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| Research on the Vertical Integration of General Construction Contractor |
| WEI Zhong-Win1，GUAM Bai-hai2，MA Lan3 |
| 1. China Railway Resource Co. Ltd, Beijing 100055，China; 2. Southwest Jiaotong University, Chengdu, Sichuan 610031，China; 3. China Railway 8th Bureau Group, Chengdu, Sichuan 610036, China |
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Abstract Research purposes: Contractor construction business System is more and more adopted at home and abroad and the construction enterprises take construction contractor project as their important direction of business development in the future. However, the Chinese construction enterprises usually have single ability of design or construction due to some reasons, so in this case, if the construction enterprise wants to undertake the general construction contractor project, he has to make decision whether he subcontracts those works he has not ability to do or he does all works through improving his ability.
Research results:Through summary on the theoretical base of vertical integration, the analyses of five characteristics of general construction contractor project are made, the discussions are made on the factors influencing the vertical integration of general contractor from six aspects of business cost, production efficiency and management cost, optimum design, investment amount, assets specialization and market competition, and the conclusion is made that the construction enterprise with single ability can carry out the vertical integration toward general construction contractor.
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Received: 05 September 2008
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2008, Vol. 25 
