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Friday, 29 October 2010
Thursday, 14 October 2010
Success factors for financial sustainability of toll road project in China
The rapid growth of the Chinese economy calls for massive development of infrastructure and assets. Over the past 10 years a national trunk highway system and a network of urban and provincial expressways have emerged in China (World Bank, 2003). A World Bank (2003) research estimated that highway investments in China significantly increased in the late 1990s and reached 2.5 percent of GDP. Still, an estimated $75-100 billion needs to be invested in highway construction over the next 15 years. Toll road is one of infrastructure project that has high ability to attract private investment since it is able to recover directly the costs of its operation and construction through toll charges. While this brings a lot of opportunities to project stakeholders, it also contains various risks that can bring the result that the real project outcomes are very much lower than the expected.
Ms. Truong Thi My Thanh made a study which main objective was to develop the model of success factors for Chinese toll roads to achieve financial sustainability in planning and executing stages and recommend proper consideration from key stakeholders to ensure that toll road project can be sustainable and more attractive to private investment. To complete the main objectives, following sub objectives were explored:
1. Investigate the cost and financial performance of toll roads in China to find out significant attributes influence on the difference of estimated and actual outcomes
2. Investigate the impact of above factors to project finance for short term and long term sustainability.
3. To propose the model for financial sustainability of toll roads in China and provide recommendations for policy makers, international lending institutes and toll road developers as required consideration in planning stage to enhance the certain of financial condition and control the financial sustainability in executing stage.
Conclusions
Toll road is one of infrastructure project that has high ability to attract private investment since it is able to recover directly the costs of its operation and construction through toll charges. Toll road development can be attractive to investors and lenders only if the financial and economic benefit can be met. Financial sustainability is the essential part of this entire criterion, with many attributes should be considered. It is true that the financial sustainability of toll road depends on the performance of all stakeholders involve in project from initial phase to the end of project life cycle. Planning and executing stages are the most important and have high impact to project financial sustainability. Proper considerations to the significant attributes in these two stages need to be taken from involved stakeholders to ensure that long-term survival and sustainability are achieved.
The purpose of studying toll road performance and the impact to financial sustainability is to (1) indentify the significant factors impact to project financial sustainability in planning and executing stages, and (2) recommend proper consideration from key stakeholders to ensure that toll road project can be sustainable and more attractive to private investment.
The study was carried out by examining seven Chinese toll roads with different development model. The focus was to investigate toll road development model, the participation of stakeholders and the risks they had to face with. After that, in-depth analysis is on (1) financial sources (2) financial usages and investment cost variation (3) revenue base (4) operating performance (5) financial benefit and (6) financial sustainable situation. Those attributes were investigated in combination with the involvement of key stakeholders related to projects. A qualitative research was prepared where the data collection techniques are case studies.
From the analysis, the factors impact to project financial sustainability can be divided into five levels (1) Policy support (2) Regional development (3) Fund raising model (4) Project development (5) Financial structure. All these factors are essentially important for project developer’s consideration.
Policy support: This factor covers four significant attributes (1) Government assurance (2) Land acquisition and resettlement policy (3) Toll rate structure and tolling adjustment and (4) Penalty regulation for truck over load. Government assurance provides the legal support to negotiate with ADB/WB to get the loan. The policy support for land acquisition activities reduces the risks of delay and cost overrun. Additionally, the proper toll rate setting and fixed frequency of tolling adjustment ensure the certainty of revenue stream and help toll road developer can foresee the profit. Lastly, the strictly penalty is needed for truck over loading to reduce the maintenance cost of toll roads.
Regional development: Financial sustainability extremely depends on the certainty of project revenue stream which significantly impacted by master plan of regional development. The study found that appropriate point time of investment base on socio-economic situation ensures proper traffic flow after toll road start to operate. Additionally, toll road projects constructed in combination with the upgrading of local toll road network and industrial zones promise the high traffic growth rate and higher revenue stream in the future.
Fund raising model: The study found out that securitisation model for Chinese toll road development has the highest level of long term financial sustainability, because the local government provides very high level of grant and subsidy. Government build and operate model has quite high ability of financial sustainability but lower than securitisation model. Project establishes very high level of contingencies budget even the total cost will increase. Additionally, local government subsidise the over budget of construction cost, hence there will no increase in short term debt and current liabilities. Cooperative joint venture model of toll road in China has lowest level of financial sustainability since it uses very high debt to equity ratio; the debt mostly comes from domestic bank with high interest rate and high interest during construction. Project is developed separately with the improvement of local road network and the expansion of industrial zones because there is limited source of fund of investors.
Project development: It was found that four significant problems closely go along with the development of toll road project, they are inappropriate preparing in feasibility study, improper land acquisition planning, delay in land acquisition implementation and not timely approval of works variations and equipment procurement from ADB/WB. Changes between feasibility design and detailed design because of improper feasibility preparation was the most significant reason caused civil work and land acquisition cost overrun. Resettlement plan, compensation standard and the difference in acquiring temporary and permanent land was carried out ineffectively caused over budget of land cost. Limited budget contributes to the delay of land acquisition activities. The delay of project completion also involved with the insufficient feedback on report ADB/WB required from project executing agency hence delay in resolving problems and difficulties that occurred during project implementation.
Financial structure: This factor covered five significant attributes; they were (1) Debt to equity ratio of capital investment, (2) Government grant, (3) Source of debt, (4) Source of equity and (5) emergency budget for financial consumption overrun. It was found that the D/E split which was used to develop toll road project in China mostly based on the financial health of local government rather than the ability to generate revenue of project itself. The grant from central government was just used to improve some section of feeder roads, hence the amount mostly based on the length and socio-economic condition of the projects while grant from local government was significantly based on the benefit that local government could receive from project. The result showed that the amount of ADB/WB loan had very high impact to financial structure of investment capital since it reduces the debt from domestic bank and the percentage of grant. The study also found out that local government was not yet successful to attract private participation since equity from private sectors still played minor part of investment capital. When project got construction cost overrun project owners used three sources of emergency budget cover investment overrun, they were short term loan from domestic banks, local government subsidy and contingencies budget. Government build and operate model used highest contingencies budget and received fully support in the context of subsidy from local government. Whereas cooperative joint venture model had to find the loan from domestic bank since it used low contingencies budget and not received any subsidy from local government.
Recommendations for critical factors model
The development model for financial sustainability of Chinese toll road has been structured in considering long term and short term impact. Based on the findings from the information of diverse situation, the model has been structured on policy support, regional development, organisational model, project development and financial structure levels. The recommendations for key stakeholders involves in toll road project have also been provided to enhance the financial sustainability of toll road development. The applicability of critical factors model will help policy makers, toll road developers and international lending organisation (ADB and WB) to foresee the sustainability of financial condition of toll road in planning stage through proper master plan for regional development, policy support and effective organisational model. Additionally, the findings also help toll road developers to control and enhance the financial sustainability in executing stage through the risk mitigation instrument in each development step, proper financial structure of investment capital and appropriate sources of fund as emergency budget for financial consumption overrun. Lastly, the applicability of the findings not only used for Chinese toll road developers but for stakeholders in other emerge economy countries as well.
Ms. Truong Thi My Thanh made a study which main objective was to develop the model of success factors for Chinese toll roads to achieve financial sustainability in planning and executing stages and recommend proper consideration from key stakeholders to ensure that toll road project can be sustainable and more attractive to private investment. To complete the main objectives, following sub objectives were explored:
1. Investigate the cost and financial performance of toll roads in China to find out significant attributes influence on the difference of estimated and actual outcomes
2. Investigate the impact of above factors to project finance for short term and long term sustainability.
3. To propose the model for financial sustainability of toll roads in China and provide recommendations for policy makers, international lending institutes and toll road developers as required consideration in planning stage to enhance the certain of financial condition and control the financial sustainability in executing stage.
Conclusions
Toll road is one of infrastructure project that has high ability to attract private investment since it is able to recover directly the costs of its operation and construction through toll charges. Toll road development can be attractive to investors and lenders only if the financial and economic benefit can be met. Financial sustainability is the essential part of this entire criterion, with many attributes should be considered. It is true that the financial sustainability of toll road depends on the performance of all stakeholders involve in project from initial phase to the end of project life cycle. Planning and executing stages are the most important and have high impact to project financial sustainability. Proper considerations to the significant attributes in these two stages need to be taken from involved stakeholders to ensure that long-term survival and sustainability are achieved.
The purpose of studying toll road performance and the impact to financial sustainability is to (1) indentify the significant factors impact to project financial sustainability in planning and executing stages, and (2) recommend proper consideration from key stakeholders to ensure that toll road project can be sustainable and more attractive to private investment.
The study was carried out by examining seven Chinese toll roads with different development model. The focus was to investigate toll road development model, the participation of stakeholders and the risks they had to face with. After that, in-depth analysis is on (1) financial sources (2) financial usages and investment cost variation (3) revenue base (4) operating performance (5) financial benefit and (6) financial sustainable situation. Those attributes were investigated in combination with the involvement of key stakeholders related to projects. A qualitative research was prepared where the data collection techniques are case studies.
From the analysis, the factors impact to project financial sustainability can be divided into five levels (1) Policy support (2) Regional development (3) Fund raising model (4) Project development (5) Financial structure. All these factors are essentially important for project developer’s consideration.
Policy support: This factor covers four significant attributes (1) Government assurance (2) Land acquisition and resettlement policy (3) Toll rate structure and tolling adjustment and (4) Penalty regulation for truck over load. Government assurance provides the legal support to negotiate with ADB/WB to get the loan. The policy support for land acquisition activities reduces the risks of delay and cost overrun. Additionally, the proper toll rate setting and fixed frequency of tolling adjustment ensure the certainty of revenue stream and help toll road developer can foresee the profit. Lastly, the strictly penalty is needed for truck over loading to reduce the maintenance cost of toll roads.
Regional development: Financial sustainability extremely depends on the certainty of project revenue stream which significantly impacted by master plan of regional development. The study found that appropriate point time of investment base on socio-economic situation ensures proper traffic flow after toll road start to operate. Additionally, toll road projects constructed in combination with the upgrading of local toll road network and industrial zones promise the high traffic growth rate and higher revenue stream in the future.
Fund raising model: The study found out that securitisation model for Chinese toll road development has the highest level of long term financial sustainability, because the local government provides very high level of grant and subsidy. Government build and operate model has quite high ability of financial sustainability but lower than securitisation model. Project establishes very high level of contingencies budget even the total cost will increase. Additionally, local government subsidise the over budget of construction cost, hence there will no increase in short term debt and current liabilities. Cooperative joint venture model of toll road in China has lowest level of financial sustainability since it uses very high debt to equity ratio; the debt mostly comes from domestic bank with high interest rate and high interest during construction. Project is developed separately with the improvement of local road network and the expansion of industrial zones because there is limited source of fund of investors.
Project development: It was found that four significant problems closely go along with the development of toll road project, they are inappropriate preparing in feasibility study, improper land acquisition planning, delay in land acquisition implementation and not timely approval of works variations and equipment procurement from ADB/WB. Changes between feasibility design and detailed design because of improper feasibility preparation was the most significant reason caused civil work and land acquisition cost overrun. Resettlement plan, compensation standard and the difference in acquiring temporary and permanent land was carried out ineffectively caused over budget of land cost. Limited budget contributes to the delay of land acquisition activities. The delay of project completion also involved with the insufficient feedback on report ADB/WB required from project executing agency hence delay in resolving problems and difficulties that occurred during project implementation.
Financial structure: This factor covered five significant attributes; they were (1) Debt to equity ratio of capital investment, (2) Government grant, (3) Source of debt, (4) Source of equity and (5) emergency budget for financial consumption overrun. It was found that the D/E split which was used to develop toll road project in China mostly based on the financial health of local government rather than the ability to generate revenue of project itself. The grant from central government was just used to improve some section of feeder roads, hence the amount mostly based on the length and socio-economic condition of the projects while grant from local government was significantly based on the benefit that local government could receive from project. The result showed that the amount of ADB/WB loan had very high impact to financial structure of investment capital since it reduces the debt from domestic bank and the percentage of grant. The study also found out that local government was not yet successful to attract private participation since equity from private sectors still played minor part of investment capital. When project got construction cost overrun project owners used three sources of emergency budget cover investment overrun, they were short term loan from domestic banks, local government subsidy and contingencies budget. Government build and operate model used highest contingencies budget and received fully support in the context of subsidy from local government. Whereas cooperative joint venture model had to find the loan from domestic bank since it used low contingencies budget and not received any subsidy from local government.
Recommendations for critical factors model
The development model for financial sustainability of Chinese toll road has been structured in considering long term and short term impact. Based on the findings from the information of diverse situation, the model has been structured on policy support, regional development, organisational model, project development and financial structure levels. The recommendations for key stakeholders involves in toll road project have also been provided to enhance the financial sustainability of toll road development. The applicability of critical factors model will help policy makers, toll road developers and international lending organisation (ADB and WB) to foresee the sustainability of financial condition of toll road in planning stage through proper master plan for regional development, policy support and effective organisational model. Additionally, the findings also help toll road developers to control and enhance the financial sustainability in executing stage through the risk mitigation instrument in each development step, proper financial structure of investment capital and appropriate sources of fund as emergency budget for financial consumption overrun. Lastly, the applicability of the findings not only used for Chinese toll road developers but for stakeholders in other emerge economy countries as well.
Thursday, 7 October 2010
Quality Management in Construction Projects: A Case Study of Quality Management in Construction Projects of an Oil and Gas Company
Currently, although businesses involved in construction activities apply quality management systems, but in practice there are a lot of poor works that worry people and society. Consequences of poor quality will damage property and waste money of business and community, and it also cause danger to people.
To ensure the effective application of quality management for construction projects, it requires the strong commitment of business leaders and implementation of multiple solutions. Applying this effective quality management will bring many potential benefits for businesses. Mr. Le Van Thong made a research which main objectives were: (1) determination of quality management activities in the construction in the Oil and Gas Company; and (2) to discuss and review the effectiveness of quality management in construction of the Oil and Gas Company
Conclusions
Quality management system has been applied by PTSC companies in their projects. It brings success to the company for many years now, and became a famous company in the international market in oil and gas technical services industry in Vietnam. They are the useful tools to avoid and mitigate problems and to improve quality performances of the following projects. They are the principles that management use to achieve effective cost control, quality control, schedule control etc. Many civil and industry construction Corporations, companies in developed countries have been applied the successful Quality Management and got more profits and reduced lost time and cost for reworks. They recognize the importance of the Quality Management and have responsibilities to identify, assess, prevent and manage all breakdowns and risks to projects, damage to property and working environment.
The quality improvement programs establish actions for achieving the objectives and targets, in line with the policy commitment of continuous improvement. When establishing targets, the following will be taken into consideration:
- Who do? How? Who supervise the provision of information; as executive / coordination / control is assigned in advance and all agents involved must comply.
- The system clearly and closely flexibility have created a positive consequence of works completed on schedule, ensure quality and safety.
Effectiveness of the implementation quality management:
After implementation of the quality management, there are some achieved results as below:
1. Quality Assurance is to obtain completed construction that meets all contract requirements. Assurance is defined as a degree of certainty. Quality assurance personnel continually assure that the contractor's works comply with contract requirements.
2. Quality Control is the successful execution of a realistic plan to ensure that the required standards of quality construction will be met. In QC, the contractor defines procedures to manage and control his own, designer of record, consultant, architect-engineer, all subcontractor and all supplier activities so that the completed project complies with contract requirements. For design-build contracts, this includes providing and maintaining a Design Quality Control plan as a part of the overall contract QC plan. This plan, as a minimum, must assure that all documents are reviewed by a technically competent independent reviewer specifically named in the plan. This review cannot be performed by the same designers that produced the product. The design QC plan must be managed by a Design QC Manager who has verifiable engineering or architectural design experience or is a registered engineer or architect. The Design QC Manager is under the supervision of the QC Manager.
Recommendations
1. The performance of Quality Management must be carried out permanently in the company to prevent all budget overrun, progress slow, reworks maybe happening from the existing projects and future projects.
2. The performance of Quality Management must be concerned from the top management to everybody in the company.
3. Examine the quality control methods being used to determine if the contractor is properly controlling design activities in design-build contracts.
4. Examine the quality control methods being used to determine if the contractor is properly controlling construction activities.
5. Make certain that the necessary changes are made in the contractor's QC system, if excessive construction deficiencies occur.
6. Assist the contractor in understanding and implementing the contract requirements.
7. Examine ongoing and completed work.
8. Produce the quality specified in the plans and specifications and for design-build contracts in the Request for Proposal, as well as the contractor's accepted proposal.
9. Develop and maintain an effective QC system.
10. Perform all control activities and tests.
11. Prepare acceptable documentation of QC activities.
His thesis abstract is copied and posted.
Abstract
In an organization or business will have a lot of construction projects, any project also is importance. Ensure the quality of the project is very important for each organization. Aware of that, the quality management has been applied widely in their construction projects. But how apply the successful model of quality management for a construction project that is still a big question.
Organizations in Vietnam as some other countries, in fact, the signers disclaim the possibility of anticipating and detailing everything in the construction documents. Second, it is unstable for the construction environment. The complexity and size of project vary. Working conditions cannot be somewhat control. The employee is variable; its composition, motivation and size change. Cooperation between contractor and subcontractors is problematic. Those will affect the quality management of construction projects and it makes the project to delay, re-work and increase cost.
So, how to manage the quality of the construction project effectively? This thesis will research about quality management in construction project through theory and real case that is applied in PTSC Production Services Company.
To ensure the effective application of quality management for construction projects, it requires the strong commitment of business leaders and implementation of multiple solutions. Applying this effective quality management will bring many potential benefits for businesses. Mr. Le Van Thong made a research which main objectives were: (1) determination of quality management activities in the construction in the Oil and Gas Company; and (2) to discuss and review the effectiveness of quality management in construction of the Oil and Gas Company
Conclusions
Quality management system has been applied by PTSC companies in their projects. It brings success to the company for many years now, and became a famous company in the international market in oil and gas technical services industry in Vietnam. They are the useful tools to avoid and mitigate problems and to improve quality performances of the following projects. They are the principles that management use to achieve effective cost control, quality control, schedule control etc. Many civil and industry construction Corporations, companies in developed countries have been applied the successful Quality Management and got more profits and reduced lost time and cost for reworks. They recognize the importance of the Quality Management and have responsibilities to identify, assess, prevent and manage all breakdowns and risks to projects, damage to property and working environment.
The quality improvement programs establish actions for achieving the objectives and targets, in line with the policy commitment of continuous improvement. When establishing targets, the following will be taken into consideration:
- Who do? How? Who supervise the provision of information; as executive / coordination / control is assigned in advance and all agents involved must comply.
- The system clearly and closely flexibility have created a positive consequence of works completed on schedule, ensure quality and safety.
Effectiveness of the implementation quality management:
After implementation of the quality management, there are some achieved results as below:
1. Quality Assurance is to obtain completed construction that meets all contract requirements. Assurance is defined as a degree of certainty. Quality assurance personnel continually assure that the contractor's works comply with contract requirements.
2. Quality Control is the successful execution of a realistic plan to ensure that the required standards of quality construction will be met. In QC, the contractor defines procedures to manage and control his own, designer of record, consultant, architect-engineer, all subcontractor and all supplier activities so that the completed project complies with contract requirements. For design-build contracts, this includes providing and maintaining a Design Quality Control plan as a part of the overall contract QC plan. This plan, as a minimum, must assure that all documents are reviewed by a technically competent independent reviewer specifically named in the plan. This review cannot be performed by the same designers that produced the product. The design QC plan must be managed by a Design QC Manager who has verifiable engineering or architectural design experience or is a registered engineer or architect. The Design QC Manager is under the supervision of the QC Manager.
Recommendations
1. The performance of Quality Management must be carried out permanently in the company to prevent all budget overrun, progress slow, reworks maybe happening from the existing projects and future projects.
2. The performance of Quality Management must be concerned from the top management to everybody in the company.
3. Examine the quality control methods being used to determine if the contractor is properly controlling design activities in design-build contracts.
4. Examine the quality control methods being used to determine if the contractor is properly controlling construction activities.
5. Make certain that the necessary changes are made in the contractor's QC system, if excessive construction deficiencies occur.
6. Assist the contractor in understanding and implementing the contract requirements.
7. Examine ongoing and completed work.
8. Produce the quality specified in the plans and specifications and for design-build contracts in the Request for Proposal, as well as the contractor's accepted proposal.
9. Develop and maintain an effective QC system.
10. Perform all control activities and tests.
11. Prepare acceptable documentation of QC activities.
His thesis abstract is copied and posted.
Abstract
In an organization or business will have a lot of construction projects, any project also is importance. Ensure the quality of the project is very important for each organization. Aware of that, the quality management has been applied widely in their construction projects. But how apply the successful model of quality management for a construction project that is still a big question.
Organizations in Vietnam as some other countries, in fact, the signers disclaim the possibility of anticipating and detailing everything in the construction documents. Second, it is unstable for the construction environment. The complexity and size of project vary. Working conditions cannot be somewhat control. The employee is variable; its composition, motivation and size change. Cooperation between contractor and subcontractors is problematic. Those will affect the quality management of construction projects and it makes the project to delay, re-work and increase cost.
So, how to manage the quality of the construction project effectively? This thesis will research about quality management in construction project through theory and real case that is applied in PTSC Production Services Company.
Monday, 4 October 2010
Investigation of Change Order Management: A Case Study of Oil & Gas Projects
Oil and gas project is very complex and changes could easily happen anytime. These projects mostly are huge with many phases such as engineering, procurement, fabrication, installation, pre-commissioning, commissioning for offshore facilities, and oil and gas platforms. They are considered to be very risky because of their complications and difficult conditions with high level of safety and requires big amount of money. Therefore cause of changes should be identified and classified.
Mr. Le Dang Thuc made a research which main objective was to study the change order management in EPC Oil & Gas Projects. The other objectives of his research were to: (1) investigate the different kinds of change order in oil and gas project; (2) assess the impact of change order in terms of cost and time; (3) investigate the change order process in oil and gas project; and (4) recommend ways to improve change order management in oil and gas.
Conclusion
Administering impact of change order in EPC oil and gas project is very significant to reduce time and cost and guarantee the success of the project. In order to do that, management of cost and time attached special importance to invest and innovate. There are five key concepts to manage impact with cost such as design cost breakdown structure, cost estimating, setting contingency, cost monitoring & control. The setting of contingency in contract price is to cover the cost in order to reduce risk and the unforeseeable events. To manage change order in term of time, the baseline and progress must be updated and reported.
In this study, several cause of change order were identified: alteration to specification, alteration to scope of work, alteration to contract, alteration to schedule, in which activity is unsafe under certain conditions; activity does not meet legal or regulatory requirements and others (example weather, political climate, etc).
Impacts of change order
According to five case studies, the impacts of change order in terms of additional cost are alteration to Scope of Work, alteration to Specification, others (Bad weather, Crane broken), and activity is unsafe under certain conditions. While the impacts of change order in terms of time are alteration to scope of work and others (Bad weather, broken Crane). Frequent types of change order were also identified such as alteration to scope of work, alteration to specification; activity is unsafe under certain conditions, Others (Bad weather, broken Crane), and alteration to schedule.
Time and cost impacts play an important role to prevent more extra time and cost during the execution. In CNV cases, it showed that the cost impact in construction phase is almost always high, as it is related to changes in costs of materials, risks in construction, designing, under pressure of schedule progress, and labor requirements during certain times of year, etc. Contract management is very complex and involves many phases, especially in oil and gas projects. Factors such as time, cost and quality have been managed strictly and change order forms are core parts of contract administration.
After studying and analyzing five different case studies, it has been found that the main cause of change order is the alteration to scope of work (78%). This happens due to reason such as change decision, change basis of design, location, and lack of estimation of scope of work. Alteration to scope of work is also the most cautious change order. This should pay more attention in contract dealings and should avoid happening. If there are alterations to scope of work, it will affect so much to project in term of cost and scheduling of project. Alteration to scope of work should be reduced and become a lessons learned for future project.
Change Order Process
Change order procedure is very significant to manage changes. This thesis shows a procedure for oil and gas project with 3 scenarios:
1. Client Originated changes - In the event that the Client requests the Contractor to prepare an estimate for a potential change, it shall be made formally by an instruction in writing from the Client. After the review and data input including time and cost, cause of change, the contractor will send VR to client for approval within a time frame. The client will check the VR with their requirement and issue a Variation order to execute project.
2. Contractor originated changes - Contractor identifies the change. They check the change in terms of time and cost, the relation with Client account, and then send to Client for review and approval. Within reasonable time, Client shall endorse the VR and return to Contractor. Client will follow this up with the issuance of VO.
3. Subcontract related changes - When changes occur, Subcontractor may consider giving rise to a claim for additional costs. The Subcontractor will immediately notify the Contractor via official communication. The Contractor responds by reviewing and approves the SVR.
These procedures will help company to be ready to cope with the change, as well as support for smooth execution of the project. To implement this procedure, all member need to understand and each step must be clear. To improve change order, system should be audited many times and innovated after seeing the mistake of sequence. The Project manager responds to guide all parties and all member of project team for clear and ready application.
Recommendation
In order to reduce change order, the project management system should be improved and include the following factors:
His thesis abstract is copied and posted.
Abstract
Oil and gas projects are very complex with huge budget therefore they are easy to raise change during execution of project. A lot of factors affect the project during execution of the project. Many problems could happen unforeseeably to the upcoming part of the project. Engineering Procurement Construction (EPC) process is complex and related to a large variety of variables therefore occurrence of changes in the scope of work is almost inevitable. Many factors such as financing, definition of work and regulatory matters also insert a certain degree of uncertainty into the project. The management of the change is very significant to prevent the impact of change order. Management system and identification cause of change should be play important role. The finding out what is repetitive causes will help Project team has a focal point to manage change order.
The causes of change are classified into 7 types which are based on the various parameters such as specification, scope of work, contract, schedule, etc. All of these changes are defined and analyzed.
In order to know how they administer in term of time and cost impact, this research has been assessed the 5 case studies and analysis is based on the cost estimate system, cost control, planning. Control research refers to the change order management system as per historical data of projects to identify the cause and the impact of change order. After studying and analyzing five different case studies, it has been found that the repetitive cause of change orders are alteration to scope of work. This happens due to the poor project management systems as estimation system, change decision, change basis of design, location, lack of estimation of scope of work and change order procedures.
Change order in oil and gas sector require leaders who can balance budgets and launch schedules and stay on task, because if a project is deemed too costly or late, it can delay the whole mission for months. Cost impact in construction phase is very high; therefore it is needed to pay attention during this period. To reduce change order, the scope of work should be clear. Cost estimates system use contingency in estimating a budget to cover rick, labor, project management system use responsibility break down, select expert vendor to supply material.
Time Impact in design phase is highest because of the following lack of communication, many deviations in design, change location and change design basis.
It is necessary to establish a change order procedure system to ensure effective project execution. A change management system will help a company to be ready to cope with changes and support smooth execution of projects.
Mr. Le Dang Thuc made a research which main objective was to study the change order management in EPC Oil & Gas Projects. The other objectives of his research were to: (1) investigate the different kinds of change order in oil and gas project; (2) assess the impact of change order in terms of cost and time; (3) investigate the change order process in oil and gas project; and (4) recommend ways to improve change order management in oil and gas.
Conclusion
Administering impact of change order in EPC oil and gas project is very significant to reduce time and cost and guarantee the success of the project. In order to do that, management of cost and time attached special importance to invest and innovate. There are five key concepts to manage impact with cost such as design cost breakdown structure, cost estimating, setting contingency, cost monitoring & control. The setting of contingency in contract price is to cover the cost in order to reduce risk and the unforeseeable events. To manage change order in term of time, the baseline and progress must be updated and reported.
In this study, several cause of change order were identified: alteration to specification, alteration to scope of work, alteration to contract, alteration to schedule, in which activity is unsafe under certain conditions; activity does not meet legal or regulatory requirements and others (example weather, political climate, etc).
Impacts of change order
According to five case studies, the impacts of change order in terms of additional cost are alteration to Scope of Work, alteration to Specification, others (Bad weather, Crane broken), and activity is unsafe under certain conditions. While the impacts of change order in terms of time are alteration to scope of work and others (Bad weather, broken Crane). Frequent types of change order were also identified such as alteration to scope of work, alteration to specification; activity is unsafe under certain conditions, Others (Bad weather, broken Crane), and alteration to schedule.
Time and cost impacts play an important role to prevent more extra time and cost during the execution. In CNV cases, it showed that the cost impact in construction phase is almost always high, as it is related to changes in costs of materials, risks in construction, designing, under pressure of schedule progress, and labor requirements during certain times of year, etc. Contract management is very complex and involves many phases, especially in oil and gas projects. Factors such as time, cost and quality have been managed strictly and change order forms are core parts of contract administration.
After studying and analyzing five different case studies, it has been found that the main cause of change order is the alteration to scope of work (78%). This happens due to reason such as change decision, change basis of design, location, and lack of estimation of scope of work. Alteration to scope of work is also the most cautious change order. This should pay more attention in contract dealings and should avoid happening. If there are alterations to scope of work, it will affect so much to project in term of cost and scheduling of project. Alteration to scope of work should be reduced and become a lessons learned for future project.
Change Order Process
Change order procedure is very significant to manage changes. This thesis shows a procedure for oil and gas project with 3 scenarios:
1. Client Originated changes - In the event that the Client requests the Contractor to prepare an estimate for a potential change, it shall be made formally by an instruction in writing from the Client. After the review and data input including time and cost, cause of change, the contractor will send VR to client for approval within a time frame. The client will check the VR with their requirement and issue a Variation order to execute project.
2. Contractor originated changes - Contractor identifies the change. They check the change in terms of time and cost, the relation with Client account, and then send to Client for review and approval. Within reasonable time, Client shall endorse the VR and return to Contractor. Client will follow this up with the issuance of VO.
3. Subcontract related changes - When changes occur, Subcontractor may consider giving rise to a claim for additional costs. The Subcontractor will immediately notify the Contractor via official communication. The Contractor responds by reviewing and approves the SVR.
These procedures will help company to be ready to cope with the change, as well as support for smooth execution of the project. To implement this procedure, all member need to understand and each step must be clear. To improve change order, system should be audited many times and innovated after seeing the mistake of sequence. The Project manager responds to guide all parties and all member of project team for clear and ready application.
Recommendation
In order to reduce change order, the project management system should be improved and include the following factors:
His thesis abstract is copied and posted.
Abstract
Oil and gas projects are very complex with huge budget therefore they are easy to raise change during execution of project. A lot of factors affect the project during execution of the project. Many problems could happen unforeseeably to the upcoming part of the project. Engineering Procurement Construction (EPC) process is complex and related to a large variety of variables therefore occurrence of changes in the scope of work is almost inevitable. Many factors such as financing, definition of work and regulatory matters also insert a certain degree of uncertainty into the project. The management of the change is very significant to prevent the impact of change order. Management system and identification cause of change should be play important role. The finding out what is repetitive causes will help Project team has a focal point to manage change order.
The causes of change are classified into 7 types which are based on the various parameters such as specification, scope of work, contract, schedule, etc. All of these changes are defined and analyzed.
In order to know how they administer in term of time and cost impact, this research has been assessed the 5 case studies and analysis is based on the cost estimate system, cost control, planning. Control research refers to the change order management system as per historical data of projects to identify the cause and the impact of change order. After studying and analyzing five different case studies, it has been found that the repetitive cause of change orders are alteration to scope of work. This happens due to the poor project management systems as estimation system, change decision, change basis of design, location, lack of estimation of scope of work and change order procedures.
Change order in oil and gas sector require leaders who can balance budgets and launch schedules and stay on task, because if a project is deemed too costly or late, it can delay the whole mission for months. Cost impact in construction phase is very high; therefore it is needed to pay attention during this period. To reduce change order, the scope of work should be clear. Cost estimates system use contingency in estimating a budget to cover rick, labor, project management system use responsibility break down, select expert vendor to supply material.
Time Impact in design phase is highest because of the following lack of communication, many deviations in design, change location and change design basis.
It is necessary to establish a change order procedure system to ensure effective project execution. A change management system will help a company to be ready to cope with changes and support smooth execution of projects.
Friday, 1 October 2010
Special Purpose Vehicle in Toll-Road Project Development: A Case Study of the National Highway 14 Project in Vietnam
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Wednesday, 29 September 2010
Improving Quality Assurance in Construction: Can Tho Storage Tank Capacity Enhancement Project Case Study, Vietnam
After implementing the first stage of the quality assurance and product improvement in construction program, Vietnam Minister of construction assessed that although the program has achieved success in the first stage, there are some difficulties need to be overcome comparing with the goal and requirements planned. Annually, accidents still happen on working site due to violation of quality management process and procedure. Lacks of owner’s care, some commissioning buildings have no operation and maintenance manuals. This leads to degradation, reduction of the building’s life span and become unsecured in operation (instruction of Vietnam Ministry of construction, 2006).
Quality in construction is measured through time, cost and scope in traditional way. Andrew argued that these indicators are simple and crude to gauge the project quality. Owners are more quality-driven than price and value driven (Dainty, 2003). Especially, in oil and gas facilities, expensive equipments related to each other in manufacturing line. If one component fails, the other will be affected like the domino effect. So it is necessary to recognize other components affecting construction quality in each stage of project life cycle through assessing effectiveness and efficiency of construction processes. From that point, processes can improve that satisfy the external and internal customers. As a result, the existence and success of Vietnam enterprises are confirmed in local and international arena as well.
Mr. Duong Thanh Hai made a study which main three objectives were: (1) modeling the construction quality assurance activities from design to commissioning in traditional procurement; (2) investigating problems in term of effectiveness and efficiency of processes and sub-processes in the model that affect quality issues; and (3) developing a tentative model that incorporates construction activities and quality improvement approaches addressing such problems.
Conclusion
1. Modeling the construction quality assurance activities from design to commissioning in traditional procurement
The case was the storage tank project using design-bid-build procurement approach. The owner had in-house staff working as construction management. The owner stated their needs to design consultant. The designer mapped out all construction law, codes and standards that have to be complied with and to control and assure project quality.
Based on the design, the owner gave the quality requirements to site surveyor, supervisor, and contractor. Then these people submitted their quality plans that satisfy those requirements. A quality assurance model was developed based on the discussion with project participants and analyzing archive. The model shows interaction among involved parties from design to commissioning.
2. Investigating problems in term of effectiveness and efficiency of processes and sub-processes in the model that affect quality issues
There were five major problems happened in the project because the involved parties violated the quality plan and also because of the gaps on those quality plans itself.
Problem 1: design materials unavailability in the market
The design materials are only available during the time that the consultant planned the design. During the procurement, the owner realized shortage then the designer had to re-work.
Problem 2: delay in pressing piles
Although all operating procedures were clearly stated in the quality plans, mistakes still took place. The bearing capacities of pressed piles were not the same as the designed figures. According to the plan, the contractor would have informed the designer when problems happened but they did not. As a result, the schedule was delayed.
Problem 3: supply delay of floating roofs
Floating roof equipments were supplied two months late. Those equipment trades were solely based on contract which the contractor cannot assure the supply on time. The contract had just compensated direct loss for contractor. Other indirect loss such as reputation, administrative, low morale actually cannot be recovered.
Problem 4: valves leakage
Design valves were not received on time because of the delay in supply. The contractor used temporary valves to replace designed valves during tank process testing. Unfortunately, the temporary valves cannot bear the oil load, so they leaked. Some arrangements should be carried out to make sure that supplies are available when needed rather than recovered from contract breach penalty.
Problem 5: oil leakage of existing tank system
Underground pipeline were maintained every 10 year. However, those pipelines failed one year before that time. Therefore, one burning accident happened during the transferring process of existing tanks. The underground pipeline should be monitored gradually during that period.
3. Developing a tentative model that incorporates construction activities and quality improvement approaches addressing such problems
In Petromekong, most of construction applied traditional procurement. Contractor requested for supplier’s quotation after they had got bid. However in oil and gas industry, oil constructions usually need long lead time materials and equipment. For this reason, the contractor faces delay of supply sometimes. The study illustrated “supplier partnership” approach should be used in such type of construction to improve procurement quality. Petromekong in-house investing department will arrange partnership with suppliers beforehand. Then the owner, suppliers, designer will optimize time, cost, quality and satisfaction trade-off for important long lead time equipments and materials.
A chain of tools is suggested to detect and solve those problems in advance. Quality improvement tools such as flowchart, check sheet, problem source investigating chart, brainstorming, affinity diagram, fish bone diagram, nominal group technique should be used orderly to improve certain construction processes. Such types of process are repetitive, measurable and have clear procedures. Company can monitor and record performance of those processes regularly. Whenever problems happen, company can immediately recognize warning signs and take actions beforehand.
His thesis abstract is copied and posted.
Abstract
Since Vietnam has had oil terminal system development plan, more tank projects have been invested to expand storage capacity. However, quality violation has been alert obviously. From that point, the study suggests model to identify and eliminate those problems beforehand.
The study used one tank project as case study to fulfill three objectives. Firstly, quality assurance processes in traditional procurement were modeled. Then, the researcher investigated problems adhering to these processes. Finally, an improving quality model was suggested addressing those problems.
The case study was collected from Petromekong Corporation located in southern part of Vietnam. The researcher utilized focus group qualitative method. The researcher discussed with investing department of Petromekong to elicit quality assurance activities of project participants. Then, the researcher defined five problems existing in the case: deigning unavailable material on market, delaying in pressing piles, supply delay of floating roofs, leakage of valves and oil leakage of existing tank system. The researcher looked for some quality improvement approaches from manufacturing industry since. Finally, after conducting expert’s assessment, the researcher demonstrated “supplier partnership” approach should be used in long lead time materials and equipment construction to improve procurement quality. Illustrating pile driving and oil transferring processes as examples, the researcher suggested a chain of tools to detect and solve those problems in the case study beforehand. Such tools are flowchart, check sheet, problem source investigating chart, brainstorming, affinity diagram, fish bone diagram, nominal group technique should be used orderly to improve repetitive, measurable and clear procedure construction processes.
Key word: quality assurance, Petromekong, oil storage tank, traditional procurement, quality improvement, construction problems, case study, Vietnam.
Quality in construction is measured through time, cost and scope in traditional way. Andrew argued that these indicators are simple and crude to gauge the project quality. Owners are more quality-driven than price and value driven (Dainty, 2003). Especially, in oil and gas facilities, expensive equipments related to each other in manufacturing line. If one component fails, the other will be affected like the domino effect. So it is necessary to recognize other components affecting construction quality in each stage of project life cycle through assessing effectiveness and efficiency of construction processes. From that point, processes can improve that satisfy the external and internal customers. As a result, the existence and success of Vietnam enterprises are confirmed in local and international arena as well.
Mr. Duong Thanh Hai made a study which main three objectives were: (1) modeling the construction quality assurance activities from design to commissioning in traditional procurement; (2) investigating problems in term of effectiveness and efficiency of processes and sub-processes in the model that affect quality issues; and (3) developing a tentative model that incorporates construction activities and quality improvement approaches addressing such problems.
Conclusion
1. Modeling the construction quality assurance activities from design to commissioning in traditional procurement
The case was the storage tank project using design-bid-build procurement approach. The owner had in-house staff working as construction management. The owner stated their needs to design consultant. The designer mapped out all construction law, codes and standards that have to be complied with and to control and assure project quality.
Based on the design, the owner gave the quality requirements to site surveyor, supervisor, and contractor. Then these people submitted their quality plans that satisfy those requirements. A quality assurance model was developed based on the discussion with project participants and analyzing archive. The model shows interaction among involved parties from design to commissioning.
2. Investigating problems in term of effectiveness and efficiency of processes and sub-processes in the model that affect quality issues
There were five major problems happened in the project because the involved parties violated the quality plan and also because of the gaps on those quality plans itself.
Problem 1: design materials unavailability in the market
The design materials are only available during the time that the consultant planned the design. During the procurement, the owner realized shortage then the designer had to re-work.
Problem 2: delay in pressing piles
Although all operating procedures were clearly stated in the quality plans, mistakes still took place. The bearing capacities of pressed piles were not the same as the designed figures. According to the plan, the contractor would have informed the designer when problems happened but they did not. As a result, the schedule was delayed.
Problem 3: supply delay of floating roofs
Floating roof equipments were supplied two months late. Those equipment trades were solely based on contract which the contractor cannot assure the supply on time. The contract had just compensated direct loss for contractor. Other indirect loss such as reputation, administrative, low morale actually cannot be recovered.
Problem 4: valves leakage
Design valves were not received on time because of the delay in supply. The contractor used temporary valves to replace designed valves during tank process testing. Unfortunately, the temporary valves cannot bear the oil load, so they leaked. Some arrangements should be carried out to make sure that supplies are available when needed rather than recovered from contract breach penalty.
Problem 5: oil leakage of existing tank system
Underground pipeline were maintained every 10 year. However, those pipelines failed one year before that time. Therefore, one burning accident happened during the transferring process of existing tanks. The underground pipeline should be monitored gradually during that period.
3. Developing a tentative model that incorporates construction activities and quality improvement approaches addressing such problems
In Petromekong, most of construction applied traditional procurement. Contractor requested for supplier’s quotation after they had got bid. However in oil and gas industry, oil constructions usually need long lead time materials and equipment. For this reason, the contractor faces delay of supply sometimes. The study illustrated “supplier partnership” approach should be used in such type of construction to improve procurement quality. Petromekong in-house investing department will arrange partnership with suppliers beforehand. Then the owner, suppliers, designer will optimize time, cost, quality and satisfaction trade-off for important long lead time equipments and materials.
A chain of tools is suggested to detect and solve those problems in advance. Quality improvement tools such as flowchart, check sheet, problem source investigating chart, brainstorming, affinity diagram, fish bone diagram, nominal group technique should be used orderly to improve certain construction processes. Such types of process are repetitive, measurable and have clear procedures. Company can monitor and record performance of those processes regularly. Whenever problems happen, company can immediately recognize warning signs and take actions beforehand.
His thesis abstract is copied and posted.
Abstract
Since Vietnam has had oil terminal system development plan, more tank projects have been invested to expand storage capacity. However, quality violation has been alert obviously. From that point, the study suggests model to identify and eliminate those problems beforehand.
The study used one tank project as case study to fulfill three objectives. Firstly, quality assurance processes in traditional procurement were modeled. Then, the researcher investigated problems adhering to these processes. Finally, an improving quality model was suggested addressing those problems.
The case study was collected from Petromekong Corporation located in southern part of Vietnam. The researcher utilized focus group qualitative method. The researcher discussed with investing department of Petromekong to elicit quality assurance activities of project participants. Then, the researcher defined five problems existing in the case: deigning unavailable material on market, delaying in pressing piles, supply delay of floating roofs, leakage of valves and oil leakage of existing tank system. The researcher looked for some quality improvement approaches from manufacturing industry since. Finally, after conducting expert’s assessment, the researcher demonstrated “supplier partnership” approach should be used in long lead time materials and equipment construction to improve procurement quality. Illustrating pile driving and oil transferring processes as examples, the researcher suggested a chain of tools to detect and solve those problems in the case study beforehand. Such tools are flowchart, check sheet, problem source investigating chart, brainstorming, affinity diagram, fish bone diagram, nominal group technique should be used orderly to improve repetitive, measurable and clear procedure construction processes.
Key word: quality assurance, Petromekong, oil storage tank, traditional procurement, quality improvement, construction problems, case study, Vietnam.
Friday, 24 September 2010
Public Private Partnership in Low-Income Housing Development in Vietnam
Infrastructure development plays a vital role in economic growth and poverty reduction (WB, 2003). Traditionally, infrastructure systems have been provided by public sector. However, the increasing need of new infrastructure development and maintenance of existing infrastructure systems demands a huge capital investment which cannot be achieved by public fund. Public-Private Partnership delivery has become a solution for funding problem by mobilizing private sector fund into infrastructure investment (ADB, 2008). With their innovation and management skill, private participation can increase productivity and efficiency of operation, improve the quality of service and reduce service price compared to public sector provision (ADB, 2008).
In order to keep pace with the increase in housing demand and improve poor housing condition, scaling up investment in housing sector is the urgent focus of Vietnamese government. And in order to reduce state budget investment, Vietnam government is currently seeking possible solutions to develop public private partnership in infrastructure investment, and especially in low-income housing development.
Mr. Truong Ngoc Quy made a study which main objective is to propose the possible solution to encourage private participate in low-income housing development in HCMC. In accomplishing the main objective, the following sub-objectives have to achieve:
1. Develop general public private partnership framework in low-income housing development and its assessment criteria.
2. Investigate current practice of public private partnership in low-income housing development in Vietnam using the developed general model
3. Assess current practice of public private partnership of low-income housing development in Vietnam based on developed assessment criteria.
4. Propose the recommendation for setting up applicable public private partnership model in low-income housing development in Vietnam.
Research Findings
1. General public private partnership model in low-income housing development and its assessment criteria
Five factors of PPP in LIH development which are constructed from extensive literature review and expert verification are (1) government support to private participation, (2) government imposition on private party, (3) government subsidies for low-income people, (4) control target group policy, and (5) tenure system. Also from literature review and expert verification, the nine assessment criteria which are constructed and divided into 3 groups related to three main parties in low-income housing development are (1) affordability, accessibility, and availability for low-income people (2) profitability, availability, accessibility of incentives for private developers (3) sustainability, effectiveness, and inclusiveness.
2. Investigate current practices of public private partnership in low-income housing development in Vietnam
Many issues related to government support for private sector, imposition on developers, subsidies for LIP, control of target group, and tenure system in Vietnam. Facing the problem related to government support, private developers in Vietnam cannot receive some important incentives such as land and financing subsidies which are promised to give by government. The maximum profit margin of 10% and minimum cost recovery at least for 10 years for both hire-purchase and installment payment or for 20 years for rental houses make this market segment unattractive to private sector. The minimum planning and designing standard, and controlling maximum profit margin are lack of detail guideline for public authority and private developer during implementation. The housing finance subsidy in government policy is not strong to provide affordable loan condition to low-income people. Moreover, the loan condition actual provided to LIP is less favorable than what is introduced in policy. Because of under-table money using in allocation system and lack of detailed guidelines to prevent resale and renting out allocated units, most of the housing units are occupied by ineligible people. The actual tenure system is less favorable to low-income people than the imposed tenure system in government policy due to lack of profit in planning tenure system of government policy.
3. Assess the current practice of public private partnership in low-income housing development in Vietnam
Most low-income people in Vietnam face difficulty in affording payment condition and serving debt due to high debt service, high portion of down payment, and high housing price. The quantity of housing available to LIP is low, and the housing finance subsidy is also low in term of both quantity and quality. Housing subsidies including low-income housing subsidized units, housing finance and subsidized information is difficult to access for LIP. The low-profit margin and long term cost recovery set by government is not attractive for private participation. Some important incentives such as off-take guarantee and faster legislation procedure are not introduced in government policy and most incentives in government regulation are not provided in reality. Moreover, most provided incentives such as tax, financing, and basis infrastructure are not given to developer because they are not included in project cost when calculating profit margin. Complex legislation procedure in receiving incentives makes it difficult for developer to access these incentives. The LIH program does not provide housing for migrant and not focus on non-government officials due to its strict selection criteria, and does not cover other housing need due to unsuitable minimum design standard. Another issue related to effectiveness of program is that it is not effective in attracting private participation due to low profit set by government, reducing housing price because of the profit margin ceiling policy, and allocating housing to eligible people due to under-table money using and unclear controlling guideline after sale. Because of its low actual incentives and low actual subsidies provided, the financial sustainability of government budget is not affected much.
His thesis abstract is copied and posted.
ABSTRACT
One of global problem is inadequate condition of urban housing, and it is most serious issues in developing countries. The pressing issue of Vietnam at the mean time is providing adequate housing for residents, especially for poor people living in urban area. In order to reduce state budget investment in housing development for the poor, Vietnam government is currently seeking possible solutions to develop public private partnership in low-income housing development. However, it is still lack of public private partnership in low-income housing development even though government has implemented incentives policy to encourage private participation since 2001. The purpose of this study is seeking possible solution to develop practice of public private partnership in low-income housing development.
This research was conducted by case study methodology to fulfill four study objectives. Firstly, general framework and its assessment criteria for public private partnership in low-income housing development were developed and verified by expert. Secondly, the current practices of public private partnership in low-income housing development in Vietnam are investigated base on developed general framework. Thirdly, following developed assessment criteria, the current practices of public private partnership in low-income housing development in Vietnam are assessed. Fourthly, recommendation for setting up applicable public private partnership in low-income housing development in Vietnam is made.
The result of this study found there is a big gap between government policy and actual implementation of public private partnership in low-income housing development in Vietnam. The government program is not effective in solving housing needs. Low-income people still face difficult in buying the houses. The low-income housing market is not attractive to private developer. Housing finance institute, housing saving fund, and national housing authority are recommended to be set up and play important roles in supporting both demand side and supply side of low-income housing market.
In order to keep pace with the increase in housing demand and improve poor housing condition, scaling up investment in housing sector is the urgent focus of Vietnamese government. And in order to reduce state budget investment, Vietnam government is currently seeking possible solutions to develop public private partnership in infrastructure investment, and especially in low-income housing development.
Mr. Truong Ngoc Quy made a study which main objective is to propose the possible solution to encourage private participate in low-income housing development in HCMC. In accomplishing the main objective, the following sub-objectives have to achieve:
1. Develop general public private partnership framework in low-income housing development and its assessment criteria.
2. Investigate current practice of public private partnership in low-income housing development in Vietnam using the developed general model
3. Assess current practice of public private partnership of low-income housing development in Vietnam based on developed assessment criteria.
4. Propose the recommendation for setting up applicable public private partnership model in low-income housing development in Vietnam.
Research Findings
1. General public private partnership model in low-income housing development and its assessment criteria
Five factors of PPP in LIH development which are constructed from extensive literature review and expert verification are (1) government support to private participation, (2) government imposition on private party, (3) government subsidies for low-income people, (4) control target group policy, and (5) tenure system. Also from literature review and expert verification, the nine assessment criteria which are constructed and divided into 3 groups related to three main parties in low-income housing development are (1) affordability, accessibility, and availability for low-income people (2) profitability, availability, accessibility of incentives for private developers (3) sustainability, effectiveness, and inclusiveness.
2. Investigate current practices of public private partnership in low-income housing development in Vietnam
Many issues related to government support for private sector, imposition on developers, subsidies for LIP, control of target group, and tenure system in Vietnam. Facing the problem related to government support, private developers in Vietnam cannot receive some important incentives such as land and financing subsidies which are promised to give by government. The maximum profit margin of 10% and minimum cost recovery at least for 10 years for both hire-purchase and installment payment or for 20 years for rental houses make this market segment unattractive to private sector. The minimum planning and designing standard, and controlling maximum profit margin are lack of detail guideline for public authority and private developer during implementation. The housing finance subsidy in government policy is not strong to provide affordable loan condition to low-income people. Moreover, the loan condition actual provided to LIP is less favorable than what is introduced in policy. Because of under-table money using in allocation system and lack of detailed guidelines to prevent resale and renting out allocated units, most of the housing units are occupied by ineligible people. The actual tenure system is less favorable to low-income people than the imposed tenure system in government policy due to lack of profit in planning tenure system of government policy.
3. Assess the current practice of public private partnership in low-income housing development in Vietnam
Most low-income people in Vietnam face difficulty in affording payment condition and serving debt due to high debt service, high portion of down payment, and high housing price. The quantity of housing available to LIP is low, and the housing finance subsidy is also low in term of both quantity and quality. Housing subsidies including low-income housing subsidized units, housing finance and subsidized information is difficult to access for LIP. The low-profit margin and long term cost recovery set by government is not attractive for private participation. Some important incentives such as off-take guarantee and faster legislation procedure are not introduced in government policy and most incentives in government regulation are not provided in reality. Moreover, most provided incentives such as tax, financing, and basis infrastructure are not given to developer because they are not included in project cost when calculating profit margin. Complex legislation procedure in receiving incentives makes it difficult for developer to access these incentives. The LIH program does not provide housing for migrant and not focus on non-government officials due to its strict selection criteria, and does not cover other housing need due to unsuitable minimum design standard. Another issue related to effectiveness of program is that it is not effective in attracting private participation due to low profit set by government, reducing housing price because of the profit margin ceiling policy, and allocating housing to eligible people due to under-table money using and unclear controlling guideline after sale. Because of its low actual incentives and low actual subsidies provided, the financial sustainability of government budget is not affected much.
His thesis abstract is copied and posted.
ABSTRACT
One of global problem is inadequate condition of urban housing, and it is most serious issues in developing countries. The pressing issue of Vietnam at the mean time is providing adequate housing for residents, especially for poor people living in urban area. In order to reduce state budget investment in housing development for the poor, Vietnam government is currently seeking possible solutions to develop public private partnership in low-income housing development. However, it is still lack of public private partnership in low-income housing development even though government has implemented incentives policy to encourage private participation since 2001. The purpose of this study is seeking possible solution to develop practice of public private partnership in low-income housing development.
This research was conducted by case study methodology to fulfill four study objectives. Firstly, general framework and its assessment criteria for public private partnership in low-income housing development were developed and verified by expert. Secondly, the current practices of public private partnership in low-income housing development in Vietnam are investigated base on developed general framework. Thirdly, following developed assessment criteria, the current practices of public private partnership in low-income housing development in Vietnam are assessed. Fourthly, recommendation for setting up applicable public private partnership in low-income housing development in Vietnam is made.
The result of this study found there is a big gap between government policy and actual implementation of public private partnership in low-income housing development in Vietnam. The government program is not effective in solving housing needs. Low-income people still face difficult in buying the houses. The low-income housing market is not attractive to private developer. Housing finance institute, housing saving fund, and national housing authority are recommended to be set up and play important roles in supporting both demand side and supply side of low-income housing market.
Thursday, 23 September 2010
Development of a Worker Engagement Measurement Tool (WEMT) for Construction Safety Program
Many studies revealed that construction industry has the highest risks compared with other industries, risks that sometimes lead to death.
Each construction companies have their own safety measures implementation. But how to lessen if not totally eliminate this kind of accidents is everybody’s concern especially those who are working in the construction sites.
Dr. Oulawan Kulchartchai made a research to find the answer to the following questions:
• How can worker engagement in safety program implementation be assessed?
- What process should be used to develop Worker Engagement Measurement Tool (WEMT)?
- What are the components/elements of worker engagement?
• What are the factors that affect worker engagement in safety program implementation?
• What are the critical factors contributing to the success of worker engagement in safety program implementation?
The general objective of her research is to develop an assessment tool to measure worker engagement in the safety program implementation. This assessment should allow managers to assess the real status of their workers from the workers’ views, and then provide adequate actions to improve worker engagement. To accomplish these, the specific objectives of the study are set out and identified as the following:
• To develop a reliable assessment tool in order to measure worker engagement in safety program implementation in construction projects.
• To identify critical factors of successful worker engagement (WE) in safety program implementation
Conclusion on Answers to the Questions
In assessing the worker engagement in safety program implementation, two questions must be addressed: first; what are the components/elements of worker engagement? And second; what is that the process that should be used to develop worker engagement measurement tool?
On assessing worker engagement in safety program implementation:
a. What process should be used to develop Worker Engagement Measurement Tool (WEMT)?
The literature reviewed revealed that there is a lack of empirical data on many of the measures of an engagement in construction area, particularly for the workers. The development of a worker engagement measurement tool, which is perceived to be valid, should clearly reflect the emerging research perspectives on engagement. The tool should look at the total context (cognitive, affective, and psychomotor domain) and not focus on a singular dimension (the degree of freedom for workers to make their own decisions regarding health and safety issues).
Ground theory analysis was adopted to define the concept ‘worker engagement’ and associated descriptive elements.
Lawshe's (1975) quantitative content validity technique was used to determine the perception of safety experts based on the model or framework on worker engagement and its descriptive elements. The results derived from the content validity technique showed that fifty-three (53) out of the seventy-eight (78) descriptive elements were included in the validity assessment questionnaire of a worker engagement). The element consisted of cognitive domain (21 items), affective domain (26 items), and psychomotor domain (6 items), and content validity index as perceived by safety experts which are 0.72, 0.60, and 0.43 respectively. It can be concluded that the theoretical construct of the worker engagement model and descriptive elements were verified and thus acceptable for use in the development of a worker engagement measurement tool.
b. What are the components/elements of worker engagement?
To determine the components/elements of worker engagement, a process was needed to initially develop a worker engagement measurement tool. By using triangulation techniques, models including the scale development process were developed. This process was also used by Du Plessis (2004), and was based from DeVellis’s work (1991) as supported by the latter study from Clark and Watson’s (1995). The theoretical model construct was derived from the related literature study. To get the descriptive elements of worker engagement, Grounded Theory’s techniques were applied. The data was verified by safety experts using Lawshe’s techniques. The verified items were subjected to item analysis and exploratory factor analysis techniques using SPSS (Statistical Package for the Social Sciences) software. The reliability test in SPSS was adopted through the Independent sample, t-test.
In conclusion, the questions above could be positively answered from the literature reviewed and qualitative study. These answers provided the background to the empirical part of the study and supported the inputs to the primary objective.
The secondary objective of this study is ‘to identify critical factors of successful worker engagement (WE) in safety program implementation’. To accomplish this objective, two steps were considered: (1) the common factors affecting worker engagement in safety program implementation; and (2) the critical factors contributing to the success of worker engagement in safety program implementation.
Based on a learning theoretical model, factors affecting worker engagement in safety program implementation can be grouped into situation related factors and individual related factor. Although many psychological and management literatures have studied engagement factors, little work in current literature attempted to explore the factors contributing to worker engagement in safety programs implementation at construction projects. Therefore, the qualitative and quantitative studies were carried out.
In order to identify the affecting factors, a qualitative study was done using the Grounded Theory’s technique. Subsequently, the factors were verified using Lawshe’s techniques. The results indicated that affecting factor consists of situation-related factor (31 items) and individual related factors (12 items) and the content validity index as perceived by safety experts are 0.56 and 0.59 respectively. It can be concluded that the affecting factors which were perceived by experts were valid.
Conclusion and Answer to the Primary Objective Worker Engagement Measurement Tool (WEMT)
A worker engagement measurement tool (WEMT) was developed. This tool has a six-factor scale and a total of 39 items. This was derived from applying the research process which included Grounded Theory’s techniques, Lawshe’s techniques, the development of a scale instrument by using DeVellis’s (1991) process, and a reliability test of the developed worker engagement measurement tool by using Independent sample, t-test
The statistical techniques such as item analysis and exploratory factor analysis in SPSS was applied on the initial 78 variables under the three construct theoretical model developed from a learning theory and Kahn’s initial theoretical model, then worker engagement concept and associated descriptive elements were identified by utilizing Grounded theory and then verified by safety experts.
The final conclusion that can be made to answer the primary research objective is that the worker engagement measurement tool (WEMT) developed through this research is holistic in nature and measures a total worker engagement construct by means of the six factors; is reliable (statistically proven); can be used as a diagnostic tool because it can significantly distinguish between projects; and is perceived to have a valid construct.
Conclusion and Answer to the Secondary Objective Factor Affecting Worker Engagement
The factors affecting worker engagement consisted of six factors and had 29 items in total. This data was the output from series of analysis. After numerous literature researches, the theory was found relevant to this study.
The final conclusion answers “what are the critical factors contributing to the success of worker engagement in safety program implementation?” Safety policy, supportive management and supervisor behavior factor, and individual related factors were considered as the critical factors affecting to worker engagement in safety program implementation, whereas, workplace climate, communication and feedback, and reward and recognition were perceived by the respondents as the factors that need considerable attention in order to improve worker engagement in safety programs implementation.
Her thesis abstract is copied and posted.
ABSTRACT
The construction industry is considered to have the highest rate of fatal occupational injuries in many countries. In Thailand, the accident rate in the construction industry is reportedly the highest compared to other industries. Fatal injuries to workers occur more often in construction industry. Previous research emphases often analyze the effective safety programs rather than those that are geared towards creating safe working environments. Workers are expected to play and act as the “key driver” in safety program implementation. Due to this, worker engagement is now considered to be one of the most important approaches in reducing work-related injuries and diseases. Without this worker engagement, safety programs will be difficult to achieve. It is hypothesized that worker engagement can substantially reduce accidents and improve safety performance continuously.
The primary objective of this study was ‘to develop a reliable assessment tool to measure worker engagement in safety program implementation in construction projects” and ‘to identify critical factors of successful worker engagement (WE) in safety program implementation’. The findings therefore will enable construction firms to identify gaps in worker engagement within the safety program implementation, and facilitate improvements.
This study used triangulation techniques including; theoretical model construct by a thorough literature study, components of worker engagement indicated by Grounded Theory’s techniques, verification of the theoretical model using Lawshe’s techniques, the development of a scale instrument by using DeVellis’s (1991) process supported by Clark and Watson’s (1995) and used by Du Plessis (2004), a reliability test of the developed worker engagement measurement tool by using Independent sample, t-test.
In developing the WEMT, several consultation and tests were conducted with national safety experts. Results showed that worker engagement (WE) consisted of 3 domains; cognitive (21 items), affective (26 items), and psychomotor (6 items). The content validity index of the domains according to safety experts are 0.72, 0.60, and 0.43 respectively. Additionally, the situation-related factor (31 items) and individually related factors (12 items) with respect to the content validity index were 0.56 and 0.59 respectively. A questionnaire with 53 variables in three dimensions of worker engagement and 43 variables in affecting factor was distributed to the sample group of construction workers and personnel basis either by electronic-mail or hand carried to the representative sample group of 494. Approximately fifty two percent (258/494) responded anonymously. A scale instrument was developed through the item analysis and exploratory factor analysis function of the Statistical Package for the Social Sciences (SPSS).
A worker engagement measurement tool (WEMT) comprised of 39 items in a six-factor instrument was developed. It was found that the items in these factors were highly acceptable, receiving a Cronbach alpha coefficient above 0.8.
The developed WEMT was tested in two distinct construction projects in Oil&Gas and Building projects. These test confirmed that WEMT was a reliable diagnostic tool that can discriminate worker engagement level among different projects, particularly in the Thai construction firm context.
This research also determined factors that affect worker engagement within the safety program implementation. These factors are important when guided contractors to increase worker engagement level. This study showed that suitable safety policies, a supportive management team, and individually related factors were critical and directly affects the worker engagement in safety program implementation. Workplace climate, communication and feedback, and reward and recognition were perceived by the respondents as the factors that need considerable attention to improve worker engagement.
This research is relevant because it was able to identify a reliable worker engagement measurement tool that enables projects to identify the overall level of worker engagement in safety program implementation. This tool will serve to facilitate strategic actions to improve the working situations, thereby optimizing safety program implementation for continuous safety movements. The implementation of such strategies will be a forward move towards beginning and sustaining safety program implementation for further safety performance improvement within industries, particularly in Thailand.
Key words:
Worker engagement measurement tools, worker engagement, construction project, grounded theory, scale development, affecting factors.
Each construction companies have their own safety measures implementation. But how to lessen if not totally eliminate this kind of accidents is everybody’s concern especially those who are working in the construction sites.
Dr. Oulawan Kulchartchai made a research to find the answer to the following questions:
• How can worker engagement in safety program implementation be assessed?
- What process should be used to develop Worker Engagement Measurement Tool (WEMT)?
- What are the components/elements of worker engagement?
• What are the factors that affect worker engagement in safety program implementation?
• What are the critical factors contributing to the success of worker engagement in safety program implementation?
The general objective of her research is to develop an assessment tool to measure worker engagement in the safety program implementation. This assessment should allow managers to assess the real status of their workers from the workers’ views, and then provide adequate actions to improve worker engagement. To accomplish these, the specific objectives of the study are set out and identified as the following:
• To develop a reliable assessment tool in order to measure worker engagement in safety program implementation in construction projects.
• To identify critical factors of successful worker engagement (WE) in safety program implementation
Conclusion on Answers to the Questions
In assessing the worker engagement in safety program implementation, two questions must be addressed: first; what are the components/elements of worker engagement? And second; what is that the process that should be used to develop worker engagement measurement tool?
On assessing worker engagement in safety program implementation:
a. What process should be used to develop Worker Engagement Measurement Tool (WEMT)?
The literature reviewed revealed that there is a lack of empirical data on many of the measures of an engagement in construction area, particularly for the workers. The development of a worker engagement measurement tool, which is perceived to be valid, should clearly reflect the emerging research perspectives on engagement. The tool should look at the total context (cognitive, affective, and psychomotor domain) and not focus on a singular dimension (the degree of freedom for workers to make their own decisions regarding health and safety issues).
Ground theory analysis was adopted to define the concept ‘worker engagement’ and associated descriptive elements.
Lawshe's (1975) quantitative content validity technique was used to determine the perception of safety experts based on the model or framework on worker engagement and its descriptive elements. The results derived from the content validity technique showed that fifty-three (53) out of the seventy-eight (78) descriptive elements were included in the validity assessment questionnaire of a worker engagement). The element consisted of cognitive domain (21 items), affective domain (26 items), and psychomotor domain (6 items), and content validity index as perceived by safety experts which are 0.72, 0.60, and 0.43 respectively. It can be concluded that the theoretical construct of the worker engagement model and descriptive elements were verified and thus acceptable for use in the development of a worker engagement measurement tool.
b. What are the components/elements of worker engagement?
To determine the components/elements of worker engagement, a process was needed to initially develop a worker engagement measurement tool. By using triangulation techniques, models including the scale development process were developed. This process was also used by Du Plessis (2004), and was based from DeVellis’s work (1991) as supported by the latter study from Clark and Watson’s (1995). The theoretical model construct was derived from the related literature study. To get the descriptive elements of worker engagement, Grounded Theory’s techniques were applied. The data was verified by safety experts using Lawshe’s techniques. The verified items were subjected to item analysis and exploratory factor analysis techniques using SPSS (Statistical Package for the Social Sciences) software. The reliability test in SPSS was adopted through the Independent sample, t-test.
In conclusion, the questions above could be positively answered from the literature reviewed and qualitative study. These answers provided the background to the empirical part of the study and supported the inputs to the primary objective.
The secondary objective of this study is ‘to identify critical factors of successful worker engagement (WE) in safety program implementation’. To accomplish this objective, two steps were considered: (1) the common factors affecting worker engagement in safety program implementation; and (2) the critical factors contributing to the success of worker engagement in safety program implementation.
Based on a learning theoretical model, factors affecting worker engagement in safety program implementation can be grouped into situation related factors and individual related factor. Although many psychological and management literatures have studied engagement factors, little work in current literature attempted to explore the factors contributing to worker engagement in safety programs implementation at construction projects. Therefore, the qualitative and quantitative studies were carried out.
In order to identify the affecting factors, a qualitative study was done using the Grounded Theory’s technique. Subsequently, the factors were verified using Lawshe’s techniques. The results indicated that affecting factor consists of situation-related factor (31 items) and individual related factors (12 items) and the content validity index as perceived by safety experts are 0.56 and 0.59 respectively. It can be concluded that the affecting factors which were perceived by experts were valid.
Conclusion and Answer to the Primary Objective Worker Engagement Measurement Tool (WEMT)
A worker engagement measurement tool (WEMT) was developed. This tool has a six-factor scale and a total of 39 items. This was derived from applying the research process which included Grounded Theory’s techniques, Lawshe’s techniques, the development of a scale instrument by using DeVellis’s (1991) process, and a reliability test of the developed worker engagement measurement tool by using Independent sample, t-test
The statistical techniques such as item analysis and exploratory factor analysis in SPSS was applied on the initial 78 variables under the three construct theoretical model developed from a learning theory and Kahn’s initial theoretical model, then worker engagement concept and associated descriptive elements were identified by utilizing Grounded theory and then verified by safety experts.
The final conclusion that can be made to answer the primary research objective is that the worker engagement measurement tool (WEMT) developed through this research is holistic in nature and measures a total worker engagement construct by means of the six factors; is reliable (statistically proven); can be used as a diagnostic tool because it can significantly distinguish between projects; and is perceived to have a valid construct.
Conclusion and Answer to the Secondary Objective Factor Affecting Worker Engagement
The factors affecting worker engagement consisted of six factors and had 29 items in total. This data was the output from series of analysis. After numerous literature researches, the theory was found relevant to this study.
The final conclusion answers “what are the critical factors contributing to the success of worker engagement in safety program implementation?” Safety policy, supportive management and supervisor behavior factor, and individual related factors were considered as the critical factors affecting to worker engagement in safety program implementation, whereas, workplace climate, communication and feedback, and reward and recognition were perceived by the respondents as the factors that need considerable attention in order to improve worker engagement in safety programs implementation.
Her thesis abstract is copied and posted.
ABSTRACT
The construction industry is considered to have the highest rate of fatal occupational injuries in many countries. In Thailand, the accident rate in the construction industry is reportedly the highest compared to other industries. Fatal injuries to workers occur more often in construction industry. Previous research emphases often analyze the effective safety programs rather than those that are geared towards creating safe working environments. Workers are expected to play and act as the “key driver” in safety program implementation. Due to this, worker engagement is now considered to be one of the most important approaches in reducing work-related injuries and diseases. Without this worker engagement, safety programs will be difficult to achieve. It is hypothesized that worker engagement can substantially reduce accidents and improve safety performance continuously.
The primary objective of this study was ‘to develop a reliable assessment tool to measure worker engagement in safety program implementation in construction projects” and ‘to identify critical factors of successful worker engagement (WE) in safety program implementation’. The findings therefore will enable construction firms to identify gaps in worker engagement within the safety program implementation, and facilitate improvements.
This study used triangulation techniques including; theoretical model construct by a thorough literature study, components of worker engagement indicated by Grounded Theory’s techniques, verification of the theoretical model using Lawshe’s techniques, the development of a scale instrument by using DeVellis’s (1991) process supported by Clark and Watson’s (1995) and used by Du Plessis (2004), a reliability test of the developed worker engagement measurement tool by using Independent sample, t-test.
In developing the WEMT, several consultation and tests were conducted with national safety experts. Results showed that worker engagement (WE) consisted of 3 domains; cognitive (21 items), affective (26 items), and psychomotor (6 items). The content validity index of the domains according to safety experts are 0.72, 0.60, and 0.43 respectively. Additionally, the situation-related factor (31 items) and individually related factors (12 items) with respect to the content validity index were 0.56 and 0.59 respectively. A questionnaire with 53 variables in three dimensions of worker engagement and 43 variables in affecting factor was distributed to the sample group of construction workers and personnel basis either by electronic-mail or hand carried to the representative sample group of 494. Approximately fifty two percent (258/494) responded anonymously. A scale instrument was developed through the item analysis and exploratory factor analysis function of the Statistical Package for the Social Sciences (SPSS).
A worker engagement measurement tool (WEMT) comprised of 39 items in a six-factor instrument was developed. It was found that the items in these factors were highly acceptable, receiving a Cronbach alpha coefficient above 0.8.
The developed WEMT was tested in two distinct construction projects in Oil&Gas and Building projects. These test confirmed that WEMT was a reliable diagnostic tool that can discriminate worker engagement level among different projects, particularly in the Thai construction firm context.
This research also determined factors that affect worker engagement within the safety program implementation. These factors are important when guided contractors to increase worker engagement level. This study showed that suitable safety policies, a supportive management team, and individually related factors were critical and directly affects the worker engagement in safety program implementation. Workplace climate, communication and feedback, and reward and recognition were perceived by the respondents as the factors that need considerable attention to improve worker engagement.
This research is relevant because it was able to identify a reliable worker engagement measurement tool that enables projects to identify the overall level of worker engagement in safety program implementation. This tool will serve to facilitate strategic actions to improve the working situations, thereby optimizing safety program implementation for continuous safety movements. The implementation of such strategies will be a forward move towards beginning and sustaining safety program implementation for further safety performance improvement within industries, particularly in Thailand.
Key words:
Worker engagement measurement tools, worker engagement, construction project, grounded theory, scale development, affecting factors.
Monday, 20 September 2010
Project Owner’s Quality Management System – A case study of Estella Residential Development Building Construction Project
In recent years, generally, in construction industry, it is recognized that the construction sector has made a great contribution to national development as investment has been intensified in many fields such as infrastructure development, industry and public projects. However, more attention should be given to quality management because of the poor quality of some construction projects.
To enhance the quality control of construction projects, the Ministry of Construction (MOC) held a seminar on April 28, 2009 which the main concern to ensure the quality of construction projects, especially for large-scale national projects. While most projects have operated on a safe and cost-effective basis, there remain shortcomings in terms of quality at different levels due to international and external causes. Because of these reasons, the development of quality management system is most important not only for Contractors, Quality Consultants, but for the investors or developers as well.
Mr. Tran Hong Quan made a study which primary objective was to study the application of Quality Management System (QMS) of Project Owner in a construction project from design to construction phase.
Conclusions
In general, most of the requirements of quality system have been covered and presented in the existing system. However, the discovered problems that related in missing contract review, improper developed coordination and communication, lack of the process control, control of quality records and the inspection status monitoring during the course of work are the reasons that caused major problems to owner such as schedule delay and generating V.O.
In addition, it was found out that there was inconsistency in decision relating to quality on job site caused rework and schedule delay.
Obviously, besides the reason of work procedures, it would be the reasons of different quality level and quality perception. Therefore, it is necessary to conduct the internal quality audit and provide training at different position in order to gain the same level of quality perception in the project team.
Through the discussion and findings of this study, the causes and the consequences that generated by these missing processes can be summarized in the table below:
To summarize, refer to the study, in order to obtain a complete QMS, the missing requirements as previous mentioned should be added in the existing Quality Management System for fulfillment. More than that, the quality culture in organization should be formed up so that the Company can reach to the Total Quality Management.
His thesis abstract is copied and posted.
Abstract
The report expresses the key issues in Quality Management System (QMS) that known as the critical factor for any organization wants to develop and survive in the free trade market.
This study, which refers to the theories and the standards system, has expressed the concept of quality in construction, the QMS in organization, system requirements for owner’s QMS in construction and its benefits. The study has briefed the factors that most effect to project quality studied from public reports and the key points to control project quality from the design to construction stage. The report has introduced a QMS to the property developer for the purpose of amendment to the existing QMS in order to obtain a complete QMS for better managing project quality.
The next part of this report is the case study on the Estella J.V organization that established to run and deliver the Estella Residential Development project, an international project of the Keppel Land Co. Ltd. Through this case study, the findings on the existing QMS and the application from the previous part to this existing QMS for improvement will be the foundation QMS for toward Keppel Land’ projects. This is also the objective of this study.
To enhance the quality control of construction projects, the Ministry of Construction (MOC) held a seminar on April 28, 2009 which the main concern to ensure the quality of construction projects, especially for large-scale national projects. While most projects have operated on a safe and cost-effective basis, there remain shortcomings in terms of quality at different levels due to international and external causes. Because of these reasons, the development of quality management system is most important not only for Contractors, Quality Consultants, but for the investors or developers as well.
Mr. Tran Hong Quan made a study which primary objective was to study the application of Quality Management System (QMS) of Project Owner in a construction project from design to construction phase.
Conclusions
In general, most of the requirements of quality system have been covered and presented in the existing system. However, the discovered problems that related in missing contract review, improper developed coordination and communication, lack of the process control, control of quality records and the inspection status monitoring during the course of work are the reasons that caused major problems to owner such as schedule delay and generating V.O.
In addition, it was found out that there was inconsistency in decision relating to quality on job site caused rework and schedule delay.
Obviously, besides the reason of work procedures, it would be the reasons of different quality level and quality perception. Therefore, it is necessary to conduct the internal quality audit and provide training at different position in order to gain the same level of quality perception in the project team.
Through the discussion and findings of this study, the causes and the consequences that generated by these missing processes can be summarized in the table below:
To summarize, refer to the study, in order to obtain a complete QMS, the missing requirements as previous mentioned should be added in the existing Quality Management System for fulfillment. More than that, the quality culture in organization should be formed up so that the Company can reach to the Total Quality Management.
His thesis abstract is copied and posted.
Abstract
The report expresses the key issues in Quality Management System (QMS) that known as the critical factor for any organization wants to develop and survive in the free trade market.
This study, which refers to the theories and the standards system, has expressed the concept of quality in construction, the QMS in organization, system requirements for owner’s QMS in construction and its benefits. The study has briefed the factors that most effect to project quality studied from public reports and the key points to control project quality from the design to construction stage. The report has introduced a QMS to the property developer for the purpose of amendment to the existing QMS in order to obtain a complete QMS for better managing project quality.
The next part of this report is the case study on the Estella J.V organization that established to run and deliver the Estella Residential Development project, an international project of the Keppel Land Co. Ltd. Through this case study, the findings on the existing QMS and the application from the previous part to this existing QMS for improvement will be the foundation QMS for toward Keppel Land’ projects. This is also the objective of this study.
Thursday, 16 September 2010
AIT Thailand August 2010 Intake for CEIM and MPM fields of Study
The AIT in Thailand accepted 49 students for August 2010 semester. The distribution of students enrolled in the Doctoral, Master and Professional Master Programs are 3, 9 and 37 respectively.
Below are names of the current students:
No. Name Degree
1. Mr.Grit Ngowtanasuwan, CAS
2. Mr.Wilson Udo Udofia, Doctor
3. MissSarsinatt Kriwaphun, Doctor
4. Mr.San Visal, Master
5. Mr.Ranjeet Sandeep Pundlik, Master
6. Mr.Senjam Romero Singh, Master
7. Mr.Krisana Juanwanpen, Master
8. Mr.Thanawat Phangchunun, Master
9. Miss Junya Phuangphay, Master
10. Mr.Pham Quang Cuong, Master
11. MissHuyen Thanh To, Master
12. Mr.Tran Phi Long, Master
13. Mr. Nguyen Duc Huan, MPM
14. Ms. Nguyen Thi Minh Ha, MPM
15. Mr. Nguyen Nhat Tai, MPM
16. Mr. Ngo Quoc Thai, MPM
17. Mr. Le Van Tuan, MPM
18. Mr. Nguyen Huu Ky, MPM
19. Mr. Vo Thanh Phong, MPM
20. Mr. Nguyen Ngoc Thi, MPM
21. Mr. Bui Duy Khanh, MPM
22. Mr. Nguyen Thai Son, MPM
23. Mr. Tran Minh Nghia, MPM
24. Mr. Le Anh Thai, MPM
25. Ms. Dang Trinh Thanh Phuong, MPM
26. Ms. Nguyen Tran Tuong Ly, MPM
27. Mr. Le Do, MPM
28. Mr. Nguyen Chanh Trung, MPM
29. Mr. Nguyen Nong Truong Thanh, MPM
30. Mr. Vo Khac Kien, MPM
31. Mr. La Nguyen Bao, MPM
32. Mr. Tu Thien Tu, MPM
33. Mr. Hoang Manh Chi, MPM
34. Mr. Chau Anh Tuan, MPM
35. Nguyen Thi Thu Nga, MPM
36. Mr. Ngo Thanh Duc, MPM
37. Nguyen Trong Hung, MPM
38. Mr. Bui Viet Thi, MPM
39. Mr. Nguyen Anh Tuan, MPM
40. Mr. Vu Van Tinh, MPM
41. Mr. Bui Thanh Nam, MPM
42. Mr. Huynh Thanh Quang, MPM
43. Mr. Do Danh Chi, MPM
44. Phan Hong Ngoc, MPM
45. Vu Kim Dien, MPM
46. Tran Cao Hy, MPM
47. Nguyen Trong Khoa, MPM
48. Nguyen Hong Thanh, MPM
49. Mr. Ha Chi Nghia, MPM
Wednesday, 15 September 2010
Communication Management within a Construction Project Team: A Case Study of Condominium Project in Ho Chi Minh City
The construction industry in Viet Nam especially commercial building sector, is now suffering from many problems in communication management. Some common problems are:
1. Usually skipping communication management or just approaching it shallowly due to lack of knowledge in this area.
2. Problems related to interpersonal communication (such as face-to-face meetings), intra-group communication (such as interactions between team members) or inter-group communication (such as interactions between main contractors and sub-contractors) occur very frequently at many projects. Consequently, projects communication often breaks down and projects are likely to be failed.
3. Unable to determine project stakeholders’ needs for information, unable to determine communication channels in projects, insufficient interaction between project management and team members or between main contractor and sub-contractors or within team members, inappropriate communication media, etc.
4. Timing of distributing information, correct information to correct stake holders, wasting a large amount of time and resources for unnecessary meetings, etc.
5. Unable to combine verbal communication and non-verbal communication in order to achieve targets.
6. Abusive using of bad emotional methods during interaction between project management and team members such as fear and threats, aversive stimulation, etc.
It is important to understand the nature of the problems and to find ways to solve them in order to be able to develop an effective communication management system in construction projects. Mr. Nguyen Canh Toan made a study which objectives were to: (1) investigate the communication interactions within construction project team so that communication problems causing project interruption can be identified; and (2) propose recommendations on how to improve communication management within construction project team.
Conclusions
The important role of communication management within construction project team was clarified. During construction phase, interactions within the main contractor’s team members and between the main contractor and subcontractors were analyzed. Communication problems were classified into three categories, i.e. coordination, information distribution and interpersonal communication. The problems relating to coordination category occurred most in the project which caused project delay. In order to solve these problems, proposed solutions based on theoretical and recommended practices including guidance from the PMI’s PMBOK guide, one of the world’s most prestigious guides to the project management, were presented. Besides, some useful tools were considered and suggested to use as aids for the project managers to improve communication management in the project.
However, there are some limitations in this study. First, the relationships between communication problems and types of information in action have not been graded in order to figure out which one is the biggest factor that causes communication interruption; or the applicability of the proposed solutions for those problems.
Recommendations
In order to avoid similar communication problems, recommendations are given below:
1. Project Manager shall prepare project management plan including communication plan in the beginning of the project.
2. Strictly following the communication plan. Incentives shall be provided to encourage everybody to carry it out properly, and also treatments or even punishments for bad behaviours.
3. Document controller position must be stable as much as possible in order to ensure that the information distribution process is in order.
4. In case of ISO certified company, Project Manager should give feedback to the company’s Quality Manager to add in personality test forms together with Job Application Assessment Procedures forms. That will save Project Manager’s time whenever there is new job applicant coming to job site for interviewing.
5. Using new information-conveying methods such as: web-based data distribution, e-meeting, etc. in order for easy document control and timing of document distribution.
6. Organizing trainings for the team members in order for them to know how to use both verbal and non-verbal communication effectively.
7. Outside activities such as playing football, parties, etc. are recommended to improve relationships among team members and between the main contractor and subcontractors.
His thesis abstract is copied and posted.
Abstract
Communication management is one of the nine knowledge areas that can be found in the Project Management Institute’s A guide to the Project Management Body of Knowledge. This is a really tough challenge and time-consuming task to any project manager. Despite the fact that ineffective communication management will result in project interruption or even failure, there are not many project managers or site managers in Vietnamese contractors being aware of its importance. This final project report focuses on construction project communication management between the main contractor and subcontractors as inter-group communication and within the main contractor team members as intra-group communication. By reviewing many researches and studies of many authors on this field, knowledge as regards communication management within team and with external party such as will be explored step by step. Through a case study of condominium project in Ho Chi Minh City, communication problems which cause project interruption will be investigated and analyzed. Some proposed solutions which are based on the reviewed knowledge will be discussed in order to help project managers improve communication in the project.
1. Usually skipping communication management or just approaching it shallowly due to lack of knowledge in this area.
2. Problems related to interpersonal communication (such as face-to-face meetings), intra-group communication (such as interactions between team members) or inter-group communication (such as interactions between main contractors and sub-contractors) occur very frequently at many projects. Consequently, projects communication often breaks down and projects are likely to be failed.
3. Unable to determine project stakeholders’ needs for information, unable to determine communication channels in projects, insufficient interaction between project management and team members or between main contractor and sub-contractors or within team members, inappropriate communication media, etc.
4. Timing of distributing information, correct information to correct stake holders, wasting a large amount of time and resources for unnecessary meetings, etc.
5. Unable to combine verbal communication and non-verbal communication in order to achieve targets.
6. Abusive using of bad emotional methods during interaction between project management and team members such as fear and threats, aversive stimulation, etc.
It is important to understand the nature of the problems and to find ways to solve them in order to be able to develop an effective communication management system in construction projects. Mr. Nguyen Canh Toan made a study which objectives were to: (1) investigate the communication interactions within construction project team so that communication problems causing project interruption can be identified; and (2) propose recommendations on how to improve communication management within construction project team.
Conclusions
The important role of communication management within construction project team was clarified. During construction phase, interactions within the main contractor’s team members and between the main contractor and subcontractors were analyzed. Communication problems were classified into three categories, i.e. coordination, information distribution and interpersonal communication. The problems relating to coordination category occurred most in the project which caused project delay. In order to solve these problems, proposed solutions based on theoretical and recommended practices including guidance from the PMI’s PMBOK guide, one of the world’s most prestigious guides to the project management, were presented. Besides, some useful tools were considered and suggested to use as aids for the project managers to improve communication management in the project.
However, there are some limitations in this study. First, the relationships between communication problems and types of information in action have not been graded in order to figure out which one is the biggest factor that causes communication interruption; or the applicability of the proposed solutions for those problems.
Recommendations
In order to avoid similar communication problems, recommendations are given below:
1. Project Manager shall prepare project management plan including communication plan in the beginning of the project.
2. Strictly following the communication plan. Incentives shall be provided to encourage everybody to carry it out properly, and also treatments or even punishments for bad behaviours.
3. Document controller position must be stable as much as possible in order to ensure that the information distribution process is in order.
4. In case of ISO certified company, Project Manager should give feedback to the company’s Quality Manager to add in personality test forms together with Job Application Assessment Procedures forms. That will save Project Manager’s time whenever there is new job applicant coming to job site for interviewing.
5. Using new information-conveying methods such as: web-based data distribution, e-meeting, etc. in order for easy document control and timing of document distribution.
6. Organizing trainings for the team members in order for them to know how to use both verbal and non-verbal communication effectively.
7. Outside activities such as playing football, parties, etc. are recommended to improve relationships among team members and between the main contractor and subcontractors.
His thesis abstract is copied and posted.
Abstract
Communication management is one of the nine knowledge areas that can be found in the Project Management Institute’s A guide to the Project Management Body of Knowledge. This is a really tough challenge and time-consuming task to any project manager. Despite the fact that ineffective communication management will result in project interruption or even failure, there are not many project managers or site managers in Vietnamese contractors being aware of its importance. This final project report focuses on construction project communication management between the main contractor and subcontractors as inter-group communication and within the main contractor team members as intra-group communication. By reviewing many researches and studies of many authors on this field, knowledge as regards communication management within team and with external party such as will be explored step by step. Through a case study of condominium project in Ho Chi Minh City, communication problems which cause project interruption will be investigated and analyzed. Some proposed solutions which are based on the reviewed knowledge will be discussed in order to help project managers improve communication in the project.
Monday, 13 September 2010
Delays in Construction Projects in Vietnam: A Case Study of Last Section of National Highway No. 51
In recent years, Vietnam’s economy has been grown rapidly and becoming one of the countries with highest growth rate in the world. As a consequence, construction industry grew rapidly while project management could not meet requirement of construction industry.
There is a fact in Vietnam that delay happens in almost all construction projects; especially in projects that are state-funded and contractors are domestic. Projects which were carried out by international contractors are less likely to suffer delay. Responsibility for delay was not clearly defined. Therefore, whenever delay happens, no one was blamed. Because of this, the owner often give contractors extended time to finish the project without any penalty. In very few cases, contractors were given more time but had to pay a penalty.
However, in general, delay and cost overrun are the biggest problems in bombing construction field in Vietnam. Mr. Truong Quang Dien made a study which focused on the factors affecting the construction stage construction projects in Vietnam. The objectives of his study were: (1) recognizing frequency causes of delay; (2) defining effects of delay in progress of projects; and (3) solutions to delay problem and how to deal with delay when it happens
Conclusion
The delay in construction projects in Vietnam which was discussed in this paper was focused on frequency, severity and importance of the causes of delay, effects of delay and how the delay was solved.
The frequency and severity causes of delay were identified through previous research, present issues, and widespread contributions of construction field in Vietnam. The construction participants accorded inexact time, slow site clearance, slow government’s permits, poor site management and supervision, financial difficulties, incompetence subcontractor, and unforeseen factors.
Slow acquisition was frequent cause of delay in almost construction projects in Vietnam, which affected the whole schedule of the project. In the Owner’s point of view, the causes of delay were related to the responsibilities of both contractor and subcontractor.
This paper showed that owners and consultants realized that contract awarding to the lowest bidder was frequent causes of delay, meanwhile contractors considered severe causes of delay were related to owners and consultants like unclear responsibilities, slow-making decision from owners about some changed works during construction. One common cause of delay was Change Order initiated by owner during construction. Besides there were many causes between two parties, such as progress payment delay from Owner, ineffective scheduling, poor site management and supervision, shortage of labors and difficulties in financing from contractor.
However, all parties agreed that the following causes rarely occurred and were less important: changes in government regulations, restrictions at site, effect of social and cultural factors.
In general, there were certain interrelationships among the problems. The top-ranked problems including occurrence were grouped under some major factors: site related issues, incompetent designers and contractors, poor estimation, poor site management and supervision, poor contract management, price fluctuations, and improper techniques. It was noted that the findings confirmed previous studies that most of problems in construction projects were related to human behavior and management problems, and not technical in nature.
In order to mitigate delays in construction industry in Vietnam, all required training for engineer for their competency in term of technical, and safety was required. Therefore, there were no more gaps in planning, managing and organizing and safety. Project feasibility study must receive a serious attention and must be done carefully especially on government funded projects. In addition, contract management work should be the focused. Although Vietnamese government has regulated many decrees or circulars ruled on this work and published contract template, it always needs experienced parties to do contract work and suit template to real project conditions.
From above causes, the effects of delay were cost overrun and party’s damages. Third parties were people who would get profit from operating or using the project.
Recommendations
To reduce delays, all parties should consider following important factors:
1. Separate site clearance (acquisition) work from construction work and it must be finished before estimating cost and schedule for construction phrase and bidding work.
2. Make clear responsibilities among parties in the contract document and use CPM (Critical Path Management) to manage schedule during construction.
3. Make Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
Besides the three most above mentioned causes, the following points can be recommended by all parties in order to minimize and control delays in construction projects.
• For the Owners
1. Progress payment should be made on time otherwise it impairs the contractor’s ability to finance the work.
2. Change orders should be minimized as much as practical during construction to avoid delays.
3. Avoid delay in reviewing and approving of design documents than the anticipated.
4. Check for all resources and capabilities, before awarding the contract to the lowest bidder.
• For the Contractors
1. Shortage and low productivity of labor: enough number of labors should be assigned and be motivated to improve productivity.
2. Financial and cash flow problems: contractor should manage his financial resources, plan cash flow by utilizing progress payment and ensure financial during construction.
3. Site management and supervision: administrative and technical state should be assigned as soon as project is awarded to make arrangements to achieve completion within specified time with the required quality and estimated cost.
4. Subcontractors and suppliers: selecting subcontractors and suppliers with competence and experience, and also with enough financial resources. Contractors should not select subcontractors and suppliers with low bidding price.
5. Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
• For the Consultants
Reviewing and approving design documents: any delay caused by the consultant engineer in checking, reviewing and approving the design submittals prior to construction phase could delay the progress of the work.
Inflexibility: Consultants should be flexible in evaluating contractor works. Compromising between the cost and high quality should be considered.
His thesis abstract is copied and posted.
Abstract
In construction project management, delay means the finish date of the project is beyond the date stated in contract. When delay happens, cost often increases because of inflation or other factors. Most construction projects in developing countries, including Vietnam, are suffering two problems: delay and cost overrun.
For the owner, delay means cost more for capital and loss of income from operating the outcome of the project. For constructors, delay means cost more for construction work because spending on materials, labors and vehicles will increase.
Completing project on time and within in-plan cost is an indicator of efficiency in project management. However, construction progress is often changed and affected by unforeseen factors such as: contractor-related problems: Poor site management and supervision, Financial difficulties, Incompetence subcontractors; owner-related problems, design-related and slow site clearance, etc.
This report will try to find out which reasons are main reasons for delay in Vietnam based on previous researches and personal experience of author. Also, solutions for this problem will be mentioned in chapter IV as a suggestion of author.
There is a fact in Vietnam that delay happens in almost all construction projects; especially in projects that are state-funded and contractors are domestic. Projects which were carried out by international contractors are less likely to suffer delay. Responsibility for delay was not clearly defined. Therefore, whenever delay happens, no one was blamed. Because of this, the owner often give contractors extended time to finish the project without any penalty. In very few cases, contractors were given more time but had to pay a penalty.
However, in general, delay and cost overrun are the biggest problems in bombing construction field in Vietnam. Mr. Truong Quang Dien made a study which focused on the factors affecting the construction stage construction projects in Vietnam. The objectives of his study were: (1) recognizing frequency causes of delay; (2) defining effects of delay in progress of projects; and (3) solutions to delay problem and how to deal with delay when it happens
Conclusion
The delay in construction projects in Vietnam which was discussed in this paper was focused on frequency, severity and importance of the causes of delay, effects of delay and how the delay was solved.
The frequency and severity causes of delay were identified through previous research, present issues, and widespread contributions of construction field in Vietnam. The construction participants accorded inexact time, slow site clearance, slow government’s permits, poor site management and supervision, financial difficulties, incompetence subcontractor, and unforeseen factors.
Slow acquisition was frequent cause of delay in almost construction projects in Vietnam, which affected the whole schedule of the project. In the Owner’s point of view, the causes of delay were related to the responsibilities of both contractor and subcontractor.
This paper showed that owners and consultants realized that contract awarding to the lowest bidder was frequent causes of delay, meanwhile contractors considered severe causes of delay were related to owners and consultants like unclear responsibilities, slow-making decision from owners about some changed works during construction. One common cause of delay was Change Order initiated by owner during construction. Besides there were many causes between two parties, such as progress payment delay from Owner, ineffective scheduling, poor site management and supervision, shortage of labors and difficulties in financing from contractor.
However, all parties agreed that the following causes rarely occurred and were less important: changes in government regulations, restrictions at site, effect of social and cultural factors.
In general, there were certain interrelationships among the problems. The top-ranked problems including occurrence were grouped under some major factors: site related issues, incompetent designers and contractors, poor estimation, poor site management and supervision, poor contract management, price fluctuations, and improper techniques. It was noted that the findings confirmed previous studies that most of problems in construction projects were related to human behavior and management problems, and not technical in nature.
In order to mitigate delays in construction industry in Vietnam, all required training for engineer for their competency in term of technical, and safety was required. Therefore, there were no more gaps in planning, managing and organizing and safety. Project feasibility study must receive a serious attention and must be done carefully especially on government funded projects. In addition, contract management work should be the focused. Although Vietnamese government has regulated many decrees or circulars ruled on this work and published contract template, it always needs experienced parties to do contract work and suit template to real project conditions.
From above causes, the effects of delay were cost overrun and party’s damages. Third parties were people who would get profit from operating or using the project.
Recommendations
To reduce delays, all parties should consider following important factors:
1. Separate site clearance (acquisition) work from construction work and it must be finished before estimating cost and schedule for construction phrase and bidding work.
2. Make clear responsibilities among parties in the contract document and use CPM (Critical Path Management) to manage schedule during construction.
3. Make Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
Besides the three most above mentioned causes, the following points can be recommended by all parties in order to minimize and control delays in construction projects.
• For the Owners
1. Progress payment should be made on time otherwise it impairs the contractor’s ability to finance the work.
2. Change orders should be minimized as much as practical during construction to avoid delays.
3. Avoid delay in reviewing and approving of design documents than the anticipated.
4. Check for all resources and capabilities, before awarding the contract to the lowest bidder.
• For the Contractors
1. Shortage and low productivity of labor: enough number of labors should be assigned and be motivated to improve productivity.
2. Financial and cash flow problems: contractor should manage his financial resources, plan cash flow by utilizing progress payment and ensure financial during construction.
3. Site management and supervision: administrative and technical state should be assigned as soon as project is awarded to make arrangements to achieve completion within specified time with the required quality and estimated cost.
4. Subcontractors and suppliers: selecting subcontractors and suppliers with competence and experience, and also with enough financial resources. Contractors should not select subcontractors and suppliers with low bidding price.
5. Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
• For the Consultants
Reviewing and approving design documents: any delay caused by the consultant engineer in checking, reviewing and approving the design submittals prior to construction phase could delay the progress of the work.
Inflexibility: Consultants should be flexible in evaluating contractor works. Compromising between the cost and high quality should be considered.
His thesis abstract is copied and posted.
Abstract
In construction project management, delay means the finish date of the project is beyond the date stated in contract. When delay happens, cost often increases because of inflation or other factors. Most construction projects in developing countries, including Vietnam, are suffering two problems: delay and cost overrun.
For the owner, delay means cost more for capital and loss of income from operating the outcome of the project. For constructors, delay means cost more for construction work because spending on materials, labors and vehicles will increase.
Completing project on time and within in-plan cost is an indicator of efficiency in project management. However, construction progress is often changed and affected by unforeseen factors such as: contractor-related problems: Poor site management and supervision, Financial difficulties, Incompetence subcontractors; owner-related problems, design-related and slow site clearance, etc.
This report will try to find out which reasons are main reasons for delay in Vietnam based on previous researches and personal experience of author. Also, solutions for this problem will be mentioned in chapter IV as a suggestion of author.
Friday, 10 September 2010
Quality Management in Soil Improvement Projects: A Case Study of a Power Plant Project in Vietnam
In Vietnam, the concept and quality management in construction have been used in recent years. Nevertheless, many problems have been exposed because of the lack of managerial skills and competencies as well as the internal capacities of construction organization for satisfying the rapid increase of construction project. Projects delay happened normally in the majority of development projects due to poor communication, resource mobilization or other factors. Poor quality management process has significance on the Client and Contractor as well as to Consultant Client and Sub-contractor. If the performance of the projects is not managed successfully, the parties are likely to fail to meet its goals that they had for the project, associated with the quality management. Such failures may include the delay in schedule, cost overruns, quality, and safety and so on.
Mr. Tran Tuan Binh made a study which focused on soil improvement, construction industry and oil & gas industry; and the advantages and disadvantages of quality management in construction applicable in oil & gas projects in Vietnam. His study focused on several specific objectives as follows:
- To identify the quality management in construction
- To conduct quality management for project construction
The purpose of his research is to study quality management for construction project.
- To study implementation of PVMPC quality management in construction
- To state problems that occurred in the execution of quality project.
- To give out some recommendations to treating principle soil improvement
- To learn lessons from PVMPC project.
Conclusion
Based on the findings, the quality management in construction project is very important and necessary in soil improvement project. Quality management considered in this study is appropriate and applicable in soil improvement of power plant project in Vietnam.
The purpose of project quality management in construction is to manage the quality in order to achieve the objective of the project such as time, cost, quality, safety and environment. In particular, quality management helps people involved as project manager.
Quality management in construction is setting priorities, allocating resources and implementing actions and process to evaluate the risk of project and reduce the cost.
Quality management utilizes knowledge and experienced people to analysis for the better decision making. It supplies the better decision for the whole stage of project such as Project conceptual, Project planning, Project execution, Project termination prevention or risk avoidance.
Management in construction is a very important part of project management process. It is a fundamental to achieve good product.
Recommendation
Considering the quality management application in soil improvement of Power Plan project, below are the recommendations for the most effective quality management in construction:
In Viet Nam, the project managers completely have awareness of the importance of quality management in soil improvement and its efficiency for project success. However, they find difficulties to conform factor: cost, time, quality with Client’s requirements.
Based on the author’s opinion, there are some existing main reasons which the company has to change and improve well if they would like to have good project management:
1. Lack of Communication
2. Responsibilities are not assigned clearly enough to all members: client, design consultancy, project manager, construction.
3. Cost estimate in national norm is not appropriate with actual case.
4. Complex Legal procedures.
In conclusion, a good soil improvement quality management for every stages: engineering, procurement, construction, installation, hook up, pre-commissioning and commissioning in hand is very important, however how to manage and control efficiently and effectively the performance of QMS can lead the success or failure of any projects especially the complicated and big projects in oil & gas governed by soil improvement quality management.
His thesis abstract is copied and posted.
Abstract
In construction project, quality management is a very important sector using particular method to achieve the best practices in the project of company. Quality management is a systematic approach to managing unexpected issues circumstances related to a threat through a sequence of human activities including: Quality identification, Quality classification, and Quality control and Quality improvement
In the organization, there are some ways of quality management such as quality management in construction, quality management in operation and quality management in business.
The purpose of Quality management is to reduce risks. It may refer to numerous types of threats caused by environment, technology, human, and organization and politic. On the other hand it involves all means available for human, or in particularly, for a quality management entity.
Mr. Tran Tuan Binh made a study which focused on soil improvement, construction industry and oil & gas industry; and the advantages and disadvantages of quality management in construction applicable in oil & gas projects in Vietnam. His study focused on several specific objectives as follows:
- To identify the quality management in construction
- To conduct quality management for project construction
The purpose of his research is to study quality management for construction project.
- To study implementation of PVMPC quality management in construction
- To state problems that occurred in the execution of quality project.
- To give out some recommendations to treating principle soil improvement
- To learn lessons from PVMPC project.
Conclusion
Based on the findings, the quality management in construction project is very important and necessary in soil improvement project. Quality management considered in this study is appropriate and applicable in soil improvement of power plant project in Vietnam.
The purpose of project quality management in construction is to manage the quality in order to achieve the objective of the project such as time, cost, quality, safety and environment. In particular, quality management helps people involved as project manager.
Quality management in construction is setting priorities, allocating resources and implementing actions and process to evaluate the risk of project and reduce the cost.
Quality management utilizes knowledge and experienced people to analysis for the better decision making. It supplies the better decision for the whole stage of project such as Project conceptual, Project planning, Project execution, Project termination prevention or risk avoidance.
Management in construction is a very important part of project management process. It is a fundamental to achieve good product.
Recommendation
Considering the quality management application in soil improvement of Power Plan project, below are the recommendations for the most effective quality management in construction:
In Viet Nam, the project managers completely have awareness of the importance of quality management in soil improvement and its efficiency for project success. However, they find difficulties to conform factor: cost, time, quality with Client’s requirements.
Based on the author’s opinion, there are some existing main reasons which the company has to change and improve well if they would like to have good project management:
1. Lack of Communication
2. Responsibilities are not assigned clearly enough to all members: client, design consultancy, project manager, construction.
3. Cost estimate in national norm is not appropriate with actual case.
4. Complex Legal procedures.
In conclusion, a good soil improvement quality management for every stages: engineering, procurement, construction, installation, hook up, pre-commissioning and commissioning in hand is very important, however how to manage and control efficiently and effectively the performance of QMS can lead the success or failure of any projects especially the complicated and big projects in oil & gas governed by soil improvement quality management.
His thesis abstract is copied and posted.
Abstract
In construction project, quality management is a very important sector using particular method to achieve the best practices in the project of company. Quality management is a systematic approach to managing unexpected issues circumstances related to a threat through a sequence of human activities including: Quality identification, Quality classification, and Quality control and Quality improvement
In the organization, there are some ways of quality management such as quality management in construction, quality management in operation and quality management in business.
The purpose of Quality management is to reduce risks. It may refer to numerous types of threats caused by environment, technology, human, and organization and politic. On the other hand it involves all means available for human, or in particularly, for a quality management entity.
Thursday, 9 September 2010
Sub-Contractor Management in Gas Projects: A Case Study of PVGas Gas Distribution Centre Project
The development of petroleum industry during the past years has created bigger demand and bigger market on both size and scale. The international integration has also created opportunities for service companies of Petrovietnam to access the newest technologies and more investment in the Oil and Gas industry. The improvement of project management shall be applied to create opportunities for project management boards in order to perform project on schedule, on budget, good quality and safety.
In recent year, in order to maintain and increase the oil and gas exploitation output, Petrovietnam has cooperated with national and international petroleum companies to speed up the plan of developing and building new fields or expanding the field’s exploiting scale.
In order to invest more facilities for development purpose, more Contractors are involved in PetroVietnam Project. Through previous experience, the sub-contractor management has lack of experience such as uncontrolled schedule, uncontrolled scope of work, incorrect materials, and poor quality of construction.
According to contract type, contractor for Projects managed by PMC-PV Gas is divided into three types such as:
1. General contractor for Engineering, procurement and construction.
2. General contractor for engineering and construction and sub-contractor for supplying equipments and commissioning.
3. General contractor for construction, sub-contractor for engineering, supplying equipments and commissioning.
Therefore, sub-contractor management in projects is the challenge for project management board regarding on-scheduling, on-quality, and safety and in budget.
If the management board is not paying attention with sub-contractor management, it will have caused the chain of effects in delaying schedule, poor quality and cost impact for the whole project. One research said that the cost of rework and re-chose sub-contractor is 12 times higher of previous cost. Therefore, pre-qualification and monitoring performance of sub-contractor is the most importance in the success of General Contractor and Projects.
Mrs. Phan Thi Hai Giang made a study which main purpose was to quantify the importance of sub-contractor management in construction management especially in EPC contract and the effectiveness of sub-contractor with general contractor in schedule, quality and cost. Her research focused from bidding stage and performing project of sub-contractor in pipeline projects.
The objectives of her study were to: (1) evaluate the relationship between the subcontractor and general contractor in scheduling management, quality control and cost control in EPC Contract; (2) identify some problems in subcontractor management that can be improved by the general contractor; and (3) investigate the effect of implementation subcontractor management in early stage of construction management.
Conclusion
This project is successful in the manner of subcontractor's management. Based on the result, it can be concluded that subcontractor control management in terms of procurement and cost from local contractor has been aligned and organized, but, in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the subcontractor control strategy in order to improve the subcontractor management performance. In contrast, it can be concluded that subcontractor control strategy has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.
They project’s key factor shall be identified in the beginning of the project and general contractor/sub-contractor must follow and try to achieve these goals. In this case study, the key factor of Project is schedule. The success of project is the good co-ordination with general contractor/Owner such as follows:
1. For quality management:
a. All agreement between general contractor and sub-contract will be submitted and approved by Owner because Subcontracts should be made to conform with the prime contract between the contractor and the project owner, and must be revised in accordance with the changes made to the prime contract throughout the course of the project.
b. Tight and clear specification.
c. Dedicated QA/QC Manager.
d. On-site Vendor Inspection.
e. Continuous improvement quality management system.
f. Rigid control change order in design stage and in Site
2. For the cost management:
a. General Contractors prefer to structure subcontracts so that the contractor pays the subcontractor only if the contractor receives payment from the owner, arguing that they should not be stuck with paying bills that the owner doesn’t pay them for.
b. Accurate cost tracking, analysis and forecast.
c. QA/QC to prevent and detect defects earlier.
3. For schedule management:
a. The good planner and updated schedule for all Site work and procurement work that will affected with on-time schedule of Project.
b. Tight project control system and dedicated project controller.
c. Given appropriated solution for long-lead item.
4. For safety management:
a. Good safety procedures with appointed safety manager will be monitored all construction works at Site.
b. Risk response plan, emergency response plan and risk assessment applied for safety management of Project.
Benefit of project sub-contractor management
Almost in all projects, general contractor can't perform their construction works with their own force; they tried to share responsibilities and risks with their sub-contractor/Vendor.
From the above case-study, the good communication between general contractor and sub-contractor will be contributed to the success of Project. It shall be described in the beginning of the contract. The content of the service which sub-contractor is to provide for the general contractor must be described; and it also articulates the general contractor's procedure of awarding the subcontractor.
The general contractor assumes their role and contracts out the construction work, some detail design works to various specialty subcontractors in order to control risk and transfer construction risks. Through sub-contracting, the general contractor can minimize its capital investment and reduce the size of permanent staff.
The general contractor didn't understand clearly about local regulation, work permission with existing gas facilities. So they use local sub-contractor to transfer their risks.
With good management of sub-contractors, the general contractors will have a success project in manner of quality, safety, schedule and cost. And local sub-contractor can became more professional through tight control from general manager.
Recommendation for sub-contractor management improvement
After studying how main contractors managed their subcontractors together with the strength and weaknesses of each strategy, the recommendation for improvement can be proposed as follows:
1) It is important to have formal procurement standard for subcontractors. It helps main contractors to make decision easier and faster whether the subcontractors are qualified with the main contractor’s commitment.
2) Always have two-way lead times built into subcontract agreements. Two-way means that the main contractor and subcontractors agree on an appropriate time for the main contractor to notify the subcontractor when to begin work and an appropriate amount of time for the subcontractors to inform the main contractor of any conflict. Main contractor should monitor subcontractor’s schedule by developing a system or adopting advanced technology software that allows main contractor to track causes of schedule variance.
3) Top management should take a lead role in commitment toward quality. There should be quality policy and activities performed in an effort to implement the quality policy. Subcontractor should understand the quality policy and follow it as a work quality standard. The problems related with low quality can be prevented.
4) By establishing a subcontractor database, main contractors are able to know the information about subcontractors. It helps main contractors to have better understanding subcontractors’ performance.
5) Main contractor should develop comprehensive project safety policy and safety programs which make provisions for subcontractor safety. Subcontractor has to obey the main contractor’s safety policy and follow the main contractor’s safety programs by the inclusion of specific language to that effect in their contracts.
6) Main contractor may consider employing subcontract coordinator in order to improve coordination and communication with subcontractors.
Her thesis abstract is copied and posted.
Abstract
Because of the increased project complexity and the highly competitive nature of the construction industry, a construction project often is executed by several subcontractors. Hence, effectively managing the numerous subcontractors involved in a construction project becomes a crucial challenge for the general contractor in ensuring timely project completion with acceptable quality.
Managing subcontractors does not simply involve asking them to allocate resources (labor, material, and machinery/equipment) into the jobsite whenever an activity is scheduled, and then pushing them to speed up the work without a clear consciousness of schedule risk. Factors (or uncertainties) such as weather, labor, site conditions, material delivery, and equipment breakdown can influence the time performance of subcontractors, affecting total project duration.
But almost General Contractor is lack of management sub-contractor and it caused many difficulties and conflicts during performance, management of projects.
The most difficulty of sub-contractor management is deviation scope of work between sub-contractors, controlling schedule and interfacing between subcontractors.
In managing project subcontractors, a general contractor must determine the items of work to be subcontracted, select subcontractors, set subcontract agreements, and control the subcontractors during construction.
In recent year, in order to maintain and increase the oil and gas exploitation output, Petrovietnam has cooperated with national and international petroleum companies to speed up the plan of developing and building new fields or expanding the field’s exploiting scale.
In order to invest more facilities for development purpose, more Contractors are involved in PetroVietnam Project. Through previous experience, the sub-contractor management has lack of experience such as uncontrolled schedule, uncontrolled scope of work, incorrect materials, and poor quality of construction.
According to contract type, contractor for Projects managed by PMC-PV Gas is divided into three types such as:
1. General contractor for Engineering, procurement and construction.
2. General contractor for engineering and construction and sub-contractor for supplying equipments and commissioning.
3. General contractor for construction, sub-contractor for engineering, supplying equipments and commissioning.
Therefore, sub-contractor management in projects is the challenge for project management board regarding on-scheduling, on-quality, and safety and in budget.
If the management board is not paying attention with sub-contractor management, it will have caused the chain of effects in delaying schedule, poor quality and cost impact for the whole project. One research said that the cost of rework and re-chose sub-contractor is 12 times higher of previous cost. Therefore, pre-qualification and monitoring performance of sub-contractor is the most importance in the success of General Contractor and Projects.
Mrs. Phan Thi Hai Giang made a study which main purpose was to quantify the importance of sub-contractor management in construction management especially in EPC contract and the effectiveness of sub-contractor with general contractor in schedule, quality and cost. Her research focused from bidding stage and performing project of sub-contractor in pipeline projects.
The objectives of her study were to: (1) evaluate the relationship between the subcontractor and general contractor in scheduling management, quality control and cost control in EPC Contract; (2) identify some problems in subcontractor management that can be improved by the general contractor; and (3) investigate the effect of implementation subcontractor management in early stage of construction management.
Conclusion
This project is successful in the manner of subcontractor's management. Based on the result, it can be concluded that subcontractor control management in terms of procurement and cost from local contractor has been aligned and organized, but, in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the subcontractor control strategy in order to improve the subcontractor management performance. In contrast, it can be concluded that subcontractor control strategy has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.
They project’s key factor shall be identified in the beginning of the project and general contractor/sub-contractor must follow and try to achieve these goals. In this case study, the key factor of Project is schedule. The success of project is the good co-ordination with general contractor/Owner such as follows:
1. For quality management:
a. All agreement between general contractor and sub-contract will be submitted and approved by Owner because Subcontracts should be made to conform with the prime contract between the contractor and the project owner, and must be revised in accordance with the changes made to the prime contract throughout the course of the project.
b. Tight and clear specification.
c. Dedicated QA/QC Manager.
d. On-site Vendor Inspection.
e. Continuous improvement quality management system.
f. Rigid control change order in design stage and in Site
2. For the cost management:
a. General Contractors prefer to structure subcontracts so that the contractor pays the subcontractor only if the contractor receives payment from the owner, arguing that they should not be stuck with paying bills that the owner doesn’t pay them for.
b. Accurate cost tracking, analysis and forecast.
c. QA/QC to prevent and detect defects earlier.
3. For schedule management:
a. The good planner and updated schedule for all Site work and procurement work that will affected with on-time schedule of Project.
b. Tight project control system and dedicated project controller.
c. Given appropriated solution for long-lead item.
4. For safety management:
a. Good safety procedures with appointed safety manager will be monitored all construction works at Site.
b. Risk response plan, emergency response plan and risk assessment applied for safety management of Project.
Benefit of project sub-contractor management
Almost in all projects, general contractor can't perform their construction works with their own force; they tried to share responsibilities and risks with their sub-contractor/Vendor.
From the above case-study, the good communication between general contractor and sub-contractor will be contributed to the success of Project. It shall be described in the beginning of the contract. The content of the service which sub-contractor is to provide for the general contractor must be described; and it also articulates the general contractor's procedure of awarding the subcontractor.
The general contractor assumes their role and contracts out the construction work, some detail design works to various specialty subcontractors in order to control risk and transfer construction risks. Through sub-contracting, the general contractor can minimize its capital investment and reduce the size of permanent staff.
The general contractor didn't understand clearly about local regulation, work permission with existing gas facilities. So they use local sub-contractor to transfer their risks.
With good management of sub-contractors, the general contractors will have a success project in manner of quality, safety, schedule and cost. And local sub-contractor can became more professional through tight control from general manager.
Recommendation for sub-contractor management improvement
After studying how main contractors managed their subcontractors together with the strength and weaknesses of each strategy, the recommendation for improvement can be proposed as follows:
1) It is important to have formal procurement standard for subcontractors. It helps main contractors to make decision easier and faster whether the subcontractors are qualified with the main contractor’s commitment.
2) Always have two-way lead times built into subcontract agreements. Two-way means that the main contractor and subcontractors agree on an appropriate time for the main contractor to notify the subcontractor when to begin work and an appropriate amount of time for the subcontractors to inform the main contractor of any conflict. Main contractor should monitor subcontractor’s schedule by developing a system or adopting advanced technology software that allows main contractor to track causes of schedule variance.
3) Top management should take a lead role in commitment toward quality. There should be quality policy and activities performed in an effort to implement the quality policy. Subcontractor should understand the quality policy and follow it as a work quality standard. The problems related with low quality can be prevented.
4) By establishing a subcontractor database, main contractors are able to know the information about subcontractors. It helps main contractors to have better understanding subcontractors’ performance.
5) Main contractor should develop comprehensive project safety policy and safety programs which make provisions for subcontractor safety. Subcontractor has to obey the main contractor’s safety policy and follow the main contractor’s safety programs by the inclusion of specific language to that effect in their contracts.
6) Main contractor may consider employing subcontract coordinator in order to improve coordination and communication with subcontractors.
Her thesis abstract is copied and posted.
Abstract
Because of the increased project complexity and the highly competitive nature of the construction industry, a construction project often is executed by several subcontractors. Hence, effectively managing the numerous subcontractors involved in a construction project becomes a crucial challenge for the general contractor in ensuring timely project completion with acceptable quality.
Managing subcontractors does not simply involve asking them to allocate resources (labor, material, and machinery/equipment) into the jobsite whenever an activity is scheduled, and then pushing them to speed up the work without a clear consciousness of schedule risk. Factors (or uncertainties) such as weather, labor, site conditions, material delivery, and equipment breakdown can influence the time performance of subcontractors, affecting total project duration.
But almost General Contractor is lack of management sub-contractor and it caused many difficulties and conflicts during performance, management of projects.
The most difficulty of sub-contractor management is deviation scope of work between sub-contractors, controlling schedule and interfacing between subcontractors.
In managing project subcontractors, a general contractor must determine the items of work to be subcontracted, select subcontractors, set subcontract agreements, and control the subcontractors during construction.
Monday, 6 September 2010
Some Main Factors Affecting Quality of Construction Projects: A Case Study of Expanding Phase III Port – Petroleum Technical Service Base in Vung Tau
In recent years, Vietnam have been investing and constructing many big projects by many different sources of capital: national budget, ODA, public private capital. However, we have to admit the fact that there have been some of those projects received rather much claims or comments from public. On the other hand, some of construction works have had disadvantages and is unsuitable to current demands. In circumstances, the schedules of those projects are always the question mark for users.
Those above problems shown us the fact that the Quality issue has not been cared properly by Viet Nam Project Management teams. What are the main factors affecting Project Quality and how influencing in each phase of project life cycle?
A successful project begins with the owner (or the official representative of the owner). The broad responsibilities of the owner to achieve a quality construction projects include two main factors. The first is the development of complete and realistic requirements and objectives for the project. The second factor is to provide a thorough understanding to other team members of the objectives, expectations, role and responsibilities of the owner.
The owner is substantially responsible for the quality and success of any constructed project.
The key to fulfilling an owner’s objectives and expectation is being known and understood what they are. Objectives are likely to be easily understood and quantifiable. On the other hand, expectation, though very important to the owner, may be abstract and difficult to understand.
By analyzing the framework of Project Quality Management in its life-cycle, Mr. Pham Xuan Thinh, the author, tried to raise out some main factors affecting the Quality of a construction project.
Based on that framework, he dissected the Quality management of a specific constructed project named: “Expanding Phase Iii Port – Petroleum Technical Service Base in Vung Tau, Vietnam” and specified the issues which have impacts on conformance to quality requirements. The final objective of his study is to find out the best solution of each issue and recommend to relevant subjects in some similar projects.
Conclusion
As discussed, quality in construction is directly related to time and cost, and vice-versa. A poor quality managed project can result in extra cost and time extensions, a poor time and cost controlled project can affect the conformance of requirements. Therefore, it is vital to understand the client’s requirements in terms of cost, quality and time.
Management has to be aware of customer requirements and be responsible for creating the right environment for a stewarded and progressive improvement. It also has to produce realistic estimates that match these requirements.
In Viet Nam, the project managers completely have awareness of the importance of Quality management and its efficiency for success of the project. However, they find difficulties to conform factors: cost, time, quality with Client’s requirements.
Recommendations
Mr. Pham found out that the reasons below have to be changed and improve drastically if the company would like to have a good project management:
• Lack of Communication.
• Responsibilities are not assigned clearly enough to all members: client, design professional, consultancy, project manager, and constructor.
• Cost estimate in national norm is not appropriate with actual case.
• Complex legal procedures.
His thesis abstract is copied and posted.
Abstract
The concepts and practices of Quality management in construction industry have been used and applied widely in Viet Nam also for long time ago. But how can apply sufficiently in managing Viet Nam construction projects still have some issues for discussion.
In the industrialization, modernization and global integration and in particular construction industry, Vietnamese authority agencies and project management teams have been finding out the best solution to execute projects efficiently. So far, we have had many definitions of project quality management, ways of understanding as well as applying it into each real case.
Look at some recent construction projects and some initial achievements we have obtained, Project Quality management has been promoting considerably. However, we have to continue improving and adjusting to modern management model. To do that task, the project team has to know and understand The Factors influencing Quality of Construction projects and what are consequences and how to solve?
Those above problems shown us the fact that the Quality issue has not been cared properly by Viet Nam Project Management teams. What are the main factors affecting Project Quality and how influencing in each phase of project life cycle?
A successful project begins with the owner (or the official representative of the owner). The broad responsibilities of the owner to achieve a quality construction projects include two main factors. The first is the development of complete and realistic requirements and objectives for the project. The second factor is to provide a thorough understanding to other team members of the objectives, expectations, role and responsibilities of the owner.
The owner is substantially responsible for the quality and success of any constructed project.
The key to fulfilling an owner’s objectives and expectation is being known and understood what they are. Objectives are likely to be easily understood and quantifiable. On the other hand, expectation, though very important to the owner, may be abstract and difficult to understand.
By analyzing the framework of Project Quality Management in its life-cycle, Mr. Pham Xuan Thinh, the author, tried to raise out some main factors affecting the Quality of a construction project.
Based on that framework, he dissected the Quality management of a specific constructed project named: “Expanding Phase Iii Port – Petroleum Technical Service Base in Vung Tau, Vietnam” and specified the issues which have impacts on conformance to quality requirements. The final objective of his study is to find out the best solution of each issue and recommend to relevant subjects in some similar projects.
Conclusion
As discussed, quality in construction is directly related to time and cost, and vice-versa. A poor quality managed project can result in extra cost and time extensions, a poor time and cost controlled project can affect the conformance of requirements. Therefore, it is vital to understand the client’s requirements in terms of cost, quality and time.
Management has to be aware of customer requirements and be responsible for creating the right environment for a stewarded and progressive improvement. It also has to produce realistic estimates that match these requirements.
In Viet Nam, the project managers completely have awareness of the importance of Quality management and its efficiency for success of the project. However, they find difficulties to conform factors: cost, time, quality with Client’s requirements.
Recommendations
Mr. Pham found out that the reasons below have to be changed and improve drastically if the company would like to have a good project management:
• Lack of Communication.
• Responsibilities are not assigned clearly enough to all members: client, design professional, consultancy, project manager, and constructor.
• Cost estimate in national norm is not appropriate with actual case.
• Complex legal procedures.
His thesis abstract is copied and posted.
Abstract
The concepts and practices of Quality management in construction industry have been used and applied widely in Viet Nam also for long time ago. But how can apply sufficiently in managing Viet Nam construction projects still have some issues for discussion.
In the industrialization, modernization and global integration and in particular construction industry, Vietnamese authority agencies and project management teams have been finding out the best solution to execute projects efficiently. So far, we have had many definitions of project quality management, ways of understanding as well as applying it into each real case.
Look at some recent construction projects and some initial achievements we have obtained, Project Quality management has been promoting considerably. However, we have to continue improving and adjusting to modern management model. To do that task, the project team has to know and understand The Factors influencing Quality of Construction projects and what are consequences and how to solve?
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