1) The total construction output for the 1980's reached approximately £l47 billion, exceeding that of the previous 3 decades.

2) The total floor area of the urban and rural residential buildings completed in the 1980's amounts to 1.28 billion square meters, being nearly twice that attained in the pevious 3 decades.

3) The output value of the construction industry increased annually by an average 10.8%.

4) 1,109 large and medium industrial projects were completed and put into use during the same period.

5) The construction industry employs he greatest share of the workforce. Employing a total of 102.2 million people in 1980, the numbers have nearly tripled to 270.2 million in 1992.

6) The output of the construction industry reached 9.5% of GNP
Where? Obviously not the UK but China, where the construction industry now plays a significant role n the PRC's national economy.
The above figures are included in a paper entitled 'The Economic Structure of the PRC Construction Industry' prepared by Professor Lu of Tsinghua University, Beijing and Honory Professor of Shenzhen University, Shenzhen, PRC. It shows the substantial growth of the construction industry in China since the introduction of the open door policy in 1979.

I have just spent a week in the PRC meeting various people and have concluded that China offers an opportunity that should be considered seriously. Whilst the construction industry has grown at such a pace most of it has been achieved through the control of the contractor by the various ministries. It is evident from my discussions that a recognition exists that to sustain such growth and to become cost effective, the construction industry has to be properly structured along Western lines.

This offers an opportunity for a number of Western consultants to assist in bringing China to international level. Whilst they have the manpower in abundance (mechanisation is not necessarily an area that they are in a hurry to catch up with), there is a need to understand and develop the financial controls and management of the industry. There is, I believe, considerable potential for UK contractors to sell their experience to China - specialist management expertise in particular and specialist sub-contractor work.

One of the problems perceived with China at the moment is the uncertainty of the Law. (I was asked whether commissioning problems on a fertilizer plant constituted a criminal offence !!). VAT fraud is considered a major offence which may, in certain circumstances, carry the death penalty. The law is in a constant state of development to allow China to deal with the West and it is necessary to give Western contractors some confidence to deal with them. The Chinese are prepared to enter into international contracts with dispute resolution by arbitration external to China and China is party to the New York convention for the enforcement of arbitral awards.

The training of Chinese staff takes on board Western practices and they do understand what a Quantity Surveyor is (perhaps not so inspiring after all!!).

In pursuing these opportunities, Trett Contract Services has entered into a Co-operation Agreement with the Kang Da Law Agency with offices in Beijing, Shanghai and Shenzhen. The Co-operation Agreement is for Trett to provide advice on commercial, contractual and financial/QS matters on international contracting to Chinese construction companies working internationally or procuring internationally for work in China.
Similarly Kang Da Law Agency will provide legal advice for Western companies wishing to work in China.