Since Taiwan became a member of the World Trade Organization (WTO), the government has opened the market for foreign contractors to tender for major public works within the country. Some of the international construction companies from Germany, Japan, Malaysia, Holland, Korea, Singapore etc had set up their branch office in Taiwan to compete ambitiously with the local construction companies .
Many exclusive investment projects in Taiwan was implemented in bigger scale since 1998. For instance , among the 11 packages of the Kaohsiung Metropolitan Mass Rapid Transit (KMRT) Project, the smallest package is worth NTD 500 million while the biggest package amounting to NTD 900 million. Such projects characterized by its large size, huge capital injection, high technical expertise requirement, sophisticated system consolidation as well as multiple interfacing works which is beyond the capabilities of the local traditional construction companies . Partnership especially joint venture with foreign construction companies has became a better resolution for local construction companies .
Although joint venture has the advantages of risk sharing, technology transfer , professional advice and profit sharing, however the differences in culture of the joint venture companies, management style, financial strength, expertise and size of related companies has caused a number of problems and uncertainties.
This dissertation was an in-depth study on risk assessment of international contractor in a joint venture company implementing one of the packages of KMRT projects. Based on the information collected, interviews with the executives and various analysis, it can be summarized as below : -
External risk factors: Foreign contractors should evaluate the possibility on change of related laws and strategies by the local government in order to formulate a versatile contingency plan. They should be more selective while choosing a local partner. This partner should have the first hand information with respect to the local resources, good relationship with local community and politician to reduce the non-professional risk. They should be more conservative on the evaluation of the local government administrative performance.
Project risk factors: There should be ample time allocated to discuss the Main Contract Agreement . It is suggested to be carried out in two stages : Firstly, a simplified main contract to be drafted. Secondly, a more define and explicit addendum to main contract to be appended progressively so that every aspect of the contractual issues can be studied and discussed in great detail . This will provide a fair basic for interpretation of the main contract for client and the main contractor ( JV). The right and liabilities on land acquisition, demolition of landed properties , compensation to the owners, construction period, delay and various contractual claim issues should be scrutinize thoroughly.
Internal risk factors : The project execution strategies should be prepared and accepted collectively to avoid misunderstanding on technology transfer, safety & quality assurance, progress control and profit distribution among the members of the Joint Venture during the course of the works.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0613105-162610 |
| Date | 13 June 2005 |
| Creators | Yao, Tsu-Chiang |
| Contributors | Feng-Yuan Kuo, Hsin-Hui Lin, Iuan-Yuan Lu |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0613105-162610 |
| Rights | not_available, Copyright information available at source archive |
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