2002/1/30 CALS/EC MESSE 2002

IT Utilization in Construction
Field of Taiwan
Kai-Lin HSU
Director, Construction Automation and E-commerce Center

Taiwan Construction Research InstitutePresentation Overview#1 Introduction of IT into Taiwan Constructionrelated Public Sectors#2 Present Major Difficulties for Promoting IT in
Taiwan Construction Field#3 Present Development of Government Procurement
Information System in Taiwan#4 Future Development & Trend of IT in Taiwan
Construction Field

Introduction of IT into Taiwan
Construction-related Public Sectors

Present Development of IT Introduction
into Taiwan Industries

In order to promote Taiwan competence of industries,
Taiwan Executive Yuan passed the action program“Promotion Act for Automation & Electrification ofTaiwan Industries (PAAETI)” in June 1999 ， it wasexpected to effectively diminish the cost of business
operation ， by assisting the introduction of IT into thebusiness application of industries .
Besides, through the pilot project for offering online
bidding and procurement of government units, theutilization of IT within industries can be stimulated.

Promotion Structure for Automation &Electrification Project by Executive Yuan
Automation & Electrification of Industries
Project by Executive Yuan
Consulting Board by Private Sectors
Secretary
Deputy Secretary

Deputy Secretary

Automation Section

Electrification Section
Government

Finance

Construction

Agriculture

Commerce

Manufacture

Construction

Agriculture

Commerce

manufactory

Promotion Measures for IT Utilization ofIndustries in Taiwan

Promotion Strategy
 Fundamental Environment
 Model Project Offering Investment
Encouragement
 Pilot Project by
Government Units

Promotion Measures
 Reduce Tax
 Special Discount onLoan
 Infrastructure
 Cooperation withGovernment Sectors
 TechnologyDevelopment
 Standardization
 Strategy Research Promotion
 HR Training

E-government within Taiwan
Construction-related Public Sectors (1/3)
Public Construction Commission (PCC)

Offer government online procurement
clearinghouse
Set up E-catalogue and Bid/request for proposal
systemConstruct online certification and contracting
system- under test
Construct online posting/receiving bids systemunder test
URL：http://www.pcc.gov.tw
 Bidding information web：
http//www.pcc.gov.tw/big5/cgpis.htm

E-government within Taiwan
Construction-related Public Sectors (2/3)
Construction and Planning Administration, Ministry of Interior(CPAMI)

Online upload and download ofautomation and electrification research
results
Offer online service and search engine on
related code, statistics, real estate
information, local development project
information for safety of public structures,
etc.
URL：http://www.cpami.gov.tw
 Automation and electrification ：http://www.cpami.gov.tw/casa/index.htm

E-government within Taiwan
Construction-related Public Sectors (3/3)
Architecture Research Institute (ARI)

Scopes for search engine ： Building codes、resource catalogues、
contract、elemental graphics、
construction specification、nationalstandards、machinery on rental、
human resource, etc.
URL：http://arch.org.tw

Background of Introducing IT into Taiwan
Construction Field
Declination of Economic growth and domestic market
and Entrance into WTO since Jan. 2002, Construction
Industry in Taiwan is facing the most serious challenge
If construction engineering cannot utilize IT to integrate
and manage the engineering information during life
cycle, the efficiency of construction is seriously affected
and even the quality of construction will be influenced
The importance of IT can be more significant for themodern buildings or large-scale infrastructures due tothe high complexity
Construction IT is the key success factor during thecompetition of next-generation construction industry

Promoting IT Application within
Taiwan construction industry (1/2)
Construction and Planning Administration,
Ministry of Interior (CPAMI) sets up “Promotion
Project of Automation and Electrification forConstruction industry (PPAEC)” in 1999
Development Goal：
Short term

Midterm

Long term

Introduction of E-process
within 250 construction
companies
Training on Human
Resources
Enrollment for information
Consultant Company

Introduction of Eprocess within 500
construction companies
Training on Human
Resources for 12000
persons

Promotion on EDI andBPR
Integration on
Construction-relatedinformation and setup ofconstruction database

Promoting IT Application within
Taiwan construction industry (2/2)
1.PPAEC Action period：Nov.1999-Dec.2004
2.Expected points of interest：achieve 10-15
supply-chain systems within Taiwan
construction industry and result in IT
utilization within 1000 medium and small size
construction-related companies
3.Target：Real Estate Planner、GeneralContractor、Architect、Professional Engineer
4.Subsidy fee：50% self investment and 50%
from government support for building
individual IT system

Promotion Strategy Layout for IT Application
with Taiwan Construction Industry
PPAEC

CPAMI & ARIEvaluation Committee

Consultant

Broadcasting• Consultant on Econstruction• Supply-Chain
Managementconsultant• Enterprise Resource
Planning consultant•Propaganda•Publication ofPeriodicals•eB symposium•Model illustration•Construction eB
portalMonitor on Performanceof automation andelectrification inconstruction industry

Supply• Ability judgment on
consultant units• Introduction of key
technology andpromotion

Environment•Tax reduction•Training on human resources•Special discount on loan
•Setup on EC standards andmaintenancePresent Major Difficulties for
Promoting IT in Taiwan
Construction Field

Major Difficulties on Promoting IT within
Taiwan Construction Industry

1. No unified promotion organization
2. diversified demands for IT application
3. hard to renew concept of A&C engineers on
their workflow
4. worry on network security
5. hard to bring out for standardization of A&C
6. unclear policy of government on promoting IT
with construction industry。
7. High cost for introducing IT

Comparison between Taiwan
Industries for Promoting IT (1/4)

Industry

Manufactory or Commerce

Construction

MarketDemand

Demand always by customers
international competence naturally
product and service level expanded
demand on prompt information (likeorder processing ,etc.)

few demand from customers
no international competence before
entering WTO
long life cycle,low demand on prompt
information but information complicatedCustomer Featurehomogeneity of customer features
most customers have highprofessional knowledge and IT skill
Urgent on IT demand due tointernationalization
Strong demand from customers to
introduce IT into supplier process

heterogeneity of customers
deficiency in professional knowledge
and IT skill of partial customers
low IT level of customers and noprompt IT demand on products
diversified demand from customers

Comparison between Taiwan
Industries for Promoting IT (2/4)
Industry

Supply-Chain Consultant

Manufactory or Commerce

Construction

High IT skills owned by suppliersimpler supply-chain relationshipsimilar professional field forsimilar suppliers
suppliers under consultant : large
economic scale : significant economic
efficiency due to IT
promotion : top-down

Low IT skills of construction-related
suppliers
complicated supply-chain relationship,no clear distinction between tasks
dissimilar professional field for similar
suppliers
suppliers under consultant due to nolarge economic scale : limited
economic efficiency due to IT
promotion : down-top，and no IT
introduction into related constructionrelated public units

Propaganda

Some specified organization takes
charge of all the tasks of thepromotion projectNo specified organization takes charge ofthe promotion project; all are distributed
into different organizations

Comparison between Taiwan
Industries for Promoting IT (3/4)
Industry

Manufactory or Commerce

HR Training

many training centers atpresent
training content and lecturers
can be most fit for manufactory

no concrete training program at present
few training centers and few suitablecourses and lecturers for construction

Standardization

Construction

most products arestandardized。
specified unit takes charge ofstandardization andcooperation with international
standardization organization
for long time
workflow of suppliers arealmost standardized and unified

most products are not standardized;
however, PCC is engaging to unify theconstruction code of public work
although some specified unit is taking
charge of standardization，no longterm planning and consecutive work
work of most suppliers are notstandardized and lack of unification

Comparison between Taiwan
Industries for Promoting IT (3/4)
Industry

Manufactory or Commerce

Construction

Promotion Strategy

based on PAAETI
success on integration withindustry, government andacademy units for promoting IT
all the tasks of promotion project areassigned to specified organizationand no involvement of governmental
units
target for promoting IT : privatesectors
efficient assistance from thesuccessful integration on related
public sectors

based on PAAETI
fail on integration withindustry, government andacademy units for promoting IT
all the tasks of promotion project areexecuted by governmental units (likeCPAMI or ARI); no specified
organization is assigned
target for promoting IT : private
sectors and public sectors
inefficient assistance from the failed
integration on related public sectors

Present Development ofGovernment Procurement
Information System inTaiwan

Major Difficulties on Taiwan Procurement
Procedure
1. Too many channels related to tendering
information
2. Difficult to decide the specification of tendering
3. Difficult to decide the ceiling price
4. Difficult to identify the vendors
5. Possible abuse on public assets
6. High-frequency repetitive process on procurement7. Inconvenient for receiving bid
8. Inconvenient for posting bid
Taiwan Government
Procurement Information
SystemIllustration of Taiwan Government
Procurement Information SystemGovernment Procurement Information System
Request for
catalogue
Procurement clearinghouse
2.E-catalogue subsystem
Request for Price
1.Government procurement
clearinghouse subsystem

4.Online bid-receiving
subsystem
4.Online bid-posting
subsystem

Already developed subsystem

2.Online price request subsystem

2.Online pricesubmit subsystem

Request for common
supply contract

3.Common supply contract
Subsystem

5.Online purchase subsystem

Government Procurement Clearinghouse
Subsystem
http://web.pcc.gov.tw/Common Supply Contract Subsystem
http://sucon.pcc.gov.tw/

E-catalogue and Submit/request forPrice Subsystem
http://gecs.pcc.gov.tw/

Present Development of Online
Receiving/Posting Bid Subsystems
http://www.geps.gov.tw/
Online bid-receiving subsystem Online：Apr.1, 2000
 Test period：2000/4/1-2001/5/31
 System start：Jun.1, 2001
Online bid-posting subsystem Online：Aug.1, 2000
 Test period：2002/1/1-2002/6/30
 System start： Jul.1, 2002

Time Schedule for Receiving/Posting BidSubsystems

TimeUnit

Pilot project

2002

2003 2004 2005 2006

10%

Major
government
units15% 30%

Localgovernment
units

5%20%

50% 80% 100%40% 70%90%Some Important Information Related toGovernment Procurement System within
Taiwan「Electrified Signature Law」has been
passed on Nov.2001 by Taiwan Congress Online tendering document can be
regarded as official document
 Efficiently enhance the willingness of
suppliers to join government
procurement information system

Illustration on Digital Signature
Signature
Document

Sendermappingfunction

110111001

101001100

110111001

Encoded by private key ofsender

Document Mapping function

101001100

Document

Identity andsecurity check110111001

receiver

EncodedDocument

Decoded by Public Keyof Sender110111001

101001100

Future Development & Trendof IT in Taiwan Construction
FieldPotential Application of IT inConstruction Field
Government

BusinessBusiness1.Information Service
2.E-catalogue
3.E-procurement
4.Resources
Management
5.ASP Service
6.E-marketplace

1.Procurement Information
Clearinghouse
2.E-catalogue andBid/Request for Proposal
3.Online Bidding/tendering
4.Construction Cost
Customer

1.E-shopping
2.recruiting

Technology related to E-Commerce

Business Process
Reengineering

Product DataManagementEDIDocument
ManagementLogistics

IT Components related toConstruction Field
Decision
Decision
SupportSupportCommunication
Communication

Accounting
Accounting

CodingCodingProjectProjectManagement
Management

GPS
GPS && GSM
GSM

CAD
CAD && CAE
CAEDigital
Digital Image
Image
Processing
Processing
GIS
GIS

Database
Database
Management
Management

Application and Integration of IT

Observation on the future IT
development of construction field
Evolving from the distributed units by assigned work
to integrated group by value chain
Different expertise or function will develop into chainedcompetitive relationshipInformation itself becomes the essential binder during
life cycle of construction stages; the efficiency on
dealing with information is the success key factor ofcompetence
Beside the operation mechanism in the real world, thevirtual market integration mechanism is also createdFuture Direction for Taiwan Constructionrelated public sectors on IT Application
1. Offer solid infrastructure on network communication
2. Assure security on online transaction
3. Assist enterprise to train IT people
4. Adjust related laws and specifications
5. Encourage investment on IT
6. Establish standardization of information exchange
7. Offer consultant on introduction of IT
8. Set up promotion organization
9. Carry out pilot projectMilestones for Construction Industries
on IT application

Help construction industry get used to IT
application on business and theintegration of information flow
Help construction industry applying IT
application on on business with the
integration of cash flow
Help construction industry applying IT
application on on business with the best
allocation of resources

Vision on promoting IT applicationon construction field (1/3)
Strategic aspect
 Primarily led by future-established ministry ofconstruction，by cooperating with ministry of
economic affairs ，set up some task unit topromote and realize the related IT measures Through pilot project, understand the merits
and difficulties of IT application in construction
field; then, improve By KPI (key performance index)，evaluate theperformance of construction IT

Vision on promoting IT applicationon construction field (2/3)
Standardization aspect Government sector or professional organization

should be charge of IT standardization andlocalization of construction field The development of standardization should beinternationally exchangeable IT standardization
Documentation：XML（aecXML）
Graphical information ：STEP/IFC

Vision on promoting IT applicationon construction field (3/3)
Information technology aspect Continuously reinforce IT application onconstruction field Aim at information sharing and automatic
processing during construction life cycle
 Enhance cooperation between constructionindustry and information industry
 Develop localized software for constructionindustries

Thank you
Construction Automation and E-commerce Center
Taiwan Construction Research Institute
URL:http://www.tcri.org.tw