China is a hugely vast country which is the third largest in the world, has been hit by massive growth population since the 1940s during the Chinese civil war era. Back then the housing conditions has been extremely poor, primitive and congested. This has created greater stir among the communities and place a huge pressure on the building industry to deliver.
Since the establishment of the People’s Republic of China in the year 1949, the transformation of the construction management system has taken in place and it has encountered four phases of process.
The first phase was from 1949 to 1952 for around 4 years, during that phase all construction projects were decided by the construction owner (the Government) as during that time there is no proper management systems and the building industry was lacking technologies and manpower. The owner oversaw the whole process, they purchased the materials and equipment and hired the construction and design team to plan and get the project done.
The second phase was from 1953 and it lasted for 13 years, China acquired the idea of the construction management system from the former Soviet Union. Construction organisation is branched into three groups. The construction department which represents the Government, is responsible for the overall construction development, the second group is the design department who oversees the design work, and the third is the building department, which is the most important where they execute the projects based on the design drawings. Back to the former days, the design and building department waited for the instructions that is designated to them by the authorities before they execute the work. When there are any disputes arises, the construction department will have the final decision in resolving it.
In the third phase, the construction industry in China was heavily influence by the economic system where all the decisions are made by the Government. Construction companies were heavily tasked with work by administrative order. During this economic system, companies are not able to make any gains or profits for the work they had done. The industry was eventually utilized to their advantage to carry out any construction assignments.
The fourth phase, is when the construction management system is constantly progressing well into the modern era, during the China economic reform policy during the late 1970s and since then, after the 40 years of reform the construction industry has seen tremendous growth.
The construction industry output was only about 13.9 billion yuan in the year 1978, and now according to statistics, the output has gain significantly at 5.57 trillion yuan (approximately 816.6 billion USD) in the year 2017. The GDP percentage was accounted at 3.8 percent back then in the year 1978, and now it has increase to 6.7 percent in the year 2017, according to the NBS website.
National Bureau of Statistics of China (2017), China Statistical Yearbook, China Statistics Press7