衝的情形,角色對調,真的是有所感觸。

所以從招標作業開始,直到執行,我們與國際朋友的互動,確實充滿著張力;我們本身也想盡辦法適應本地制度,取得業務,現在看來,算是勉強,但善惡好壞,就要留待工程界先進來評斷,時日雖久,或仍有可諫、可追之處?


「泛亞」進軍海外機緣

1964年,興建歷時8年的石門水庫,終於竣工;它規模龐大,經費新台幣32億餘元,是當時東南亞最大的土木工程。台灣參與的人員在尖峰時多達7千餘人,其中的許多工程師和技工,設計或施工技術,從無到有,都盼再有類似工程讓他們精進所學,做更大的貢獻。但政府沒有預算再做大工程,不只是人才,建造水庫後留下來的大批建設機械也無處可去。

後來,經過審慎的市場調查,政府了解,這些工程師、作業手與技工帶著重機械,在鄰近國家會有發揮的空間,於是在1965年9月成立「泛亞工程建設有限公司」,集合這些人與機具,加上若干現金,作成一千萬元股本,由退輔會、榮工處、中國技術服務社以及四大水泥公司認購,向海外進軍。

任何工程公司承攬工程一定由國內開始,但「泛亞」不一樣,1966年起,先在泰國拿到公路工程,幾年內做了好幾條公路,累積金額達到4億多銖。那時銖的幣值是新台幣的1.5倍,這是很大的數字。因為泛亞兼總經理王國崎先生,同時擔任中國技術服務社董事長,也是泰國石油公司的顧問,所以「泛亞」在泰國也接了不少煉油廠、油槽和加油站的工作。後來的幾年,「泛亞」的海外業務又擴充到關島、印尼與新加坡,工作也多樣化,除了公路,也有購物廣場、工業區、海岸整地工程等。

「泛亞」的根是在台灣,必須在國內發展,所以從1968年起,開始在台灣接工程,較著名的有日本駐華大使館與中台化工頭份廠等;這些都是頗具規模,較複雜,困難的工程。但營建施工畢竟是本土化的事業,任何公司海外營業額,到最後只能是整體業績的一小部分。


十年休眠 團隊活化

不久,國內的經濟起飛,政府和民間財力增長,公、私工程建設加快,需求旺盛,「泛亞」工作團隊的實力、管理人員的見識,乃至組織規模,在營造業中領先群倫,正待擴展。正好「榮工處」承攬的高速公路也需要協力廠商,新竹苗栗這段的土方道路工作,分4個標,約9億多元新台幣交給「泛亞」施作,在1978年順利完工。

差不多同一時間,「榮工處」也要求與「泛亞」合作發展海外工程,「泛亞」的副總經理陳豫,也就是首任的公共工程會主委,當時應「榮工處」嚴孝章處長之請,到「榮工處」沙烏地辦事處擔任主任,資深工程師程龍光則為麥加、班尼沙等道路工程的工地主任。後來「榮民公司」的董事長劉萬寧,業務處長蔡錫麒,埃及以及東南亞辦事處主任蕭慶穗都是先由「泛亞」錄用,幾年後才轉到「榮工處」。

在國內,「泛亞」不參加競標,所以國內工程業務沒有什麼發展。高速公路新竹苗栗段工作完成以後,「榮工處」也沒什麼工作交給「泛亞」,加上許多幹部支援「榮工處」海外工程,所以有10年,「泛亞」是處於休眠狀態。

「泛亞」早期在泰國等海外工地,以及後來在國內高速公路新竹苗栗段的工程,是賺了一些錢,那時的定存利息有12%以上,「泛亞」就以之來維持土方機械團隊的開銷,包括零件、消耗品,以及30餘位領班、操作手、維修技工的薪水,也過了10年。

但人員一直流失,「泛亞」持續空洞化,履行契約的能力與自信漸漸喪失;1986年定存利率降到了5.5%,要靠存款孳息維持公司運作,也不可能。所以節流之餘,「泛亞」便加入了國內工程行列。

國家建設的推動是不等人的,所以要活化「泛亞」,讓它馬上加入競爭,做出好工程,就要組成一個專業夠水準,操守禁得起考驗,彼此又不會很陌生的團隊,趕快進駐公司。但在股票狂飆、詐騙吸金,與大家樂流行的1987年,這不是一件容易的事。

當時是曾擔任「榮工處」代理處長的張溥基先生擔任「泛亞」總經理,他找了一些在「榮工處」國外服務的同事,加上幾位曾經在其他公司,到過中東工作多年的工程師,加入「泛亞」,前後大概有 20餘位。那時臺北捷運,北二高工程等重大建設,無論設計、施工或管理制度都向國際看齊,相對於同業猶在摸索、探討,我們對國際契約規定都已相當熟悉,包括臺灣較少看到的特殊施工方法,自信之餘,竟認為已經贏在起跑點了


萊布尼茲、充足理由律:存在的事,必定有理

事實上,如西方孔子「萊布尼茲」所說,每一件存在的事,必定有理由說明它為何如此。國內工程有許多規則與慣例,與國際工程不太一樣,其實是交易習慣的延續,而不是對錯好壞的問題。我們看到了「新」工程機關努力引介先進的施工技術與管理制度到台灣來,便以為市場是往全盤西化的方向走,這不是很對。也因此,「泛亞」成長慢了一些,交的學費多了一些。幾十年後再看,這還是一個「台學為體,西學為用」的產業。

我初到「泛亞」時擔任經理,負責業務爭取和部分工地的工作執行。因為先前有將近10年是負責海外工程市場的開拓,以及備標、投標,回到國內工程,就會去比較工程招標與執行制度的異同。

就營建工程而言,每一個國家與地區都有各自的制度,但在我相對熟悉的中東、西亞與東南亞,重大工程規劃、設計或管理通常是請西方先進國家工程公司來擔任,業主機關也會就當地的政治、經濟與市場情況做若干修正;但總的來說,與歐美差異不會太大。另外或因當地包商不會太強勢,也習慣西方的制度,基本上工程從招標到執行,是按照西方的辦法來實行的。

在國外,招標與執行的規定雖然繁多,但嚴格的敘述後都有除外的說明,允許工程主辦機關或工程司代表判斷是不是重大違誤,而他們也不怕抗議,會毫不猶豫地行使這些除外權力。或也因為工程司權力夠大,不去顧慮承包商發表意見,所以允許雙方溝通,尤其在投標階段。

但在臺灣,尤其在招、審、決標階段,甲、乙雙方都希望有明確的規則,讓他們根據白紙黑字,就可以判定曲直,尤其在採購法尚未公布,相對複雜的有利標尚未推行的時候;那時的綁、圍標風氣盛行,工程主辦機關重點放在防範,有些現在看起來毫無意義的規定,阻止許多好公司參加投標,但在當時,卻是天經地義,也因此在工程執行階段,不論是規劃、設計或施工,工程主辦機關卻變得非常強勢。他們不希望廠商的意見造成太多的困擾,所以期待契約條文裡能給他們足夠的管理工具,要廠商就範。所以在採購法出來以前,沒有聽過什麼「工程爭議」,因為工程主辦機關在金錢與工期上做了決定,廠商很難去否定,除非在權威體制裡能找到夠力的人幫你說項。但這也是反證,表示廠商還是有機會針對業主的「反應機構」,找到門路,反敗為勝。


「Know Who」與「Know How」的異同

在台灣作工程,「Know Who」遠比「Know How」重要。施工方法和工程知識之外,市場上供應商、下包、機具租賃商、合作的異業夥伴,甚至自己的工程師,那一個靠得住,現在的狀況怎麼樣,都必須在你的記憶中找得到。

雖然不是絕對,但「戲棚下站久才是你的」這句俚語,非常適用於臺灣的工程公司,因為「Know Who」需要時間。不少老闆找到一些資金,有幾個幹部,就開始搶標,一時如出柙猛虎,無人能擋,但過不久後工程進度或成本卻左支右絀。補不了破網的他們,做不了「新發財仔」,只會怪他們一直看不起的「了尾仔囝」-老公司-依然存活,卻不去省視自己是否花了精神,去了解周遭的人與工作,有沒有確實的連結。


預審與後審廠商資格(Pre and Post Qualification)

回到國內工程市場,開始時很不習慣備標的時間,可以短到三、五天,加上有些單位會把招標消息登在花、東或外島的小報,某些標案領到圖說時,連郵寄標單的時間都沒有了。我們曾經詢問主其事者,為什麼要弄得這麼神秘,但他們的答覆是如果領標、備標時間拖長,業者會有機會勾串圍標,這是不是合乎邏輯,到現在我還想不懂?

台灣的招標作業沒有預審廠商資格的制度(Pre-Qualification),國際上包括世、亞銀,有對案件建立長、短名單的做法(long or short list),我們工程主辦機關立即的反映是這豈不是方便廠商「搓圓仔湯」?如果需要限制投標資格,不論是資本額或完工實績,工程主辦機關不希望過於嚴苛,造成圍標,或方便特定廠商。

另一方面,機關規定投標者把資格證明文件隨投標文件一起提出,其實是一種後審廠商資格的制度(Post-Qualification),這在國際上較罕見,但以台灣的情形來說,這是最好的安排。工程司當場作資格認定以及誰得標的決定,可以防止關說,以及許多無來由的指控。所以他們不會留著文件過夜,更不用說允許廠商補送任何資料。


合理標、八折落馬、過度競爭

在這種思維下,可以來投標的廠商越多越好,最不會造成機關困擾的決標方式,只剩下最低標制度。有一陣子政府認為許多工程的問題是出於最低價搶標,所以有「合理標」的構想,但這辦法有點簡單,又有點複雜,就是標價在底價八折以下的標不予考慮,以上的再比誰是最低標,而底價是主辦機關、其上級機關,與審計單位共同核定的價錢占70%,參加投標廠商的平均標價占30%。如果大家都照成本估算,這「合理標」制度是有它的道理。

但廠商投標就是為了要得標,標價不夠成本是以後的事,不得標沒有業務,煩惱卻在當今。所以眾投標者就去猜官方核定的底價,瞄準它的八折下標價。不僅如此,聰明的台灣包商,還要想辦法,去拉抬或壓低那比重占30%的廠商平均標價。於是就有「有力者」廣邀同業組成集團,或借很多支牌出標,希望藉著數目上的優勢影響最後的底價。算術上這是很「合理」的作法,況且多家出標,就如霰彈打鳥,命中機率可以增加。

「合理標」招標到了後來,一個標案竟有四、五十家去投,這與那時候社會沉迷「大家樂」,瘋狂下注的氛圍真的互相輝映,這轟動一時的制度,從1990年2月開始實施,但到1992年5月,就停止了。

1980年代,甲級與特甲級營造廠的數目就增加到近2000家,有部份的原因是政府在分級與升等制度上,流於「形式主義」,不能做減法,只做加法。現實上全國的工程總量並不足以支撐這麼多數目的甲級營造廠,但如前面提到的「合理標」制度,卻號召更多的營造廠加入競爭,讓已經是僧多粥少的供需關係更加惡化。市場分包制度反映分工精密,卻不鼓勵營造廠的工程師、技工,與工作緊密結合,真正做工的那麼幾家因欠缺資本與公司經營管理知識,無法登記甲等執照,只好找一家有資格承攬的甲級營造廠,再轉給他們實際承建,這是所謂的借牌和轉包。


由爭取國際工程業務,轉為本國業務的一些省思

國內廠商對傳統招標作業的眉角,掌握得非常確實,我們只是許多甲級營造廠中的一家,沒有優勢,所以來到「泛亞」最初的兩、三年,我們只能與從前的一些國際老朋友合作,期盼他們在技術、施工機械、設備,或新的材料上有些突破性的想法與作法。有些工程機關或大企業,必須面對新的挑戰,也歡迎我們幫忙。許多國際朋友對這個「新」市場固然有興趣,也對其中一些看不懂得的現象提出疑問,但很多時候,我們也在困惑中,無法給他們答案。

其實臺灣的工程業務,並不是小到樣樣都要遷就國際包商,許多開發中國家,因建設不夠多,所以都依專業或資源提供者的要求,來 進行建設。但我們的市場也不是大到可以要求他們接受我們的交易條件,強迫他們改變習慣的做法,舉例來說,像發電機,到本世紀的前十年,都還是賣方市場。當然,這些都會因時代推移與客觀環境不一樣而有改變;但基本上「泛亞」量力而為,不會為了要多接業務,去為外國合作對象,承擔業主堅持,但他們無法同意的條款,及衍生出來的付款時差或責任缺口。

另有些規定是觀念問題,比如說現在採購法上還存在的禁止轉包規定,國際上廠商因為商業考量,常有母子公司,於業務或執行上,分別承擔責任,一般來說,契約條款固然規定須由業主同意,但通常在母公司出具保證後,即沒問題。但在我國,許多人卻認為這是圍標中的一環,是不可觸犯的天條;也有人用道德的眼光來看,認為這是不勞而獲,一定要禁絕。所以那時許多與我們關係良好,有集團性質的歐洲公司在百思不得其解之餘,只好放棄業務。

那時工程訂約規定,廠商除了要交10%的履約保證金,還要找兩家具備同樣資格的廠商作為「鋪保」,這對只有海外經驗的泛亞幹部是一個困擾,找人作保時,就要去攀實際上還沒時間建立的關係;而當前此為你保證的友好廠商,若找你保證他得標的工程,又該怎麼辦?對這個工程或公司做「due diligence」(盡職調查),增加的風險要怎麼算?要怎麼報告董事會?如果婉覆了,下次泛亞得標時該找誰保?還好,這些規定在上世紀末廢除了。

經過兩、三年的碰撞,我們就會以比較務實的態度,來進行與國際友人的合作,除了儘量幫忙他們了解台灣的工程界,我們也關心他們在台灣市場的適應性與存活性。所以集中心力爭取如潛盾、地下車站與特殊橋梁等,這些國外朋友與我們合作較有機會拿到的工程。曾經在國外工作過的好處是,你知道外國人到台灣,面對陌生的業主、不同的文化與特別的工程需求時,他們怕的是什麼,想的又是什麼


吳剛伐木、隨砍隨合?

國際與國內廠商對工程,對契約條文的認知差距,幾十年來也在縮小,當然這是雙向的。比如說,我們的採購法從無到有,並呼應業界的需求做了幾次修訂。國內的工程公司更重視契約,從他們要求把FIDIC的精神納入工程契約範本,且是按照標案性質,分成紅、黃、橘、金、銀等版本,就知道整個世代的專業與法律人士一直在努力。

但大家花了幾十年工夫,把公共工程契約由薄薄的一小本増成厚厚、有FIDIC味道的一大本時,我們的科技業卻以兩頁的PO(Purchase Order),交代了價值幾十億元的建廠工程,好像也沒有什麼後遺症。

一切又回到原點!


2022年6月5日 星期日

 Part 9, Advanced Civil Construction, 台科大高等土木施工學教材(2022) 

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

4. Overseas Construction Project

1) Historical Review (in Stages)

(1) Stag 1: Free Movement of Construction Resources between the Borders

Lack or insufficiency of construction resources in terms of material, working capital, and technologies prompted the host countries to accept foreign construction companies to come to their turf when they want to build economies from scratch.

It’s time when machine were expensive, native workers available in number, local engineers to be trained, but the surrounding infrastructure to support the construction activities of the referred project were poor.

The recipient countries needed to implement the projects but they were also obliged to nurture their own construction forces for long term purpose. Therefore, they called for international tenders asking more experienced and resourceful foreign contractors to be the main signing party, and demanded they to form partnership with local contractors.

Though the contractors from developed economies might complain that the local partner weren’t necessary; in general, as a stranger, they really need good guides helping them to recruit native workers, obtain local material, and solving all kind of problems in a culture that sometimes they feel weird and helpless. 
 
The local partners would act as sleeping partners or agents at the time when their ability to handle construction works was limited. But as it went by, they would grow in size and strength to advance their scope of undertaking. Their ascending, in certain extent parallel with the economy development of the host countries, was almost for sure so the international firms should have accepted the result and adjusted their approaches. 

In view of the changing market in favor of the local construction firms, the governments would have to amend the relevant laws so the flow of machine, man and resources would be subjected to regulation. 

Always the new discretion would ask the foreigners to undertake minor part of the business which the locals still need assistance; or only to provide expertise through “Technical Cooperation” arrangement rendering plans, drawing and hand-on instruction. 

After all, the governments holding the budget and power to build the project should have final say to decide who he wanted to deal with. And for civil engineering, it has never been too difficult for people started from nothing; and besides the local people know better than the foreigners to navigate through the local bureaucracy. So, unless it is a loan requirement, the authorities certainly would prefer the locals to be the contractors.

(2) Stage 2: Work Hard vs Work Smart

Thanks to the rising human cost and the diminishing technology edges, construction and engineering firms from developed economies is gradually replaced by the fledging third world contractors, especially those from newly industrialized country. 

For example, the use of construction machines and plants long considered the monopoly of the westerners for magic efficiency and exactness is overtaken by the skilled labors of the contractors from the Newly Industrialized Countries (NIC) with even better dexterity. The NIC contractors are eager to go to overseas countries for projects that only yesterday the Westerners would be yelling yes and no for their technical and management supremacy. 

The landmark change is possible as that the NIC contractors have many projects in hands for practice from planning, design till construction; and it means they’ve venues and opportunities to train engineers, skill labors and commercial staff for years to satisfy generational infrastructure demand of an economy.
 
It’s almost certain that the NIC contractors would always out beat the westerners in international competition as price and schedule were talked about. But the existing order are established by firms of yesterday and the share of added value for the new winners would have become less while the risk is unproportionally incurred to them. 

The reason is that the international contracts now are no more centered on pure construction. And in the name to make the investment more secure, a construction contract now require participation of those non engineers: notaries, law firms, inspectors, laboratories, certifiers, appraisers, unions, arbitrators etc. The absolute figure of fees paid to them is not significant in total contract price but still enjoyable compared to the meager overhead allowed for the hard-working general contractor; most of them now from NIC. 

We understand conditions and specification are drawn by contract experts from developed economies, language, proceeding and supporting document required by the same culture. 

When western general contractors quit substantial construction, they continue to create contractual requirement asking the contractors undertaken to observe. The capital, with regards to its security, is respected so that the clients all over the world eagerly followed as they come in the form such as "norm", "standard", and "proof", despite it further complicate the works. 
 
Now, there will be added values shared by those provide certificate, test report, or litigation documents which the Asians may need more time to apportion. It’s not to say that the values generated by technology, craftsmanship and labors for construction projects become less important. 

But it’s conceivable that working hard as the only way to thwart competitors from the developed economies isn't sensible. The industry evolved, but not everything can be repeating.

(3) Stage 3: Investment Security Trump Everything and in Favor of the Establishment

The trend for construction works in 21st century is many of the gigantic projects will be invested by private entities as schemes like BOT or BT continuously churned out from governments because their coffer seems drained out. Money is everywhere but the mammon doesn’t like to face uncertainty; so, the professionals now including commercial experts are flattered to present risk free schemes to woo investors. 

The security of capital and return of vowed profit will trump anything else. 

As a result, the concerned parties have to pay attention in project phases starting from planning, design, construction, O & M, and until the marketing of the product.

Construction cost is important judged from the big number It used to be, but its
share in total price become lower as non-engineering cost rises in weight. 

Then, the guarantees for work completion is everything, the evolution continues, that the real builder may not be the one awarded the contracts just having the records completing the similar projects, or financial capacity to indemnify the parties nominally.

Public or private clients, when they want to initiate the idea or start the actual construction, justification as to determine who is the partner is important because the decision maker needs to be answerable to say they’re awarding to a reputable company for planning or construction when questioned by stakeholders.

Nowadays there won’t be many conventional “build according drawing” construction contracts among international tenders, the contractors from advanced economies adapt very quickly that they go beyond traditionally a pure construction company 
owning construction resource themselves. 

They have many choices to sub-let part or whole construction works to single or several constructors who maybe local, or a self-regarded higher tier contractor from the other overseas country. He may exercise control and deliver the work effectively similar to what Nike or Adidas have done over jerseys and shoes. 

Under the so-called global market, free flow of man, money, machine, and material is encouraged; and it seems fair. But the problem is now the companies in less developed economies will provide labor and for actual construction but only share limited added values compared with those set up the standard, specification, giving checks and certificates, maintain the margin and profit, but seldom bear the risk.

The 20th century capitalists in construction industry own enormous construction fleet, fostered engineering capability, put up contractual and legal frame and monopolized banking system. With their cultural and political advantages, they commanded the business for long time. 

But when those used to work under the international big firms considered themselves a good learner to join the ranks; the 21st century capitalists evolve that they now concentrate to secure capital and return through "possession", "exchange" and “added value”, engaged deeply in the investment themselves so as to cast off most of the late comers.

2) Distribution of Added Value under the New Market Order

(1) "Labor" was most important element in a producing system, no exception in construction industry, for which, the machine was supposed to replace lot of human efforts in works. But the Engineering professionals are vital in construction works to decide the performance of labor and machines and thus the surplus value; to certain extent the engineer is the "establishment".

But under the modern-day project management system, bankers, notaries, law firms, inspectors, laboratories, certifiers, appraisers, unions, arbitrators and those who will assure the project successful can hold positions and charge their cost relatively easy. It's no choice because the moneymen need their endorsement and ask them to play the dominating roles while the actual doers reduced to their subordinate.

(2) The redistribution of added values between technical and commercial professionals is possible because renowned international banks or institutions will seek opportunity to get involved in construction projects for possibility to offer financing arrangement. The governments around the world, the ventures collecting toll or making profit from franchise always welcomes loans and risk sharing proposal. 

The "establishment", normally construction companies in western countries, are known to and more trusted by the banks or investment funds, so they can reach agreement with each other forming ventures for the projects.

The banks or investment funds may always prescribe, and it's not difficult for the western establishment to respond, that they will add specifications, standards, and contract terms familiar with into construction plans; inadvertently strengthen their positions in the projects, which, many NIC companies will feel not accustomed, and are actually excluded from competition.

Though, the contractors from "South Countries" will be assigned to do the real work but only under the established contractors from the "North Countries". It's a crucial fact that the overhead and profit obtained from the drudgery work is limited and the risk tremendous. Hopefully, after long time and many contracts that the best of NIC contractors going abroad can be improved more than getting mere survival.

3) Chances for Taiwanese Construction Industry to go for Overseas Market

(1)   Compete with Locals over Efficiency versus Providing Loan and Capital 

Possibility exists that a NIC contractor like the one from Taiwan may be able to join the club of international contractors offering conditions allow them to share high added value in overseas projects, however, they have to bring loans at least for their part and still they need assistance from established company or face more uncertainty throughout the process. 

Usually the loans offered for foreign construction projects must be earmarked with the commitment from the local government to guarantee return of the loans; this tends to be difficult when diplomatic relationship not existed between the governments. 

Should Taiwanese contractors or engineering firms not able to offer loans working as the subcontractors of international joint ventures, they need to prove they will be able to save money, keep quality and progress for main contractors. And it means they have to contend with other NIC contractors or even the local ones for playing secondary role.

(2)   Contribution of better Construction Technology under Sublet System

 

It must be admitted that to play the role of constructors in strange country, Taiwanese company cannot be as efficient as the natives to organize local labor force or purchase cheap material. Money is also something that the contractors from developing economics no more feel they are short of.

 

Taiwanese contractors may be slightly better off in competition with locals, for their technology and experience in certain projects are good, but it's diminishing.

 

The sub-contracting system in Taiwanese construction industry is a problem that the resources are thinly distributed among many sub-contractors and leasers. Market is highly fragmented that the main-contractors owns no resource except limited number of engineers, and when they need to work abroad, they don't have anything to move out: professionals or skill labors, forgetting about permits and licenses required to work in alien land.

 

(3)   Possibility to undertake Planning and Design Service

 

   So, it seems like that only consulting companies can go to take meager amount of overseas design contract as much of planning and design works can be done remotely in Taiwan.

 

Of course, the engineering works done must conform with standards and norms such as BS, DIN, or JIS wanted by main contractors and not CNS or American codes usually followed in Taiwan.

 

Supervision will be challenge because the owner or international main contractor wouldn't pay as much of Taiwanese expatriate will cost. It requires a competent local partner to reduce the cost.

 

The purpose to work in overseas countries shall be reviewed. Will the business be expanded to cover foreign countries allowed for, profits overhead or service charge as required? Or will it increase the sales of home country made product, construction plants or permanent equipment indirectly?

 

The calculation is simple and only to become meaningful when business amount is significant.

4) Adjustment Imperative for Company System and Policy

(1) Consideration shall be given to the overseas allowance, vocation, compensation for tax incurred in foreign country, care of spouse and education of children for the expatriate sent to foreign land in addition to their regular salary and bonus in home country.

(2) People sent to foreign land will face challenges and can very likely be working in desolated situation; and only elite of each discipline shall be assigned to solve the problems.

However, two issues always appear in a company undertaking overseas works: 1. sectionalism exists in the concerned departments, chiefs tend to send less qualified people;  2. After distinguished performance in overseas projects, many expatriates coming back home only to find out "good" positions having been occupied by people of inferred capability.

There must be a fair policy and under it a mature personnel management system covering domestic and overseas projects. The chief of department must be a stakeholder for success or failure of the projects the company undertaken.

(3) The sale amount for overseas projects may be meager compared to other company revenue, but efforts to take for operation in different country, such as accounting, tax report, currency exchange, law and rules abiding, local standards and codes compliance, contractual administration, procurement, and financing arrangement have to be tremendous in headquarter. 

Usually in the Company the decision maker is reluctant to pay un-proportional attention to the meager sales amount in single different country to support the overseas construction activities.

Also, the branch or project managers of overseas contracts may not have the knowledge or authority to recruit right and sufficient local assistance. Unavoidable the suffering becomes deplorable at last; dragging down the momentum to pursue the overseas business.

(4) The exploration and subsequent operation of overseas construction market call for the company to provide money, know-how, credited work experience and ready to deploy talented people for whatever the projects undertaken; but ironically big company and their follow managers only to think of overseas business at times when they feel jobs in hands aren't enough.

It takes time to obtain a contract, and the resources shall be paid out at any moment. Therefore, the company to develop overseas work shall be big enough to dedicate for what they will have in hands given the short mobilization time. People have to realize the contracting business will not come only to fit your schedule.

The construction companies in Taiwan long suffered from overdue subcontracting system and resulted market fragmentation. The cruel fact is they don't have sufficient resource to go foreign land. 

Sometimes only sole determination of the strategy makers of a company to go for abroad could be tragic.

5) Assignment of Right People to Run Overseas Works

(1) In different countries, traditions, work conditions, and market competition are not the same; so people to be assigned for business can be unique. In general, personality of a representative is more important than his education; cultural adaptability than language, and impulsive energy than professional experience. 

There're political and diplomatic handicap Taiwanese people working overseas will have had; and under the circumstance maybe people of special trait will be able to do something unusual to overcome the difficult. 

(2) It takes time to get the jobs, especially the good ones. Patience shall be used to evaluate the performance of people responsible for business. For example, the annual scoring plan shall not be used as excuse for those overseas representatives to sign bad contracts to meet target contract amount allocated to them.

For the same consideration that the people in headquarter shall not be hasten to recall representative(s) from foreign branches or delete them after not getting contracts of satisfactory amount.

6) Conceptual Readiness for Construction Companies to undertake Overseas Business

(1) Before going for specific project, the Company must make sure it will have people experienced enough to go for the project; or it will have fair chances to recruit qualified people from the industry.

(2) The company management shall be knowledgeable for overseas projects operation; and is willing and passionate to develop business prospect in foreign lands. It is better that the decision makers will have overseas experiences themselves.

(3) The company employees realize the need to develop overseas business as only means to extend market and enhance technology; and the people are willing to adjust themselves to reinforce expertise, learn foreign language and change work attitude for overseas projects.  

They understand any domestically market protection is temporary, and only the industry essentially strong and internationalized, are their life long professional guarantees.

(4) For operation in strange country, the company management mentality shall be open. But it's easy saying than doing; the feeling of superiority toward the locals are hard to fend off and remains qualm of Taiwanese management. 

Anyway, an idealistic team shall be consisting of agent, sponsors and partners through the intimate cooperation of local employees.

A capable and trustworthy agent or sponsor will obtain in time information, establish the links with authority, and acquire competitive local resource for the Company. Above all, they shouldn't sacrifice the Company for slim benefit to continue the agent ship for minimal commissions.

In almost all the countries, the implementation of the projects, engineering or construction, require minimum participation of the local partner(s); a good one will offer the assistance to reduce the cost, solve licensing and authoritative problems, and truly to share the financial overburdens resulted from the unbalanced payment schedule.

The employment of locals, especially, in the branch office for business pursuance and project supporting is vital; the salary and promotion must be better than local market practice to ensure loyalty and reliability of the natives.

As people from Taiwan in strict sense will only work as passerby ultimately, trust and confidence must be rendered to the locals as they're there may be forever. Even slight discrimination will be incubated and turn out to become source of disloyalty and misconducted behavior in the future.

And for a system that must be built on fraternity and egalitarianism, the decision makers in far-flung headquarter must have responsibility too.

7) License, Registration, Special Permit for Foreign Contractor.

(1) Ownership on land, housing and factory.

(2) Permit business operation to sign the contract

(3) Permit to import the machine, permanent equipment and material

(4) Free to hire local engineers of required qualification and numbers

8) Acknowledge of difference and handicaps:

(1) Handicap in language.

(2) Difference in cultural perception.

(3) Difference in applicable code and standard.

(4) Difference in executing safety and environmental protection rule

(5) Difference in Tax code application and interpretation.

(6) Difference in labor management.

(7) Hindrance or inconvenience caused by entry visa and work permits for expatriates.

9) Unmanageable Risks:

(1) Politic risks (regime change, war, commotion, nationalization, sanctions,    embargo)

(2) Exchange and currency risks

(3) Economic risks (inflation, interference in manufacture and transportation system)

(4) Natural disasters (flood, typhoon, earthquakes, avalanches)

(5) Legal risks (change of law, unpredictable adjudication)

(6) Cultural Risks-incoherent mental and behavioral model between host country people and foreign contractor.

10) Manageable Risks (with care and monetary provision):

(1) Construction schedule and completion date.

(2) In time delivery of construction material and equipment both in quality and quantity.

(3) Contractual risks

(4) Safety and security of expatriates (persons, property, accidents).

(5) Free flow of capital.