Research Of Risk Assessment And Risk Response For International Construction Market In Middle East

The economic globalization involves every enterprise into international competition and forces them to make a strategy for it. Internationalization, for Chinese construction companies, is not an easy way. It was started in 1980'for Chinese international construction companies to participate in internationalization. Some progress has been made since then, but they still can not do it good enough compared to companies from Japan, Korea and some western countries. And in the eyes of some western clients, Chinese international construction companies are not as professional as they are. This is an important reason why Chinese companies can not get acceptation from western and American clients. In the last several years, a few Chinese international construction companies suffered in international market, such as China Railway Construction Corp who suffered in the light-rail project in Saudi Arabia. To a great degree, their failures lie in lack of risk management experience. This paper takes the international construction market in Middle East as the object, and focuses on risk analysis and assessment of it. Besides, this paper also promotes some advices based on the risk analysis and assessment of the market for the companies who make Middle East market as one of their targets and for some other international construction companies as well.This paper mainly takes Empirical Research as its study method. In the first chapter, some defects in the research doing by domestic scholars of international construction risk management are pointed out basically by making comparisons between researches doing by both foreign and domestic scholars, including problems on research depth and meaninglessness of studies. The second chapter mainly gives some correlative theoretical basis and some techniques involved in this paper. The third chapter takes the research further to some analysis. First of all, the exact meaning of the words "Middle East" is discussed. Then the market situation in this area is analyzed by covering three aspects, which are market compositions, market characteristics and market opportunities. The market analysis is also the start of empirical research. Meanwhile, based on the discussing of risk classification, this paper classified the risk of international construction market in Middle East into three categories (or levels), which are macro, market and project levels. Then the risk in each level is analyzed and some indicators in each level are identified. The fourth chapter is the part of risk assessment. By structuring the model of ICRAM-1 and inputting some useful messages and data which are collected before, the Risk Assessment of each level and each indicator can be computed. By analyzing the result, some further conclusions are made, including the risk structure of the international construction market in Middle East, the factors which make the high-risk-assessment indicators come out and how they make them come out. The fifth chapter gives some advices on risk response standing in the point of view of domestic international construction companies. Considering the facts in the Middle East market, the advices are given as follows, which can be also appropriate to a certain extent in other markets. The first one can be summarized as dealing with the risk separately in the process of construction as well as before it. And the second one is that the risk should be analyzed from upper level to lower level while be monitored from lower lever to upper level.This paper mainly makes some stretches on international construction risk management from a practical value, by standing in the point of view of domestic international construction companies. And the stretches can be identified from three aspects. Firstly, this paper makes some suggestions on marketing guidance for domestic international construction contractors who are trying to prove their business in Middle East market by analyzing the market compositions, market characteristics and market opportunities. Secondly, by using the experience of western researches for reference, this paper introduces a new view of dealing with international construction risk, which is that risk analysis could be done from different three levels and meanwhile, the relationship between them should be considered. Thirdly, this paper gives some risk response for international construction companies on the basis of analyzing the way how the three levels impact international constructions.