Review of Organizational Structure of China

Xinjuang Beixin Construction & Engineering

(Group) Pvt. Ltd. (Pakistan)
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中国新疆北新建设工程 ( 集团 ) 有限责任公司
China Xinjiang Beixin Construction Engineering
(Group) Co., Ltd.
24th,Dec,2013
 Sequence
• Introduction
• Major Observations
• Proposed organogram
• Terms of References (ToRs) for Departments
• Recommendations
• Conclusion
 Introduction
• China Xinjuang Beixin Construction & Engineering (Group)
Pvt. Ltd. (Pakistan) known as CXB has come up as a leading
Construction Company in the country having current
portfolio of almost 100 projects having project cost
approximately USD 175 mainly working in AJ&K.
• I joined CXB on 3rd March,2014 and 1st task assigned to me
by COO was to carry out analysis of on going working
analogy between Head office and field offices as well as
with clients / consultants in order to highlight the grey
areas with aim to create conducive and progressive
environment for the company in Pakistan.
 Introduction
• Currently, huge projects of transportation and energy sector to be
launched in near future by Government of Pakistan mostly with
collaboration of Chinese government which are in planning phase. Before
their culmination, CXB needs to adopt such an organizational structure
and stream line their procedures which are in line with Clients
(Government Department), Consultants as well as Sub Contractors to
have minimum friction and smooth functioning.
• Though after 2 weeks I am not in a position to comment or suggest an
accurate and pertinent solution to existing system of CXB because neither
I am well conversant with all of projects history nor the complete system
and team of CXB. This effort and presentation is just my personal
Understanding of the problems and recommendation are very generic
and basic in nature which can be improved or modified to make them
pertinent to CXB (Pakistan).
 Major Observations
• External Environment
– CXB is not having conducive working relations with Clients, Consultants and Sub
Contractors
– Sub Contractors are facing issues related to design and variations due to lack of
coordination between our project management team, client and Consultant at site.
– Selection of Sub Contractors or Designers is not suitable in most of the cases.
– General Dissatisfaction amongst Sub Contractors regards to interim Payments
• Project Management Team
– Mishandling of site issues by project management team aggravates the nature
resultantly, wasting more time and resources
– Lack of information sharing with staff at site like QS, Planning Engineer etc
– Communication Gap amongst CXB employees as well as sub contractor and
consultants
– Frequent changes in Project management staff on different projects
– Lack of any defined composition of Project management and execution team at site
 Major Observations
• Head Office
– There is lack of Proper Documentation regarding Projects
history, progress and on going issues.
– CXB has got design consultancy contracts but not having any
suitable person enrolled in the office to accomplish that
– Lack of networking amongst head office & field offices.
– Lack of Team Spirit amongst CXB employees
– Lack of effective progress monitoring system
– Non availability of Data Bank and effective communication
system in head office
– Ineffective involvement of Head Office in actual execution of
projects
 ToRs for Departments/Appointments
• This suggested organogram explains the working analogy and define the functions of
different departments and appointments. The strength of each department/Section
will be defined after finalization of hierarchy in the organization
• The work load considered to suggest this organization is as follows
– No. of Projects - Approximately 100
– No. of Field offices - 5
– Portfolio - USD 175
• Terms of References
– GM / Chief Operating Officer
• He is the head of CXB Pakistan.
• He is responsible for all kind of strategic and policy making issues of the company.
• He is also over all responsible for achieving laid down objectives by Head Office China.
– Deputy GM / Deputy Chief Operating Officer
• He will be over all responsible for all operations
• He will also act as GM in his absence.
• Preferably a Pakistani National
ToRs for Departments/Appointments
– Senior Technical Advisor
• He will render his advices to GM CXB Pakistan on technical issues for
all kind of operations involved. May it be Tendering
/Contracting/planning / execution of any project or business
development
• He will also act as an arbitrator for disputes resolution
• Preferably a Pakistani National with required experience and
qualification.
– Personal Assistant / Secretary
• Will Perform all duties of Personal Assistant / Secretary for the GM
• Will also perform Duty of interpreter for the GM
• Preferably a Chinese National with good English Communication
skills
 ToRs for Operations Directorate

– Director Operations
• He is over all in charge of all operations including Planning, Contracting,
Designing & procurement related to all upcoming and running projects as
well as business development
• He is responsible for business development by highlight the upcoming
iconic projects in the country and also carry out necessary planning and
feasibility studies
• He will also prepare Engineer Estimates for the Contractual Formalities
 ToRs for Operations Directorate
– Planning Branch
• This branch will be headed by a Manager preferably a
Pakistani National looking after Business Development and
Planning
• This Branch will have 2 sections:-
– Business Development
– Planning, Estimation & feasibility studies
– Contract management Branch
• Branch manager preferably a Pakistani National who is
responsible for all kind of contractual formalities related to
upcoming as well on going projects
• It will have further 3 sections:-
– Bidding & Tendering
– Contracts & Claims
– Legal Advisor
 ToRs for Operations Directorate
– Design Branch
• CXB is already having design consultancy projects for
which it needs to have qualified and experienced
designers on its pay roll.
• Branch Manager who can be a Chinese National with good
communication skills in English or Pakistani is overall
responsible for design contracts
• It will have 2 sections :-
– Indigenous Design Section. This section will be capable of Vetting
designs received by design consultants and for further
submission to clients
– It will also be capable of making complex shop drawings in case
of high tech projects like NBBIA or any power plant project etc.
– Design Coordinators. They will coordinate design issues on site as
well as coordination amongst designer, consultant and sub
contractor
 ToRs for Operations Directorate
– Procurement Branch
• Literally, procurement encompasses procurement of materials,
machineries as well as labor and services
• Nature of Projects CXB is designed to undertake following are the
few major items which should be procured centrally in order to
ensure quality:-
– Cement
– Bitumen
– Steel
– Construction Machinery
– Form work
– Services
• This branch manager is overall responsible for bulk procurement
having 2 sections
– Construction materials Section
– Construction machineries Section looking after hiring / de hiring as well
ToRs for Monitoring & Evaluation (M&E) Directorate
 Recommendations
• Execution/Project management team should mainly
comprise of Pakistani Individuals in order to address the
lack of communication. Where employment of Chinese
individual is mandatory, either that individual should have
good English language skills or a good interpreter having
background knowledge and understanding of construction
industry should be made available.
• CXB should have an ERP or Networking for effective
correspondence between head office, field offices even
with Clients/ Consultants and to develop a credible data
bank.
 Recommendations
• Well defined and suitable organization structure keeping in view
the portfolio CXB is handling in Pakistan should be approved and
implemented for Head Office as well as for Field offices so that
different departments as well as individuals are accountable for
their performances
• After approving the basic structure, the appropriate working
strength for each department as well as section should be
identified.
• HR department should define Job Descriptions for each
appointment
• Recruitment should be done centrally by HR department in the
head offices even for the staff required at site.
 INTRODUCTION
Being established in 1952, China Xinjiang Bingtuan
Construction & Enigneering (Group) Co. Ltd. (Second
Name: Xinjiang Beixin Construction & Enigneering
(Group) Co. Ltd.) is a comprehensive and large State-
owned enterprise group integrating general contracting,
investment, construction, real eastate development,
building material production, scientific research, design,
equipment installation, trade and logistics, and is a
qualified Grade-A general contractor of state in road,
railway, water conservancy, hydroelectricity,and housing
construction and a contractor of qualification for overseas
projects and labor service cooperation.
 INTRODUCTION
China Xinjiang Beixin Construction Engineering (Group)
Co., Ltd. with its headquaters in Urumqi, Xinjiang, has
14 subsidiary companies, including one listed company
that got certified to Quality, Environment, Occupational
Health & Safety Management System in 2003, and has
been listed in the top-225 international contractors by
ENR (the U.S.) in 8 consecutive years since 2004, with
the up-to-date ranking is No.157. The Company
obtained the title of China International Project
Contracting Enterprise with Credit Rating AAA in 2008.
It is an excellent construction enterprise in China and
Xinjiang as one of key enterprises of road, bridge,
tunnel, railway, water conservancy, electricity, industry
and civilian construction in western China.
 INTRODUCTION
China Xinjiang Beixin Construction Engineering (Group)
Co., Ltd. has been implementing the development
strategy of "basing itself in Xinjiang, developing markets
in other provices and advancing market abroad", in recent
years, and now it develops market successfully in 15
provinces such as Tibet, Shanxi, Henan, Jiangxi and Inner
Mongolia, and contracts for more than 30 foreign projects
in more than ten countries such as Pakistan, Mongolia,
Algeria, and Angola etc. Its annual growth rate has been
maintained above 20% economically. The Company has
been awarded more than one hundred prizes of state-
provincial-or ministery-level such as Luban Award,
Zhantianyou Prize, Golden Cup of National Public Works,
Dayu Prize, Huochetou Golden Prize and so on.
 INTRODUCTION
China Xinjiang Beixin Construction Engineering (Group)
Co., Ltd. has been upholding the spirit of enterprise "to
challenge myself, to surpass myself", seizing every
opportunity and making great efforts to create a global
international enterprise group.
With the changing market enviornment and improving
market mechanism, the Company sees the responsibility
of accelerating development. we are making every effort
to build a holding company for investment and
management, integrating design with construction,
integrating ivestment with construction, and integrating
production management with capital operation, for
making more contributions to construction and
development of the country and the world as well as to
revitalization of regional economy.
Excellent Water
Conservancy
Construction
Enterpris
High Quality Project Silver Cup Locomotive Cup
 Enterprise Glory
Luban Prize of China's Constructional Project
Top-100 Classic & Masterpiece Project on the
60"Anniversary of New China founding
Dayu Prize of China's High-qulity Hydraulic
Engineering Projects
Zhantianyou Prize of China's Civil Engineering
Projects
Golden Cup for China's Municipal Engineering
Projects
The National Science and Technology Progress
Award
Top-225 International Contractors in the world
Top-60 Contractor Enterprises in China
 Enterprise Glory
Advanced Collective of National Commercial System
State-Level Construction Method

China International Project Contracting Enterprise with

Credit Rating AAA
National May 1st Labor Certificate
National Outstanding Basic Party Organization
Winner Enterprise of National "AN-KANG Cup"
Competition
Advanced Collective of National Science & Technology
System
Membership of Chinese Construction Enterprise
Management Academy
National Outstanding Construction Enterprise
Leading Brand of Chinese Corporate Culture Innovation
Enterprise of Observing Contract and Valuing Credit
Cordial Care
The Vice Chairman of
China visited. the
residential buildings
constructed by being
CXB in Angola in
2010.

CheJun, Commissar of
the Xinjiang Production
& Construction Corps,
is investingating and
surveying at Lanzhou-
Xinjiang High-Speed
Railway.
Zhu Jianguo, General
Manager of the CXB is
accomanying Che Jun,
Commissar of the Corps,
during investigation and
survey at Lanzhou-Xinjiang
High-speed Railway Line II.

Liu Xinqi, commander of the

Xinjiang production &
Construction corps, is
inspecting the project in
Pakistan.

General Manager is
awarding prizes to Top-
10 outstanding
Employees.
 Contents

1 2 3 4 5
Road Bridge and Water Power Plant Civilian
Projects Tunnel Projects
Conservancy Projects Construction
Projects Projects
 Road Projects
Pakistan Highway
Road Projects State road 314 line
Road Projects
Jinnah Airport in Karachi
 Bridge and Tunnel Projects

Celebration scene for running through of Tunnel

in Bayinnulu
Bridge and Tunnel Projects
HongJingzi Tunnel
Bridge and Tunnel Projects
Jing Yinghuo Railway Section 9
 Water ConservancyPPTProjects
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Kalasuke
Key water
-Control
Project
Water ConservancyPPTProjects
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Reservoir in Qia La
Water ConservancyPPTProjects
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National North-to-south water diversion project

Power Plant Projects
Power plant ， Manasi
Power Plant Projects
Root power station, Mongolian
 Civilian Construction Projects

174 Units Villas Projects in Ekaterinburg, Russia

Civilian Construction Projects
Sierra leone's national stadium
Civilian Construction Projects
Qinghai-Tibet Railway
Paving Work in Progress, AJK
Concrete paving work in Progress
Paving Work in Progress, Pakistan
Karachi International Airport
Completed Project of Multan Airport
Paveing Work of Ranipur-Rohari
Project in Progress, Pakistan
Mirpur Bridge in Progress, Pakistan
Piling Work of Kohala-Muzaffarabad
Project in Progress
AJK-W3 Tunnel Project in Progress, Pakistan
Thanks for your time!