Upon entering the headquarter of 3rd Construction Co., Ltd of China Construction 5th Engineering Bureau ("CC5EB-3") in Longhua District, Shenzhen, a row of golden "Luban Award" is captures immediate attention. The Luban Award, which is known as the "Oscar" in the construction industry, has witnessed CC5EB- 3's achievements and its mutual growth with CR Land.
Rendering of CR Land International Culture and Business Center constructed by CC5EB-3.
"In the last 10 years, we have completed a dozen large-scale projects with CR Land across the country, including commercial complexes and super high-rise residential buildings. They are all landmarks, such as Mixc Commercial Center in Changsha, China Resources International Culture and Business Center in Xi'an, and China Resources Future City in Chengdu," said Li Hui, General Manager of Market and Client Department of CC5EB-3. He has been working in CC5EB-3 since he graduated, and has been cooperating with CR Land for a long time.
With strong comprehensive strength, CC5EB-3 stands as the sole legal entity within China Construction 5th Engineering Bureau to possess the esteemed "Double Special-Grade and Grade-A" qualiications. This distinction encompasses the special grade of general contracting for construction works (Grade A in design) and the special grade of general contracting for municipal public works (Grade A in design).
"It's not easy for CC5EB-3's Southwest Company and Northwest Company to win two A ratings in CR Land's supplier ratings for the West China Region in 2022," said Qiu Zhonggui, head of the Engineering Management Department of CR Land's headquarters. The selection process was very competitive. Jurors examine and select quality suppliers across six dimensions, including project quality, progress, safety, settlements, claims, and performance evaluation. Those rated with A and B are considered quality suppliers, and will be given priority for next project bidding and granted a 2% performance bonus after winning the bid.
CR Land always attaches importance to high-quality construction. It has established a "selection, training, and retention" lifecycle management system to select high-quality partners. It is also committed to building a green and healthy supply chain ecology. According to Qiu Zhonggui, they adopted the BTLIM model for selecting partners – that is to inspect the counterparty's boss, team, labor, investment, and management. He said, "Only a rigorous selection process can support our future strategy of win- win cooperation."
"To create more bidding opportunities, CR Land renews high-performing suppliers every year. As their success probability increases, our cooperative projects' quality has been guaranteed as well," noted Qiu Zhonggui. He also stated that CR Land's goal is to reach "60, 40" by the end of the 14th Five-Year Plan period, i.e., 60% of its business will be undertaken by 40% of its premium suppliers. He explained, "In the future, we may reach‘70, 30’, that is, 30% of our excellent suppliers will undertake 70% of our tasks. As a result, CR Land's projects will increase in quality."
High-quality management is a two-way empowerment process. During the past 10 years, CC5EB-3 has trained 28 qualiied and loyal project managers and numerous experienced deputy managers and employees through cooperation with CR Land. It has developed a professional, high-standard and excellent team.
"To create win-win cooperation, we have developed two benchmarking training plans, namely the‘Excellence Plan’and the‘Partner Plan’, to ensure mutual growth," said Li Hui. CR Land has developed a multi-faceted training program, including regular professional training, management training, and high-quality cultural training. As a result, its employees are able to recognize and execute its corporate culture to a high degree. CR Land also carried out project manager certiication activities and organized visits to learn from the experience of excellent projects. "The cooperation process is actually an‘empowerment’process," Li Hui further explained. Such empowerment has been relected in all aspects. During this 10-year period, our cooperative landmark projects have utilized green and low-carbon construction technology and promoted assembly-type construction technology. Therefore, we have accumulated abundant experience in this area. Qiu Zhonggui held this achievement in high regard and said, "Promoting the application of new processes and technologies through discussions with technically strong and experienced suppliers has guaranteed further improvement in quality and eiciency."
Due to long cycles, large-scale projects require good communication and precise control at each delivery stage before, during, and after the project. Large-scale projects also require systematic assessment mechanisms. To this end, CR Land has formulated assessment criteria for high-quality projects during the bidding stage, developed a database of past defective cases, and required its partners to conduct road shows and defenses in quality control. During construction, CR Land also assessed the project quality for key and diicult sections on a monthly basis. To ensure high-quality delivery, CR Land identiied delivery risks through third-party assessments and required three inal rounds of inspections before delivery from itself (CR Land), the property company, and the client before delivery.
"CRH has a manufacturing app that is an engineering informatization platform and contains modules such as quality management training and a case library," said Qiu Zhonggui. Materials and sample rooms can be accepted online, and whether the process on the construction site is qualiied can also be conirmed on the platform.
"Eicient communication underpins high-quality production," said Li Hui. When performing a project, both parties need to communicate on the basis of mutual trust for a win-win purpose.
As he said, their eicient communication was due to an established communication system at all levels, i.e., a region-to-region, city-to-city, and project-to-project, which facilitated smooth contract performance. "Our communication is not just pragmatic, but also highly practical," stated Li Hui. "We aim to inform our partners about their evaluations and ensure they align with our milestone targets. It's a two-way communication process where both parties can provide feedback for improvement."
With respect to future collaboration, both parties share the common goal of engaging in broad ranging services with a speciic focus on three key areas. Firstly, there is a strong emphasis on promoting the utilization of assembly-type buildings and green, low-carbon construction technologies. Secondly, there is a drive to leverage new technologies, processes, and materials,with the aim of advancing the implementation of an industrialized construction system through technological upgrades. Lastly, there is a mutual desire to explore the application of construction standards upheld by leading global enterprises, propelling quality management and technological innovation through the implementation of high-quality construction practices, lean management principles, and project information technology platforms.
With people's growing demand for a better life, Qiu Zhonggui said, "We will shoulder the leading role in improving project quality in the supply chain, further strengthen cooperation with industry benchmarks including China State Construction, carry out more extensive and in-depth exchanges, set benchmarks for construction standards in line with the world's irst-class enterprises, and join hands to promote high-quality development."