FACTORS THAT AFFECT PROJECT PERFORMANCE IN CHINA BASED ON CASE STUDIES

Abstract

China’s construction industry is experiencing a boom. In 2006, the output value of construction sector was 4.098 trillion yuan RMB or SGD$ 820 billion, up 18.59 percent year-on-year. Nevertheless, project performance in China is still lagging in many ways. In order to achieve a satisfactory development of the Chinese construction industry, factors affecting project performance need to be examined. The objectives of this research are to: (1) evaluate project performance in terms of time, cost and quality; and (2) identify the factors that affect project performance in China. It is hypothesized that characteristics of the project, clients, consultants and contractors have an effect on the performance of projects. It is also hypothesized that project performance can be affected by the collaboration among different project key players. The research design was based on case study. Three in-depth case studies of projects performed in China were conducted. All the projects were owned, designed and constructed by Chinese firms. The method of data collection was mainly through face-to-face interviews. The findings show that characteristics of the project, clients, consultants, contractors and relationship among project team members affect project performance. Through case studies, a framework for achieving successful project performance in China is established based on the factors identified. The practicality and usefulness of this study is to make practitioners in the construction industry aware of the factors that may affect project performance in China.