A number of international companies are receiving central government approval to offer their construction and fit-out services independently in China. The regulations, which license survey, construction and design organisations, came into effect in September 2007 (as reported in RFP Issue 36).

One of the first companies to take advantage of the new law is ISG Asia, a subsidiary of London-listed Interior Services Group plc that recently received accreditation. "This is a milestone and puts us on equal footing with mainland construction firms," said Tim Threlkeld, Country Director Greater China, ISG Asia, "We can now exclusively manage more contracts which will ultimately provide greater control over standards and price. It is another reason to extend our platform across mainland China."

The China revenues for international construction and service providers such as ISG Asia are growing exponentially, and becoming increasingly important to their regional and global business. ISG Asia's China operations saw a fivefold year-on-year revenue growth for 2006-2007, and Asia is delivering the largest percentage growth for the entire group.

The new license will be a vital factor in continuing this expansion, explains Threlkeld, saying: "The additional licence has allowed ISG Asia to secure mandates including the construction of The North Face's flagship store in mainland China. This is the first foray into the mainland for the outdoor apparel retailer and another sign of international companies partnering with locally accredited, foreign construction firms."

For firms considering applying for accreditation, the documentation process has been set out by the relevant goverment bureaus. Tom Fu, Partner of Mayer Brown JSM's Beijing office says, "Intended applicants under the regulations should pay attention to the "Opinion on the Implementation of the Regulations on the Administration of Qualifications for Construction Enterprises" issued by the PRC Ministry of Construction on 18 October 2007 which sets out in detail the application procedure and also the documents to be submitted to the authorities. RFP