Theoretical foundations of the Chinese business management system in the construction industry

Abstract

The article discusses the theoretical foundations of the Chinese business management system in construction. Business in China is based on long-term cooperation which is a more trusting, reliable and partnership relationship for them. Besides, Chinese construction business has some similarities with the Japanese system, that is, the older generation already knows what their children and grandchildren will do. Mainstream construction business is run on a short-term basis and is not as forward-thinking as the Chinese one. The contracting ability of Chinese companies having plans to build facilities and stage projects, which dates back to the ancient times, remains a key business tool which is to be learned and applied in certain patterns in our generally accepted construction business management scheme. For instance, if any difficulties arise, or the contract requires urgent revision of certain clauses, especially when the facility is already under construction, Chinese partners will always cooperate if contacted in a timely manner and given the whole picture in an accessible language, with all possible force majeure circumstances, changes requiring immediate consideration and adjustments, and possible outcomes explained. At present, numerous enterprises strive to cooperate with Chinese companies since Chinese partners are very flexible to any market situation, quick to take decisions, punctual with payment deadlines, and require a similar attitude.

Keywords

• chinese business
• long-term partnerships
• short-term partnerships
• construction of facilities
• chinese hierarchal system
• traditional approaches
• document flow