Build cooperation and win-win platform

(By chinca)

Updated: 2016-08-04 14:04:44

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CITIC Construction Co., Ltd. was established as the whollyowned subsidiary of China CITIC Group specializing in domestic and international contracting and related businesses. Its business areas include general contracting, franchise operation, financing and construction, import and export of complete plant of machinery and electronic products, project management and consultancy service, etc.
1. Background
In May 2006, the company took the lead in organizing a CITIC – CRCC (China Railway Construction Corporation) union and won the bid for the Algerian east-west highway project. The project contract amount was 6.25 billion U.S. dollars and the total length was 528 kilometers. The east-west highway was not only the main traffic artery in Algeria but also the strategic vital line for North African and Mediterranean countries. Thus it was of great importance for the economic development of Algeria and even the North African. However, the ability and resources of one company alone was difficult to guarantee quality.
2. Measures
The company adhered to the principle of win-win cooperation, integrated high-quality resources, and effectively organized construction teams to ensure the smooth implementation of project.Resources and Cooperate for Win-Win TThe company innovated project implementation model, made full use of its own comprehensive ability and good reputation, integrated domestic and international highquality resources, controlled key points, took advantages of other cooperation partners and formed a union of advantage complementation, profit and risks sharing. Under this model, the company set up strategy cooperation relationships with domestic and international first-class project contracting enterprises, design companies, material and equipment supply companies, large logistics companies. This union shared the project responsibility and project outcome. In the specific operation process, the company took business and progress management as the main line, took finance control and system establishment as the main method for unified command and management. All cooperation partners implemented project according to contract, in addition to assume responsibility for subcontractors, they also took up the joint responsibility and the general contracting responsibility between the company and the owner.
Domestic Procurement and Self-Sufficiency
There is a serious shortage of the local supply, to ensure equipments and raw materials self-sufficiency, the union purchased sufficient and new advanced construction equipments on its own from Chinese market and put all in one construction site. The union fully invested in 10 quarries, 20 asphalt mixing stations, 30 concrete batching plants, and a number of prefabricated steel factories and other prefabrication factories.
Three-Tier Management , Senior Leadership Attending
To effectively organize hundreds of companies and tens of thousands of domestic and international laborers involved in project implementation and guarantee that the project completed on schedule, besides strictly sticking to on-site progress management, the company also set up a threetier organizational structure of Beijing headquarter, onsite operation center and on-site sub-department. The company developed a senior leadership attending system involving all chiefs from all organizations in charge of project design, implementation, supply and logistics. To ensure the smooth implementation of project, the company checked the construction site regularly and solved difficulties and problems timely.

3. Effect
Owner Spoke Highly of Project and Expanded Opportunities for Cooperation

Middle and west parts of the project were completed one year earlier than the owner’s requirement and the project quality, schedule and the comprehensive management had all been highly praised by owner. Public Project Department of Angola will work on the eastwest highway project supplement contract negotiations, if the supplement contract is signed, the total amount of this contract will exceed 8 billion U.S. dollars.
Increase Employment Opportunities and Promote Export of Domestic Goods
The project offered nearly 100,000 job opportunities for Algeria and led hundreds of Chinese survey, design, construction, logistics and equipment supply companies to enter the Algerian market. The exports of Chinese engineering equipment was more than 800 million U.S. dollars, directly exported roughly 12,000 laborers and indirectly helped more than 100,000 laborers find jobs.
Lead Domestic Enterprises “Go-Global”
The project helped a patch of Chinese design companies win the opportunities to analyze, control, master and apply to European standards. A great deal of Chinese enterprises realized “go-global” and the dream of competing with international top construction companies. By this project, these companies accumulated construction experiences and laid the foundation for the sustainable development in Africa.
4. Outlook
The company will stick to the cooperation and winwin concept, constantly summarize in practice, explore sustainable business models, and further enhance the company and partners’ reputations overseas , to build the world's leading project contractors.