A Brief Discussion on Engineering Quality Management in the Context of Globalization

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A Brief Discussion on Engineering Quality Management in the Context of Globalization
I. Establishing a highly qualified project management team is the key to aligning with international practices
Based on the experiences and lessons learned by numerous Chinese enterprises engaged in international engineering contracting, to gain a foothold and succeed in the international construction market, the primary task is to establish a highly qualified project management team. The following aspects must be given due attention:
1. It is essential to form a strong project management team. Its members must understand technology, be skilled in management, have experience in foreign construction projects, and possess legal knowledge. This is the key to improving project management and aligning it with international practices. It is particularly important to select a good project manager, as the project manager is the soul of the project management team, and their quality determines the success or failure of the contracted project. A project manager must have a clear mind and quick thinking, enabling them to make decisions based on an accurate assessment of the situation. The project manager should have a clear understanding of the overall planning, cost forecasting, management accounting, capital turnover cycle, material supply, equipment capacity, as well as matters related to claims, insurance, and local taxes for the entire project. They should be able to take appropriate actions in accordance with international practices in order to prevent potential mistakes and losses. A project manager must not only possess high professional skills and leadership abilities, but also have strong political qualities, along with a strong sense of responsibility and dedication. One should be good at learning from and drawing on the experience of others, broadening one’s horizons, and using others’ strengths to compensate for one’s own weaknesses. In addition, the project manager should have a good command of foreign languages, enabling them to communicate with the client and local professionals as well as read foreign-language materials. With these conditions in place, work efficiency will surely improve, information acquisition will be accelerated, and alignment with international practices will be promoted. 　　2. It is necessary to be familiar with and understand the conditions and trends in the international construction market. The common practice in participating in international engineering contracts today is to adopt general contracting and subcontracting for projects. This requires us to understand and be familiar with the policies and regulations of the country where the project is located regarding general contracting and subcontracting, so as to guide us in adopting appropriate policies and strategies. Although an increasing number of companies in our country are entering the international construction contracting market, their share in this market is still significantly lower compared to those of developed countries. According to statistics from the United States in 1996, the U.S. accounted for 22.3%, the UK for 11.5%, France for 15%, Germany for 8.6%, Japan for 11.7%, South Korea for 4.5%, while we accounted for only 3.7%. In terms of project management, compared with large international contracting companies such as Kvaerner Group from the UK, Fluor Daniel from the US, and Bouygues from France, our overall management level is still far behind, and the quality of our management personnel is relatively low. Added to this is our lack of experience in international contracting, as well as situations where some owners and supervisors deliberately create difficulties. Faced with these various difficulties, to survive and develop in the international engineering contracting industry, it is necessary to adopt appropriate policies in accordance with international practices. 　3. It is necessary to manage relationships with the owner, supervisor, and local employees properly. In foreign interactions, it is necessary to adhere to principles while also showing a certain degree of flexibility and strategic thinking. In the eyes of foreigners, we represent China; we should maintain a balanced attitude, protect our own interests, and adhere to international norms by striving for every right and every advantage. Regarding the supervisor, there is both a conflicting relationship and a point of commonality: both are employees of the owner, and it is important to make use of this commonality to curb the supervisor’s influence. When hiring local employees, it is essential that they are familiar with local labor laws, and that their enthusiasm can be stimulated in a way that does not violate any regulations, so that they can be utilized to my advantage. 　　II. It is necessary to understand and master the FIDIC contract clauses, handle claims properly, and safeguard one’s legitimate rights and interests. First and foremost, one must be proficient in the relevant FIDIC contract clauses. The content related to claims under the FIDIC contract terms mainly falls into two aspects. The first type relates to claims regarding project duration, caused mainly by delays such as the owner’s failure to provide relevant drawings and design changes within the specified time frames, as well as other abnormal factors. The second type involves claims related to funds spent, stemming from things like project changes, adjustments to unit prices, changes in specifications, and unforeseen events; situations such as changes in hydrogeological conditions or human interference can also give rise to such claims. In short, many provisions in the FIDIC contract terms provide a legal basis for the contractor’s claims. We must make full use of these provisions; during the construction process, we need to pay special attention to events that are relevant to claims, seize the opportunity to file claims promptly, and identify the grounds for such claims. It is difficult to achieve this without a thorough understanding of the claim-related provisions. As part of the project management team, especially the project manager and the financial officer, it is essential to be well-versed in the claim provisions of FIDIC contracts in order to file claims at the right time, minimize losses, and improve efficiency. 　　Next is to collect claim documents in a timely manner and submit a claim proposal; FICIC’s claim terms serve as the legal basis for making claims. During the construction process, the claim documents collected in accordance with the claim provisions serve as the factual basis for the claim. Without the latter, or if the latter is insufficient or unsubstantial, the purpose of making a claim cannot be achieved. This requires the main manager of the construction project to assign dedicated personnel to handle this task and to clarify the responsibilities of each position. Because claim processing is a highly serious legal, technical, and economic task, and it represents a comprehensive systematic endeavor. The person responsible for handling claims must be familiar with and proficient in the claim regulations, as well as possess a strong sense of dedication and responsibility. Only such responsible persons can gather accurate claim information to achieve the purpose of making a claim. 　　Of course, actually securing a claim is not an easy task; the key lies in whether the managers of the engineering project have the concept of claiming, the awareness to do so, and the ability to do it. Claims for contract violations are legitimate rights granted to contractors by law; one should not fear damaging relationships or feelings and thus endure losses that should be recovered. Claims can arise in both international and domestic contracting projects. Therefore, contractors are required to not only foster a sense of rule of law, but also maintain confidence in making claims. Special emphasis must be placed on the legality, accuracy, and timeliness of claim documentation; otherwise, all efforts will be in vain. 　　III. It is essential to learn project risk management in order to minimize risk losses. Whether in international or domestic engineering contracts, accidents during the construction process are inevitable, and the losses resulting from them are often severe. In addition to operational risks, there are also political risks, social risks, economic risks, natural risks, human-induced risks, and security risks, as per international practices. Especially in international engineering contracting, the frequency and probability of losses caused by risks are much higher than in domestic projects. Therefore, learning risk management for engineering projects in accordance with international practices and minimizing potential losses is an important measure to improve efficiency. 1. The role of project risk management is, first, to enhance the awareness of risks in construction management, to strengthen oversight of engineering projects and risk management, and to ensure that construction technical measures as well as quality and safety procedures are properly implemented. In particular, project managers, construction technicians, and other relevant personnel need to recognize the dangers associated with risks and improve their willingness to comply with rules and regulations. Secondly, it is necessary to strengthen the assessment, prediction, prevention, and control of risk factors during the construction process, in order to reduce the occurrence of risks and enable effective remedial actions when such risks do arise. This approach aims to prevent risks, avoid them, minimize losses, reduce costs, and improve efficiency. 　　2. Approaches to risk management: In accordance with international practices, it involves insuring the entire construction process and establishing a construction insurance mechanism. When implementing construction insurance, it is necessary to analyze and study the entire construction process, including all related aspects, in order to conduct a scientific risk assessment. For all areas where risks may arise, insurance should be obtained wherever possible in accordance with international practices. Appropriate and practical preventive measures must be established for those risk areas that cannot be insured. 　　3. Risk management of contractual guarantees: Contractual guarantees are legal measures taken to protect the interests of the employer; any mistake in this regard can cause immeasurable losses to the contractor. Therefore, the risks associated with contractual guarantees are quite significant and must not be taken lightly. A contract guarantee is a document that possesses legal validity independent of the contract. It mainly includes items such as bid guarantee, performance guarantee, advance payment guarantee, and deposit guarantee. Generally speaking, contractors and insurers have a close relationship; otherwise, the insurer would not provide guarantees for the contractor. The key to contract guarantees lies in carefully analyzing and studying the employer’s guarantee documents; such guarantees must be fair, reasonable, and legal. Harsh conditions that undermine the dignity of the contractor or his interests are unacceptable. On the other hand, as a contractor for international engineering projects, it is necessary to carefully study the contract terms, paying special attention to and preventing the risk clauses related to the owner terminating the contract. At the same time, technical measures should be taken for the guarantee amount to prevent the pricing from being exposed due to the guarantee. It is necessary to choose an appropriate method of performance, thoroughly study the policy terms, and strengthen the management of guarantees. 　　4. Construction insurance management: The purpose of obtaining construction insurance is to transfer construction risks in order to compensate for economic losses resulting from those risks. Construction insurance should cover the entire construction process, including insurance for the personal safety of all construction workers, as well as insurance for the transportation of materials and equipment. The insurance coverage for the construction process must clarify the responsibilities related to various risks, as well as the types of insurance available and the procedures for obtaining it. It is also necessary to examine whether the terms of the insurance contract and policy can protect one’s own interests. Therefore, when obtaining insurance for construction projects, it is necessary to make full use of the provisions on insurance clauses in the FIDIC terms in order to minimize mistakes and financial losses. 　　IV. It is necessary to master the use of foreign project management software. 1. Establish a mechanism for the application of project management software. Project management software is a high-tech solution, representing an emerging modern approach to project management. Although it is widely used abroad and spans the entire project management process, it has not yet become widespread in China. Therefore, it is necessary to align with international practices and get on the information fast track as soon as possible. First, a project management software development and application team should be established to conduct comprehensive research, study, development, and application of computer technologies for the project, and strive to establish an online connection within the country as soon as possible, in order to then access the international Internet. 　2. Bring project management software under the framework of scientific project management. Currently, for foreign engineering project management software, different types and levels of engineering projects use different types and levels of project management software. Use P3 in complex project management, and Microsoft Project for ordinary projects. In addition, some specialized project management software is also used; taking the world-renowned P3 series as an example, there are software tools for managing project schedules as well as for the dynamic control of resources and costs. There are also management software tools for engineering contract documents, changes, and the evolution of contract costs; using such software enables better implementation of the FIDIC contract provisions. The current main representative products are the P3 from the United States and ARTMIS from the United Kingdom. 　　3. Cultivate high-quality talents in software development, application, and management. To truly promote project management software that is widely used abroad, project managers must at least have a basic knowledge of computers; advanced technologies require highly qualified personnel to operate them. Therefore, in line with international practices, once a software development and application mechanism has been established, efforts should be made to cultivate Microsoft-oriented interdisciplinary talents who possess both computer skills and management knowledge in order to meet the requirements of project management. Given the current circumstances, talent development can be carried out in stages. First, computer operators and programmers who are urgently needed should be trained, enabling them to operate systems and independently develop, write, and debug programs. Gradually, more extensive training can be provided to help more managers master the use of this technology. 　　V. It is necessary to learn to resolve disputes in project contracting in accordance with international practices. Whether it is international or domestic project contracting, conflicts between the client and the contractor are inevitable; once such conflicts arise, they require a significant amount of time, effort, and financial resources. Therefore, it is necessary to face reality; in accordance with international practices, the sensible approach is first to conclude a proper contract, and second to strictly abide by its terms. 　　1. Issues prone to controversy ① Claims: Either the owner files claims against the contractor, or the contractor files claims against the owner. Regardless of who files a claim against whom, there are issues regarding whether the claim is valid or not, and whether the amount claimed can be agreed upon. 　　② Penalties for breach of contract: first, denying one’s own breach; second, accusing the other party of breach; third, imposing not only a penalty for breach but also additional claims. 　　③ Termination of contract: The contract is terminated due to the owner’s responsibilities, such as when it is proven that the owner is in arrears with payments, is bankrupt, or unable to meet its debts, thereby preventing continued performance of the contract; or it is terminated due to the contractor’s responsibilities, such as when it is proven that the project is delayed, the contractor is unable to turn things around, is bankrupt, or unable to meet its debts, resulting in an inability to continue with the work. 　　2. Measures to reduce and resolve disputes
① Sign a proper contract: When signing the contract, it is essential to be well-versed in the laws and regulations of the project location, and the contract must be signed in strict compliance with these laws. The contract terms must be carefully studied, evaluated, and negotiated. Attention should not be focused solely on the cost; rather, emphasis should be placed on clauses that may give rise to disputes, particularly those related to penalties for breach of contract and claims for damages. This requires the contracting parties to establish clear definitions and regulations regarding their respective responsibilities, breaches of contract, penalties, claims, and exemptions from liability. Once a dispute arises, there will be sufficient legal grounds to resolve it. 　② Strictly abide by the contract terms: A contract established in accordance with the law possesses legal validity, and both parties must comply with it. Nevertheless, contract disputes are inevitable. This requires both parties to: first, resolve any disputes promptly when they arise. In the face of disputes, both parties should adopt a proactive and cooperative attitude, resolving them promptly through friendly, reasonable, and lawful negotiations, so as to prevent any temporary disputes from affecting the continued performance of the contract. Secondly, once a dispute arises, it must be handled strictly in accordance with the contract terms. In accordance with international practice, there may be differences between the two parties regarding the interpretation of contract terms. When resolving disputes, two approaches are generally employed: non-confrontational and confrontational. Non-confrontational disputes are resolved through negotiation and mediation; confrontational disputes are resolved through arbitration and litigation. Regardless of the method used, it must be clearly stipulated in the contract.