Cross-culture Risk Management On International Engineering Contract Projects

With the acceleration of the global economic integration, the international engineering contract projects are continuously growing and developing all over the world, especially in China. Each country has its unique culture deeply rooted in its social community, and different cultures lead in different values, moral standards and conduction orientation. When capital, labor and technologies and other resources cross the national boundaries, the international engineering contract project itself also crosses the cultures. As so, while contracting overseas projects, we inevitably face the differences cultures of different countries. If not got sufficient attention to and properly resolved, it often leads in conflicts between members from different countries in the project, which may further transform to cross-culture risks that will interfere and obstruct the proceeding, even lead in the final failure of the project. At present, the study in our country on the cross-culture risk management of international engineering contract projects is still weak, and has not formed a perfect theoretical system and framework suitable for China's current situation on cross-culture risk management of international engineering contract projects. Therefore, in order to carry out better cross-culture risk management of international engineering contract projects for China, establishing a sound cross-culture risk management becomes an urgent issue to be solved.This paper analyzes cross-culture risk management of international engineering contract projects for China comprehensively and systematically by mainly using methods of theoretical-empirical analysis and qualitative-quantitative analysis, combined with case analysis, comparative analysis, and checklist methods. Firstly, based on the summary of the studies on cross-culture risk management of domestic and foreign scholars, the paper describes the existing theories about cross-culture risk. Secondly, the paper analyzes the characteristics and current situation of international engineering contract projects, its cultural conflicts and risks and its negative and positive impacts, putting forward the necessity of studying cross-culture risks and management for project contractor in our country. Thirdly, standing for project contractor, the paper puts forward some practical suggestions to improve the cross-culture risk management of the international engineering contract projects, proposing the establishment of effective project team to improve the feedback level to the cross-culture risks to ensure the smooth proceeding of the project and enhance the management performance. And then, this paper systematically analyzes the cross-culture risk management of INBLU key hydroelectric project to validate the above research and analysis. At last, the paper highlights the major works and conclusion performed with cross-culture risk management and looks forward to the future directions of study.From a cross-cultural perspective, the paper explores the culture differences and cross-culture risks comprehensively and systematically with the case of INBLU key hydroelectric project, targeting some innovations and breakthroughs, providing some theoretical significance and practical value for our participation in international engineering contract projects in the future.