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1.Why is it said that general contractors often subcontract in international engineering contracting?
Hello, it is ,.. in international engineeringIn some countries, a foreign general contractor must subcontract a certain amount of work to a national contractor after undertaking the work, or the work can only be undertaken by the national contractor, and the repatriate contractor can only subcontract. This is a protective measure for domestic businesses.
The general contracting mode of the project is an internationally accepted practice, which is conducive to the deep integration of design, procurement, construction and other stages of work, and the general contractor of the project is responsible for the design quality, construction safety and construction schedule.
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Summary. Hello dear, according to the first paragraph of Article 791 of the Civil Code, the employer may enter into a construction project contract with the general contractor, or enter into a survey, design and construction contract with the surveyor, designer and constructor respectively. The employer shall not break up a construction project that should be completed by one contractor into several parts and award the contract to several contractors.
Hello dear, according to the first paragraph of Article 791 of the Civil Code, Zheng Xunren can enter into a construction project contract with the general contractor, or enter into a survey, design and construction contract with the surveyor, designer and constructor respectively. The employer shall not break up a construction project that should be completed by a bucket or a single contractor into several parts and award the contract to several contractors. <>
Hello, international project contracting is a comprehensive way of international economic cooperation. It refers to the cooperation mode in which a company or consortium engaged in international project contracting signs a contract agreement with the owner through bidding and bidding, obtains the right to implement a certain project, and completes the entire project in accordance with the provisions of the contract. <>
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1. The difference between the concept of domestic engineering contracting and international engineering contracting market.
For domestic contractors, international engineering contracting is first and foremost a market concept. To understand international engineering contracting, we must first clarify the concept of the market. The meaning of international engineering contracting here is, firstly, the place where the contractor obtains the project is not in its own country, and secondly, it enables the enterprise to survive and develop through the survival of the fittest mechanism.
The breadth of space refers to the geographical scope, that is, the areas in which our enterprises do projects, and the depth of space refers to the operation of a region. In marketing, market share is often used to indicate the depth of an enterprise's operation in a market. The depth of operation in the international engineering contracting market includes the degree of understanding of a country, the winning status of the project, etc.
Due to the special role of the construction industry in driving economic development and employment, the construction market is often protected, and foreign contractors are restricted from participating in the competition in the domestic construction market, so that the domestic construction market gives priority to meeting the requirements of domestic contractors. Such projects, which can only be undertaken by national contractors, are known as the domestic engineering contracting market.
Second, the formation of the domestic project contracting market is different from that of the international project contracting market.
The international engineering contracting market is formed with the development of a country's construction market. The development of a country's national economy and the improvement of social living standards will promote the development of the country's construction market and construction industry from all aspects.
Due to the special role of the construction industry in driving economic development and employment, the construction market is often protected, and foreign contractors are restricted from participating in the competition in the domestic construction market, so that the domestic construction market gives priority to meeting the requirements of domestic contractors. Such projects, which can only be undertaken by national contractors, are known as the domestic engineering contracting market.
When the national economy develops to a certain extent, there will be a situation where domestic contractors cannot meet the needs of the contracted project market due to various reasons. At this point, foreign contractors will be allowed to participate directly in the country's construction projects. In this way, a number of projects undertaken by foreign contractors have emerged in the domestic construction market, thus forming an international engineering contracting market in the domestic construction market.
There are several reasons that motivate a country to open up its contracted project market to foreign contractors:
1 National contractors are not in a position to undertake certain works.
When a country's economic strength develops to a certain extent, it needs to build some special projects, such as super high-rise buildings, extra-large bridges, land reclamation, etc. The completion of these special projects requires special equipment and technology, which national contractors do not have the capacity to purchase and master, and it is not possible to require national contractors to purchase these technologies and equipment from an investment point of view.
2. The need to attract external investment.
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1.The international engineering contracting market should be a natural extension of the domestic market.
The international engineering contracting market should be a natural extension of the domestic market. Natural extension means that businesses need international markets for reasons to survive and grow. This need may be an opportunity to secure more projects; It may also be for profit, and the profit of international projects may be higher than that of domestic projects.
However, the development of the international engineering contracting market is by no means an imitation behavior, and others have foreign projects, and I must have them; It can't be a kind of behavior, and the department or superior company can't force the company to open up the international market; Enterprises can not respond to the call of the first to open up the international market.
2.The risks of project contracting are relatively large.
International engineering is not something that all enterprises can do, and it is not something that any enterprise can do well if they want to. And domestic project contracting is also a qualification. The international engineering contracting market is a highly competitive market and a place where the best companies in the world compete.
Only the best companies have a chance to survive, and only well-prepared companies have hope of success. If you want to engage in international engineering contracting with the idea of giving it a try and taking a look, the result can only be a failure. This is very similar to the domestic industrial loose mold start contracting.
The international engineering contracting market is a high-risk market. The possibility of doing a good job is small, and the possibility of not doing well is high. The possibility of making a lot of money is small, and the possibility of accompanying a lot of money is high.
3. Both domestic and international engineering contracting are market economies, of course, international projects only recognize the contract and do not recognize the person, and there is no humanity to talk about in principle, especially in the cost. No one can help the contractor outside of the contract. And domestic engineering is different, but the general principle is the same.
4.The development of domestic engineering contracting and international engineering contracting markets is a gradual process, which requires a lot of time and capital investment and patience.
Finally, after more than 20 years of development, Chinese contractors have won a place in the international engineering contracting market by pioneering and enterprising, gaining a firm foothold and achieving remarkable results, but they have also encountered fierce competition from all sides. At the same time, with the opening up of China's domestic market, foreign contractors have also entered the Chinese market, using their advantages in capital, technology, management and other aspects to compete with Chinese contractors for the Chinese market.
China has joined.
WTO, I believe that in the future, Chinese contractors will strive to gain a larger market share in the international project contracting market, and foreign contractors will also work harder to expand the Chinese market. Both Chinese and foreign contractors will compete more fiercely in the domestic and international markets.
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