The modern construction industry faces increasingly complex challenges, characterized by dispersed project locations, numerous stakeholders, high risks, rapid changes, strict quality standards, tight timelines, and cost constraints. These factors define the current landscape of project management. Achieving informatization in construction engineering project management is now a widely accepted goal. Integrating high-tech solutions, such as digitalization, is essential for the sustainable and transformative development of the construction sector, enabling it to achieve significant progress.
Construction Project Management, Informatization, and Development Trends
With the rapid growth of the Chinese economy, the construction industry in China is transitioning from traditional methods to modern approaches. The rise of the information age has brought new vitality to this long-standing industry. Both domestically and internationally, scientific management of engineering projects is seen as a key reform, with informatization playing a crucial role in achieving these goals. The widespread adoption of modern computing, networking, and communication technologies has become an inevitable trend, serving as an important means to enhance project management standards.
1. Current Situation of Project Management Informatization in China’s Construction Industry
Over the past thirty years, China’s engineering construction sector has developed a comprehensive management system that aligns with both international standards and the country’s specific needs. However, the application of information technology for proactive and effective project management remains limited. This gap hinders standardized project promotion and the efficient collection and analysis of project data, leaving China behind in terms of operation, maintenance, and scientific management compared to global counterparts.
Many informatization model projects have become superficial, serving more as face-saving initiatives. For example, a major construction project in China invested nearly ten million US dollars in cooperation with a foreign project management firm to develop a network-based management system. Despite its advanced and comprehensive functions, only about 20% of its features are utilized, and overall project management has not improved. Even well-executed engineering projects often face issues such as incomplete feasibility studies, inaccurate or changing user requirements, delayed progress, non-standard contracts, unresolved disputes, lack of equipment supervision and system evaluation, missing project documentation, prolonged operational difficulties, delayed funds, and unpaid contractors.
These problems are common across many enterprises and projects in China. They stem partly from obstacles within management systems and organizational behavior, and partly from the blind selection of MIS software and the low integration level of these systems.
2. The Significance of Engineering MIS Construction
The Computer Management Information System (MIS) for large-scale construction projects is a relatively new discipline, developed in response to the growing scale and complexity of engineering projects, and the increasing need for strict control over quality, schedule, and cost. MIS research addresses both macro-level management during project decision-making and micro-level management during implementation. Introducing modern information technology into engineering project management is fundamental for advancing modernization and scientific practices.
While foreign countries have more than 30 years of experience with engineering MIS, including comprehensive theories, methods, and software for investment, progress, and quality control throughout project management, China has only gradually established its own systems over the past 20 years. However, the effective use of information technology in project management remains low, and there is still a considerable gap compared to international standards.
3. Fundamental Issues of Construction Project Informatization in China
As modern project management advances, many Chinese enterprises have adopted project management methods, restructured business processes, and established management systems. Significant investments have been made in advanced computers, networking, and project management software such as P3 and EXP. Yet, the development and effective operation of project management information systems within real estate companies, design institutes, and construction enterprises have often been unsuccessful.
(1) Some organizations begin with confidence in informatization, acquiring advanced management software. However, management remains outdated: network systems function mainly as postal routes, with much information still processed manually. Online project management functions are not integrated, leading to disorganized information. Ultimately, informatization becomes merely a formality.
(2) Despite investing millions in developing network-based project management systems in collaboration with foreign firms, utilization remains low, with only about 20% of functions actively used, resulting in limited improvements to overall project management.
These issues are widespread. On a micro level, the main reasons include:
(1) Leadership biases: Many leaders equate informatization with purchasing advanced hardware and software, neglecting the importance of designing, operating, and standardizing project management systems.
(2) Lack of standardization: Enterprise management and project management lack standardized workflows, organizational responsibilities, and integrated information processes.
(3) Organizational culture: Many enterprises do not embrace the openness, fairness, democratic management, and transparency required for modern project organization and operations.
(4) Skills and habits: Employees often lack the knowledge, abilities, and discipline required for project management, failing to follow procedures and regulations necessary for informatized operations.
4. Understanding Issues in Enterprise Informatization
1. Enterprises often fail to recognize that informatization is a systematic transformation project. Its true purpose is to learn, research, and apply advanced management concepts, methods, and technologies from both domestic and international sources, thereby streamlining business and organizational structures, improving operational efficiency, and enhancing core competitiveness.
2. There is insufficient awareness of the importance and seriousness of enterprise informatization, with a lack of willingness to invest time and resources in restructuring management systems and business processes.
3. The long-term habits and business processes of enterprises can hinder informatization. During initial implementation, information systems may be unstable, requiring significant data input and adaptation by users, sometimes causing inconvenience. Management must not be discouraged by these challenges but should actively address issues, support staff, and facilitate a smooth transition.
Additionally, many enterprises still operate under “rule of man” rather than “rule of law.” Due to imperfect systems, leaders often rely on personal instructions or statements, displaying non-standard management styles. Employees, seeking to reduce responsibility, look for constant confirmation from superiors. The absence of strict procedures and business process thinking leads to arbitrary operations and management behaviors, which are incompatible with modern enterprise management.
5. Basic Principles of Enterprise Informatization
1. Recognize the importance and gravity of enterprise informatization, including dynamic alliances, supply chain management, information centralization, resource centralization, and centralized decision-making.
2. Enterprise informatization must start with fundamental work: transforming management thinking, redesigning operational models, reengineering business processes, optimizing organization, properly assigning roles, and strictly enforcing rules and regulations.
3. The legal entity of the enterprise must take direct responsibility for informatization, ensuring prudent and healthy implementation.
References
Li Jiancheng. On the Standardization of Information Technology in the Construction Industry.
IV. Building Science Research, 2004, Issue 04
Shang Chunjing, Liu Changbin. Informationization of Construction Project Management.
Building Economy, O8, 2004
Li Yongkui, Le Yun, He Qinghua. Research on the Integrated Management System for the Operation of the 2010 Shanghai World Expo.
Computer Engineering, May 2007
Ma Zhiliang, Qin Liang, Ren Qiang. Architecture Construction Project Information Management System Framework.
Civil Engineering 1. Journal of Engineering, January 2006
Source: China Mingwang
Author: Yuan Bin
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