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tice of project management in China. To this end, Chinese construction enterprises were encouraged to establish project management organizations and systems. As part of this process, the MOC in August 2004 issued a Code of Management of General Project Contracting for Construction Projects. This Code is essentially a National Standard and prescribes standards for, amongst other things, construction management, schedule management, cost management, quality and safety management, as well as contract management. Accordingly, the Provisional Measures are in many ways a continuation of the MOCs drive to educate and improve the standard of construction in China by placing more emphasis on project management as a means of procuring successful construction project delivery.
Assisting the owner in managing the construction process including budgeting, schedule, and claims management; Assisting the owner with post construction management Clearly, therefore, the Provisional Measures apply to all project management services provided on construction projects in China, regardless of whether those services are provided by foreign or domestic enterprises.
Qualication Requirements
Prior to the issue of the Provisional Measures, project management service providers were not required to hold a formal Chinese qualication certicate. Indeed, there is no such thing as a project management qualication certicate, and strangely even now this remains the case. However, the Provisional Measures now require project management enterprises to have qualications in one or several of the following elds: survey, design, construction, supervision, cost advisory, or tendering agency. This means that all enterprises undertaking project management must hold one or more of these qualication certicates. This is an odd position to adopt because project management involves experience and elements of all of these elds, and to suggest that a qualication in one enables someone to be an effective all-around project manager is somewhat nave. Having said this, if a project management enterprise can only undertake the scope of work specied in its qualications, for example cost advisory, does this mean that an owner will have to employ separately qualied supervisors and tendering agencies? If so, this rather defeats the purpose of having one overall project manager. The Provisional Measures appear to suggest that to provide a total project management service, a project management enterprise must hold all of the required qualications. However, this is at odds with the actual requirements of the Provisional Measures. Therefore, it would have been preferable for the MOC to establish a specic project management qualication. We understand that the MOC is presently drafting Administrative Provisions to cover project management.
panies on the projects that they are managing. The reason behind this requirement is made clear by the activities that are expressly prohibited in the Provisional Measures, such as accepting bribes or asking for kickbacks or other favors, or conspiring with the contractor to use substandard construction materials. While there are very good reasons why, in the China context, it is benecial to have the project manager independent from the contractor, internationally it is not uncommon for the project manager to be connected with the contractor, and in some cases (for example, in the United States) the project manager acts as the contractor. Of course, when the project manager also acts as the contractor, there is an inherent conict between the interests of the owner and the interests of the project manager. For example, when the project manager acts as the owners representative, its only concern is the protection of the owner, whereas when the project manager also acts as contractor, there is a split of loyalty. Nonetheless, it is possible to incorporate checks and balances in the project management agreement to address and mitigate this issue. Accordingly, the blanket prohibition is not entirely appropriate and will no doubt deter many large foreign project managers or contractors who commonly act as integrated total construction solutions providers. Such organizations provide engineering, procurement, construction management, and general contracting services often on a turnkey basis and as such deliver potentially signicant cost savings to their owner clients. It is often the potential cost savings that convince owners to put less emphasis on the issue of split loyalty.
Summary
Effective project management is a key component in successful construction project implementation. In the context of a property development or construction project, where the owner is not experienced in the administration and organization of building or engineering projects, it is important to engage a construction professional with the necessary qualications who is able to make decisions for the owner in relation to carrying out the project. An effective project manager will assist the owner in deliberating and decision making in connection with the project. An experienced project manager, by bringing to the project his particular expertise to ensure that the project comes in on time and budget, allows the owner to reduce the risk of cost overruns and project completion delays. The MOC should be applauded for encouraging project management as an effective means of improving construction quality and safety. However, the MOCs somewhat unimaginative and scientic approach to regulating the market is at odds with international practice and may not advance the discipline of project management as quickly or effectively as is necessary for the ultimate benet of construction project delivery in China. The concern is that the Provisional Measures send an unintended message, namely that the key to becoming a successful project manager in China is to take a course, memorize some rules, pass an exam, and become qualied. This type of project manager can articulate all the theories of project management but has little experience in the practical application of these theories on a real-life project. That is the last thing that China needs at this stage of the development of its construction industry.
Further Information
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