A CASE STUDY FOR INFORMATION MANAGEMENT SYSTEM
IN CONSTRUCTION ENTERPRISES
Jun Jiang
UFIDA Software Co. Ltd No.68 Beiqing Road, Haidian District, Beijing, 100094, China
Keywords: Architectural construction enterprises, Information management system, Case study.
Abstract: Comparing with the developed countries, the information technology for architectural construction
enterprises in China is relatively backward. However, with the economic globalization and the accelerated
pace of modernization, as well as the China's reform and opening-up, the domestic market is increasingly
global. The increasing opportunities bring stronger challenges and keener competition, which makes
information technology of architectural construction enterprises more necessary. The article takes enterprise
A as an example, discusses the Building Programme in Chinese construction enterprise information
management systems from the view of integrated management system, control project costs, project fine
management of the whole process and intelligent business management, etc. The article is based on the
characteristics of Chinese construction enterprises and provides reference experience for the same type
construction enterprise.
1 INTRODUCTION
Comparing with the developed countries, the
information technology for architectural
construction enterprises in China is relatively
backward. However, with the economic
globalization and the accelerated pace of
modernization, as well as the China's reform and
opening-up, the domestic market is increasingly
global. The increasing opportunities bring stronger
challenges and keener competition, which makes
information technology more necessary for
architectural construction enterprises. Information
technology is significant useful both in the project
planning and management. More than 90% of
foreign architectural construction companies have
adopted software to manage projects, while the
number in our country is less than 10%. The gap
reflects the potential. In addition, most construction
companies are operating collectivized. The
diversified businesses of a large amount of branches
and subsidiaries have great demand in enterprise
information technology, which is most manifest in
the following aspects:
Business Development: Business development
requires information support of external market
research and industry analysis. Additions of new
business units need more open interfaces and more
scalability in future IT architecture, as well as
enterprise information infrastructure, which can
enable service-oriented and flexible system. So that
enterprises can adjust the information management
architecture flexible and timely as soon as their
business organizations changed.
Business Integration: Project management, a
business that needs major support in IT systems, is
still the core business segments. Synergy of each
business unit is currently mainly reflected in group
control level such as the strategic positioning. There
are high demands between the business units to
integrate their business information.
Resource Allocation: The resource allocation can
realize the standardization of enterprise
infrastructure information and unified management,
support information sharing and resource
optimization. Currently, the business forms of most
groups are multi-site multi-service and multi-
organization and need to realize centralized
management by information technology.
Strategy Implementation: based on the finance
and business all-in-one, integration of financial and
business can help policy making group to achieve
macro-control of the business. Through both internal
and external information analysis to achieve
decision support and find the deviations in strategy
implementation and opportunities for improvement.
311
Jiang J..
A CASE STUDY FOR INFORMATION MANAGEMENT SYSTEM IN CONSTRUCTION ENTERPRISES.
DOI: 10.5220/0003603503110317
In Proceedings of the 13th International Conference on Enterprise Information Systems (BIS-2011), pages 311-317
ISBN: 978-989-8425-54-6
Copyright
c
 2011 SCITEPRESS (Science and Technology Publications, Lda.)

These requirements determine that the
information management more necessary in
construction enterprises and construction enterprises
can benefit more than other industries. For these
reasons, the paper took a construction enterprise as
an example to do tracked research and case study in
its information management system.
Construction enterprise A, whose company
registered capital is 305.8 million Yuan, owned over
3,000 staffs, including 1593 that have economic and
technical titles. The company possesses a
qualification of contracting on premium
construction, qualifications of contracting on first-
class fire facility projects, electrical and mechanical
equipment installation, steel structure works, lifting
equipment installation and elevator installation,
qualifications of contracting on first-class intelligent
building engineering, intelligent building design and
curtain wall design, qualifications of contracting on
second-class municipal public works and water
conservancy and hydroelectric power project
construction.
2 MOTIVATION OF
INFORMATION
TECHNOLOGY IN
CONSTRUCTION ENTERPRISE
In the enterprise development process, decision-
making group in construction enterprise has a
growing awareness: the application of modern
network information management technology is an
effective way to improve the management level,
strengthen capabilities of rapid response and control
and enhance the core competitiveness.
2.1 Fine Management
Construction enterprise A reformed in October 2000
and output value in that year is 820 million yuan. In
the end of the first round of contract, the final output
value is 4.402 billion yuan in 2003, while in the end
of the second round in 2006, the output value is 9.7
billion. With rapid development, management
bottlenecks are becoming apparent. Construction
industry needs construction qualifications and safe
construction permits. The industry is over a broad
area, and a lot of works need to be done manually by
workers. So it is influenced a lot by human factors.
In this case, the original flat management model
began to be inadequate. Decision-making group in
construction enterprise A determined to introduce
the "fine management” concept. Through the
construction of enterprise information platform, the
management can be traced back, can be analyzed
and can be trusted to achieve the fine management
purpose.
2.2 Standardization
Construction enterprises A, the first batch of pilot
units of a quality assurance system in Jiangsu
Province, began implementing the ISO9002 quality
management system standard in 1996. After an
eighteen months test run, enterprises A obtained a
certificate issued by China Quality Association in
September 1997. Then in early 2000 enterprises A
began implementing the ISO14001 environmental
management standards and received a certificate
issued by China Quality Association in December.
With the generation of ISO9000: 2000 version
standards and occupational safety and health
management system certification gradual
development, the fourth company of Nantong
construction integrated the quality management
system, the environmental management system and
the occupational safety and health management
system to form a management system using share
factors.
Integrated management system in construction
enterprise A includes 40 management procedures
such as indicators and management program,
management review, human resources, construction
machinery, construction design, contract review,
purchasing control, construction control, site safety,
nonconforming product control, risk assessment and
control.
The implementation of the integrated
management system is conducive to resource
allocation, reduce management costs of the
organization, and improve operating efficiency of
construction enterprise A. However, in actual
implementation, "mismatch” phenomenon also
exposed in some the projects between the regulation
and the implementation: the management system
made by the group not well implemented in
subordinate units and Department of projects.
Through the construction of the enterprise
information platform, curing the management
process and management system, standardization of
business management is achieved and overall
management in construction enterprise A is
improved.
ICEIS 2011 - 13th International Conference on Enterprise Information Systems
312

3 INFORMATION TECHNOLOGY
IN CONSTRUCTION
ENTERPRISE A
In 2008, construction enterprises A, according to the
Ministry of Construction "premium quality
evaluation standards for enterprise information
technology" and its own management requirements,
cooperate with UFIDA and establish an information
sharing network management system linked
corporate headquarters, subsidiaries, divisions,
Department of the Agency and project. The system
focus on the core business and achieve the
implementing of information technology in the
overall management process.
Construction company A now has formed an
informational system: "the two platforms and four
applications". The system applied in more than 100
projects under the Ministry. The two platforms are
hardware and software platform and the four
applications include office automation, human
resources management, financial management and
project management.
Hardware platform: the work is the foundation of
enterprise information services, hardware,
networking, and security.
Software platform: It refers to UAP platform of
UFIDA. It is to achieve integration of financial
service applications.
Office automation: include information
dissemination, document management, project
management, task management, meeting
management, vehicle management, office supplies
management and other functions. It provides unified
portal, authentication, trust between systems,
authorization function for various applications.
Human Resource Management: A full-cycle
management from the recruitment, entry, changes to
the resignation or retirement, including human
resource planning, reporting, decision analysis, labor
cost management, organizational management,
information management, personnel changes
management, contract management, remuneration
and benefits management, time management,
training management, recruitment management,
policies and systems management, performance
management and self-help applications.
Financial Management: including financial
accounting and financial management, to achieve
one-account in the whole group. Financial
accounting system includes general ledger, cash
banking, receivable management, payable
management, fixed assets, inventory accounting and
reporting. Financial management system includes
capital budgeting, capital settlement, credit
management, interest management, integrated credit,
online banking, bill Management and financial
monitoring.
Integrated Project Management: Core of
management information technology in construction
enterprises A. It covers the project life cycle,
integrating the various functions of project
management. It is a fine management of the project.
It Includes bid management, contract management,
revenue management, cost management, materials
management, mechanical management, schedule
management, quality management, security
management, completion management and risk
management.
Figure 1: Information technology deployment of
construction enterprises A.
A CASE STUDY FOR INFORMATION MANAGEMENT SYSTEM IN CONSTRUCTION ENTERPRISES
313

4 INFORMATION
TECHNOLOGY ENHANCED
MANAGEMENT OF THE
FOURTH COMPANY OF
NANTONG CONSTRUCTION
Information technology prompted the execution of
"Integrated Management System" in subsidiaries and
ministry of projects. It decreased the project costs,
improved project profitability and improved the
project refined and intelligent management.
4.1 Implementation of the "Integrated
Management System"
By introducing the advanced information
technology, construction enterprises A formed an
"electronic edition" of the integrated management
system. A whole project management process can be
divided into four stages: project identification,
project planning, project implementation and
management review. The four stages cover 16
functional modules: bid management, contract
management, cost management, revenue
management, subcontract management, expenditure
management, materials management, equipment
management, schedule management, quality
management, security management, new technology
management, completion management and risk
management.
4.2 Project Costs Control
Construction increases at an annual rate of 12.9%,
accounting for 6-7% of total GDP, creating 300
billion dollars foreign exchange earnings for our
country every year. Although the construction
industry is developing rapidly, there are discordant
problems, concentrated expression in the irrational
industrial structure, irrational layout and low profits.
Construction industry profit, which is 2%, is the
second lowest in the industry. The assets and
liabilities rates are 65%, ranked first in the second
industry. Reduce costs and increase profits have
become core tasks for the construction enterprises
survival and development in the highly competitive
market.
In the long term of the project management
process, construction enterprise A accumulated
effective experiences, summarized as "do after
count, process control, statistical analysis".
Combined with information technology, supervise,
regulate and restrict the consumption of human
resources, material resources and cost in production
and operation, and promptly correct the deviation,
control the production costs within the planned
range to ensure the cost goals, improve project
management level and market competitiveness.
4.3 Whole Process of Project Fine
Management
4.3.1 Bidding Management
Collect market information and divide the projects
into level one projects and level two projects
according to the features then manage the bidding at
different levels.
Level two projects usually refer to projects have
unit project cost or equipment installation cost≥5
million yuan, or number of layers≥30, or floor area
≥50,000 square meters or industrial buildings span>
30 meters, as well as customer requirements or
projects have significant impact on the company and
projects organize and bid by the Group. Level two
projects refer to projects whose project departments
set up by the regional headquarters / branch office.
The tender documents assess at the tender stage,
and the bidding documents assess at the bidding
stage. Record the project bid in an effort to gain
experience for future bids.
4.3.2 Contract Management
Contract review includes assessment of the draft
contract at signing stage and assessment of the
modification at the implementation stage. The
contents of the contract will be disclosed to the
project manager and then project manager will
disclose it to the others. Register the contract basic
information and details, maintain contract content,
save the electronic contract documents, establish a
complete accounting of contracts and can be
retrieved by the conditions.
4.3.3 Cost Management
Cost management is the core of the project
management system. For a long time, the fourth
company of Nanchang construction accumulated
management experience in the process of
construction as "do after count, process control,
statistical analysis " and cost management as
"separate volume and price, the volume control the
main ".
Make a budget and material consumption plan in
the cost planning process. Make actual cost sum up
ICEIS 2011 - 13th International Conference on Enterprise Information Systems
314

in the project process, form a management system
can analyze and control cost to ensure that the
project achieve the gross margin and lower the
management expense ratio.
The system can achieve multi-dimensional cost
management.
Determine the budget cost by calculating.
Determine the actual cost by accounting on the
expense. Compare the budget cost and the actual
cost to make comparative analysis.
Use numerical amount software to determine the
total consumption of primary materials. Compare it
with the actual consumption. Analyze the
differences between the budget and the actual
consumption.
In addition, further fine management about
project costs and material consumption can be
achieved according to sub-segment costs.
Cost management is to manage cost through the
business. That is to say, through the materials
purchase, machinery leasing, sub-contract and sub-
settlement to control the actual business and improve
the management level.
4.3.4 Revenue Management
Revenue management includes the initial revenue in
the bid contract, rewards and punishment records
result from the project implementation changes and
records on the measurement and payment.
Revenue management can provide records of
quantities, every change, details on the measurement
and revenue to raise the fine level of revenue
management.
4.3.5 Schedule Management
It focus on the time planning, control and
management. Decompose the sub-segments of the
project, make general plan for project and process.
Then make the annual plan or monthly plan
according to the general plan. The network schedule
will display through bar chart, network diagrams and
other tools. Record and adjust the progress of the
project in the implementation progress of the
projects and compared it with the original schedule
to control project schedule risk and the actual
progress of the project.
4.3.6 Materials Management
Material cost is the largest share of project cost. So
material management is significant to achieve cost
targets.
The material management aims to achieve a total
control plan, monthly control plan, requiring plan,
procurement contract, purchase orders, standardized
storage. It includes the materials consumption
management and material circulating management.
Manage the material storage, send, receive and
inventory at the project level. Generate material
statistics accounting to provide a basis for project
cost accounting.
Manage basic work such as materials
classification, coding and suppliers at the corporate
level. Monitor the materials purchase, price analysis
and material consumption and approval the
processes. Make summary statistics of purchase,
consumption and inventory.
4.3.7 Subcontract Management
Including labour subcontract and professional
subcontract.
Achieve the sub-contract management system.
The system should register basic sub-contract
information, manage the sub-contract contract
content, maintain the electronic contract documents,
record the payments for approval of the sub-contract
project and establish a complete sub-contract
accounting which can be search on conditions.
Assess the compliance performance of suppliers
and establish a database of qualified subcontractors
and blacklist. All the information will be share in the
whole group.
4.3.8 Device Management
Use uniform code for device which can be classified
according to equipment. Register the equipments in
the system and establish equipment Accounting. The
department of the project makes the equipment plans
and reports it to the department of equipment
management for approval. Department of equipment
management allocates the equipment device
according to the situation of projects and account
equipment rental costs of each project according to
the provision of the company (including the rent and
leased). Department of equipment management and
department of the project should record equipment
repair and maintenance condition, as well as
information of spare parts and the device hazard
information. The fourth company of Nanchang
construction generated statistical analysis reports on
the classification of equipment, use, distribution and
cost. The reports provide a database for the fourth
company of Nanchang construction to plan,
acquisition and deployment. Moreover, it can
A CASE STUDY FOR INFORMATION MANAGEMENT SYSTEM IN CONSTRUCTION ENTERPRISES
315

improve the equipment capacity, equipment
efficiency and input-output efficiency.
4.3.9 Quality Management
Project quality managers input the quality control
and plan through the system. And report the quality
inspection quality accidents, quality treatment,
quality rectification and other records on time, and
reporting on time, business managers can find
quality problems and monitor the management
through the system.
4.3.10 Security Management
Through security Management, company managers
can easily check the project safety organization. The
security managers input the safety objectives into the
system and real-time report the It includes security
expenses, security risks, security incidents, security
training, security assessment sub-units and personnel
record. Business managers can find security
problems and monitor the management through the
system.
4.3.11 Completion Management
The completion management records completed
cases and classifies the completion data.
4.3.12 Risk Management
Generate automatic warning according to risk
parameter and business data in project
Implementation. The warning includes progress
management risk warning, project contract change
risk warning, contract payment early warning, cost
implementation risk warning, equipment inspection
warning and other functions. It supports emails,
short messages and other warning means.
4.4 Enterprise Intelligent Management
“Management cockpit” is built to meet needs of the
decision-making group, management group and
business management group and to provide timely,
accurate and useful decision support information for
the fourth company of Nantong Construction. The
“management cockpit” can show the situation of the
company's overall operations, graphical output the
business lines of each sub-aperture data, compare
and analyze by using Group Control desktop,
company control desktop, project supervision
desktop.
“ Management cockpit” is divided into four
levels of management structure: Nantong
Construction Group headquarters, regional
headquarters, construction and installation branch
offices and project management. It also provides
corresponding multi-company, multi-project, project
level statistical analysis reports, establish a complete
management system structure.
Real-time centralized monitoring of major
economic indicators: complete data extraction of
sub-units, calculate and display on the decision
analysis desktop timely and accurate so that the
leaders can monitor the economic performance
indicators of subordinate units.
Integrate system data from each module, such as
tender, project basic files, contracts, revenue,
subcontracts, payment, cost, quality, and safety. Add
professional analysis and use unified view of
operations to meet the needs of senior leadership;
Customize the desktop: strip the desktop show
with a report. Realize the dynamic assembly
business show and analysis of these data to improve
the decision-making process of project management
and improve operational efficiency.
5 CONCLUSIONS
In order to achieve the overall goal of information
technology in enterprises, there is a clearly define in
standards of A: the implementation of enterprise
information technology adopts the institution:
"number one responsibility". That is to say, general
manager is the person responsible for information
technology in company. Top leaders in all branches,
the Agency, project management companies are the
person responsible for information technology in
their units. The company also set up a leading group
of enterprise information technology and business
Information Office. Also, every unit has full-time
information officer in charge of information work of
the unit.
In order to implement the information
technology into practice, enterprise A
institutionalize the information technology such as
established a monthly reporting system, electronic
document management practice, both inside and
outside consultation, exchange control, staff
training, reward and punishment evaluation
management procedures, etc.
ICEIS 2011 - 13th International Conference on Enterprise Information Systems
316

REFERENCES
Chuxuan Chen, 2007. Design of Construction Enterprises
Internal Control System, Southwestern University of
Finance and Economics Press. (in Chinese)
Infragistic, 2009.Silverlight 3 Programmer's Reference.
WROX PR/PEER Information Inc.
James F. Kurose, Keith W.Ross, Ming Chen, 2009.
Computer Networks: Top-down approach, Machinery
Industry Press. 4
th
edition
Kaveh Pahlavan, Prashant Krishnamurthy, 2002.
Principles of Wireless Networks: A Unified Approach,
Tsinghua University Press. (in Chinese)
Kerzner, H., 2008. Project Management: plan, schedule
and systems control approach (9th Edition), Electronic
Industry Press. (in Chinese)
Zhongbing Wang, 2008. Construction cost control system
studies, Economic Science Press. (in Chinese)
Changsheng Zhang, 2007. Comprehensive Budget
Management, Peking University Press. (in Chinese)
A CASE STUDY FOR INFORMATION MANAGEMENT SYSTEM IN CONSTRUCTION ENTERPRISES
317