Application Of Joint Venture And Consortium In International Project Contracting

Joint venture or consortium, as an important business pattern for international construction contracting, is considered as an effective approach of entering international market, performing global strategy and an access to high-end contracting market for construction enterprises of China. For better understanding of this pattern and to make best use of the advantages of it, this thesis researches on the application of joint venture and consortium in construction industry.General characteristics and three types of international construction joint venture (ICJV), which are joint and several liability JV, consortium and complex JV, are introduced firstly in this thesis. Through analysis of driving factors influencing the formation and operational characteristic of ICJV, concepts of ICJV model applied in this thesis are explained. On the basis of several typical ICJV cases, such as Turkey’s high-speed rail project consortium, three kinds of ICJV model, with each typical partner composition and operational characteristic, are concluded. Then, this thesis identifies problems occurred in the Chinese contractors’application of those ICJV models.In consideration of various project environment and different partners, this thesis researches on the appropriate choice of JV type when establishing an ICJV. Critical factors affecting the choice of JV type is concluded through case study and literature review. On that base, this thesis models the decision-making of JV type choice with the method of analytic network process (ANP). An analysis of example, Hong Kong West Rail project, is conducted for decision-making on type choice when establishing ICJV, following the further discussion on the analysis results and model features.To overcome problems in utilizing ICJV models, the thesis provided suggestions of building a suitable cooperation framework and coordinated management mechanism of ICJV respectively according to different organizational form and pattern of ICJV. This research is aimed to provide reference and guidance for Chinese contractors using JV or consortium in international project contracting.