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Title: Impact of corporate credit scoring on construction contractors in China
Authors: Xiong, Bo
Skitmore, Martin
Xia, Paul
Ballesteros-Perez, Pablo
Ye, Kunhui
Zhang, Xiaoling
Keywords: Credit scoring
Project procurement
Construction contractor
Policy evaluation
China
Issue Date: 2019
Publisher: © American Society of Civil Engineers (ASCE)
Citation: XIONG, B. ... et al., 2019. Impact of corporate credit scoring on construction contractors in China. Journal of Construction Engineering and Management, 145(4): 05019002.
Abstract: In an attempt to enhance the trustworthiness of contractors and reduce corruption, the China Government has launched a construction contractor credit scoring (CCCS) scheme in Beijing for evaluating the compliance and integrity of contractors registered in the construction market. The contribution of this paper to the Body of Knowledge is to analyze how the incorporation of CCCS may affect general contractors’ present and future competitiveness through a case study in China. The paper analyzes the procurement of 158 building projects tendered in Beijing, involving 2071 local general contractors active in the market. The results show that (1) the contractors’ CCCS scores are important for being awarded large and mega project contracts; (2) CCCS scores have a generally positive effect on future corporate financial income; and (3) that, contrary to expectations, the policy does not increase the CCCS of companies. Finally, it is observed how the changing trend in contractors’ CCCS scores is highly correlated with their initial values (the scores of higher CCCS scoring companies increase faster on average than other companies). Final remarks concern ways to better implement CCCS schemes in the future and avoid the potential risks involved in their use.
Description: This material may be downloaded for personal use only. Any other use requires prior permission of the American Society of Civil Engineers. This material may be found at https://doi.org/10.1061/(asce)co.1943-7862.0001631
Sponsor: The first author was financially supported by a QUT HDR Sponsorship from the research project “Hosting, Maintenance and Further Development of the BER – Cost Analysis Model” funded by the Commonwealth of Australia represented by the Department of Education.
Version: Accepted for publication
DOI: 10.1061/(asce)co.1943-7862.0001631
URI: https://dspace.lboro.ac.uk/2134/36765
Publisher Link: https://doi.org/10.1061/(asce)co.1943-7862.0001631
ISSN: 0733-9364
Appears in Collections:Published Articles (Architecture, Building and Civil Engineering)

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