Abstract
Abstract The construction industry is the main foundation of national economy .It is not only closely related to people's livelihood, but also affects the development of other industries. Under this global economic turbulence, all governments rush to save their countries and invest huge amount of capitals to support public works. The Taiwan government, among various economic stimulus plans, has also announced the importance and the necessity to invest in public engineering projects. Taiwan's construction industry has long been tainted with malpractice. In addition,the government amended the 7th Chapter 3rd Article of“The construction industry management rule”rashly in 1993 for accepting“The Construction site director” to become the qualified professional of the C-class construction firms .It boosted the number of construction companies rapidly in Taiwan. Meanwhile the Government departments did not effectively guide and manage these companies, making the entire industry environment ever more complicated, ultimately leading to irrational phenomenon such as malignant price competition during project bidding process.Construction industry has always been known as the "locomotive industry". It is one of the most important economic development indexes, and assumes the implementation of civil engineering infrastructure. In addition to the economy, it closely relate to the people's daily life, welfare and property. Nowadays, the market size of construction industry is getting smaller and smaller, but the number of construction companies is increasing. Finally, keen competition force construction corporations to have significant reduction on the construction cost, as a consequence, the quality and safety is not properly and sufficiently addressed because the profit of construction industry continue to decline. It is a catch-22 problem and does sacrifice the safety of construction workers due to improper equipment maintenance - the severe price war resulted in high injury rate in construction industry. This research examines the specific characteristics of the Taiwan SMEs (small and medium sized enterprises) construction industry, analyzes the operational difficulties, focusing on the flaws within company operation, outdated Government policies, then proposes an improvement plan and countermeasures, with the hope to bring positive benefit to the long term development of the SMEs construction industry in Taiwan.