PROJECT MANAGEMENT COMPENTENCY OF A SMALL CONTRACTOR – A CASE STUDY OF KIEN TAO LTD COMPANY

By

Tu Thien Tu

Abstract

             

It is necessary to assess current project management competencies in the small contractors in Dong Nai province, particularly to meet the needs of the economy and social development in 2010 and 2015. Therefore, this study will provide information related to the project management competency to develop construction industry in Dong Nai Province.

In the context of globalization, Vietnam was chosen the market economy to its economic development. This prompted the development of Vietnam economy and provides many opportunities for the construction industry. But small contractors will face many challenges in the market economy. This study will focus on project management competencies that the small contractors have to face. Due to time limitations, author will just focus on the evaluation of three criterias in the project management competencies; they are cost, quality and time management competency.

For this study, authors will be based on the evaluation criteria to assess the actual situation of cost, quality and time management competency of a small contractor in Dong Nai. As a result, author will find the strengths, weaknesses and propose solutions to improve project management efficiency of this small contractor.

Executive summary

Rationale of research

This research has been conducted to identify project management competencies for small contractor

Objectives of study

To study, clarify the role of project management competency for small contractor company. And develop frame work for improvement of project management competencies in small construction company.

Methodology  

The exploratory method is used to review the literature and study project management competencies in cost, quality and time of Kien Tao Ltd Company.

Findings and conclusion

 The evaluation of the project management competencies for constructional enterprises in Vietnam is now very important because they not only suffer from competition in the domestic but also from foreign countries. This is even more important for small contractors because they are not enough experience and knowledge to promote the advantage of project management competencies. We can assign the function of managing the project into eight specific functions as follows: Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resource Management, Project Communication Management, Project Risk Management and Project Procurement Management. This study focused in three functions of them, they are Project Cost Management, Project Quality Management and Project Time Management.

·         The project management competency in cost of Kien Tao is at acceptable level. Cost management competency of leaders is good because they have experience and knowledge. Besides they are also paid their time on Cost–Benefits Analysis and Budget Constrains. The baseline cost is implemented in projects. The project manager has good competency in controlling cost during project. However, the size of its own capital is very small, narrow, not enough funding for the production-efficient business, particularly for technology upgrading and development. Leaders play an important role in cost management, but they conduct almost related works. As a result, they don’t have enough time and experience to do anything in the best way. According to the result, their competency in conducting List of Resource Requirements, Cost management plan, Cost baseline and Chart accounts work is needed to improve.

·    The project management competency in quality of Kien Tao stills many issues to improve because the current quality management system is no good. The quality standards of the company's project is based on the criteria given by owners, because most owners have hired consultants to perform the design, set quality standards and supervise works closely. Project’s quality management is under the supervision of the consulting unit and owners. Awareness and skilled workers has contributed to improving the quality of works. However, quality management competency of leadership is not high; they are still heavily dependent on the support and supervision of the consultant and owner. Project manager is the Vice director who have to manage sale, finance as well so that the ability to implement project quality management is limited. The project manager did not pay much attention to the creation of quality documentation requirement, quality management plan, plan metrics and the company's quality checklist for each project. Even they do not make Lessons Learned and Metrics summary report after finish projects.

·    The time management competency of project manager is still many problems to be changed and enhanced. There are still many construction projects were late; this has impact to the company's reputation. Despite the delay caused by many sides such as investors, consultants, weather. but there is still some delay due to low level in time management competency of KienTao.

Recommendation

·         KienTao should apply the international standards ISO 900 to promote the production of high quality goods and services. The application of the ISO standard will help the company operates more efficiently, it also will create confidence among potential customers.

·         The company organization will be restructured to improve project management more efficiency.

·         The teams of the company should be re-organized.

·         Kien Tao needs to open trainings courses for team's members to enhance their knowledge and skills for them, especially the skills to improve cost, quality and time management in projects.

·         Kien Tao should hire a professional project manager with high knowledge and experience to manage its projects.