Building knowledge

About Building knowledge
A quarterly series of short papers on highly topical issues for engineering & construction (E&C) companies. As the papers are short, they make for quick and easy reading – and hit directly to the heart of the business issue addressed. Each paper also contains details of who to contact at PricewaterhouseCoopers with the expertise to assist you on each of these challenging issues.


Building knowledge

China's booming construction market
Benefiting from the country’s rapid GDP growth and the Chinese Government’s focus on developing transportation infrastructure, China’s construction market has grown massively in recent years and the trend will certainly continue over the next decade. With rising urbanisation, many major infrastructure projects planned and a much improved investment environment, China represents significant market opportunities. Whilst the construction market there is without doubt an attractive one, foreign contractors who wish to enter the region successfully and profitably should be well prepared for the risk and challenges that they may face. This, the latest of our 'Building Knowledge' papers, explores the opportunities - and challenges - of China in detail.


Building knowledge

Capital project procurement – collaboration versus competitive risk pricing?
In an increasingly competitive business environment, with a recognised need for significantly improved up-front planning for capital investment, a key part of the planning phase is the formulation of an effective procurement strategy. The ultimate goal is to establish a strategy that is well suited to the client organisation and in sympathy with the needs and circumstances of the project and market. This is now a multi-dimensional challenge, but our experience has shown that there are some high level considerations that apply to all projects that can help clients to navigate the plethora of available contracts.


Building knowledge

Low-cost sourcing from China
As E&C companies face growing pressures of low margins and cost inflation, they are increasingly realising the potential benefits of low-cost sourcing (LCS) in order to maintain their competitiveness. Our experience has shown that as much as 10% of E&C companies' total spend could be suitable for LCS and that on average a 30% cost saving is achievable when sourcing from low-cost countries. In a low-margin sector this has got to be worth exploring further.





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Contacts
Jonathan Hook
Global engineering & construction leader
Tel: +44 20 7804 4753
Michael Cracknell
Global engineering & construction marketing
Tel: +44 20 7213 1737
UK
Mark Li
Tel: +44 (20) 7213 5061

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