Specialized assets, and balance sheet total whilst qualitative

Specialized Industrial ConstructionSpecializedindustrial construction usually involves very large scale projects with a highdegree of technological complexity, such as oil refineries, steel mills,chemical processing plants and large factories. The owners usually are deeplyinvolved in the development of a project, and prefer to work withdesigners-builders such that the total time for the completion of the projectcan be shortened.  Although the initiation of such projects is alsoaffected by the state of the economy, long range demand forecasting is the mostimportant factor since such projects are capitals intensive and require considerableamount of planning and construction time. 4.3.

3    Infrastructure and HeavyConstructionInfrastructure and heavy construction includes projectssuch as highways, mass transit systems, tunnels, bridges, pipelines, drainagesystems and sewage treatment plants. This category of construction ischaracterized by a high degree of mechanization, which has gradually replacedsome labor intensive operations.  The engineers and contractors engaged in infrastructureconstruction are usually highly specialized since each segment of the marketrequires different types of skills. These types of projects are urgent requestin Egypt and all development countries.  4.

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4     Company Size Smalland medium size enterprises (SMEs) are challenged to match with rapid market changes.This rapid change of market put forth extra pressure on the manufacturing andconstruction firms to concentrate on their core competencies as well as searchfor competitive advantages and innovations. To sustain such a competitiveenvironment, firms have to measure their performance and how to improve it. Keyperformance Indicators are one of the best measurement tools which covers manyareas in business not only for the SMEs companies but also, for the bigorganizations.  Therehas been no commonly accepted definition of SMEs (Curran and Blackburn 2001,Walters 2001). Definitions vary from one country or industrial sector toanother. Researchers and governments employ various definitions to suit theirpurposes. Definitions are generally based on quantitative and or qualitativecriteria.

  Quantitative definitions adoptemployee numbers, turnover, value of fixed assets, and balance sheet totalwhilst qualitative definitions adopt ownership, responsibility, flexibility,level of autonomy and market share.   The company size can be classifiedbased on different criteria as follows:  Classification of companies according to annual gross income.The most importantparameter to define a company’s size is its annual gross income. In case thecompany has branches, it must be considered the global income, that is, thematrix’s income plus the affiliates’ income.  According to BNDES(National Bank for Economic and Social Development – Brazil), the values forthe classification of companies regarding their size are as follows: Micro enterprise: Less than or equal to BRL 2.4 million (~0.6 M $).

Small company: More than 2.4 million and less or equal to BRL 16 million (4.1 M $) Medium-sized company: More than BRL 16 million and less or equal to BRL 90 million (23.

2 M $) Medium-large company: More than BRL 90 million and less or equal to BRL 300 million (77.3 M $) Large company: More than 300 million (77.3 M $) The BNDES criteria are one of the most importantamong others, because it is considered when the company is applying to obtain acredit line with a financial institution.   Classification of companies according to the number of employees The BrazilianInstitute of Geography and Statistics (IBGE) classify companiesaccording their number of employees: Micro enterprise: – In industry, up to 19 employees.

In trading and services, up to 9 employees. Small company: – In industry and construction, 20 to 99 employees. In trading and services, from 10 to 49 employees. Medium companies: – In industry and construction, from 100 to 499 employees. In trading and services, from 50 to 99 employees. Large companies: – In industry and construction, from 500 employees.

In trading and services, from 100 employees.  Smalland medium-sized enterprises SMEs; sometimes also small and medium enterprises)or small and medium-sized businesses (SMBs) are businesseswhose personnel numbers fall below certain limits. The abbreviation”SME” is used in the EuropeanUnion and by international organizations such as the World Bank,the United Nations and the World Trade Organization (WTO).  Accordingto European Union recommendation 2003/361  “SME” stands for small and medium-sized enterprises, the mainfactors determining whether a company is an SME are: Number of employees and Either turnover or balance sheet total. Company category Employees Turnover or Balance sheet total Medium-sized < 250 ? € 50 m ? € 43 m Small < 50 ? € 10 m ? € 10 m Micro < 10 ? € 2 m ? € 2 m  In July 2011, the European Commission said itwould open a consultation on the definition of SMEs in 2012. In Europe, thereare three broad parameters which define SMEs: Micro-enterprises have up to 10 employees Small enterprises have up to 50 employees Medium-sized enterprises have up to 250 employees.   The European definition of SME follows: "Thecategory of micro, small and medium-sized enterprises (SMEs) is made up ofenterprises which employ fewer than 250 persons and which have an annualturnover not exceeding 50 million euro, and/or an annual balance sheet totalnot exceeding 43 million euro." EU member states have had individual definitionsof what constitutes an SME.

For example, the definition in Germany had a limit of 255 employees, while in Belgium it could have been 100. The result isthat while a Belgian business of 249 employees would be taxed at full rate inBelgium, it would nevertheless be eligible for SME subsidy under aEuropean-labelled program. In Australia, asmall business is defined by the Fair Work Act 2009 as one with fewer than 15employees. By comparison, a medium-sized business or mid-sized business hasless than 500 employees in the US, and fewer than 200 in Australia.  In South Africa the National Small Business Amendment, micro-businesses inthe different sectors, are defined as businesses with five or fewer employees.

Very small businesses employ between 6 and 20 employees, small businessesemploy between 21 and 50 employees. The upper limit for turnover in a smallbusiness varies from R1 million in the Agricultural sector with a maximum ofR32 million in the Wholesale Trade sector.Medium-sized businesses usually employ up to 200people and the maximum turnover varies from R5 million in the Agriculturalsector to R64 million in the Wholesale Trade, Commercial Agents. Constructioncompanies ranked in Egypt according to Egyptian Federation for Construction& Building Contractors (EFCBC). EFCBC ranks all its members, according to their number of employees,previously executed projects and firm capital, into various size ranks. EFCBCtill last three years was categorizing the construction companies in everysectors to seven levels based on the following criteria: Capital Assets; Highest yearly value of work during the last five years; Value of largest project totally executed during the last five years; Value of owned equipment; Company experience; Total numbers of technical, financial, legal and administrative staff; Currently,categorize of construction companies changed to be based on the following dataonly: Highest yearly value of work during the last five years; Value of largest project totally executed during the last five years; Company experience; Basedon the above data, the company categorizes in certain type of constructionprojects and consequently the maximum allowable tender size determined. Basedon the above, the company size was classified based on the total numbers ofemployees and annual turnover.  All theresponse gives the same results for the both factors except few numbers ofrespondent.

In this case, the total number of employees was the govern factor.  4.7     SamplesizeIn order to ensure that the data collected is reliableand adequate, it was necessary to have a population sample that is homogeneousand comprehensive.  Questionnaire 1 was submitted to special type ofengineering whom are familiar or has enough experience in PPP projects. So, thenormal ways to calculate the sample size are not suitable in this type ofquestionnaire which will directed to a special expert. Statistical methods forcalculating the sample size are suitable and required for questionnaire number2. Before calculate the sample size, a few things about thetarget population and the sample need to define: Population Size — how many total people fit the requirements of the respondent? It is common for the population to be unknown or approximated. Margin of Error (Confidence Interval) — No sample will be perfect; all surveys need to decide how much error to allow.

The confidence interval will determine how much higher or lower than the population mean are expected. It will look something like this: “68% of voters said yes to Proposition Z, with a margin of error of +/- 5%.” Confidence Level — How confident the actual mean falls within the confidence interval? The most common confidence intervals are 90% confident, 95% confident and 99% confident. In this research 90% confident level was chosen (Z Score 1.645).

Standard of Deviation — how much variance expected in responses? The common number to use 0.5 – and to ensure that the sample will be large enough. The total numbers in engineers in Egypt according theEgyptian Engineering syndicate more than 650,000 Engineers in differentengineering branches. This numbers covers all Egyptian governments and sureunreachable and also, about 100,000 engineers with experience less 5 yearswhich is not suitable for the topic of measuring performance. Based on the above population size may be considered 10%from the total acceptable level of experience engineers which is about 50,000Engineers.   The Necessary Sample Size = (Z-score) ² *StdDev*(1-StdDev) / (Margin of error) ² = (1.

645)2 x 0.5 * 0.5 /(0.05)2 = 270 respondents are needed Nearly the same results could be obtained from manysample size calculation equations considering the population size. The actual numbers of respondents in the questionnairenumber 2 are 218 respondents which represent confidence level about 87%.

 The response rate 70% is not only common and acceptable butit could be considered very good compared with the opinions of Akintoye (2006)and Dolami et al (2003). They reported that the normal response rate in theconstruction industry for postal questionnaires is around 20-30 percent.