版权页：

The local branch office may contract the project wholly or partially to a project team'who is from the same enterprise.Altematively,the head office may directly contract the project to a project team with a percentage for overhead charges.Subcontracting,on the other hand,is to contract the project to other companies at a percentage for overhead charges.These companies may be Chinese,local,or from other countries.In both cases,the head office will maintain overall control of the project performance and provide the necessary assistance to the project team such as the working capital,major equipment allocation,etc.

6 Major Problems and Dilemma

Different from other international construction firms,the first track record the Chinese counterparts presented to the local market was the economic-aid projects they executed,most of which left very deep impression upon the local people thus greased the entry for the Chinese firms.Instead of thorough investigations and evaluations of the markets and the strengthes of the firms themselves,the entries into the local markets were more like a continuation of the economic-aid projects,empirical not so rational.Many factors were neglected when they decided to participate in an internationai competitive bid,and the general patterns of behavior in market competition formulated and developed this way are more or less represented by the following:low tender price,and high expectation on recovery/profit from claim;low site management level,and high reliance on site staffs self-motivated performance;negligence of contract details,and randomness in the variation of clauses of the contract,all of wluch are detrimental to the implementation as proved by later execution of construction projects.As the norm/pattern persisted,Chinese firms suffered more and more losses in contrast with the big number of projects obtained.Many episodes of project termination by the employers were heard,and many Chinese contractors Withdrew from international market and diminished.2100433B