Investigation of barriers to entry into the design-build market in the People’s Republic of China (PRC)

Xia, Bo & Chan, Albert (2012) Investigation of barriers to entry into the design-build market in the People’s Republic of China (PRC). Journal of Construction Engineering and Management, 138(1), pp. 120-127.

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Although the design-build (DB) system has been demonstrated to be an effective delivery method and has gained popularity worldwide, it has not gained the same popularity in the construction market of China. The objective of this study was, theretofore, to investigate the barriers to entry in the DB market. A total of 22 entry barriers were first identified through an open-ended questionnaire survey with 15 top construction professionals in the construction market of China. A broad questionnaire survey was further conducted to prioritize these entry barriers. Statistical analysis of responses shows that the most dominant barriers to entry into the DB market are, namely, lack of design expertise, lack of interest from owners, lack of suitable organization structure, lack of DB specialists, and lack of credit record system. Analysis of variance indicates that there is no difference of opinions among the respondent groups of academia, government departments, state-owned company, and private company, at the 5% significance level, on most of the barriers to entry. Finally, the underlying dimensions of barriers to entry in the DB market were investigated through factor analysis. The results indicate that there are six major underlying dimensions of entry barriers in DB market, which include, namely, the competence of design-builders, difficulty in project procurement, characteristics of DB projects, lack of support from public sectors, the competence of DB owners, and the immaturity of DB market. These findings are useful for both potential and incumbent design-builders to understand and analyze the DB market in China.

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9 citations in Scopus
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2 citations in Web of Science®

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ID Code: 48973
Item Type: Journal Article
Refereed: Yes
Keywords: design and build, barriers to entry, construction market, factor analysis, China
DOI: 10.1061/(ASCE)CO.1943-7862.0000387
ISSN: 1943-7862
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2012 ASCE
Deposited On: 05 Mar 2012 22:03
Last Modified: 24 Apr 2013 10:41

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