Part 6-1. Features of Construction Industry explained in 5M

台科大高等土木施工學教材(2021)

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

1). Man:

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

a. Nature of Power

Man loves power, unlike animal’s content with existence and reproduction; human desires are essentially boundless and incapable of complete satisfaction.

A large proportion of the human race is obliged to work so hard in obtaining necessaries that little energy is left over for other purposes; but those whose livelihood is assured do not cease to be active, they look to power and glory. So young people start to drift in the world will wonder why the needs of obtaining the two become imperative for those have something.

The easiest way to obtain glory is to obtain power; this is especially the case as regards the men who are active in relation to public events. The desire for glory, prompts the same actions by the desire for power, and the two motives may be regarded as one.

Power exhibits in many forms, such as wealth, civil authority, and influence on opinion. No one of these can be regarded as subordinate to any other, and there is no one form from which the others are derivative.

人異於動物之處，在滿足溫飽與繁殖後，仍渴求光榮與權力。其形式可以為財富、公權力或以意見影響他人。

b. Power and the Organization

Among the phenomena featuring construction industry, "Man" is most relevant.  Because people can't be alone to work out big and complicated structure and buildings, they have to be molded into "organizations", to synchronize different expertise and sized up strength, then are capable of serving the society as a meaningful member of construction industry.

To make them functional and contributive, organizations need to be given goals, compatible resource, and rules for participants accepting rewards and punishments as inducements. So, there must be leader, hierarchy, and systems in an organization; it means the engineers won't be immune from influence of power maneuver, which an innocent engineering debutant may hesitate to touch.

營建產業中，人的因素最重要；因需集合眾力與不同專業建構組織，才能完成大工程。既有組織，就要有工作目標，給予相稱資源，工作規律，因此需領導、科層級職與制度。因此與權力運作發生關係。

c. Organization and Leaders

However, in an organization where technology and experience are regarded as highly important, naked power manifested on the leader assigned not with assent of the members but through investment, heritance or tradition will have to share power with doyens of superior skill and knowledges. It's the same that commercial people will get their part of power apportioning when profitability is major concern. 

When the organizations become big and complicated, power from creeds and over opinions of public will be another origin. As a result, the leaders or candidates for them will be restrained for the power, and the organizations' behavior will have to be institutionalized. 

So, the entire system become more business-oriented at least in this part of capitalist world because we are sure that any organization, be public or private, shall perform according to the principle of utilitarianism that worth taxpayer, shareholders or expert's trust. 

工程公司領袖可因繼承或政治指派而來，但權力會因技術或業務等考量而重新分配。故工程公司需遵守市場功利原則才能生存。

d. Power Distance between Levels of Employees

Although it takes on different guises from person to person, there's possibility that the leaders may pursue and profit from enacting their own agenda using their naked and traditional power, and it won't be conflicting that the follow employees who gains nothing will be cooperative as they seem to gain vicariously from the superficial achievements of the leaders.

It's fact that "genuinely cooperative enterprise" often appeared in Asian countries where "power distance" can be big between each layer of management and the young startups are always taught only to listen and learn. But the deliberation of power in an engineering organization will affect its benefit, loss, even survival. On the other hand, individuals always humbly don't like to touch non-technical issues and think by so they can be shielded from power manipulation of imperious person.

So, people shall care about the leadership and history of organizations he wants to join and make judgement whether or not it's an organization worth fighting with.  

And it has to be noted, as organizations differ in size and type, common to them all is the tendency for inequality of power to increase as membership increases. It's a confusion to young people who may have justice and fraternity in mind and consider big company management rogue. 

The general effect of an organization, is either to increase the well-being of persons, or to aid the survival of the organization itself, apart from those resulting from governmental self-preservation.

公司非個人，需有不同面相；領導與基層之間權力距離應縮短，專斷與冷漠對公司發展都不好。

(2) Managerial cadre, Professional, Occupational.

a. Inflated Titles for Professionals

A successful engineering company requires good balance between managers, professionals and occupational. But the balance could only be achieved when number and quality of the "man" employed matched operational requirement.

Among all, loyalties to the company or the boss personally in an industry where small entrepreneurs are everywhere, are most important. It means steady employment that the "man" can be recruited and assigned to work places for required period under reasonable conditions. Qualification to fit the jobs is basic, and more than that, the hired must be trusted for many inter-person deeds taking places every day in construction industry.

In Taiwan, there're 2,845 Class A Contractors, 1243 Class B Contractors, 7,057 Class C Contractors, and 547 Specialty Contractors toward the end of 2019. Also not a smaller number of Consulting Firms, Architects and independent PE Offices have been registered. That it means thousands post of which qualification levels equal to general managers, managers and senior engineers are wanted in the industry. The side effects under the circumstance can be that the construction companies or consultants cannot hire managers or engineers experienced enough for their positions; and people also don't have opportunities to learn management or technical skills in their career.

台灣超過一萬家工程公司，就有超過這些數字數倍的總經理、副總、部門經理職缺，工程師如看重職銜甚於專業學習，結果只是事浮於人，或專業無法提升？

b. Recruitment in Fragmented Construction Market

Under the circumstance, market fragmentation is ensured as many small companies or institutions in the industry struggle for survival. But people still cherish their titles such as vice presidents or directors of the companies even the jobs require them to do works of more occupational content than professional ones.

The situation further worsens when impatient authority tried to introduce project management system supposed compatible with international practice. The problem is unless there is an overhaul in construction related companies to stop the vicious cycle of professionalism tumbling, make it plain, the decimation of underperformed companies following the restructure of enduring ones should be required first to transform the disciplines, grade, and initiative of engineers, and then proceed to neat, clean and efficient 21st century construction

台灣營建業徵人遭遇困難，此又因主管機關盼能與國際同步，實施先進營建管理制度，作更大程度專業分工，需要大量專才出現了更大問題。

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

a. The Dwarfed General Contractor in Taiwan

As it evolves, emergence of the subcontractors to undertake the field work in lieu of the main contractor becomes a trend seeming irreversible. And when competition goes further, many of the main contractors withdraw to the point that they don't keep sufficient engineers to stay in lowest notch of expertise. The educated retained by the companies won't bear the works in line with disciplines, levels and grades truly demanded by the complicated system.

The recent project management system imposed by government to supervise public work has intention originally to assign more engineers for different discipline of work so as to developed expertise over the course. But the companies cannot follow the system because careful and elaborated division of works require more engineers to fit the jobs thus weaken related parties' competence if strictly enforced. Also It's a fact that there're more than10, 000 constructors, consultants and architects existing in a small market, making the recruitment seems difficult if not impossible. 

To say it more candidly, most of the young engineers cannot learn proper construction knowledge throughout their careers because they're "generalist" under current practice. The problems come from, first, people are allured by the positions that a small organization will offer in their earlier days; and second, they're more than willing to stay near their hometown or municipality causing perfect match with highly localized companies who never hear of functional department-oriented management.

台灣的綜合承商為生存及利潤，工作全部交給敢冒險的小包，致專業萎化，小包更不可能容納為計算在他們成本中的技術與管理專業，所以不確定的風險成本就由所有人共同負擔。

b. Diploma Over-Trump Proficiency

Conventionally, general public always consider diploma is equal to people's ability and it compels the authority to accept the idea that expertise can be tested through examination. So, for convenience the project owner and the party responsible for supervision wouldn’t look into the true curriculum of job candidate. The outcome that bureaucrats waive their power to judge the adequacy of proposed project staff, is that they have to use all the tools and weapon to safeguard the quality and progress of the works, but in vain.

傳統觀念將學歷等同能力，並認為專業可由考試檢測出來；在此觀念下，主管機關放棄了依實務來判斷公共工程派任的專業人員否合格的權力，退守到以工進及成本等契約最後目標作為管理包商手段，等於是捨本求末，難能成功。

c. Matrix Management Structure

Only a few companies in Taiwan have fortune to expand their organization into big, and sophisticated matrix structure, in which both project-based and functional department-oriented management co-existed and support each other.

As we show above, many entrepreneur-led companies with limited business volume have to adopt project-based management, of which, the practice is to assign people to site offices meeting minimum of client's requirement. The project offices are presumed to gain technical and management backup from knowledgeable engineers in each functional department, however, it couldn't be done as malign competition has hallowed head offices, and the veterans disappear in the long run.

Consequently, people are reduced only to work on projects of which the design and construction are general and routine because they don't hold engineers have or capable to develop know-hows of projects with posh nature. And in reality, the companies undertake the engineering or construction contracts have to be affordable to establish something similar to matrix organization embracing both project-base and functional department-oriented system. 

台灣工程業除少數外，無法承接足夠業務，合理成長，故只能採專案管理方式，要求工地在一定金額內自給自足。工地在專業上無法期待支援，工程師亦無機會在功能性部門學習、成長；應有的可以整合計畫部門與功能性部門的矩陣式組織就不會存在了。

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

a. Sizes does Matter for Company Culture 

Personal behaviors are different from person to person, also in different time for the same person. When an organization is formed, it behaves as a person but like persons it will have different faces overtime. It depends on the leaders very much; especially the way he handles coordination and communication. 

Organization mainly consist of engineers and ruled by them can be stiff and fastidious in giving orders and executing them. The reason and the result maybe it will avoid mistakes from happening and push things forward. But people with more liberal or creative thought may not appreciate, which is not good to the business development and technological innovation. To mitigate that coordination and communication in a big company with byzantine structure have to be improved.

組織係由個人組成，故會有多個面相；眾人工作成效能否加成，領導負責溝通協調，最為關鍵。工程師不允許發生錯誤，在工作上要求嚴謹，故由其擔任首長、主管的公司會有僵化情形；有創見人才不一定能見容。故組織龐大之公司更應注意溝通協調。

b. High and Low Context Cultures 

When organization is small, cultures can be defined as "high context”, more inclined toward relational and collectivist. Message can be spread effectively aiding by gestures, relations, body language, verbal messages, or non-verbal messages between individuals.

But when organization grow big, communication shall be more explicit, direct, and elaborate; because under the circumstance the individuals are not expected to have knowledge of each other's histories or background, and communication can't be shaped by long-standing relationships between speakers, they depend more on the words being spoken rather than on the interpretation of more subtle or unspoken cues. In such case, the organizations need low context culture.

"High" and "low" context cultures typically refer to language groups, nationalities, or regional communities. However, they have also been applied to corporations, professions and other cultural groups. Though not all individuals in a culture can be defined by cultural stereotypes, it can roughly classify: 

-When we're in elementary school, classmates and teacher fixed in the same classroom all day will know more each other, it's high context; and in university, people come and go, with professors and classmates the communication is made in lower context.

-In smallest companies, boss know every employee, give orders and evaluate performance themselves, it's high context; in big companies, departments and levels are many, between them the communication needs to be made in meetings with minutes or written mails, power must be delegated and the bosses reduced to figurehead. 

-The lawyers and accountants talk and writes to identify the truth must be precise in words and numbers, they're of the lower context; the engineers and businessman next, while the farmers deal with the same lands and climates for life can be higher context.

-In nations or societies where harmony and the well-being of the group is preferred over individual achievement, higher context cultures can be more prevailing in Asian countries, that many of them subsistent on peasantry economy historically. While European and North American countries long developed their industry, the culture can be lower context. 

People grow up in different context of culture will have distinct response toward the organization which he is hired; however, he can judge how or whether he has to change himself in behavior if he knows more about the cultural group the organization belong to; people will have flexibility for change when he is young.

在企業作事，須了解高低情境文化之不同與所造成影響。在較為固定生產方式與社會體制下，人們不需要用精確語言、文字溝通，甚至以粗略言談加上手勢、表情即可完成意思之表述，此為高情境文化或社會；反之為低情境。營建業隨時代推移，注重追溯與證據，與傳統相反。大公司或組織之管理與運作，更須避免猜度，工程師自初學即應了解情境高低與溝通協調之關係。

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

a. Labor and Taxation Laws in Taiwan

Working at site as construction people or supervisors will have to follow the weather instead of the calendar for their agenda. There's considerable improvement for employees on the aspect as labor law and regulation interfere; but the employer especially the big companies may not be able to observe to the law completely. It's also one of the reasons that sub-contractors and work gangs are introduced to the project for execution as they may be more "flexible' to follow the law. 

More than law abiding for overtime assignment, smaller company in Taiwan can pay corporation tax in deemed amount in exchange of lax scrutiny into their books. It means sometimes they can neglect or under report their employees' personal tax, retire fund or health care premium. And beyond monetary obligation evaded, they can be freer to recruit employees especially for blue collar people that many of them illegal foreign labors.

A well-organized company in construction industry will consider laws amended in favor of employees are draconian, and tend to be meticulous toward recruitment even for white collar professionals. So, when construction or design companies have to rely on dispatched people to fulfill minimum contract requirement, they actually leave the responsibility to lay off people to manpower dispatch agencies; which is big departure to the professionalism.

現場工作進度會受天候影響，須完全負責之承包商人員之工作時間就無法有固定上班或休假時間。但大公司須遵守勞動法令又要依約完成工作，稅務上亦有同樣考量，故常發包給較有彈性之小公司。此都不甚有利於專業工程師之業界發展。

b. Docile Professionals 

Professionals also have their problem to learn things needed to develop their expertise; first people are lack of patience in demanding titles and income, or they simply want to stay near municipality or hometown. And in Taiwan, many need to share with spouse for family chores and thus work on regular hours. When those to be hired demand something for little and the employers have to be compromising and the easiest way is to sacrifice the work quality propped by professionals.

Fortunately, in Taiwan, union or engineer's' association aren't so active; the management won't be much teased interacting with their own employees, those of subcontractors or of any third party. Furthermore, for an industry notorious for its connections with mafia or packs leaders, the annoyance wasn’t so disastrous thanks to the stricter law enforcement for the last decades.

Taiwanese engineers received fair education since young and they will have potential and chances to claim back their dominance on the realm with patience and time. 

綜上，工程師容易遷就短線的較高職銜與收入，或想留在都會區等而放棄了技術上學習、上達的機會，短期內非工程專業者或有填補真空的機會。但台灣的法治環境較佳，假以時間和耐性，專業工程師有機會在營建界當家作主。

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

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

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

2)      Supporting Entities:

(1). Banks

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

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

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

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

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

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

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

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

(如英國第二大營造公司Carillion倒閉的情形)

(2).  Insurance Company

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

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

(公家機關是工程保險最大顧客，保險業出保單會尊重他們的需求)

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

(有些營建公司會與保險業者勾串，正是保單以外再加附加條款，藉以省錢)

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

(理賠時，有些承包商會與鑑定人勾串，在災損範圍與金額上做手腳)

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

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

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

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

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

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

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

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

(3). Investment Company or Fund

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

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

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

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

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

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

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

(4). Operator

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

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

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

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

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

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

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

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

(專業在未來是以服務為基礎，說的再簡化就是跟錢走)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1). Public

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

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

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

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

(2). Authority

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

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

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

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

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

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

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

(3). Neighborhood and Locals

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

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

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

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

 PART 5-1, Advanced Civil Engineering Construction

台科大高等土木施工學教材(2021)

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

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

(2) Consulting Engineers

a. The difference regarding business ethic and work attitude between the professionals and occupational is that the former are dutiful, intelligent and conscientious toward their clients and the latter just following the orders from bosses and formen. To honor and guard the professionalism, the professional decisions in no way should be compromised, twisted and altered by particular one's interest, thronged opinions, or punishment.

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

b. The professionalism allotted to engineers usually include investigation, feasibility study, planning, design, supervision, project management and other services related to civil and building works, both public and private. 

In Taiwan, how the engineering service is practiced is sanctioned in "Professional Engineer Act":

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

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

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

3. Hired by a profit-seeking enterprise or entity, other than those mentioned in the preceding subparagraph, which is required by law to hire a licensed professional engineer.

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

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

Apparently, the professionals can well exercise their knowledge and skill disregard what their choice to sign the contracts in "proprietorship", "partnership" or "corporation“. 

But the industrial reality is that a corporation big enough may have more room to accumulate experience, possess data, search for information, so in a better position churn out proposals.

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

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

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

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

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

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

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

Modern professionals firms will use options such as extended partnership or stock warrant awarding to employees to keep their loyalty. It's important because many people consider the company's gain is only possible with their affectionate engagement and they're deserved to share profit as partners.

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

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

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

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

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

It's nothing wrong in a society actually embraces egalitarianism and hates to pay some of professions high price to continue the practice awarding the contracts to government funded consultants as many public works can be carried out with minimum cost and completed in time desired by the officials and end users.

But when technology bred domestically may not be sufficiently advanced as the result of individual's lacking of incentives because there’s only one buyer for the public works-the government. The foreign consultants or architects will be eager to fill technical gap but only at dear prices. And any attempt that the government agencies to ask affiliated firms to bridge the difference in terms of price and contractual obligation will introduce further procrastination and induce secondary damages.

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

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

(3). Architects

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

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

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

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

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

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

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

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

(4). Workers, Labor Gangs and Subcontractors

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

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

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

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

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

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

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

(5). Specialty Contractor

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

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

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

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

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

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

(6). Investors

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

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

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

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

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

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

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

 

 PART4, Advanced Civil Engineering Construction

台科大高等土木施工學教材(2021)

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

4. Of the macro-Economy and Construction Industry

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

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

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

(營建業與其他產業發展相輔相成) 

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

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

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

Thus many developing countries with abundant resources can be end up in debt and poverty, the so called resource curses, because the politicians and their cronies will take advantage of the countries' limited fortune. Under simple calculation, money spent will never buy equal value of infrastructure, and contractors are blamed as scapegoats.   

The bad story of construction conglomerate, Odebrecht of Brazil demonstrates the farce/tragedy in the past few years: presidents, premiers, ministers, parliamentarian, businessman and people of significant suicides, imprisoned, indicted in more than 10 countries.

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

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

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

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

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

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

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

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

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

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

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

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

5.  The Modern Construction Industry and its Major Players

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

(1). General Contractors

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

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

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

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

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

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

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

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

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

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

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

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

 PART3, Advanced Civil Engineering Construction

台科大高等土木施工學教材(2021)

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

3. How will young man start his professional career?

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

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

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

 

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

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

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

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

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

World Economic Forum (WEF) in 2020 consider the most important professional " skill" consist of the ability for: complex problem solving, critical thinking, creativity, people management, coordinating with others , emotional intelligence, judgement and decision making, service orientation, negotiation , and cognitive flexibility, though not to be stringently followed but meaningful in the practice. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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