Code : 2019117
Event Name : Empirical observation of tender bidding and claims behavior by contractors in China
CPD Code : Formal Events
Speaker : Mr. Johnson So W L, BSc, MBA, FHKIS, FRICS, RPS
Johnson So is an experienced Fellow working in Sun Hung Kai Properties Limited Special Projects Department. He has been engaging in project management over 20 years. He takes lead of many major mega projects both in HK, PRC and Singapore in project and cost management, like HK IFC Development, Singapore ION Orchard, Shanghai ICC, GZ Hong Cheng Plaza (Parc Central), Foshan Developments, etc, currently engaged in comprehensive developments, like HK West Rail Yuen Long Station Property Development, Shanghai XJH ITC, Shanghai Minhang TOD Town Development. He has deep and insightful knowledge to run mega development.

Mr. Joe Chan, BSc, MSc, MHKIS, MRICS, RQCCE
Joe Chan joined Arcadis in 1993 and specializes in cost and project management. During his career, he especially excelled in strategic advice during project delivery and in creating alternative solutions to client challenges. He has been recognized for consistently providing high standards of excellence during the past 26 years in Arcadis, delivering a wide range of complex and landmark projects across China. He has gained valuable experience in Hong Kong and Mainland China, thereafter he was assigned to Chengdu office to lead our operation in China West in 2011, prior to his current role as the Head of China East based in Shanghai since 2015.
Event Date : 2019-10-14
Event Time : 7:00 pm - 8:30 pm
CPD Hour(s) : 1.5
Divisional PQSL Hour(s) : 1.5
Venue : Surveyors Learning Centre, Room 1207, 12/F, Wing On Centre, 111 Connaught Road Central, Sheung Wan, Hong Kong
Division : QSD
Organizer : Quantity Surveying Division
Fee : HK$150 for members; HK$210 for non-members (HK$30 walk-in surcharge on all prices listed)
Priority : QSD Members; First-come-first-served
Language : Cantonese supplemented by English
Details :

In the current dramatic climate of materials price fluctuation and labor inflation in China due to many unusual external global economic impacts such as trade war,  many internal unstable factors by Central and Regional /Local Govt policies, and unstable property market, the strategies to tender to-date become unusual and non- linear causing unreasonable drop of tender prices under severe competitive environment . It happens that many tenderers are on same page in tender war. It looks like as endowment effect in bidding war. Tenderers consider tender price is a kind of value based on fact from subjective or emotional significance rather than its objective market value. What causes up this phenomenon and psychological behavior.

 

This is not the end of the story......

When the tenderer of low bid won the project, the other way round comes up. Their claim figures under whatsoever circumstances to clients are crazy enough to be signaling and become another form of value due to sensitivity of losses. In other words, this tendency reflects loss aversion effect.

 

To clients, what and how do we deal with that kind of abnormal art transformation figures?

 

To consultants, how to assist both parties to settle?

 

Some selected cases are used to illustrate these issues.

Remarks :

FULL (NO WALK IN AVAILABLE)

(Registration and networking time: from 6:30 pm)

Payment : HKD 150