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The Application Of Cra Technique In The Education Of Trans National Construction Projects

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2004 Annual Conference


Salt Lake City, Utah

Publication Date

June 20, 2004

Start Date

June 20, 2004

End Date

June 23, 2004



Conference Session

Trends in Construction Engineering I

Page Count


Page Numbers

9.1229.1 - 9.1229.10

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Paper Authors

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Kun-jung Hsu

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NOTE: The first page of text has been automatically extracted and included below in lieu of an abstract

Session 1121

The Application of CRA Technique in the Education of Trans-national Construction Project

Kun-Jung Hsu Department of Construction Technology Leader University, Taiwan.


The management of a trans-national construction project often encounters multiple risks. This paper discusses the framework of CRA technique, and applies it to a trans-national construction project. The globalization trend shows that CRA in a trans-national construction projects become more and more important. The paper begins with a typical introduction on BCRA framework then develops a visual presentation that shows how it can be a tool applied in construction education pedagogy. A method of calculating the conditional expected value of perfect information (EVPI) of critical cost elements is proposed to help facilitating the construction decision-making processes during competitive bidding procedures. Finally, an illustrative example of bidding for a turnkey p-plant construction of trans-national project is presented and discussed.


Businesses worldwide are facing more and more challenges in the process of international business bidding, due to the increasing competition brought about by the trend towards globalization. The optimum bid for a project is often closely related to its categorized costs, the market supply-demand conditions of the targeted goods and services, and the expected profitability of the project. Most practices of BCRA focus on single location analysis. However, it is becoming a critical issue for the international construction community to establish a framework for the transnational control of BCR practices executed by international cost professionals. International construction project bids are especially influenced by the consequences of price fluctuation, locally and internationally. This is particularly true if the design details of the construction project are still uncertain. The competitive bidding for such projects often bears great risk, and requires risk analysis and simulation tools to provide references that can help justify decisions made in the bidding process. This paper presents a framework of dual-uncertainty concerning trans-national construction projects.

The management of a trans-national construction project often encounters multiple risks. The Building Cost Risk Analysis (BCRA) of a multinational corporation involving trans-national management becomes more and more important in construction education pedagogy, which can also be utilized by both construction cost professionals and academia. The tendering for a turnkey project often categorizes the scope of the work as “local engineering items” and “equipment and technical support depend on foreign import”, which formalizes distinctive risk origins with dual uncertainty. These can be classified as “Local Cost” and “Non-Local Cost”. The paper also presents an example of a Taiwanese engineering company’s bid on a turnkey plant construction project in Mainland China. The paper begins with a typical BCRA then develops a visual presentation that shows the major

Proceedings of the 2004 American Society for Engineering Education Annual Conference & Exposition Copyright © 2004, American Society for Engineering Education

Hsu, K. (2004, June), The Application Of Cra Technique In The Education Of Trans National Construction Projects Paper presented at 2004 Annual Conference, Salt Lake City, Utah.

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