Douglas County-based engineering giant CH2M Hill has received a license from the Chinese government that will increase the range of services it can provide in the country.
The Shanghai Ministry of Construction issued the company a general contractor’s license, CH2M Hill said.
CH2M Hill is already working on a sewer system in Shanghai and other projects. But the new license increases the range of work it can perform.
China is potentially a huge market for engineering companies, but the Chinese government can be unpredictable, said Paul Zofnass, president of financial consulting firm EFCG, which provides business advice to the engineering industry.
“Every major firm is at least thinking about putting a tremendous effort into China, but the biggest concern is the political risk. Companies are asking themselves, ‘How vulnerable are we going to be? What is the likelihood that we negotiate a good contract and the government turns it upside down?”‘ Zofnass said.
Staff writer Tom McGhee can be reached at 303-820-1671 or tmcghee@denverpost.com.
