Global Engineering and Construction

J. K. YATES, PhD, BSCE, is Professor and the Program Coordinator for the Construction Engineering Program in the Department of Civil Engineering at San Jose State University in San Jose, California, as well as having been the associate editor of the Project Management Institute's (PMI) Project Management Journal for ten years. Dr. Yates has extensive hands-on experience working globally for companies such as Bechtel, Williams Engineering, CH2M Hill Consulting Engineers, and Morrison-Knudsen. A member of the American Society of Civil Engineers, PMI, and the American Association of Cost Engineers International, Dr. Yates has published over forty-five refereed journal articles on construction engineering, project management, and international engineering and construction. The Associated General Contractors (AGC) selected Dr. Yates as the Outstanding Educator in Construction in America in 1997, and the Engineering News-Record selected Dr. Yates as One of Those Who Made Their Mark in Construction in 1991.

• Preface xvAbout the Author xixAcknowledgments xixChapter 1: Introduction 11.1 Global Engineers and Constructors 21.2 Engineering and Construction Global Ambassadors 71.3 Global Risks to Engineers and Constructors 81.4 Organization of This Book 81.5 Summary 10Chapter 2: The Concept of Culture and Global Issues Important to Engineers and Constructors 112.1 Introduction 112.2 Sources of Information 122.3 Language and Translation Considerations for Design 152.4 Design Criteria for Different Cultures 212.5 Cultural Issues That Affect Engineers and Constructors 272.6 Suggestions for Adapting to Foreign Cultures 292.7 Economics 332.8 Politics 342.9 Summary 34Chapter 3: Managing Global Engineering and Construction Projects 363.1 Introduction 363.2 Management Functions and Project Objectives 373.3 Three-Dimensional Project-Objective Model (POM) 393.4 Hierarchy of Objectives 443.5 Determining Objectives 453.6 Managing Projects in Foreign Countries 483.7 Characteristics of Global Project Managers 493.8 Calendars and Time Considerations 523.9 Technology Considerations 543.10 Estimating 573.11 Scheduling 583.12 Permits and Codes 583.13 Construction Safety Issues 593.14 Construction Failures and Investigation Techniques 683.15 Case Study: Indonesia 733.16 Summary 73Chapter 4: Global Competitiveness in the Engineering and Construction Industry 774.1 Introduction 774.2 Definition of Competitiveness 774.3 Competitiveness Issues 784.4 Competitive Forces in the 1980s 814.5 Changes in the E&C Industry Structure in the 1990s 834.6 Forces Driving Competition in the Twenty-First Century 854.7 Changes in the E&C Industry in the Twenty-First Century 894.8 The Changing Nature of E&C Industry Competition 934.9 Summary 99Chapter 5: Global Engineering and Construction Alliances 1035.1 Introduction 1035.2 Multinational Contractors 1035.3 The Global Dimension 1065.4 Risks in Global Investment 1085.5 Project Financing 1105.6 Privatization 1105.7 Build-Own-Transfer (BOT) 1155.8 Joint Ventures and Partnerships 1175.9 Summary 118Chapter 6: Global Construction Financial Techniques 1216.1 Introduction 1216.2 Countertrade 1226.3 Cofinancing with the World Bank 1236.4 Project Financing 1256.5 Global Payment Methods 1296.6 Bills of Lading, Commercial Invoices, and Consular Invoices 1326.7 The U.S. Export-Import Bank and Private Export FundingAgencies 1326.8 Summary 133Chapter 7: Global Legal Issues for Engineers and Constructors 1367.1 Introduction 1367.2 International Conventions 1367.3 Regional Legal Issues 1377.4 International Contracts 1397.5 Claims and Change Orders 1467.6 Dispute-Resolution Techniques 1507.7 International Arbitration 1527.8 Anticorruption Legislation 1557.9 Kidnapping and Ransom Insurance 1557.10 Changing Governments 1567.11 Liability Issues 1567.12 Summary 159Chapter 8: International Engineering and Construction Standards 1638.1 Introduction 1638.2 Definition of Standards 1638.3 Technical Standards 1648.4 Consensus Standards 1648.5 Government Standards 1658.6 Nongovernment Standards 1658.7 International Standards 1658.8 International Organization for Standardization (ISO) 1678.9 The Development Process for Standards 1698.10 International Technical Standards 1718.11 ISO 9000 Quality Management System Standards 1728.12 ISO 14000 Environmental Management Series of Standards 1748.13 ISO 4217 Global Currency Codes and Names 1758.14 The ISO 9000 and 14000 Registration Process 1758.15 Advantages and Disadvantages of International Standards 1778.16 Summary 179Chapter 9: Global Environmental Issues of Concern to Engineers and Constructors 1819.1 Introduction 1819.2 The United Nations Framework Convention on Climate Change(UNFCCC) 1839.3 Effects of the Kyoto Protocol on the Engineering and Construction Industry 1879.4 Global Environmental Management 1899.5 Country-Specific Environmental Issues 1909.6 Summary 194Chapter 10: Global Productivity Issues on Construction Projects 19710.1 Introduction 19710.2 International Comparisons of Labor Productivity 19910.3 Case Study: Worker Productivity in Nigeria and the United States 20010.4 Labor Productivity Variations 20210.5 Labor Productivity Factors 20410.6 Factors that Affect Productivity on Global Projects 20710.7 Summary 211Chapter 11: Global Planning and Construction Delays 21411.1 Introduction 21411.2 Accounting for Global Variations in Construction 21511.3 Bribery Policies 21611.4 Categories of Global Nontechnical Delays 21811.5 Global Engineering and Construction Delays 22011.6 Indicators of Project Delays 22611.7 Global Project Planning Delays 22811.8 Summary 233Chapter 12: Global Terrorism: Kidnapping and Design Considerations 23612.1 Introduction 23612.2 Definitions of Terrorism 23812.3 Terrorist Behavior 23912.4 Financial Support for Terrorism 24012.5 Terrorist Strategies and Profiles 24112.6 Kidnapping Issues 24212.7 Preventing Terrorism 24512.8 Building Protection 25112.9 Web Sites with Additional Information on Terrorism 25812.10 Summary 259Chapter 13: Preparing Engineers and Constructors to Work Globally 26313.1 Introduction 26313.2 Definition of Culture 26313.3 Cultural Differences 26413.4 Language Differences 26413.5 Technology Transfer 26513.6 The Importance of Cross-Cultural Training Programs 26513.7 Developing Cross-Cultural Training Programs 26713.8 What to Know Before Working Overseas 26813.9 Language Training 27413.10 Educational Considerations 27513.11 Entertainment Issues 27513.12 Short- and Long-Term Housing 27613.13 Food and Water Supplies 27813.14 Transportation Issues 28113.15 Foreign Work Environments 28113.16 Prejudice 28313.17 Culture Shock 28413.18 Going Native 28513.19 Avoiding Foreign Jails 28513.20 Summary 286Chapter 14: Country-Specific Information 28814.1 Introduction 28814.2 Africa 28914.3 Asia 30014.4 Eastern Europe 31114.5 The Near and Middle East 31814.6 North America 32514.7 Oceana 33014.8 South America 33114.9 Southeast Asia 33414.10 Western Europe 34214.11 Summary 346Appendix A Glossary 347Appendix B Case Study: Managing Projects in Rural Developing Countries 351References 361Appendix C Definitions of Religions 362Index 364