Advertisement

Collusive Practices in Public Construction Projects: A Case of China

  • Ming ShanEmail author
  • Yun Le
  • Albert P. C. Chan
  • Yi Hu
Chapter

Abstract

Collusion is a set of behaviours where competitors coordinate their market behaviour surreptitiously, which is contrary to the principles of free competition (Chotibhongs and Arditi 2012a, b; Zarkada-Fraser 2000). Collusion is also insidious and harmful to the management of construction projects because it may decrease the number of bidders and increase contract prices, thus resulting in a poor project outcome (Oladinrin and Ho 2014; Zarkada-Fraser and Skitmore 2000). Moreover, collusion has brought a ‘dirty’ image to the construction sector and degraded public trust on the sector (Zarkada-Fraser 2000).

References

  1. Alutu, O. (2007). Unethical practices in Nigerian construction industry: Prospective engineers’ viewpoint. Journal of Professional Issues in Engineering Education and Practice, 133(2), 84–88.CrossRefGoogle Scholar
  2. Alutu, O., & Udhawuve, M. (2009). Unethical practices in Nigerian engineering industries: Complications for project management. Journal of Management in Engineering, 25(1), 40–43.CrossRefGoogle Scholar
  3. Ameh, O. J., & Odusami, K. T. (2010). Professionals’ ambivalence toward ethics in the Nigerian construction industry. Journal of Professional Issues in Engineering Education and Practice, 136(1), 9–16.  https://doi.org/10.1061/(asce)1052-3928(2010)136:1(9).CrossRefGoogle Scholar
  4. Ameyaw, E. E., Hu, Y., Shan, M., Chan, A. P. C., & Le, Y. (2016). Application of Delphi method in construction engineering and management research: A quantitative perspective. Journal of Civil Engineering and Management, 22(8), 991–1000.  https://doi.org/10.3846/13923730.2014.945953.CrossRefGoogle Scholar
  5. Ballesteros-Pérez, P., González-Cruz, M. C., Cañavate-Grimal, A., & Pellicer, E. (2013). Detecting abnormal and collusive bids in capped tendering. Automation in construction, 31, 215–229.Google Scholar
  6. Ballesteros-Perez, P., Carmen Gonzalez-Cruz, M., Canavate-Grimal, A., & Pellicer, E. (2013). Detecting abnormal and collusive bids in capped tendering. Automation in Construction, 31, 215–229.  https://doi.org/10.1016/j.autcon.2012.11.036.CrossRefGoogle Scholar
  7. Bowen, P., Akintoye, A., Pearl, R., & Edwards, P. J. (2007a). Ethical behaviour in the South African construction industry. Construction Management and Economics, 25(6), 631–648.CrossRefGoogle Scholar
  8. Bowen, P. A., Edwards, P. J., & Cattell, K. (2012). Corruption in the South African construction industry: A thematic analysis of verbatim comments from survey participants. Construction Management and Economics, 30(10), 885–901.CrossRefGoogle Scholar
  9. Bowen, P., Pearl, R., & Akintoye, A. (2007b). Professional ethics in the South African construction industry. Building Research and Information, 35(2), 189–205.CrossRefGoogle Scholar
  10. Chan, A. P. C., Ho, D. C. K., & Tam, C. M. (2001). Design and build project success factors: Multivariate analysis. Journal of Construction Engineering and Management-ASCE, 127(2), 93–100.  https://doi.org/10.1061/(asce)0733-9364(2001)127:2(93).CrossRefGoogle Scholar
  11. Chotibhongs, R., & Arditi, D. (2012a). Analysis of collusive bidding behaviour. Construction Management and Economics, 30(3), 221–231.CrossRefGoogle Scholar
  12. Chotibhongs, R., & Arditi, D. (2012b). Detection of collusive behavior. Journal of Construction Engineering and Management, 138(11), 1251–1258.CrossRefGoogle Scholar
  13. De Jong, M., Henry, W. P., & Stansbury, N. (2009). Eliminating corruption in our engineering/construction industry. Leadership and Management in Engineering, 9(3), 105–111.  https://doi.org/10.1061/(ASCE)1532-6748(2009)9:3(105).CrossRefGoogle Scholar
  14. Deng, X., Pheng, L. S., & Zhao, X. (2014). Project system vulnerability to political risks in international construction projects: The case of Chinese contractors. Project Management Journal, 45(2), 20–33.  https://doi.org/10.1002/pmj.21397.CrossRefGoogle Scholar
  15. Dorée, A. G. (2004). Collusion in the Dutch construction industry: An industrial organization perspective. Building Research & Information, 32(2), 146–156.CrossRefGoogle Scholar
  16. Hallowell, M. R., & Gambatese, J. A. (2010). Qualitative research: Application of the Delphi method to CEM research. Journal of Construction Engineering and Management, 136(1), 99–107.  https://doi.org/10.1061/(asce)co.1943-7862.0000137.CrossRefGoogle Scholar
  17. Hanna, A. S., Camlic, R., Peterson, P. A., & Nordheim, E. V. (2002). Quantitative definition of projects impacted by change orders. Journal of Construction Engineering and Management-ASCE, 128(1), 57–64.  https://doi.org/10.1061/(asce)0733-9364(2002)128:1(57).CrossRefGoogle Scholar
  18. Hartley, R. (2009). Fighting corruption in the Australian construction industry: The national code of practice. Leadership and Management in Engineering, 9(3), 131–135.CrossRefGoogle Scholar
  19. He, Y., Li, J., & Lu, H. (2009). Analyses of impacts of designated subcontracting to the client. Construction and Architecture (15), 56–58.Google Scholar
  20. Hon, C. K. H., Chan, A. P. C., & Yam, M. C. H. (2012). Empirical study to investigate the difficulties of implementing safety practices in the repair and maintenance sector in Hong Kong. Journal of Construction Engineering and Management, 138(7), 877–884.  https://doi.org/10.1061/(asce)co.1943-7862.0000497.CrossRefGoogle Scholar
  21. Hon, C. K. H., Chan, A. P. C., & Yam, M. C. H. (2013). Determining safety climate factors in the repair, maintenance, minor alteration, and addition sector of Hong Kong. Journal of Construction Engineering and Management, 139(5), 519–528.  https://doi.org/10.1061/(ASCE)CO.1943-7862.0000588.CrossRefGoogle Scholar
  22. Hu, Y., Chan, A. P., Le, Y., & Jin, R.-Z. (2013). From construction megaproject management to complex project management: Bibliographic analysis. Journal of Management in Engineering, 31(4), 04014052.CrossRefGoogle Scholar
  23. Hwang, B.-G., Zhao, X., & Goh, K. J. (2014). Investigating the client-related rework in building projects: The case of Singapore. International Journal of Project Management, 32(4), 698–708.  https://doi.org/10.1016/j.ijproman.2013.08.009.CrossRefGoogle Scholar
  24. Hwang, B. G., Zhao, X., & Ong, S. Y. (2015a). Value management in Singaporean building projects: Implementation status, critical success factors, and risk factors. Journal of Management in Engineering, 31(6).  https://doi.org/10.1061/(asce)me.1943-5479.0000342.CrossRefGoogle Scholar
  25. Hwang, B. G., Zhao, X., See, Y. L., & Zhong, Y. (2015b). Addressing risks in green retrofit projects: The case of Singapore. Project Management Journal, 46(4), 76–89.  https://doi.org/10.1002/pmj.21512.CrossRefGoogle Scholar
  26. Jamieson, S. (2004). Likert scales: How to (ab)use them. Medical Education, 38(12), 1217–1218.  https://doi.org/10.1111/j.1365-2929.2004.02012.x.CrossRefGoogle Scholar
  27. Jiang, H., Chen, F., & Zhao, J. (2001). Project changes and its research present state abroad. Journal of Guilin Institute of Technology, 21(2), 136–139.Google Scholar
  28. Ke, Y., Wang, S., Chan, A. P. C., & Cheung, E. (2011). Understanding the risks in China’s PPP projects: Ranking of their probability and consequence. Engineering, Construction and Architectural Management, 18(5), 481–496.  https://doi.org/10.1108/09699981111165176.CrossRefGoogle Scholar
  29. Kenny, C. (2009). Transport construction, corruption and developing countries. Transport Reviews, 29(1), 21–41.CrossRefGoogle Scholar
  30. Le, Y., Liu, M., & Li, Y. (2012a). Owner’s tunneling and its supervision: A game theory approach. Tumu Gongcheng Xuebao/China Civil Engineering Journal, 45(Suppl. 2), 236–240.Google Scholar
  31. Le, Y., Liu, M., & Li, Y. (2012b). “Tunneling” in government investment projects. Journal of Engineering Management, 26(3), 33–36.Google Scholar
  32. Le, Y., & Shan, M. (2013). A literature review on collusion in construction industry. Journal of Industrial Technological Economics, 32(1), 145–151.Google Scholar
  33. Le, Y., & Shan, M. (2014). Research trend of collusion in top construction journals. Paper presented at the Proceedings of the 17th International Symposium on Advancement of Construction Management and Real Estate.Google Scholar
  34. Le, Y., Shan, M., Chan, A. P. C., & Hu, Y. (2014a). Overview of corruption research in construction. Journal of Management in Engineering, 30(4), 02514001.  https://doi.org/10.1061/(asce)me.1943-5479.0000300.CrossRefGoogle Scholar
  35. Le, Y., Shan, M., Chan, A. P., & Hu, Y. (2014b). Investigating the causal relationships between causes of and vulnerabilities to corruption in the Chinese public construction sector. Journal of Construction Engineering and Management, 140(9), 05014007.Google Scholar
  36. Lin, W., & Chen, K. (2004). Overview of supervising in the Chinese construction industry. Statistics and Decision (9), 117–118.Google Scholar
  37. Liu, J., Zhao, X., & Yan, P. (2016). Risk paths in international construction projects: Case study from Chinese contractors. Journal of Construction Engineering and Management, 142(6).  https://doi.org/10.1061/(asce)co.1943-7862.0001116.CrossRefGoogle Scholar
  38. Lo, W., Krizek, R. J., & Hadavi, A. (1999). Effects of high prequalification requirements. Construction Management and Economics, 17(5), 603–612.CrossRefGoogle Scholar
  39. Mayo, R. E., & Liu, G. (1995). Reform agenda of Chinese construction industry. Journal of Construction Engineering and Management, 121(1), 80–85.  https://doi.org/10.1061/(ASCE)0733-9364(1995)121:1(80).CrossRefGoogle Scholar
  40. Molenaar, K. R. (2005). Programmatic cost risk analysis for highway megaprojects. Journal of Construction Engineering and Management, 131(3), 343–353.  https://doi.org/10.1061/(ASCE)0733-9364(2005)131:3(343).CrossRefGoogle Scholar
  41. National Bureau of Corruption Prevention of China, N. (2011). Analysis on typical corruption cases in the construction sector and instructions for corruption prevention. Beijing, China: Fangzheng Press of China.Google Scholar
  42. National Bureau of Statistics, N. (2014). China statistical yearbook on construction. Beijing: China Statistics Press.Google Scholar
  43. National Bureau of Statistics of China, N. (2015). China statistical yearbook. Beijing: China Statistics Press. Retrieved from http://www.stats.gov.cn/tjsj/ndsj/2015/indexeh.htm.
  44. Ning, Y., & Ling, F. Y. Y. (2013). Reducing hindrances to adoption of relational behaviors in public construction projects. Journal of Construction Engineering and Management, 139(11).  https://doi.org/10.1061/(asce)co.1943-7862.0000745.CrossRefGoogle Scholar
  45. Oladinrin, T. O., & Ho, C. M.-F. (2014). Strategies for improving codes of ethics implementation in construction organizations. Project Management Journal, 45(5), 15–26.  https://doi.org/10.1002/pmj.21444.CrossRefGoogle Scholar
  46. Priemus, H. (2004). Dutch contracting fraud and governance issues. Building Research and Information, 32(4), 306–312.  https://doi.org/10.1080/0961321042000221089.CrossRefGoogle Scholar
  47. Ray, R. S., Hornibrook, J., Skitmore, M., & Zarkada-Fraser, A. (1999). Ethics in tendering: A survey of Australian opinion and practice. Construction Management and Economics, 17(2), 139–153.  https://doi.org/10.1080/014461999371646.CrossRefGoogle Scholar
  48. Rojas, E. M. (2013). Identifying, recruiting, and retaining quality field supervisors and project managers in the electrical construction industry. Journal of Management in Engineering, 29(4), 424–434.  https://doi.org/10.1061/(asce)me.1943-5479.0000172.CrossRefGoogle Scholar
  49. Russell, J. S., & Skibniewski, M. J. (1988). Decision criteria in contractor prequalification. Journal of Management in Engineering, 4(2), 148–164.  https://doi.org/10.1061/(ASCE)9742-597X(1988)4:2(148).CrossRefGoogle Scholar
  50. Shan, M., Chan, A. P. C., Le, Y., Xia, B., & Hu, Y. (2015). Measuring corruption in public construction projects in China. Journal of Professional Issues in Engineering Education and Practice, 141(4).  https://doi.org/10.1061/(asce)ei.1943-5541.0000241.CrossRefGoogle Scholar
  51. Shen, L. Y., Wu, G. W. C., & Ng, C. S. K. (2001). Risk assessment for construction joint ventures in China. Journal of Construction Engineering and Management, 127(1), 76–81.  https://doi.org/10.1061/(ASCE)0733-9364(2001)127:1(76).CrossRefGoogle Scholar
  52. Sichombo, B., Muya, M., Shakantu, W., & Kaliba, C. (2009). The need for technical auditing in the Zambian construction industry. International Journal of Project Management, 27(8), 821–832.CrossRefGoogle Scholar
  53. Sohail, M., & Cavill, S. (2008). Accountability to prevent corruption in construction projects. Journal of Construction Engineering and Management-ASCE, 134(9), 729–738.  https://doi.org/10.1061/(asce)0733-9364(2008)134:9(729).CrossRefGoogle Scholar
  54. Tabish, S., & Jha, K. N. (2011). Analyses and evaluation of irregularities in public procurement in India. Construction Management and Economics, 29(3), 261–274.CrossRefGoogle Scholar
  55. Tai, S., & Qiu, Y. (2011). Research on qualification letting in construction firm. Construction Economy (11), 21–23.Google Scholar
  56. The National People’s Congress of People’s Republic of China, T. (1999). Bidding law of People’s Republic of China. Retrieved from http://www.npc.gov.cn/wxzl/gongbao/2000-12/05/content_5004749.htm.
  57. Thim, L. Y., & Zonggui, C. (2004). The development of the construction legal system in China. Construction Management and Economics, 22(4), 347–356.  https://doi.org/10.1080/0144619032000122177.CrossRefGoogle Scholar
  58. Trochim, W. M. K. (2006). Nonprobability sampling. Retrieved from http://www.socialresearchmethods.net/kb/sampnon.php.
  59. Turner, J. R., & Müller, R. (2003). On the nature of the project as a temporary organization. International Journal of Project Management, 21(1), 1–8.  https://doi.org/10.1016/S0263-7863(02)00020-0.CrossRefGoogle Scholar
  60. Vee, C., & Skitmore, C. (2003). Professional ethics in the construction industry. Engineering, Construction and Architectural Management, 10(2), 117–127.CrossRefGoogle Scholar
  61. Wang, J., Liu, J., Liao, Z., & Tang, P. (2009). Identification of key liability risks of supervision engineers in China. Construction Management and Economics, 27(12), 1157–1173.  https://doi.org/10.1080/01446190903222395.CrossRefGoogle Scholar
  62. Wang, J., & Qin, X. (2011). Cause analysis of collusion action of main action body under different mechanisms in construction industry. Construction Economy (S1), 1–5.Google Scholar
  63. Wu, H., Zhang, X., & Fei, X. (2009). Analyses and identification of collusive tendering behavior in construction projects. Construction Economy (8), 12–15.Google Scholar
  64. Xia, B., & Chan, A. P. C. (2012a). Identification of selection criteria for operational variations of the design-build system: A Delphi study in China. Journal of Civil Engineering and Management, 18(2), 173–183.  https://doi.org/10.3846/13923730.2012.657417.CrossRefGoogle Scholar
  65. Xia, B., & Chan, A. P. C. (2012b). Measuring complexity for building projects: A Delphi study. Engineering, Construction and Architectural Management, 19(1), 7–24.  https://doi.org/10.1108/09699981211192544.CrossRefGoogle Scholar
  66. Xia, B., Chan, A. P. C., & Yeung, J. F. Y. (2009). Identification of key competences of design-builders in the construction market of the People’s Republic of China (PRC). Construction Management and Economics, 27(11), 1141–1152.  https://doi.org/10.1080/01446190903280476.CrossRefGoogle Scholar
  67. Xia, B., & Ye, R. (2005). Prequalification: More theory and practice based investment are needed. Construction Economy (2), 49–51.Google Scholar
  68. Xu, Y., Yeung, J. F. Y., Chan, A. P. C., Chan, D. W. M., Wang, S. Q., & Ke, Y. (2010). Developing a risk assessment model for PPP projects in China—A fuzzy synthetic evaluation approach. Automation in Construction, 19(7), 929–943.  https://doi.org/10.1016/j.autcon.2010.06.006.CrossRefGoogle Scholar
  69. Yi, W., & Chan, A. P. C. (2014). Critical review of labor productivity research in construction journals. Journal of Management in Engineering, 30(2), 214–225.  https://doi.org/10.1061/(asce)me.1943-5479.0000194.CrossRefGoogle Scholar
  70. Zarkada-Fraser, A. (2000). A classification of factors influencing participating in collusive tendering agreements. Journal of Business Ethics, 23(3), 269–282.CrossRefGoogle Scholar
  71. Zarkada-Fraser, A., & Skitmore, M. (2000). Decisions with moral content: Collusion. Construction Management & Economics, 18(1), 101–111.CrossRefGoogle Scholar
  72. Zhang, D., & Zhao, H. (2008). Prevention measures of construction project bidding collusion. Construction Economy, 6, 029.Google Scholar
  73. Zhao, X., Hwang, B. G., & Low, S. P. (2013a). Critical success factors for enterprise risk management in Chinese construction companies. Construction Management and Economics, 31(12), 1199–1214.  https://doi.org/10.1080/01446193.2013.867521.CrossRefGoogle Scholar
  74. Zhao, X., Hwang, B.-G., & Low, S. P. (2013b). Developing fuzzy enterprise risk management maturity model for construction firms. Journal of Construction Engineering and Management, 139(9), 1179–1189.  https://doi.org/10.1061/(asce)co.1943-7862.0000712.CrossRefGoogle Scholar
  75. Zhao, X., Hwang, B.-G., Low, S. P., & Wu, P. (2015). Reducing hindrances to enterprise risk management implementation in construction firms. Journal of Construction Engineering and Management, 141(3).  https://doi.org/10.1061/(asce)co.1943-7862.0000945.CrossRefGoogle Scholar
  76. Zhao, X., Hwang, B. G., & Yu, G. S. (2013c). Identifying the critical risks in underground rail international construction joint ventures: Case study of Singapore. International Journal of Project Management, 31(4), 554–566.  https://doi.org/10.1016/j.ijproman.2012.10.014.CrossRefGoogle Scholar
  77. Zhou, H., Ye, S., & Shen, K. (2007). Study on agent-construction management mode of government investment project and risk analysis. Construction Economy (5), 52–55.Google Scholar
  78. Zou, P. X. W. (2006). Strategies for minimizing corruption in the construction industry in China. Journal of Construction in Developing Countries, 11(2), 15–29.Google Scholar
  79. Zou, P. X. (2007). An overview of China’s construction project tendering. International Journal of Construction Management, 7(2), 23–39.CrossRefGoogle Scholar
  80. Zou, P. X. W., & Zhang, G. (2009). Comparative study on the perception of construction safety risks in China and Australia. Journal of Construction Engineering and Management, 135(7), 620–627.  https://doi.org/10.1061/(ASCE)CO.1943-7862.0000019.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.School of Civil EngineeringCentral South UniversityChangshaChina
  2. 2.School of Economics and ManagementTongji UniversityShanghaiChina
  3. 3.Department of Building and Real EstateThe Hong Kong Polytechnic UniversityKowloonHong Kong
  4. 4.School of Economics and ManagementTongji UniversityShanghaiChina

Personalised recommendations