Owner’s Contract Management Strategy for Housing Project

In recent years, lots of housing projects have been establishing in Can Tho area. However, the majority of project is delayed and has poor quality due to major reasons such as land acquisition, contractor capacity, inflations etc. Morever, the current capital for land acquisition is higher than previous estimates because of the compensation policy and resettlement supporting policy changed.

Because of the characteristics of the construction industry, project management and contract management in Vietnam still face many difficulties because there are no legal regulations which are strict and sync. In addition, the engaged parties who have not being trained entirely are lack on the basic knowledge about the importance of the management and implementation of contracts in construction when they participate in construction activities.

The contract is very important. It is documentation not only for payment, but also for solving problems. Thus, in order to completely implement the project, all parties should understand the full knowledge and conditions of the contract. Transparency becomes essential requirement and third-party system need to be set up (including investors, contractors and consulting engineers) and all works are done based on contract. Management structure in order to publicize the project implementation process must be established, which clearly stated.

Mr. Le Minh Nhut made a case study on the residential project in Can Tho City which objectives were to: (1) study existing contract strategy in terms of contract packages, contract conditions, risks and contract management; (2) discuss the existing contract management strengths and weaknesss in Viet Nam; and (3) propose recommendations for improvement in contract management.

Conclusion

Management in construction contract still has shortcomings due to the unclear roles of each party in the contract, and unspecific regulations. The application of policies and procedures in the contract management are not sync. The parties in the contract are not thoroughly trained to manage the contract effectively.
Recommendation

The following are the recommendation for improvement in term of contract management:


Abstract

Nowadays, there are more and more construction project in Vietnam. However, the successful projects are not much because of weakness in management. Project management is a complex process. Only good management can bring the succeed to project. In this report, I would like to discuss more about problems and solution of contract management in a real project.

Contract management is the most important. If project has strong contract management, it would be easy to get the effectiveness. It is depending on the whole parties involved which are responsible to the project such as government, owner and contractor. All of them have to work together for running project smoothly and efficiently. In addition, it is necessary for the government to establish the policies, procedures and regulations in order to lead the owner and contractor do the right way with the right thing. Moreover, both parties in the contract also have to comply strictly the law and do the contract works in full compliance with the contract agreement.

To manage the contract effective and efficiency, the parties concern involve in the contract need to be trained thoroughly and working transparently in term of time, cost and quality of the project. Besides, it is need continue to improve the institutional and contractual payment in the construction sectors based on the principle of equality and respect between each party. Resolving the disputes under the arbitration with the consistent law of Vietnam and international practices.