Project Managing Chinese Construction ProjectsThere are 2 regulatory bodies which oversee construction projects in China: the Ministry of Housing and Urban-Rural Development (MOHURD), and the National Development and Reform Commission (NDRC).MOHURDThis regulatory body has defined some of its standards in the "Provisional Measures on Construction Project Management" ("Circular 200") issued on November 16, 2004, and the "Guidance Opinion on the Establishment of Project Management Enterprises by Large-Scale Engineering Supervision Enterprises" ("Order 226") issued on November 12, 2008.Under Circular 200, companies can undertake project management work in China if they have qualifications in one or more of the following categories: surveying, design, construction, tendering agency, cost control, or supervision. There is no separate category for project management so companies that wish to sell their project management expertise in this market must hold a certificate in one or more of these areas. The circular further states that companies selling project management services must improve their organizational structure, establish project management systems, employ project management professionals, comply with present qualification provisions and only undertake project management services that lie within their area of qualification. The circular defines the role of the project management services provider as an assistant to the project owner. The PM services company may offer services to the owners including in the following areas:
Professional personnel engaged by project management services providers are required to hold qualifications in one or more of the following categories: urban planner, architect, engineer, constructor, supervising engineer, or pricing engineer pursuant to Article 4 of Circular 200. This is in line with the company qualification requirements mentioned above, and again, there is no separate personnel qualification for "construction project managers." NDRCChinese law mandates that all new projects, including construction projects need to be approved by or "lodged" with the NDRC before the project can start and all foreign invested projects must be approved by the NDRC as the first stage in government approval. For projects under $100M USD, approval is managed by the local branch of the NDRC and for projects over $100M USD the approval must come from the central authority.The first step in gaining approval is the completion of a "Project Application Report" detailing project information such as scale, major activities, products, location, natural resource demand, environmental influence evaluation, finance, and equipment import. The NDRC will use this report to monitor project activity, if approval is granted. The NDRC issued the "Measures for Recognizing the Qualification for Engineering Consulting Entities" ("Circular 29") on March 4, 2005. Also, on March 4, 2009, NDRC issued the "Notice on the Implementation of Measures for Recognizing the Qualification for Engineering Consulting Entities" ("the Implementation Notice"). According to Circular 29 and the Implementation Notice, any company engaging in engineering consulting services in China must legally hold an "Engineering Consulting Enterprise Qualification Certificate" issued by the NDRC and must practice within the profession and service scope stipulated by the Certificate. For the purpose of Circular 29 and the Implementation Notice, "Engineering Consulting" is defined as: "the act of providing government organs, project owners and other kinds of clients with intelligence services relating to the decision-making and execution of social economic construction and engineering projects for the purposes of enhancing the economic and social benefits, and realizing sustainable development by following the principles of independence, justice, and science, and employing multidisciplinary knowledge and experiences, modern science and technology and management skills." The detailed engineering consulting service scope under Circular 29 and the Implementation Notice includes:
There is a degree of overlap between the items in the project management category in Circular 29 and the list in Circular 200 which will tend to make satisfying both agencies difficult should their goals and objectives diverge. The Chinese government is placing all the emphasis on construction areas of qualification and has not introduced any qualifications in the area of project management. Regardless of that, we feel that your certification as a Project Management Professional (PMP®) will be helpful in the project management areas mentioned in the lists in both circulars. For information on how you can achieve certification with the PMI, check out our PMP® Certification pages. For information on our training product, check out our AceIt pages. |
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