Inter-Cultural Communications and Team Building in Projects

This report delves into the critical aspects of inter-cultural communication and team building within the context of international construction projects. It begins with an executive summary and table of contents, followed by an introduction that highlights the complexity and investment involved in international construction. The report identifies key challenges, including cultural and communication barriers, team building difficulties, and other logistical issues such as time differences and virtual communication complexities. It presents case studies like the Dubai Metro project, the West Seti Dam project in Nepal, and the Sydney Opera House, illustrating the impact of effective and ineffective communication and team dynamics. The report also examines worldwide legislation and ethics, approaches and strategies adopted by international firms, and the positive and negative effects of these projects on both the host country and the construction firm. The report concludes with a summary and potential recommendations for successful project delivery in a global environment.

Running head: INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN
INTERNATIONAL PROJECTS
Name of the Student
Name of the University
Author Note

1INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
Executive Summary
Communication and team are two of the prominent factors for the success of any project
work however, the complexity of the project increases if it will have to consider bilingualism
and diverse culture. International construction works have to tackle the discussed complexity
because the of the geographical and cultural difference. Inter-cultural communication and
team building in the international construction work is the aim that have been pursued by the
presented report. The findings from the report have revealed the importance of the discussed
factor in international construction projects. The paper has detailed three cases that are
international in nature and had crucial impact on the host country of construction. The
identification from all the three cases have revealed that the inter-cultural communication and
team building were among the prominent reasons for the complexities that were developed in
the discussed projects. The report has also detailed the worldwide regulations and ethics for
the development of the international contract along with the strategies and approaches
adopted by the firm in attaining a successful delivery of the project. Furthermore, an
emphasis on the delivery of the project and its impact on the country and its residents have
also been discussed. Finally, the focus on the impact on the construction firm has been
discussed before summarising the paper to conclude on the same.

2INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Challenges & Case.....................................................................................................................4
Challenges..............................................................................................................................4
Inter-Cultural Communicational........................................................................................4
Team Building....................................................................................................................5
Others.................................................................................................................................5
Case........................................................................................................................................6
Worldwide Legislation...............................................................................................................8
Approaches and Strategies.......................................................................................................10
Positive and Negative Effects..................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15

3INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
Introduction
Construction projects are one of the most crucial projects because of the complexity
and huge investments made in the projects (Walker 2015). Furthermore, the constructions
projects are the ones that not only is beneficial for the project owner and associates but the
outcome also impacts the state where the project is being undertaken. Hence, the discussed
projects deem proper attention so that it can be leveraged. Project management are being
adopted so that the complexity of the construction projects could be mitigated however, if the
construction is being undertaken by a foreign firm additional challenges are derived (Sears et
al. 2015). The challenges in discussion are the inter-cultural communication, team building,
change in project management approach to suit the project’s geographical domain and
multiple others. Hence, the project team had to adopt a new approach to attain a successful
project delivery (Harrison and Lock 2017). The new approach must mitigate the threats posed
by the alien domain and should also focus on the quality. Hence, the discussed report is
aimed at offering an insight into different processes and procedures that are being adopted by
international firms to successfully delivery a project in a non-local domain.
The aimed discussion has been attained in different layers and it initiates with
identification of the projects that had been undertaken by a foreign firm in a non-local
domain. The global regulations and ethics that firm needs to abide by for a project will also
be taken into consideration for discussion. Approaches and strategies that are being adopted
by the project team to ensure the success of the project along with the effects that these
strategies and approaches will have on the host nation’s local construction industry. The
focus of discussion will mostly rely on the developing countries and how the industries of
those countries will be impact by the entrance of international construction firm. The impact
(positive or adverse) on the international firm will also be discussed to gain an enhanced

4INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
understanding. Finally, the report will be summarised to conclude the paper with potential
recommendations (if justified).
Challenges & Case
International construction works are very complex task to carry out because of
different challenges. The most prominent challenges are the cultural & communicational
barrier, the defining of roles & responsibilities ultimately leading to team building, tool &
time management, virtual complexities along with several others (Tan et al. 2015). The
discussed section has detailed the challenge and also offered detailed certain cases to gain an
enhanced insight into the subject accordingly.
Challenges
The following sub-sections are detailing the challenges that develop in an
international construction. The main focus has been laid on the inter-cultural communication
and team building. Other challenges will also be detailed briefly to offer an insight.
Inter-Cultural Communicational
The most important concern that is developed as part of the international construction
work is the cultural and communicational challenge. Effective communication is one of the
key requirements for the successful delivery of the project and working across borders
especially in different continent further enhances the challenge (Handford and Matous 2015).
In case an Australian firm is assigned with a project in an Asian or African country the
language difference will develop complexities. In China, Sri Lanka, JAPAN, India or any
other country the people who speak English are limited so the Australian firm will face
difficulty in effectively communicating information to the project team or any other
designators that are needed for the project (Ladegaard and Jenks 2015). The managerial
authority if are residing in their native country rather than the site of construction the

5INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
challenges further amplifies the challenge. The firm had to employee a local language
speaking supportive project head to manage the project effectively and efficiently which adds
to the resource consumption of the project. Similarly, other effects also arise due to the inter-
cultural communication.
Team Building
One of the most complex challenge in the international construction work is the team
building. Team building is crucial for a project’s success because human resources are the
most prominent resource for the successful delivery of the project and hence the best should
be selected for the same. The team consists of different members with different skills and the
project management approach differs according to the region (Ching and Winkel 2018). The
use of tools and technology also differ according to the geographic domain. Furthermore, the
skill needed for the use of tools and technology may not be found in the local workforce
which may arise the need for training the latter. The training will face constraints due to the
cultural and communicational barrier while, adding to the effort, time and resources of the
firm (He et al. 2015). Furthermore, due to difference in cultural and the living styles, the team
may also face the threat of challenge of conflict. The conflict may arise mostly because of the
defining of the roles and responsibilities. The local labours may not like working under a
foreign team and their dominance. Hence, team building is a crucial task that needs to be
managed.
Others
The difference in the time of the host country and the country of the construction is
also a challenge for international construction. A time difference of 12 hours may also be
seen which will develop difficulty for the project heads who are not at the construction site to
guide the project team who are working in a different country (El-Sabek and McCabe 2017).
As discussed above the tools and skills needed for the use of the skills also differ according to

6INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
the country are also a constraint for international construction. Managing the team through
virtual means is also a challenge that is based on the network connectivity and coverage
along with the VoIP use and Knowledge. The geopolitics and the permission collection is
also a matter that develops constraints for the international constructions (Wickham, Ojovan
and O’Sullivan 2017). A sudden disaster and the management of the risk, disaster and other
policies of the government of the host country are also a challenge for international
construction. Other challenges are also associated with the international construction.
Case
Dubai Metro project is the most prominent example of how team building and
communication is crucial for the success of an international construction project. Aedas, an
international architecture firm established in 2002 by three firms from Australia, Hong Kong
and United Kingdom was designated with the designing of the metro structure (Golzari
2016). However, the leadership of the project was weak and inappropriate team building lead
to project delay and escalation of the budget. Another major challenge that was identified in
the project was that the project had a large number of stakeholders and most of them were
non-local that lead to an ineffective communication (Srivastava and Agarwal 2014). The
discussed reasons were not the only reason for complexity of the projects but this reasons
played a vital role in the delay and escalation of the budget.
West Seti Dam, a 750 MW dam project of Nepal was one of the project that was
delayed for 16 years and was tendered to Australian firm SMEC (Snowy Mountain
Engineering Corporation) (Koirala, Hill and Morgan 2017). The delay in the project was due
to lack of funds as no one was ready to invest in the project due to certain geopolitical
reasons. Hence, the failure of the discussed international project was a crucial example of one
of the challenges that an international construction project may face. Another similar project
that was undertaken by the same firm (SMEC) in the Nepal was scrapped due to the lack of

7INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
disaster management in the country. The 2015 earthquake was a catastrophic accident but the
lack of proper risk and disaster management lead to more consequential results than it was
initially supposed to happen. So, the case of Australian firm’s international construction
project in Nepal has made evident that international construction faces a lot of challenges in
developing countries (Freeman 2017). In the recent developments the Chinese firm that was
assigned with the project after leaving of the Australia’s SMEC has also withdrawn itself
from the project. The reason for the withdrawn is laid on the lack of support and effective
communication between the firm and the project owners.
One of the major failures that enforces the need for team building and inter-cultural
communication is the case of Sydney Opera House. One of the most monumental structures
of Australia had a very bad history in terms of project management (Yaneva 2016). The
project was delayed, became over-budgeted and similarly multiple other issues were
developed. The project was initially assigned to Danish architecture Jørn Utzon who was
considered as one of the greatest in his field. However, due to lack of effective
communication and cultural barrier the project which was initially planned for AUS $7 went
up to AUS $102 and was even delayed by over 10 years (Freeman 2017). Utzon due to the
communicational barrier failed to convince the project owners that is the Government of
NSW that the designing of the project will consume time and had to resign from the project.
The most prominent reason for the ineffective communication was the language barrier and
the lack of technical knowledge among the project owners that is the super visors appointed
by the Government of NSW.
The cases discussed above are not the only projects that are available on the
international projects and the factors inter-cultural communication and team building. The
reason for selection of the above discussed cases could be rested on the fact that inter-cultural
communication and improper team buildings were the most prominent reasons for the failure

8INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
of the project. Furthermore, the discussed projects are most impactful in their respective
countries Dubai metro was a new approach for the development of Saudi Arabia on the
contrary for Nepal West Seti Dam was the biggest project (Gurung, Bharti and Karki 2015).
Similarly, Sydney house Opera was also one of the most iconic project of its time. The failure
of such major international case due to ineffective communication and team building deems
attention and hence the discussion. Multiple other cases are available which could be
summarised to state that the challenge discussed are prominent and needs to be mitigated to
have a successful delivery of an international project. To attain the successful delivery of an
international project, different project owners, team and researchers have deciphered different
strategies and approaches. The following sections have detailed the identified approach and
strategies but before that a section has been devoted to the regulations and ethics that a firm
need to abide by for an international project.
Worldwide Legislation
Global project managers face several challenges in the projects in terms of facing political,
economic as well as legal issues. International Project finance engages several parties from
multiple jurisdictions with conflicting interests, which needs to be protected as well as
obligations that are required to define clearly (Seebens et al. 2017). The underlying rationale
is important for distributing risk among the number of participants engaged in the project. In
the cross border transactions, it is significant anticipating as well as analyzing the potential
risk the project that could be exposed to the host state as well as identifying solutions, which
can be utilized in mitigating as well as eliminating the impact of risks. Hence, in order to
mitigate the risks related to jurisdictional issues and clauses need to be properly incorporated
in contract agreements between counter parties at multiple phases of the projects.
Boyes and Elliott (2014) stated that the contracts need to include Sponsor Support
Agreement, Operations, Maintenance Agreement, and Concession Agreement. The policies

9INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
as well as regulations of the host state are designed for regulating cross-border transactions. It
is significant to include a comprehensive knowledge of underlying legal as well as
institutional framework that can regulate the development of international projects. Hence, it
is advisable for the parties taking out the specific services of local counsel in order to get
advice on host state legal as well as investment environment.
The information about the commercial laws and the law of Corporate Governance and
Property Acquisition are included under domestic laws. On the other hand, the administrative
framework on the particular governmental organs is saddled with responsibility of
administrating international power projects. In addition, gaining license, approvals as well as
permits about the public administration and the system transparency of local regulations as
well as system for settling down dispute is important (Ciuffo et al. 2015). The applicable laws
will consist of the guarantees. In addition, the international standards are important that
consists of protection of foreign investments that falls under the international standards. The
standards are provided on the specific platform of Bilateral Investment Treaty as well as
Multilateral Investment Treat that are engaging with the states of the parties that are provided
by investors of a member by developing a service provider in territory of different member.
It is also necessary identifying the contracts as well as language of the contracts between the
parties. The agreement of loan is generally used in the lender language. The foundation of
project finance is to get parties for spreading the risks that are engaged. In addition, it is
significant to protect the parties engaged at the every stage of contract that will need contracts
agreement and designed for covering the specific choices of the law clause that is governing
between the process of transaction and insurance of safeguards as well as settlement of the
investment dispute between the parties. The parties include flexibility for developing
protective clauses in the agreement in order to secure rights as well as interest under the
particular contract.

10INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
On the other hand, dispute resolution is one of the major issues for the participants from
several jurisdictions that are engaged in negotiating different contracts at several phases of
the project, which will develop a global structure with the links. It is necessary to safeguard
the entire network of the contractual relationship through anticipating dispute among several
parties as well as incorporated mechanism of resolving the dispute in the event of occurrence.
The non-binding mechanisms can offer judicial deployment of the rules that are set in the
applicable statutory law as well as contracts between the parties. The parties to the
international contracts can use two types of forums such as domestic courts as well as
international arbitral tribunals (Kirchherr et al. 2017). Hence, negotiation has a significant
role on the parties that are agreed on the selection of forum and the laws that are applied
through forum in the dispute event as well as incorporated in the contracts between several
parties.
A joint venture includes legal personality in order to create a platform on which the project is
floated without encumbering the balance sheet of the sponsor organizations. The nature of
enterprise of special project vehicle mitigates the risks of project as well as shields sponsor a
from the adverse growth. The SPV needs to be registered as well as incorporated for
providing a legal personality and becomes independent from the sponsors. It gives a
safeguard for the particular project in failing the shareholders dragging a healthy project. It is
critical determining the idea of ownership as well as control under the laws of the host state
for determining the particular structure can be helpful to determine the capacity of
shareholding of the sponsors as well as equity contributions. The management of the project
organization as well as relationship between the project sponsors need to be spelt out in
managing agreement.

11INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
Approaches and Strategies
Different organisations have their own opinion towards the inter cultural
communication and team building in international construction. Some of them emphasises on
understanding the differences and attempt to bridge the gap while others focus on the
effective communication (Neuliep 2017). The approaches of the firms depend on the need
and the domain of construction accordingly. The key factors and aspects that are part of most
of the strategies have been detailed below. The discussed factors are part of almost all the
strategies that are being pursued by different organisations across the globe.
i. The first approach that is adopted by all the international construction giants in
achieving a successful delivery of project is analysing and listening. The listening and
analysing here refers to the analysis of the regulations and ethics of the host nation
along with listening to the needs of the locals so that the firm can proceed effectively.
Listening to the local enables the firm to earn their support and to also save cost
( Martin and Nakayama 2015). The firms mostly employee native workforce for less
technical jobs which keeps the locals satisfied and also saves the firm from the effect
of geopolitics.
ii. The second most prominent factor is effective sharing of information and a part of the
process the firms. The first approach that is adopted to ensure the discussed factor is
proper responding because selection of inappropriate word can cause a lot of trouble
for the firm (Ladegaard and Jenks 2015). Furthermore, adequate responding could
assist the firm to gain some feedback that will enable the firm to develop strategic
plan for the construction work according to the host nation. The discussed approach
can be further sharpened through felicitation process (Sorrells 2015). As part of the
felicitation process the firm could give credit along with positive reinforcements that

12INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
will assist in development of a strong team to ensure a successful delivery of the
project.
iii. Learning the culture of the host nation is also crucial because avoid ambiguity and
also mitigate the unease which could lead to frustration and even hinder the ability of
effective communication (Kaur 2017). To attain the discussed features, the firm, try to
confirm themselves with some native phrases that develops a confidence among the
local workforce that the firm is here for their benefit and gains a high level of support
from the local people (Hosseini Fatemi, Khajavy and Choi 2017). The discussed
measure assists the firm to develop a strong and reliable team and also makes the
communication effective and efficient. Adopting security measures for the local
people and participants also assist the firm in successful delivery of the project.
iv. Another notable measure that should be taken into account by the firm is to respect
the differences that exist between the international contractor’s country and the host
nation of the construction (Nawi et al. 2018). Respecting of the culture is crucial
because if the project team is intentionally or even unintentionally disrespects the host
nation it may develop complexities. The discussed threat is especially crucial in the
developing country which strictly pursue their cultural and religious believes such as
the Islamic countries or countries with diverse cultures such as India (Ching and
Winkel 2018). Avoiding disrespect is not enough the firm should also support the
cultural believes by celebrating the local holidays and religious events along with
other similar measures.
v. One of the most crucial approach and possibly the most adopted approach that is
being used for the inter-cultural communication is the adoption of the disruptive
technologies (Che Ibrahim, Costello and Wilkinson 2015). The technologies in
discussion are the use of VoIP (Voice over IP) tools which can assist the project

13INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
managers to effectively communicate and accordingly receive feedback from the
native work force. The VoIP tools include email services, instant messaging, audio
and video calls. The text based VoIP services such as emails and instant messages
could be used by the firm to communicate at the most bottom level of project team’s
hierarchy (Cattaneo et al. 2016). The emails and instant messages could be developed
in the language that the sender is comfortable at and could be translated at the
receiver’s end through the tools that are available online. While the video call and
audio calls are used at high level of project hierarchy where the project manager
guides the supervisor and received feedback through remote means (Khan et al.
2015). The VoIP also assists in team building because the technology is used for
training the local workforce in project teams project development approach.
Moreover, educating the employee through VoIP will prove to very prominent for the
organisation specially in the developing countries. The employee of the developing
countries is low on skill and the training would enable them to develop their skill
which they will attempt to leverage and in the process will develop their trust and
accordingly a strong team (Welch and Welch. 2015). However, the low connectivity
in developing countries could prove to be a challenge for the project team.
vi. Proper risk management and distribution of responsibilities is also crucial for the
development of an effective team and to attain the discussed measure the firms are
citing proper focus on the risk management and human resource management (HRM).
The risk management will develop trust in the native workforce that the project team
is concerned about them and will also abide by the regulation of the host nation
(Shark 2015). HRM will also keep the employee satisfy and develops a strong bond
between the project heads and the employee which in the process offers a strong team.

14INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
Positive and Negative Effects
The international firms that under takes construction works internationally are
benefitted in many aspects depending on their approach. If they adopt a successful and
positive approach they gain in terms of finance along with credibility and goodwill (Barnwell
et al. 2014). The host nation and its residents may be unaware about the firm and a successful
delivery with adequate care to the residents and the environment within the legal boundaries
will ensure a positive impact (Welch and Welch 2015). On the contrary, a negative approach
will lead to impacting their financial resources along with their credibility in the international
market. An inefficient approach will hamper their credibility hugely because the project is
international so the eye of the global media will on them which will define their future.
Conclusion
Hence, the report in discussion could be emphasized to state that international
construction works of great prominence for the contractors. The reason for the above
mentioned statement could be supported by the fact that the international construction works
can impact (either positively or adversely) the firm’s position in the global market. To attain a
successful impact, the firm should emphasise on three crucial factors and they are inter-
cultural communication, team building and abiding by the regulation and ethics of
international construction works. The report has emphasised on all of those aspects and can
be summarised to state that international construction works can offer relevant results if
adequate attention is given to inter-cultural communication and team building needs of the
international construction work.

15INTER-CULTURAL COMMUNICATIONS AND TEAM BUILDING IN INTERNATIONAL PROJECTS
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