Research On The Structure Adjustment For Chinese Construction Market

Over 30 years of reform and opening up, China's rapid development in the construction industry for national economic and social development made a significant contribution. About to enter'Twelfth Five-Year', Chinese construction industry will usher in new opportunities and challenges. However, an objective analysis of the construction market, there are still problems troubling the industry, such as irrational resource allocation and over-competition. This paper will focus on the market structure of Chinese construction industry, by summing up the status and problems of resource allocation, analyzing the reasons with the degree of competition and identifying gaps by compared with developed countries, then make strategic recommendations stood third-party point of view for the more reasonable market structure and the more effective government regulation.In order to study the construction industry in-depth, this paper first analyzes and summarizes related theories, clarified the different understood in concepts at home and abroad, identified the research programs by the industrial organization theory and comparison with developed countries, as well as research methods by the qualitative analysis based on quantitative data, and defined the construction enterprises for the research object, the "Ninth Five-Year" to the "Eleventh Five-Year" period to establish a market economic system for the study phase; then analyzes the actual characteristics of the construction industry, gets experience in developing past construction plans by expert interviews and workshops, and sums up the theoretical framework; then again, this paper collects related data, analyzes in-depth the current situation of China's development in recent years and compares with America, England and Japan, identifies the structural problems, gaps and causes in Chinese construction market. Found: Chinese construction general contractors and professional contractors markets gradually emerged hierarchical competition, "pyramid" structure has formed, but as the level of hierarchical division is not enough between the professional contractors and labor sub-contractors, the market of labor sub-contractors is lack; the competition relationship of the whole construction industry tends to focus more, and develops fast, but the competitiveness of large-scale contractors are still relatively low compared with the developed countries, what's more, the small and medium enterprises lack professional differentiation which led to excessive competition in the same professional field and seriously hampered the economies of scale formed in Chinese construction market.Based on the above issues and causes, combined with literature review, expert interviews & seminars, enterprises research, this paper explains and amendments each conclusion one by one which is from the quantitative analysis, then makes the following recommendations: (1) adjust the "pyramid" structure of the number of layers, so that to more accurate ratio, especially to more clear hierarchical division between the professional contractors and labor sub-contractors; (2) large contracting enterprises in China should actively use the DB, BOT and other new contract model, while improving international competitiveness and developing international market; (3) small and medium contracting enterprises should have space to survive by receiving state support, on the other hand, through their active exploration expertise and training of talent to gain market share.