Case Study 1: Project vs.

Project management

China Wo-yi is the main contractor for Okuk highlands highway road maintenance work. JLC is the
sub-contractor to China Wo-yi. Describe the work ethic and relationship between this two business
partners as compared to local contractors in dealing with the project and project management
concept. Try to address the basic advantage and disadvantage. .

China wo-yi is a large scale state controlled enterprise with capital, technology and management
intensive, taking real estate as its foundation, investment and development as its focal point and
foreign development as its leading factor. JLC is a United Kingdom company who also entered into
the project under the contract # 3533 and as a sub-contractor to China Wo-yi in repairing, extension,
transformation, and maintenance of the 160 kilometres long highway in PNG.

China Wo-yi with its Sub-contractor JLC were funded with 46.5 US dollars for the maintenance of the
highway including ground works, roadbed and sub-base, asphalt surface treatment, bridge repair as
well as river bank and road maintenance. The work ethic for the main contractor is also engaged for
its sub-contractor as they were aiming for the same purpose. The prioritized work ethics are such as
public safety, workers health and safety, traffic management, hazardous materials management;
avoid environment degradation, training and monitoring. (Works, D.O,., 2018)

The work ethic was made known to everyone in induction training in July 12, 2018. The main
contractor with its sub-contractor has achieved a positive result for the work ethics stated above.
China Wo-yi has complete package of what the construction will need which includes machinery up
to employees except some ground floor employees. In order to speed up the construction process
JLC was assigned as a sub constructor specifically to deal with the rail building, drainage system and
recruit local workers to work along with the experts especially in the ground floor.

The work ethic for the two foreign companies is excellent compared to the local contractors as they
uphold the ethics firmly to acquire a successful completion of the work without having any troubles.
One of the problems with the local contractors is the ineffective management of costs and slow
process of work. China Wo-yi and JLC has continuous flow of work every week to speed up the
construction process but it became a disadvantage for them because they are violating the
Christianity belief that PNG’s had since generation.

The relationship between the main contractor and the sub-contractor is entirely based upon the
contractual agreement upon which they signed. the contract specify that the JLC construction
company will be helping China Wo-yi in dealing with such areas like rail building, drainage system,
asphalt surface treatment, river banks and ground work. Instruction on how the work will be
carrying out is scheduled after the director’s meeting of the two companies. (Works, D.O,., 2018)

The sub-contractor effectively deploy its equipment and employees in its respective areas of
construction while China Wo-yi also focused in its own field of construction. Both companies has
their own field instructors and operators. Whatever information is instructed by the field instructor
towards its operators is immediately carried out, but the final appraisal for the work in the
construction site is done by the director of the China Wo-yi construction company.

Between the two constructions company, China Wo-yi as the main contractor as assigned one of its
permanent engineering employee as a sub contract liaison engineer. the liaison engineer visits all
the external offices at very frequent intervals to perform the tasks such as deliver new work, ensure
that main contract’s projects design standards are known and followed, monitor and report back
progress, answer technical queries on the spot and collects complete work results.

In terms of the qualification and machinery the two contractors has fully equipped themselves to
carry out the responsibilities, therefore they don’t conjoin with the local contractors for any help as
they have everything they needed to get the job done efficiently and effectively. As compared to the
local contractors they don’t have enough equipment or machineries, experiences, and top intellects
to carry out such big construction and that is where the local contractors still lack the capabilities.

After the completion of the contract the main contractor receives the payment form the
government and he then decides on it and usually makes payments to the sub-contractor and maybe
his employees. The sub-contractor depends on the main contractor for funds to proceed in whatever
area that needs to be funded.

In my opinion regarding the above situation I think that there are some advantages and
disadvantages which add on to the reputation of companies work ethics. Advantages are such as,
effective waste management and pollution free environment as compared to the local contractors,
skilful and experts people in all field of construction unlike the local contractors, effectively utilizing
funds to acquire a standard production and prioritizing risk regarding its employees by supplying all
the necessary safety gears. Disadvantages such as, cheap labour which violates the labour act of
PNG, communication barriers as most of the foreign employees do not speak the global language
which is English in a fluent tone , their production is standard but do not last for a longer period of
time, violates the Christianity beliefs PNG has because their cause of work continues which includes
Saturday and Sunday where PNG’s take it as a day for rest and worship the creator and poor
relationship with the surrounding as compared to the local contractors. The other disadvantages
which adds on to the local contractors is when a contract is assigned to them they usually looked for
hired equipment or machinery and also they looked for key employees such as engineers and most
of the time some of the local construction company have insufficient materials for the job. (Anon,
2018)
 Bibliography/Reference
Anon. (2018). CHINA WU YI,. CHICAGO: Wikipedia.

Works, D.O,. (2018). PNG HIGHWAY ROAD IMPROVEMENT, PORT MORESBY: DEPARTMENT OF
WORKS .
 University of Goroka

School of Humanities

Division of Business Studies

HBM 413: Project management

Assignment #1

NAME Charlie KOI

ID# 2017311648
PROGRAM BBM.4
LECTURER Mr J. Kogapo