Global Engineering and Construction

Preface xv

About the Author xix

Acknowledgments xix

Chapter 1: Introduction 1

1.1 Global Engineers and Constructors 2

1.2 Engineering and Construction Global Ambassadors 7

1.3 Global Risks to Engineers and Constructors 8

1.4 Organization of This Book 8

1.5 Summary 10

Chapter 2: The Concept of Culture and Global Issues Important to Engineers and Constructors 11

2.1 Introduction 11

2.2 Sources of Information 12

2.3 Language and Translation Considerations for Design 15

2.4 Design Criteria for Different Cultures 21

2.5 Cultural Issues That Affect Engineers and Constructors 27

2.6 Suggestions for Adapting to Foreign Cultures 29

2.7 Economics 33

2.8 Politics 34

2.9 Summary 34

Chapter 3: Managing Global Engineering and Construction Projects 36

3.1 Introduction 36

3.2 Management Functions and Project Objectives 37

3.3 Three-Dimensional Project-Objective Model (POM) 39

3.4 Hierarchy of Objectives 44

3.5 Determining Objectives 45

3.6 Managing Projects in Foreign Countries 48

3.7 Characteristics of Global Project Managers 49

3.8 Calendars and Time Considerations 52

3.9 Technology Considerations 54

3.10 Estimating 57

3.11 Scheduling 58

3.12 Permits and Codes 58

3.13 Construction Safety Issues 59

3.14 Construction Failures and Investigation Techniques 68

3.15 Case Study: Indonesia 73

3.16 Summary 73

Chapter 4: Global Competitiveness in the Engineering and Construction Industry 77

4.1 Introduction 77

4.2 Definition of Competitiveness 77

4.3 Competitiveness Issues 78

4.4 Competitive Forces in the 1980s 81

4.5 Changes in the E&C Industry Structure in the 1990s 83

4.6 Forces Driving Competition in the Twenty-First Century 85

4.7 Changes in the E&C Industry in the Twenty-First Century 89

4.8 The Changing Nature of E&C Industry Competition 93

4.9 Summary 99

Chapter 5: Global Engineering and Construction Alliances 103

5.1 Introduction 103

5.2 Multinational Contractors 103

5.3 The Global Dimension 106

5.4 Risks in Global Investment 108

5.5 Project Financing 110

5.6 Privatization 110

5.7 Build-Own-Transfer (BOT) 115

5.8 Joint Ventures and Partnerships 117

5.9 Summary 118

Chapter 6: Global Construction Financial Techniques 121

6.1 Introduction 121

6.2 Countertrade 122

6.3 Cofinancing with the World Bank 123

6.4 Project Financing 125

6.5 Global Payment Methods 129

6.6 Bills of Lading, Commercial Invoices, and Consular Invoices 132

6.7 The U.S. Export-Import Bank and Private Export Funding

Agencies 132

6.8 Summary 133

Chapter 7: Global Legal Issues for Engineers and Constructors 136

7.1 Introduction 136

7.2 International Conventions 136

7.3 Regional Legal Issues 137

7.4 International Contracts 139

7.5 Claims and Change Orders 146

7.6 Dispute-Resolution Techniques 150

7.7 International Arbitration 152

7.8 Anticorruption Legislation 155

7.9 Kidnapping and Ransom Insurance 155

7.10 Changing Governments 156

7.11 Liability Issues 156

7.12 Summary 159

Chapter 8: International Engineering and Construction Standards 163

8.1 Introduction 163

8.2 Definition of Standards 163

8.3 Technical Standards 164

8.4 Consensus Standards 164

8.5 Government Standards 165

8.6 Nongovernment Standards 165

8.7 International Standards 165

8.8 International Organization for Standardization (ISO) 167

8.9 The Development Process for Standards 169

8.10 International Technical Standards 171

8.11 ISO 9000 Quality Management System Standards 172

8.12 ISO 14000 Environmental Management Series of Standards 174

8.13 ISO 4217 Global Currency Codes and Names 175

8.14 The ISO 9000 and 14000 Registration Process 175

8.15 Advantages and Disadvantages of International Standards 177

8.16 Summary 179

Chapter 9: Global Environmental Issues of Concern to Engineers and Constructors 181

9.1 Introduction 181

9.2 The United Nations Framework Convention on Climate Change

(UNFCCC) 183

9.3 Effects of the Kyoto Protocol on the Engineering and Construction Industry 187

9.4 Global Environmental Management 189

9.5 Country-Specific Environmental Issues 190

9.6 Summary 194

Chapter 10: Global Productivity Issues on Construction Projects 197

10.1 Introduction 197

10.2 International Comparisons of Labor Productivity 199

10.3 Case Study: Worker Productivity in Nigeria and the United States 200

10.4 Labor Productivity Variations 202

10.5 Labor Productivity Factors 204

10.6 Factors that Affect Productivity on Global Projects 207

10.7 Summary 211

Chapter 11: Global Planning and Construction Delays 214

11.1 Introduction 214

11.2 Accounting for Global Variations in Construction 215

11.3 Bribery Policies 216

11.4 Categories of Global Nontechnical Delays 218

11.5 Global Engineering and Construction Delays 220

11.6 Indicators of Project Delays 226

11.7 Global Project Planning Delays 228

11.8 Summary 233

Chapter 12: Global Terrorism: Kidnapping and Design Considerations 236

12.1 Introduction 236

12.2 Definitions of Terrorism 238

12.3 Terrorist Behavior 239

12.4 Financial Support for Terrorism 240

12.5 Terrorist Strategies and Profiles 241

12.6 Kidnapping Issues 242

12.7 Preventing Terrorism 245

12.8 Building Protection 251

12.9 Web Sites with Additional Information on Terrorism 258

12.10 Summary 259

Chapter 13: Preparing Engineers and Constructors to Work Globally 263

13.1 Introduction 263

13.2 Definition of Culture 263

13.3 Cultural Differences 264

13.4 Language Differences 264

13.5 Technology Transfer 265

13.6 The Importance of Cross-Cultural Training Programs 265

13.7 Developing Cross-Cultural Training Programs 267

13.8 What to Know Before Working Overseas 268

13.9 Language Training 274

13.10 Educational Considerations 275

13.11 Entertainment Issues 275

13.12 Short- and Long-Term Housing 276

13.13 Food and Water Supplies 278

13.14 Transportation Issues 281

13.15 Foreign Work Environments 281

13.16 Prejudice 283

13.17 Culture Shock 284

13.18 Going Native 285

13.19 Avoiding Foreign Jails 285

13.20 Summary 286

Chapter 14: Country-Specific Information 288

14.1 Introduction 288

14.2 Africa 289

14.3 Asia 300

14.4 Eastern Europe 311

14.5 The Near and Middle East 318

14.6 North America 325

14.7 Oceana 330

14.8 South America 331

14.9 Southeast Asia 334

14.10 Western Europe 342

14.11 Summary 346

Appendix A Glossary 347

Appendix B Case Study: Managing Projects in Rural Developing Countries 351

References 361

Appendix C Definitions of Religions 362

Index 364