Kaibo Engineering March 2012 e-newsletter


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Kaibo Engineering March 2012 e-newsletter

  1. 1. No.2 I ntro / 01 C o m p a n y N e w s / 02 I n d u s t r y N e w s / 03 A r t i c l e s / 04 E v e n t s / 062012 Working with Kaibo We endeavour to work with all stages of the construction project providing world class management, consulting services, and project management. We also provide training sessions to help your company achieve the best results in dealing with Chinese enterprises. Address: B1502, Vantone Center, Chaoyang District, Beijing (100020) Telephone:(+86)10-59073235 Email: info@kaibogroup.com Web: www.kaibogroup.com
  2. 2. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 INTRO Company News Industry News Articles Events2012 has started in great style for Kaibo Group with the annualawards night held on the 12th of January in Beijing2012 has started in great style for Kaibo Group with the annual awards night held on the 12thof January in Beijing. During the course of the event we had video feeds from our projects inSudan, Nigeria, and Mongolia.Kaibo Group would like to congratulate all the award winners for their hard efforts during2011 and we all look forward to sharing their success with you this year.As we are all well into 2012 the year shapes to be a year full of events and major news thatwill hit the construction industry. Looking into the European crisis and how it affects theoverall global construction industry and the steadying of the Chinese economy and how thiswill play out through the year. 01
  3. 3. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro COMPANY NEWS Industry News Articles Events $1.53 billion dollars.Mongolia Project 4. Current status:1. Project background: Currently the project design works team and Kaibo are working together on theIn the past five years, Mongolia has undergone rapid urbanization development. A completion of the master plan and scheme design. Work will commence shortly onlarge number of the population migrate to Ulaanbaatar, causing the living area per the construction design work. In addition after the employer modified some of thecapita to be less than 7 square meters. To satisfy the growing needs Mongolia have scope of the contract terms Kaibo is assisting during this phase to the employer.implemented a modern city plan for Ulaanbaatar to build 100,000 new homes.This development will provide a higher quality standard of living for residents andbring new facilities to the residential area. Yarmag has been created on theoutskirts of the Mongolian capital. Progress of Sudan Project2. Project target and significance: The Sudan team have been involved in control network survey, including leveling,The Mongolian government planning of the new city is located in Ulaanbaatar has been done, and data is being processed, the topographical survey will beYarmag Khan-Uul district, covering 970.0 hectares in the Khan-Uul area. The carried out in no time. The laboratory report for geo investigations on link canaltarget for Yarmag is planning to build 36000 sets of residential and supporting has been submitted; and lab tests of samples from offshore drilling is beingpublic facilities, for local residents to create a comfortable living and working executed in accordance with the program issued by the Engineer. Construction ofenvironment. the contractor’s main camp is well under way.3. Project implementation plan: A two-round negotiation has been held with the Employer in January, and theThis project implementation plan is project of 15000 sets and supporting facilities re-priced BOQ and related suggestions to the original contract and specificationsincluding highways, commercial facilities, schools, hospitals, water supply, power have been submitted and are under evaluation by the employer and engineers. Thesupply and supporting infrastructure. A new professional training center and a design of conceptual design for pump stations, shop drawings for canal works andNational Science Research Center (medical) will also be built in Yarmag relevant structures are in preparation. Tendering for DIU’s Township will startcomposing of 250 hectares of land. The estimated costs for this stage project are upon the approval of the drawings. Mongolia Project Site Sudan Project Site 02
  4. 4. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News INDUSTRY NEWS Articles EventsChinese Construction News: World Construction News:31st of Jan: China Guangdong Nuclear Power Corporation (CGNPC) CGNPC, is 20th Feb: The European Bank for Reconstruction and Development (EBRD) hasbidding alongside the China-Africa Development Fund in its effort to boost access granted a loan of €28.5 ($37.48 million) for the construction of roads into uranium supplies, wants to buy Kalahari for its 42.7 percent interest in Extract Bosnia-Herzegovina. The loan amount will be used to finance the construction ofResources, which owns the giant Husab uranium project in Namibia. a new, two-lane bypass around the centre of Brcko town, in the north-eastern part of the country. The total length of the new bypass will be 19km.15th of Feb: GCL-Poly Energy Holdings of China will start 1 gigawatt of solarpower projects in the U.S. funded by Bank of America Merrill Lynch or BofA 20th Feb: New York state transportation officials and industry participants areMerrill. scrambling to meet Gov. Andrew Cuomos push to have work under way later this year on the $5-billion-plus replacement of the aging Tappan Zee Bridge.Jan 15th: Mazaya Qatar Real Estate Development Company said on Saturday it Four design-build teams shortlisted on Feb. 7 have yet to see a final request forhas awarded a $130m construction contract to Chinas Sinohydro. The agreement proposals but have only until about mid-June to submit their detailed design andwill see the Chinese company construct the Sidra Village project and deliver it in building plans, says a state transportation agency spokesman.20 months. Sidra Village consists of 1,165 residential units, including 658 onebedroom apartments and 507 two bedroom apartments, Mazaya Qatar said in a 3rd Feb: The $200million USD Ngong Wind Power Plant has been given thestatement. green light to go ahead by project owner General Electric. This project will start in Q1 of 2012 with an estimated time of completion by Q4 of 2012.Feb 16th: China Railway Construction Corp. furthered its strategic expansion intoAfrica by winning new contracts totaling 9.1 billion Yuan. In an exchange filing 17th Feb: US-based real estate Company Related California has broken groundon February 15, China Railway Construction said the contracts, secured by its on The Village at Santa Monica, a $350 million mixed-use scheme in the USsubsidiary, China Civil Engineering Construction Corp., include the construction state of California.of expressways in Nigeria and a railway project connecting Djibouti and Ethiopia. The Village at Santa Monica will be developed at Ocean Avenue in close6th Feb: China pledged to invest over USD 161bn in metro projects for 28 cities. proximity to Santa Monica beach. The scheme involves construction of 318As of November, some 12 cities in the country had metro networks. The plan luxury condominiums and affordable rental apartments, 20,000 square feet ofannounced by the Chinas Communications and Transport Association last month retail and restaurants, and walkable plazas and gardens.would see a total network 250 times the length of the London Underground CircleLine. Over 90 new lines were approved. 20th Feb: The Peruvian government has announced that a concession will be awarded to construct $2 billion Lima Metros second line. The new metro line will link the Callao to the west of Lima with Ate Vitarte to the east. The contract will include expanding the network by more than 30km. 03
  5. 5. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News Industry News ARTICLES Events from the construction industry, as well as related sectors such as producers of rawConstruction poses biggest credit risk worldwide materials and machinery manufacturers. These players are reaching out to other emerging regions in Africa and the Middle East, which may spur growth in thoseWorldwide, the construction sector is becoming like a canary in the mines, an areas.indicator of each country’s economy, according to a report by global credit riskagency Coface. ( Article written by Adeline Theo – www.projectmanager.com.au )“The construction sector was badly hit by the 2009 crisis, and a large number ofpayment incidents were still occurring in 2011,” according to Coface’s analysis.“The intensity of activity in the construction sector varies according to the impact Project management education in a lean environmentof the crisis on the economy of the concerned country and according to sensitivityto economic conditions that varies from one subsector to another.” Organisations are becoming leaner—reducing waste, trimming budgets andCoface’s Global Construction: Substantial Geographic Differences, High heightening efficiencies—in a bid to cope with global economic stress. GlobalSensitivity to Economic conditions, Permanent Credit Risk report shows that training organisation ESI International set out to discover how public and privateactivity is strong in emerging markets, particularly subsectors such as public leaders were adapting their human capital initiatives to this lean environment viaworks and private and institutional non-residential construction. Conversely, a survey. Below is an overview of the results.activity in developed markets is either moderate or stagnant, with particularly Lean workforce: According to respondents, the recession has forever changed thelarge disparities in the residential construction sector. makeup of their employee base. Commercial and government organisations nowUnfortunately the uneven fortunes of the industry poses a credit risk, particularly operate with a lean workforce, where employees, regardless of level, must havein stagnant economies in parts of Europe, where activity will depend on the capability to lead and execute work across cross-functional teams.forthcoming austerity plans. Defaults and payment incidents have risen in Ireland, New approaches to learning: Best-in-class organisations expect to continue theirIceland, Spain, Denmark, the Netherlands, Greece and Central Europe and high investments in innovative, multi-modal learning, but will also devote furtherprices have started to affect the more robust economies of the UK, France, resources towards the development of leadership skills and business capabilitiesBelgium and Italy. Other countries, such as Germany, Austria, Norway, Sweden, within communities of technical professionals.Finland and Poland, however, remain somewhat untouched. Further, survey respondents reported that targeted and highly-relevant learningConversely, construction in the Asia-Pacific zone is “relatively buoyant”, programs are essential to support the achievement of organisational priorities,particularly in Australia, Japan and New Zealand where reconstruction efforts, maximise resources and enhance workforce effectiveness.following respective natural disasters in 2011, are taking place. Measurable impact: To invest in their people, companies are focusing theirThe building boom continues in China, however, even after the government training dollars on programs that produce measurable results and lead torestricted bank loans for the property market to avoid inflation. “The drop in sales, demonstrated business improvement.price adjustments and increased stock levels are expected to slightly slow the The ability to transfer learning in the classroom to changed performance in theactivity in the private residential segment, but this will be partly offset by the workplace is essential in the achievement of enhanced productivity. Organisationslaunch of a new public social housing construction program,” according to must develop a supportive and complementary on-the-job environment, whereCoface. management, business processes and supporting tools all permit the learner toThe effect of the China boom has seen a number of world-class players emerge apply new knowledge and skills immediately upon return to work. 04
  6. 6. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News Industry News ARTICLES Events program management and project management governance with projectPMOs in Asia: The New Frontier governance and process left until last. This approach has left many organizations with an obvious gap in capability at the delivery level, with limited processes andProject management is moving through Asia with the speed and tenacity of a support available at the coalface of projects. The solution? Buy in expertise.raging bushfire. I have recently been working my way through Singapore, HongKong and Mainland China talking with organizations from several different Asia has historically used expatriate labor, bringing in expertise that did notindustries about their PMOs and their attitudes towards project management in already exist. They are doing so with project management by bringing in stargeneral. The vibe as I moved through Asia was electrifying. There is an performers who can carry a project at the delivery level on the back of their ownexcitement about this ‘new way of working’ that is inspiring even to the most expertise. This solution is not sustainable long term, however it is buying themembattled veterans of the well established projects as a way of doing business set enough time to develop their own capability, which can then be institutionalizedof the West. to allow for homegrown project managers to be developed and supported.Project management emerged in the West through traditional industries such as One of the key benefits of the top-down approach is that project managementengineering and construction, defense and aerospace, before being taken up by the emerges within an organization with an intrinsic link to the top-level managementnon-traditional industries such as IT, banking and finance, telecommunications and is positioned as a means of delivering on corporate strategy. This sense ofand pharmaceuticals. This historical progression followed a slow path of value has many Asian organizations in an enviable position where managementdevelopment from the project level processes of planning and estimating, ‘gets it’ and they will hopefully avoid the all too familiar rollercoaster ride thatfollowed by control processes and on to risk management. PMOs in the West experience when project management comes in and out of favor with the latest wave of restructuring.Now as we feel confident that we understand the basics, even if we don’t alwaysimplement them to perfection, we’ve turned our attention to developing the The role of the PMO at the enterprise level must include demonstrating the valueconcepts of program and portfolio management. The realization that project of not only the PMO but project management more broadly to the organization.management is the enabling capability for organizations to execute on strategy has In this area, Asia willled us to develop methods and tools for devolving corporate strategies into lead the way!program and projects, as well as balancing the portfolio to meet the demands of a ( Article Written by:rapidly changing economic, social and political landscape. As a capstone to this Alicia Aitken “Aliciathinking and development, we have created the concept of the PMO, be that Aitken is CEO atproject, program, project management or portfolio management office. Human SystemsIn contrast, many Asian PMOs have taken an almost opposite approach to International anddeveloping organizational project management capability by establishing an managing director atintegrated network of PMOs united at the corporate level by a single enterprise Project PerformancePMO. This corporate level PMO manages a network of smaller PMOs Group” )predominantly established at the country level rather than being organized byfunction or project.In the main, Asian PMOs have opted for a top-down approach and have developedtheir portfolio management capability first, followed by an understanding of 05
  7. 7. NEWSLETTER 0 5 / 0 3 / 2 0 12         N o . 02 Intro Company News Industry News ARTICLES EVENTSTime: the bright side of the iron triangle distort concepts of time to suit your other resources, but time itself will march on. This means what the iron triangle really measures is not time, cost and quality but There’s a lot to be said of timing it right. In fields the ability of your project schedule, budget and scope to meet the expectations you like comedy, music and sport, timing is of the set at the start. essence and can be the difference between a An interesting take on this is Pat Weaver’s recent article, the truth about Gantt well-told joke and a flop. charts. Think you know what a Gantt chart is? Think again. Henry Gantt was a Time is one side of the so-called project smart guy, but he didn’t invent the bar chart that bears his name. He did, however, management ‘iron triangle’ by which the success of work out a way to track progress and therefore give a better understanding of how a project is superficially measured. Cost and long things took to get done. Which is good information if you want to look into quality complete the trio. It’s interesting to see time estimation and productivity? elevated to the same level as the other constraints So don’t look at time as something you can control; it’s only your own timing you when it is the most predictable but the least have the power to alter. manageable of the three.Most predictable? Well, time as a human construct has 60 seconds in a minute, 60minutes in an hour, 24 hours in a day for the length of the project until such timeas you’ve forgotten what day it is—or how old your kids are. And try as you Eventsmight, no matter how organized or how productive you are, a day will always have24 hours in it, which makes it the least manageable of the three constraints. April 11th – U.S.A, New York, ENR Global Construction SummitCulturally too, you will see that there is a broad scale of attitudes towards theimportance of managing time that centres on adherence to schedules and April 24-25 – Macau, China, 3rd International Infrastructuredeadlines. Investment & Construction ForumIn Managing Across Cultures*, a book I highly recommend if you work withinternational stakeholders, the authors put Germans on one end as they are May 7-9 – France, Marseille, PMI Global Congress Europegenerally strict about punctuality and have a preference for projects to run likeclockwork. On the other end are Thais, who view time as an element that cannot May 21-23 – Hong Kong, China, Brazil Invest 2012be controlled and therefore treat schedules as a guide that serves people rather thanthe other way around. July 15th – Pakistan Karachi, PMI Project Management SymposiumAt the risk of fence-sitting, I don’t think either attitude is completely right orcompletely wrong. Deadlines serve a purpose and if we were lax with them we’d October 20-23 – Canada, Vancouver, PMI Global Congress Northhave no Olympic Games, New Year’s fireworks or events of any kind. But the AmericaThai view that schedules serve people is also a key one; good project managementis more than the iron triangle. October 29-31 – Greece, Crete, 26th IPMA World CongressThe most inclusive view is to treat project schedules as living documents. You can 06
  8. 8. Address: B1502, Vantone Center,Chaoyang District, Beijing (100020)Telephone:(+86)10-59073235Email: info@kaibogroup.comWeb: www.kaibogroup.com