Delays are perhaps the most common form of construction claims or even disputes. The problem is that, the parties involved in the process could hardly identify the reason and responsibility of each one in the specific task. Delays and claims resulted from the works are not carried out precisely as the contract required. Accordingly, avoiding delays is crucially concerned not only with good practice during the planning and execution of the works but also with the proper operation of the contract machinery.
In the pipeline project, delays also occur. This delay is a serious concern for the owner and the contractor too because the owner needs the exact start-up date and the contractor looks for the effectiveness of the resources and avoiding the punishment. The preparation for the claims, if any, is appreciated.
Mr. Nguyen Anh Dao made a research study with these objectives (1) to identify delay causations in the construction of the pipeline project; (2) to explore the impact of delays on time extension and cost; and (3) to investigate the appropriate strategy to control delays and develop a guideline of information management for delays prevention and control.
Mr. Dao’s conclusions are the following:
1. The delays caused in the construction of pipeline project is the actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.
2 Construction mismanagement resulted in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties, and have direct impact in the delays on time extension and cost.
3. Construction delay analysis represents a very complex task. Thus, construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. In these conditions, they could be able to react and take the appropriate corrective measures to avoid and minimize delays.
Mr. Dao’s made several recommendations and guideline for delays prevention and control. These are:
1. The General Contractor (GC) needs calculate careful every parameter, every single work, schedule and estimates the total budget.
2. In EPC contract, details engineering take the key position to the success of the project from the quality, schedule to the total budget. Thus the following recommendations help: choose the excellent engineering company instead of cheapest qualified one, and review or give comments before giving the approval in the details engineering office to make sure that there’s no thing to block the engineering process.
3. The purchasing materials and equipments process is always important, but it’s the main weak point of almost Vietnamese contractor since Vietnamese law defines that the time for an international bid preparation is at least 30 days. And the schedule performance, profit or lost are mostly depend on this process.
4. In large and sophisticate project, the experience of GC is the most important reason for the success of project implementation. The strong finance, technical ability and numerous resources are all needed to well perform project.
5. The project’s success resulted from the finance ability of VSP. Using own money to buy all materials, equipment, to hide subcontractors… and will get back from oils production in future.
6. Main contractor should consider effective strategy in order to manage subcontractors effectively and efficiently. The strategies including procurement scheduling, quality control, cost, and safety will be discussed in this study.
7. The need to choose ways (or channel) to communicate between the service of subcontractors and the site management or inside contractors can help the flow of works run smoothly. And the communication process becomes easier and faster.
His thesis abstract is copied and posted.
ABSTRACT
Construction mismanagement results in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties. Although the problem may start with a single subcontractor, it can result in all contractors feeling some impact to their work.
The actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.
The construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. The conditions in the schedule, that they are able to react and take the appropriate corrective measures to avoid and minimize delays.
The construction firms and the contractors need to feel in the same rhythm of their project. Especially in large and sophisticate project, our desire to complete the works on time and within budget is hard to fulfill. We can only achieve this goal if we have the experience, competence staff and numerous resources, strong financial aspects, and most of all we use it reasonable.
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