在台科大營建系對包括外籍生在內學生的教材綱要，Part2

Curriculum for Lectures in Construction Department of NTUSC University in Taipei, Part2

C.  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. 

(綜合承商在許多國工程界是領頭)

Given the imagination that big construction ccompany 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.
(營建工程結合錢與權在許多國家先行於其他產業，早致繁榮)

However, in countries like Taiwan, the wary authority and public are too eager to see the raging 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 constructorss 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. 
(在台灣，政府與公眾盼望營建廠商有競爭，在每一過程都希望造成制衡，不讓廠商太過順利)

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. 

(業主早期壓抑營造業，只希望他照圖施工)

The practice dated backed to earlier days that the administration's general attitude toward business was to exert maximal supervision and control after the chaotic and restive years of hyperinflation and financial difficulties. Under the same philosophy, the government also set apart each business line, such as civil, HVAC, mechanic and electric, even pipe laying, requiring different license thus limit the contractor's work scope and chances of expansion. 
(政府早期施政管制為主，在分業上希望廠商能有本業，不要兼營多種行業)

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.

(綜合承商因此營業法規無法變大變強，儒家思想不重視室外工作者，卻尊重讀書人，承包商就不如顧問業者)

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 tenderers to cross is lowered time after time allowing more people to contend.

(綜合承商必須承擔完工壓力，經營者所得或員工薪資，又因業主蓄意促成競爭，相對不高，地位較低)

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, constructors 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.

(因工程施工日漸複雜、困難，營造廠技術門檻提高，與顧問業地位漸取得平衡)

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.
(在有些BOT或BT工程，顧問設計業合約上要屈於營造商之下)

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 tap and enjoyed elevated status, are the biggest winners in the change. 
(法律、契約管制既少，營造商追求技術、利潤空間變大)

At the same time foreign contractors no more discriminated by previous inward looking laws also have chances working in Taiwan at least in the fields that the locals not well prepared, such as marine time, works require special process or equipment, or projects need huge capital(in the cases of BT or BOT).
(外商亦因從前只向內看法律改過來，亦不再受歧視，許多可在台灣營業)

(2). Consulting Engineers

The difference between the professionals and occupational regarding business ethics and attitude toward is that the former's must be dutiful, intelligent and conscientious for their clients and the latter do their works following the orders. To honor and guard the professionalism, the professional decisions in no way should be compromised, twisted and altered by particular one's interest, thronged opinions, or any form of punishment. 
(專業與職業受僱人之差，在前者依良知，求完美，貢獻智慧；後者只聽命令)

When engineers are 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. 
(專業工作者的工作精神、態度要受尊重，但付費更要尊重，才是公平)

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.
(技師法上有關資格、工作範圍的規定)

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

(原始專業執業由個人工作者而來，現代工程，需多方面專長配合，要有能廣納人才的組織)

Apparently, the professionals can well exercise their knowledge and skill disregard what their choice to sign the contracts in "proprietorship", "partnership" or "corporation", but the industrial reality is that a corporation big enough may be better to accumulate experience, possess data, search for information, and churn out proposals.
(組織大如公司才能留存數據、經驗，短期間送出多樣建議書) 

Yes, only they are big they can have lots of talents adhered to share office equipment and software cost and are more affordable to meet the client's fastidious demands. Besides, financing, accounting, and administration rendered by big corporation will support the engineer for activities now needed to be more expeditious but intact, which can hardly be found in partnership and small company.
(辦公室設備與軟體越來越貴，財務、會計與行政支援也只有大公司才能提供)

So it's understandable when the clients want to make award the engineering jobs of multi-discipline nature, they feel more comfortable to engage with organizations of size and reputation. But such an observation shall not be over interpreted as that the big corporation doesn't have any problem in performance and cost. 
(業主是有願意交工作給大與有名公司的趨勢，但這也不代表大顧問公司所有工程都能作好)

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.
(視界、責任感與工作態度是工程顧問公司最重要的部分)

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 actually received in regular salary and bonus. The argument's often originated from 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 craving of money and vanity is met, but that's not the fact. 
(工程顧問公司裏每個人都會認為自己表現好，應有較好待遇，大家希望有無所不知的最後仲裁者來做決定)

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

(公平無私能裁判顧問公司裏每個人表現聖者不可得，就有人會藉一些特權來呼應自己權利，甚至假託這是理念之爭，但最後還是金錢之爭；不適當處理，有能力者會離開，不得志者亦不會認真學習)

Modern professionals firms will use options such as extended partnership or stock warrant awarding to employees to keep their loyalty. It's important because many people consider the company's gain is only possible with their affectionate engagement and they're deserved to share profit as partners. The idea is different with the bonus and prizes scheme applied for companies to sell material, product, or simple services; requiring employees clinging to positions and to do more or less countable works. 
(先進顧問公司會與夥伴或入股來吸引人才，單純年終是一般公司尋求人事安定的做法)

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

In Taiwan, the government handled the importation of construction technology closely during the days resources were scarce, and many of the engineers were trained on jobs like dam, petrochemical complex, expressway and military installations. To counter balance the more advanced international companies, the government then sponsored big consulting and construction firms with the view that they could be reliable and competitivet to carry out public work for the future. 
(台灣歷史是政府在缺資源，工程技術需進口時，由政府出資成立顧問與營造公司盼能管控公共工程成本、進度，不受國際公司制肘)

Years after, the government was forced to withdraw from the construction companies sponsored as sprouting 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.
(後來政府由營造公司撤資，顧問公司卻因各機關要推動公共工程選擇，更受重視)

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. 
( 顧問公司是白領群聚，產出專業為主，其人員薪資、獎金比照其他國營公司，漸有後遺症，秀異分子無股權或如律師、會計師有合夥人資格，可以分紅。平均主義下，整體效率會低落，某些需奇才，非常態性工作竟要由國際公司來做)

The government funded consultants are more obedient to follow contract terms arbitrarily interpreted  by public servants short of flexibility in forcasting 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.
(機關卻希望本國顧問公司能做所有工作，因其在預測工程需求與執行手續上缺乏彈性)

It's nothing wrong in a society actually embraces egalitarianism and hates to pay some of professions high price to continue the practice contracting with government funded consultants as many public works can be carried out with minimum cost and completed in time desired by the officials and end users.  
(台灣社會事實上希望大家平等，無群體表現可以突出，故公營顧問公司相較國際設計公司，或可帶來低成本、高效益的工程執行成果)

But when technology bred domestically may not be sufficiently advanced as the result of individual's lacking of incentives under national capitalism, 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 damage.
(所以技術或商業條件上需要外國設計公司參加，政府機關就會要求公營顧問公司出面做為團隊一部分，以政府機關開出條件承攬，補足無法順應外國設計公司條產生差距)

Distribution of profit in engineering firms will be topic for further study in the industry; the answers can be profound and come up with next questions of what will be the most appropriate organization for works reqired devotion and inspiration?
(設計顧問公司利益分配問題需要研究，何者最適為需要個人盡心及貢獻靈感之組織？)

(3). Architects 

Architects are respected all over the world, for the dual roles they played as artists and engineers. In Taiwan, they enjoy laws and regulations favorable for their solo performance with the support of a powerful guild organization.

The law now accepts joint venture of the architects, but basically it's the cooperation between the individuals. For huge and complicated building design, disciplines of professional engineer, and specialty companies has to be the sub tier contractors of relatively small architects; an arrangement not logical to the client think of risk averting.

(在台灣建築師都為個人主導，無法膨脹，但依法卻須領導許多比他大很多支專業公司對業主負責)

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.
(最近因地震等災害，依判決與修法結果，設計者需要負責，故建築師如能吸收更大風險對社會與雇主較好)

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.
(現實上，建築師如同顧問公司都會有分紅、入股，作為夥伴等問題)

  

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.
(脫離原來事務所去開業的建築師很多，又逢建築業景氣剛過，競爭越來越激烈)

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 architects 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.

(建築師中有人對競爭環境憂心，請求政府：1. 增加設計監造費站造價百分比，並提高造價。2. 不要再找國際名建築師。3.釐清建築師在監造應負責任)

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

(4). Workers, Labor Gangs and Subcontractors

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！

(台灣的綜合承商不擁機具，不直接雇工人)

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 fluctuatuon to the labor gangs and subcontractors.

(原因是大包可省卻直接管理員工麻煩，並依完成數量，固定費率給次包、工班，可控制成本)

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.

(大包為省監督費用，不管工地，次包、工班自己發落工作，要很聰明)

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 salary were suppressed, work condition miserable. At then, management of main contractors were able to leave the drudgery to social class distant from them.

(大包或還負責內業，但辛苦、危險、困難工作還是要靠工人實現；這種分工是因從前勞力過剩，大包可為所欲為)

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 part have to trudge for mere survival all the way. A reason that people like to gamble on construction business.  

(營造業分工因大包踢現場工作徹底，成為垂直；故有人有機會不勞而獲，助長營建業投機心理)

But there is demography change, technology evolution, and managerial transcending in 21st century, now the labors reluctant to stay atfor 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. 

(但現人口因素，技術進步，商業發達，從事勞工者意願不大，雖有外勞，還是缺工)

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. 

(相對營造業，人員流往工廠、服務業，營造業就像60年代台灣煤礦採礦業，只剩下年老工人)

So the contractors, designers, and the clients shall analyse the causation of labor shortage problem together and proffer public solution accordingly, or the unfinished works and facilities will be everywhere, and impatient users won't be foregiving.

(5). Specialty Contractor

General contractor usually don't improve or invent new technologies in construction industry; and it's the specialty contractors usually coordinate with the makers and manufacturers for innovation in terms of material, equipment, tools or working methods because they are at construction front line and know the details.  

(專業施工廠商在第一線，直接面對技術，機具'材料的改良、研究要靠他們。)

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. 

(新工法開始靠先進國家廠商，但價格與配合問題，業主、大包、顧問監造都鼓勵本土專業施工廠商出頭)

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 formworks, and cable and tendons, all taking places within very few years. 

(本土專業施工廠商前仆後繼，最後終使多數先進國家廠商撤出)

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.
(但本土專業廠商互相爭奪，競爭價格，無法負擔高額研發費用)

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. 

(本土專業廠商有時為求工作延續，必須自己參加投標，作全部工作)

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.

(本土專業廠商與綜合承商界限漸泯，所以免強立足後，無力再研發)

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.

(對大家的建議是不必到專業廠商找工作)

(6). Investors

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.

(民主政治下公、私業主都要民意的影響與限制)

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. 

(品質與準時完工對投資來說最重要，但現代投資者要考慮終極顧客與市場，尤其長期投資安全)

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.

(21世紀的投資，工程要完工，或出問題時會有補償，所以投資者進行中採輔助措施，要請律師、檢查員、實驗室、公證人等做出相關於品質與進度的預防措施，不吝花費小錢)

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. 
(但公家業主支出要項化、量化，否則會有困難；事先調查，收集意見雖已做好，但遇到選舉結果不一樣，亦會有大改變。)

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.

(現雖有PCM的做法，但機關不一定授權；另一極端※又是公家不派自己人代表自己，尤其在財務上會犯錯。)

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. 

(一般工程，根據在手的數據、資料，非工程人員依非專業方式也可能打事情做好，但以此認為公眾就認為非工程人員可替國庫省錢就不對)

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.   

(有上述想法的是一種傲慢，工程人員因此感覺受挫；最嚴重的是市場一變化就會大亂，這時還是要聽專業意見)

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工程葛分，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 internatioal 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 unprinted storing in the computer, most of them presented as letters, reports, records, sketches, lists, certificates, diagrams, affidavits, pamplets, 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 condisitons 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友直、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 legitimation 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 polititians 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 comuters 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 membered 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.