China Construction Eight Engineering Division Corporation Limited

China Construction Eight Engineering Division Corporation Limited is a precast concrete

manufacturer. The company is subordinated to China State Construction Engineering Corporation
which is a large state-owned backbone construction enterprise.

According to the Mr, Xu, the location of the factory is very near to the port which enable
them to obtain the sand and aggregate easily and shorten the distance for supplier to deliver raw
material to them. The company will manufacture the precast concrete component based on the
requirements of the client and they will obtain the materials from the supplier based on the
specification that clients provided. The company will provide workshop to the site worker before
installing the precast components to ensure the workers clearly understand the installation
process of the precast components. if the precast component found that is defect on the site, the
company will bear all the cost of return the precast component back to factory and re-manufacture
cost. At the same time, the company will destroy the defect component.

Besides, Mr. Xu has explained about the transportation of the precast components.
Usually, the large components will be delivered to the construction site during night time to
minimize the disruption to the road users. The company have 3 different partner logistic company
for delivering the components to the site and the distance for them to deliver the precast
components is within 100km from the company. The cost of the transportation is around RMB
1.20 per kilometer and just cost around 5% of the precast component’s cost. Besides, the
maximum size for the precast components to be delivered is 3.6m in width, 45m in height and
12m in length. if the component is oversize, the clients need to bear the extra transportation cost
or change the design of the precast components. The penalty for deliver oversize component
without authority approval is very serious in China and the company need to face a heavy fine.

Furthermore, Mr. Xu also described the payment method of the precast components.
Generally, in their company, the company will request the clients to pay 10% advance payment
for create the mold for the precast components. The maximum amount to be paid during
construction stage is up to 75%. While, the payment will be obtained from client will be up to 95%
of the total cost once the buildings have obtained the authority certificate. The balance 5% of the
amount is the retention fund and will be on hold for 2 years for warranty purpose which have a bit
different with Malaysia which the retention fund will be released after the issuance of Certificate
of Making Good Defects. The company provide 2 years for the clients which improve the
confidential level of clients toward their company.