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35萬8,190件交通事故，2990人死亡；同年日本發生30萬5425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，或許與用路人、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。

 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！

 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.

 Part 8, 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)

2)  Machine:

(1) Prototype, bespoke; portable, fixed.

a. Machine, prototype

People in construction industry need to know machine, plant and equipment for their manipulation, size, cost, productivity and supplies required. 

The general contractors used to own machines, in the days they're expensive relative to human cost.

When a country starts to build infrastructures, they need to move earth, lift heavy weight, paving concrete and asphalt, and confront with water or other inaccessible.

There're machines typical to do these jobs and we call them the prototypes: bulldozers, cranes, graders, trucks, mixing plants, paving machines, compactors, working boats etc. 

The works are many in fledging economies, so the machines are welcome for repeating usages in seemingly endless construction. They’re powerful to replace manpower and quick to deliver the landmark projects. 

So when machines with international brands such as Caterpillar and Komatzu appear at construction sites, they symbolize the government’s commitment to the economic growth.

b. Machine, bespoke

As countries proceed to build infrastructures projects of more sophisticated nature, the machines and the method employed may need special design and fabrication, we called the order and the makes bespoken. The usages are limited unless market is big and construction is in succeeding, but it will finish the works for that human won’t be accessible or to do. The most obvious one is tunnel boring machine of different diameters and shapes at restrained spaces. 

c. Machine, fixed type, mobilization and assembling cost

Most of machines can be transported to construction sites, either by self-driving or mounting on trailer for long distance, we call them portable, such as dump trucks, excavators, dozers, loaders, etc. For mixing plants, TBM, tower crane, or machines too big for transportation, they're divided in parts or compartments, and then hauled to the site for erection; we call them fixed type of machine.

Engineers must take into consideration the cost and time required to mobilize, install and demobilize construction machine. Sometimes in the remote area or hazardous places disembarkation and the installation of plants and equipment can be difficult and costly that the engineers have to think about the solution. The damages possibly incurred to the parts or entire plants during transportation shall be foreseen and at least insured against accidents. 

Also, people need to know the value of certain fixed plants decimated very much in single usage, and the remaining value after one project could be only the material cost after dissection.

施工機具或設備主要有定型與訂製兩種，前者如挖土機、吊車或打樁機等，各有性能適應範圍，買者可依需求購置；後者如隧道鑽掘機，橋梁架設設備等，需依預定完成構造物尺寸、性質、周邊情況與操作安全性等，特別設計製造，非現貨供應。施工機具有運到工地馬上可以使用，或需在現地安裝、試車，移動與拆遷，等兩大類。工程師擬訂計畫或投標時，需考慮動、復員時間與成本；因機具租賃或外包普遍，故此部分被認為含於租金或外包單價，常被忽略。

(2) Operation, maintenance and repair.

a. Owning Cost: Depreciation, Interest, Productivity

In the days when the value of machine and spare parts far exceeded cost of people serving them: operators and crew for maintenance and repair. Only companies big enough would buy machines as main asset and source of revenue. 

For two historical reasons the machine ownership had to be overtaken by specialty companies: 1. Facing rising human cost and fastidious labor and safety laws, only companies able to concentrate effort to manage problems related to operation, maintenance and repair are in a position to handle the machines. 2. Company owning big fleet of machine wouldn’t have chances to share costs with other companies through rental arrangement.

The machine owning cost shall be calculated as buying price plus interest payment over the machine's service life. One is called flat depreciation method, use the buying price divided by estimated remaining service life; the other is weighted depreciation method, assuming the first 2 or 3 years the machine will have high productivity and place the cost depreciated certain fraction more in such 2 or 3 years. 

However, the taxation offices legally also have power to decide amount permitted for depreciation for different equipment. It affects how the owners should have decided on to charge their equipment.

Interest payment can be considered for each company outside of the machine cost calculation.

持有機具所需購置費用，其將產生利息等費用。不論機具是否使用，其即有折舊成本，依機具性質或政策考量，其可採平均與加速方式，計算折舊成本。政府稅務單位亦有其折舊年限規定。

b. Maintenance and Repair Cost

Machines need operators to move them, the owners must pay to the operators the hourly wage and overtime. And machines also need daily, or periodical maintenance; the related cost are the wages of the workers responsible for maintenance and amounts covering for consumable, lubricant and tool. 

Repair cost in general is low when machine is new, but it will be accelerated when machine's condition become less fair in later part of work life. The elements of repair cost consist of mainly two parts; one is labor, and the other will be that of spare parts. In developed economy, the repair cost shall be between 100% and 200% of the initial cost according to statistic, depending on different equipment. 

In developing countries where machine price is high compared to human cost, the wage of operator can be 4-5 times of that of manual labor and output of machines will be higher than what can be achieved in advanced economy. Because when machine is expensive, the owners don’t care to give higher payment to operators, which can be easily covered by revenues from higher machine productivity.

維修成本最重要為零件與人工。工資較貴經濟體，詳細檢查耗時耗費，零件採用整組換掉方式。開發中國家工資象隊機具成本低，給工人薪資可以較高，以要求機具產出效率。

(3) Rental and owning.

Started from 70's last century, general contractors ceased to own construction machine themselves in consideration of big investment over uncertain business opportunity, difficulties to handle labor relationship with operators, maintenance and repair workers, and judgement based on specialty knowledge over replacement or repair of major parts.

The bosses of equipment rental companies always start to acquire construction machines with blessing from big construction companies guarantee the continuity of the works. It's important in Asian countries that this kind of company were operator com maintenance workers, being able to keep equipment and trucks in good conditions with their entrepreneurship.

Furthermore, they may work with their supra contractor on quantity and rate. The arrangement is costly efficient but not assured schedule wise especially massive amount of mechanic works to proceed.

 
It is proven that the general contractors have no way to replace the small owner for construction machine maneuver involving operation/ maintenance/repair. Nowadays the rental rates can be as high as that 2 years charges may be equal to the buying price of a plant.

分工專業化結果，大公司不再持有機具，甚至大型設備。向租賃公司租用或工作外包，成為解決之道。

(4) Construction method and machine selected.

a. Selection of Work Method and Construction Machines.

Designing an efficient construction method is key to successful deliver of infrastructure works: right construction sequence, get through most critical part of work, minimize undue outside interference, and avoid hazardous incident from happening shall be considered when the plan is drawn.

Engineers may have wide range to select machines for construction method; however, it will be influenced by the market availability for machine itself and operators, for example, in Taiwan excavators are everywhere but dozers and loaders not frequently to see contrary to North America.

 

The reasons could be incidental that maybe the ones first introduce them to Taiwan prefer them and others just followed, or the operators are dexterous to maneuver the machines in congest excavation site in Taiwan.

Market size and available replacement could play a part, the use of tower crane was another example, because the maintenance and mobilization cost shared by small number become significant and mobile crane can be substitute, so the tower cranes are not so many in the island.

 
In Taiwan, selection of machine once accepted by the officials, budgeting and supervision for that particular item will be almost fixed in public works. 

Changes to another machine or method will have to be accommodated to the bureaucracy; adding another point that people and work gangs aren’t so innovative to create new construction plans. Another proof that civil contracts is local and conventional.

施工方法與設備選擇關係工程成敗，工地與工作特性應考量，市場情形與業主認知亦是關鍵。

b. Machine and Manual Labor

In countries like India, machines face strong competition from man power; Bulldozers and earth moving machine are levied with high import duty and surcharges, that men and their assistant with hoes and dustpan will have chances to outperform construction method based mainly on mechanization as cost is concerned.

When owning a machine become expensive, the efficiency will decide its survivability.

 
So, in the case of India construction market, the wages pay to the machine operators won’t be significant compare to the revenue generated by extra output brought by the operator’s better performance. Thus, the wages of operators can be 5 times of the common labors in developing economies.

經濟型態不一樣，人與機具亦有競爭；機具作業手、保養工相對於非技術工在較後進經濟中給付會較高，但對機械之生產力要求亦會較高。

c. Cost factors in Prototype and Bespoken Machines

There is situation that prototype machines will not meet construction requirement, the bespoken one will be the solution. 

But engineers need to know: 1. Lead time to design and build the plant is long; they’re not available at once like ordinary plants on the market. 2. When one part goes down, entire system will idle or fail. 3. Though people will try to re-use it for next project but the chance is slim. 4. The whole value of the bespoken plant can be high and when it scraps after one project, the depreciation allowed can hardly be claimed. 5. Turnkey contracts become popular these days; the contractors will have chances to design structure sections optimal and fit into owned bespoken equipment.

設計與建造非制式施工設備時間長，工程師應估算。施工機具系統中一部分或某單獨設備故障，整體完全無產出，故需考慮備用。變數太多，非制式施工設備於次一工程在使用機會不大。也因此非制式施工設備之殘值，承商不能考慮太多。但統包式契約投標時，承包商即可考慮將所有非制式施工設備用於工程施工。

3)  Material

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

a. Transportation Cost and Locally Available Material 

Material for construction is bulky and transportation cost is high, so they have to be obtained from local for maximum extent as quality and property may not differ so much from the outside world. 

Attention shall be drawn to the fact that sometimes the overwhelmed material requirement of a gigantic project may tilt the supply/demand balance drastically in an isolated area. Investment in term of time and money shall be considered before projects start to assure a quality and punctual completion. 

However, material prices can be fluctuated from time to time either in the case of limited supply, such as aggregate and sand, or as a result of global boom like steel and rebar. It can be deadly to an ignorant contractor, that the risk can only be addressed through contracts with so called escalation clause giving minimum protection for the builders.  

Because the projects are there for economic development so that the employment of local artisans and labors shall be considered as early as in the design stage. 

Engineers must think about the possibility to use traditional technique involving local people and product even to the point to edit the specification to show respect to the tradition. For example, the Baku piles were used in Southeast Asia for soil retaining and promote compaction effect in embankment, it has been used in international class projects for its convenience to install.

營建廠商需儘量考慮使用本土常使用材料，設計者自開立規範開始，建造商於購買使用即應注意及此。習慣、文化、可得，以及龐大運輸成本都是使用本土材料之有利因素。

b. Continuous Evolution for Material used in Construction

In old days, human's weight lifting capacity was limited, long distance hauling capability also prohibitively expensive and could only go through waterway. People had to use small and light material from local, like timer, brick and mortars for buildings and structures in most of the cases. 

Granite and basalt were used in part of Europe especially for churches, castles or monumental structures. Wooden structure was erected in Asia for aristocrats and land lord, but the timber size reduced as a result of deforestation. 

In general, the masses had to live in hut and dens for which they built with any material they could pick up from nearby area. 

Discovery and use of steel in civil engineering works change the world. They replace traditional construction material resulting in great cost and time saving. Steel in the form of rebar, sections and strains give buildings and structure new dimensions and spatial aesthetics. 

People still think of innovation for construction material better than steel, such as fiber glass or high strength concrete, commercially one day it would be popular as steel used today.

Mankind are smart to utilize everything from nature but sometimes it can be tragic. For instance, there’re countries like Bangladesh where hard stones and sand difficult to obtain. So, the local people extract and burn clay from alluvium into brick like material. Then women and children will use hammers to break them into sizes of and utilize them as aggregates and sand. Then they mix them with cement to obtain concrete. 

The solution risks human life because buildings and bridges sometimes collapse for the weak strength those improvised materials provided. It's wrong type of localization; poverty force people to continue the practice.

文明進步讓建材來源更加廣泛，不惟建材本身強度、品質提高，其製造及用於施工之方法與設備，乃至構造物需求標準之提高，都讓人類更有選擇。

c. Green Construction

Nowadays, carbon reduction is an issue, the material used in the projects shall be considered climate friendly, and engineers need green knowledge to incorporate construction material made from renewable, waste or need less processing.

Commercial calculation won’t be the only consideration.

減碳及綠色施工要求，亦將造成營建產業之變革。

(2). Material and Equipment incorporated into Permanent Project

a. Project More Sophisticated 

As economy advances in a country, the construction work won't be simple structural work again; many systems and equipment will be installed in addition to steel and concrete. So, procurement will be more complicated than simply clearing the composition, dimension and strength of construction material. 

When proper delivery of system and equipment, and their installation, operation and maintenance, is desired; prior check and mutual commitment shall be made with reliable makers or specialty contractors even before the contract is awarded.

 
An experienced general contractor knowing the risk implied in the contract signed with ever demanding client will seek teammates working in different field to discharge the huge responsibility for successful delivery. The cooperation may include consortium, main and sub-tier contractual relationship, or various form of partnership suitable in each case since before the tender. 

b. Nominated Subcontractor

In practice the owner may actually designate the maker of the system and equipment based on confidence and trust the brand bearers have exhibited. After award the winning contractor has to sign the sub or supply contract with the specified makers at least to overtake the partial responsibility of delivery, which always include risks begin with engineering, then making, shipment, installation, commissioning, test run and until operation. 

In other words, the signing parties has to share whatever may have happened with the owner: strike, sabotage, mistakes, bad performance, act of god, all kind of disruption that may occur.

However, during budget establishment, there will be bureaucrats, design consultant, auditors and financing people reject the idea that the contractors need overhead to handle the nominated subcontract. They consider the frontage contractor won't add substantially anything and the following up the delivery is their obligation.

The denying of invisible cost stemmed from the days the economic output mainly counted on agriculture and manufacturing (Physiocracy). The ignorance causes big problem in pushing the works forward; and a further proof that the construction works sometimes need cultural and conceptual fix.

因工程大型化，複雜化，尤其運維之數位化、自動化使永久性設備及材料不再限於傳統營建商面對之鋼筋、水泥，業主與設計者常需於施工標開始之前即要決定供應重要建材或各種子系統之廠商，與他們談好價錢與重要契約條件，於主承商得標後轉到主契約下，要求主包商負管理、協調責任。

4)  Money

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

Men work for money, only after the contractor can get full payment the completion of the project is meaningful to him.

 

Only after the contractor can get full payment, the completion of the project is meaningful to him.

 

And because the construction contracts are with big money, public or private owners will choose forms of payment according to their financial conditions. The contractors will be paid in cash, kinds or goods (barter), deferred payment after completion and transfer to the owner (BT), or through franchise revenue (BOT, PMI).

 

It also possible that the form of payment can be mixed between the above-mentioned methods. The contractor must evaluate its own ability to accept the form of payment, for example, when he would have accepted the payment in crude oil over long period, he has to evaluate the possible oil price fluctuation and the extent and cost that he would have been protected by the futures.

 

The reliability of the owners, government or private companies must be taken into account.

契約付款最為重要，除傳統付款方式，有以物易物、遲延付款、特許權等方式。承商需注意自己能力，並了解業主信用。

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

It's not enough that the contractor will get the owner's pledge to pay him. It depends on the contract conditions through which the contractors get paid. Normally we'd have type of contracts such as: FIDIC, NEC3(New Engineering Contract3, used for civil works in UK., Australia, New Zealand and Hong Kong, the language of it is simpler and the signing parties are said to be more equal), AIA(American Institute of Architects, form of contract popular in USA.), JCT forms of Contract(Joint Contract Tribunal, for architectural works in UK.)...etc.

As projects are different for each other, the contracts need to be modified to fit the situation; they will be reflected in so called Special Application (or Conditions) and leave the General Application (or Conditions) unscratched. Whatever slight difference in Special Application will result in big departure in reality so that the contractor needs to read carefully even the author of standard contract or the Owner would have claimed they're the friendliest contract terms.

According to the payment conditions, the contract can be divided in forms like the conventional Rates and Quantity, Lump Sum, Guaranteed Maximum Price, Alliance, Cost and Cost Based, etc.

契約形式甚多在台灣有政府範本、國際人士許多引用FIDIC,，英國協土木工程多採用NEC3，建築則有JCT範本，美國人則用建築學會之AIA。另依付款形式則有Rates and Quantity, Lump Sum, Guaranteed Maximum Price, Alliance, Cost and Cost Based等。

(3) Non-technical People to Control Money.

Compared to the old days now that big component of contractual money pays for intangible part of the project in the name to protect every party involved. The added value including the cost to acquire money, assure the delivery of the works, O&M of the project and even to the extent to guarantee the products or the purposed functioning of the project will be welcome by the customers. Thus, the added values are created.

But it is true that engineers are not playing the dominating roles in construction business because the invention as said is from improvement of technology, business skill, capital fluidity, that financial, legal and management people intrude and colonize uncompromisingly.

Though money is everywhere (QE?), but they get more respected. The so-called experts like to invent ideas to attract the capital, they provide guarantees, mitigations and assurance to fascinate investors. Under the trend, lots of the construction projects are controlled by hordes of non-technical people who can confuse the investors. 

For example, the government has plain financial resource for construction project and spent almost exclusively for construction related items last century. But now, big chunk of them will be paid as financial cost for BOT and/or PMI as people argue private fund is useful to create more public works for the benefit of the people.

A decent part of money will go to the so called independent third parties for their certificates, report and affidavits at non bargain-able cost (handled by the non-technical people) for the security of capital while the construction hands need to compete each other.

Engineers must realize, somehow, they’re now playing secondary role in the construction project; but because of it they could concentrate in technical matters and become a better manager than people of other disciplines invading the profession. 

面對變化層出不窮的契約形式，工程師必須承認非工程專業人員在契約與務款方面已多少取得主導權，以往只花在工程的款項必須支付財務、法律與商業人士，以保護業主為名所花的種種費用。他們必須有信心，且自覺工程成本也只有工程專業人士才能做好，才能重拾主導地位。

5) Market 

(1). Contractors of Lemming Mentality

As it's said above, there're 2,800 strong Class "A" contractors in Taiwan to apportion a small market; the threshold to go into the construction market isn't high as capital (relatively low to the contract amount) is concerned. When they get contracts, the contractors will find many sub-tier contractors more than eager to share risks and sometimes loss.

 

The running cost for a Class "A" contractor is low in Taiwan, the expense will be fee paid to the registered PE, a tiny office, plus a clerk to answer the bell. When the bosses cannot get business, pay such the low cost for "hibernation", will allow them hanging on for long.

 

The sleeping contractors will wake up when they get contracts and then to recruit managers and engineers to activate the company. Taiwanese people aren’t against shoot and off employment as most of them like to stay in the area like big city or home town.

 

So, the majority of the contractors are "entrepreneur" type. They're competitive and spiral down ward the awarding price. The practice is not possible to nurture big contractors with know-hows and experience in the market.

 

But once it is provoked by market turmoil destined to happen every few years, such as sudden sabotage of dump trucks of 1990 (resulted in soil haulage hike and aggregate short supply), or sharp escalation of steel price in 2006, the contractors wouldn’t have sufficient contingency provision will go for broke. The number culled will be significant but it will rise again if there is market re-juvenescence.

 

The process repeats again and again; the contractors go up and down riding on the changing tides. The one with bad luck can capsize, but too many of them survive. One moment, the contractors' number will be swelling like lemmings grow to incredible number in short spring time; the other moment the nature will drive some of them jumping the cliff and the rest follow subconsciously.

 

The market is still there for another cycle; but the professionals wouldn't have chance to lead the trend while public has to bear most of the cost that speculators should have to pay.

台灣營建業者，數目太多，都以中小企業心態經營，無風險概念，進出市場容易。非專業但樂意投機者能夠生存對注重品質，正科出身之工程師與工程品質是威脅。

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

The problem of construction industry in Taiwan is over competition. Lowest bid is blamed because under the bureaucratic system the budgets were considered to be right and served as bench mark for the contractors. The winning price was considered as true market cost or the officials follow them shall be subject to official chastisement.

 

Automatically, people, the budget builders or the tenderers will consider it as a bench mark for similar tenders. Vicious cycle begins and the awarded prices have to wait for another episode close to force majeure for correction; of course, it's always late.

 

Evaluated lowest bid is taken with the hope that the best contractor and their offer can be selected as the champion to win the tender; however, the selected may not be the most outstanding one, and the judges' supposed imparity is often challenged.

 

Authorities had sometimes to amend the criteria with the aim that it must be more fitful for particular tender but more susceptible to criticism. So, the evaluated lowest bid system stopped at 2007 in Taiwan, and BOT and PMI also suspended. The lowest bid tendering system prevailed for the next decade.

 

It is true that in recent years the contractors don't make money. They kept tendering and performed the contracts only to sustain the company. They couldn’t afford to pay senior engineers because of the poor overhead earned; the result is the loss of expertise.

 

There will be limit to which the contractors take the construction contracts because they can’t make profit after all. The result is tenders "aborted" or the execution in chaos. So, the evaluated lowest bid is coming back. There’s possibility and also a reasonable hope that the authority may get lessons from flaws happened in the past.

 

The criteria to select the best tenderer for the tender shall be rationalized, especially that the persons to be assigned as "judges“, shall be men of integrity.

 

Current tendering rules propping the idea for EPC will nurture bigger and more public construction companies instead of the small entrepreneurs who always cut corners of the fair competition is said to be the solution to correct the market for persistent fragmentation.

 

It could be a well wish and hind sight, but seeing the implementation of FCPA (of the US) and similar laws of various states, the big and public companies can be supervised more thoroughly in the entire process.  

 

The final goal for government spending shall be "Value for Money", in which, the project completed will worth money spent. It’s idealistic but we suppose the introduction of more liberal ideas, moderate as it may be, will bring in the progress.

競標評審，由最低標轉為最有利標，最終目標應為「物超所值」，如此市場才能進步、正常。

(3) Elements of Competition.

A  market considered normal will be the one that the consumer is most important. For public works the government is single biggest buyer, he can draw the lines to select the contractors based on their apparent capability, past experience and planned execution plan for the tendered project.

 
It means the government can define a clear and objective criterion for elements such as price, technical approaches, time of completion, safety record, experience in similar works, existing work loading, managerial and technical resource in hands, records of contract disputes (with owners) …etc.
 
For international tenders, the owners usually will analyze and evaluate the tenders according to the criteria established objectively. The scores and the tabulation can then be submitted to higher ranking people, maybe people with reputation for review.
 
The process will avoid complain that the judgement in supporting contract award is made subjectively so as to prevent the outside criticism and interference.
 
It's true that during the selection of the winning contractor, the authority and invited judges have to "play god" to weed up the weaker or the unfit, and the result maybe that the selected aren’t the perfect ones because many factors are involved during tender period and later execution. Especially in Taiwan, public and the industry may not be patient and those who shall be responsible are always susceptible to flak.
 
However, the rules shall be respected and endured some time to see what if it will change the construction industry players and whether or not that the professionals will be allowed to lead the ring.

承包商有不同能力、履歷、對招標工程更應有最佳執行計畫；故除價格外，招標者應確實審核承商投標文件中所提供之工法規畫、過去完工時程、安衛紀錄、經驗、在建工程、現有技術及管理人才等資料。一般國際標審核，機關或其委託工作團隊，必將就投標廠商提供文件所顯示，根據前面所訂標準評分，再送高階或禮聘有名望人士複核，與台灣目前逕請評審委員評審，主、客觀程度有差，是不同之所在。

(4) Defying the International Norms.

Until now, the developed countries especially Europeans and Americans have big say on the codes, standards, disputes solutions and financial arrangement of the international projects. They are the establishment to enjoy privileges and power more than their competency in the industry.

 

If the Asian contractors want to go overseas or their owners ask them to copy the western practice for execution of the project domestically, they may have the problems to follow specifications and conditions strange to them.

 

They won’t have sufficient chances or clout to interpret the contract even try to show they’re familiar with the project and have confidence to complete them as required by the owner following the western philosophy to guarantee the success.

 

Despite they have good engineering knowledge, construction skill and the ability to do the works substantially, they suffer considerable losses in the construction market, international or a transplantation from foreign by a client insist to do so.

 

We believe it's not an intended design promoted by certain races or cultures but it’s difficult, if not impossible, to change the established practice immediately. Because there is humanity element in the capitalist system, that the distrustfulness is used everywhere in the administration of construction contract in the name to safeguard the people’s interest that the concerned parties have to accept.

 

There could be solutions, one is forceful and intransigent, complete "westernization" like the South Koreans indisputably good in construction of high rise building and complicated plant.

 

The other is to change the game rules as Chinese have approached in their Belt and Road Initiatives: loan, specification, contract terms, O&M, arbitration, success or failure, remain to be seen.

 

People have to recognize that many of our practice in construction business, is originally very local, but add up with many western flavors when economy grows. That now we think it’s universal, then you modify them, or they change you.

 

亞洲包商到海外，或本國業主要求其完全依先進國家執行該等工程方式於國內執行，會有對規範感到陌生，履約與工作經驗殊異等困難發生，因而產生虧損，且無法讓業主放心。實際上新興國家承包商，實體工程施作能力已臻水準，只是在文化、語言或管理上無法「西化」，而國際工程之技術、法律與財務制度卻是先至的歐美工程國家，從援助、貸款開始，所訂定，用他們的制度為制度；故至今他們還存有影響力，甚至宰制力。不可否認，在很多情況下，第一世界廠商之實質施工能力與效力已退化，但其已在建制中占一席之地，故在國際工程上仍享若干附加價值，並因此成為新興國家廠商承包國際工程的障礙。要打破這個局面，則需如韓國廠商在高層建築與重工廠房上，相對西方競爭者取得優勢，或如中國「一帶一路」，從出資、技術規範到契約驗收全部按照自己標準，才有取勝機會。