DELAYS  IN HIGH-RISE BUILDING PROJECT IN VIETNAM

By

Tran Phi Long

Abstract

           

Normally, completion project within requirements about time, cost and quality is the major targets of every projects. Construction timely can be regarded is one of three critical factors to evaluate the success of construction project. The construction project can not considered successfully if it was not on time and delay. However, almost of construction project in Vietnam have face with this problem. In these current years, Vietnamese construction industry has seen an alarming increase in delay. Especially in high-rise building project, this problem has become one of the most serious problems.

The study is conducted by using quantitative research. The survey of this study was implemented in three big cities in Vietnam – Ho Chi Minh, Can Tho and Hue city. Firstly, the main purpose of this study is identified the important causes lead to the delays in high-rise building project in Vietnam. After that, this study will find the correlation between causes and effects of delay to evaluate the impact of delays causes to project. Moreover, another purpose of this study is finding the successful factor, which can be applied to avoid and minimize delay in high-rise building projects.

Executive summary

Rationale of research

This research has been conducted to study delay issues in High –rise building construction projects in Vietnam.

Objectives of study

To study the causes of delays in building construction project in Vietnam and the effects of delays in high-rise building projects to suggest successful factors that can be applied to avoid and minimize delays in high-rise building project in Vietnam.

Methodology  

The framework of methodology is to investigate activities of project which are designed by questionnaires that are performed by project managements teams of owner, construction and consultant companies in Vietnam. Methods concern the techniques which are available (for data collection, analysis method, etc.) and those which are actually in use in a research project. In general, plan will assure that the process base on features of literature review and the objectives of study.

Findings and conclusion

This time, construction delay is the serious problems for Vietnamese construction industry. Especially in high-rise building projects in Vietnam, they have seen an alarming increase in delay problem. There are many efforts, which are underway to resolve this problem. However, this problem in Vietnam is still serious. It is not only popular but also its effects are high severity. Thus, a study about delays in high-rise building project in Vietnam is necessary. The finding of this study will be summarized below.

Causes of delays in high-rise building project in Vietnam

Firstly, three ranking by three main parties of project was conduct to find out the important causes of delays based on the view of three groups. The results of these ranking were used, According to result, these correlation is strong at 0.01 significant level, that means there are 99% confident that the viewpoint of three main parties about delay causes are highly agreement.

Because of the agreement among three main parties, the ranking based on all respondents, who come from three main parties will be acceptable.

Top ten of delay causes, which have high frequency of occurrence are: (1) Rising price of material, (2) Financial problem of owner, (3) Lack of high technology equipment, (5) Payment problem, (6) Unskilled workers, (7) Financial problem of contractor, (8) Change others by owner, (8) Lack of capability of contractor, (10) Lack of detail and unclear information in drawing and design document.

Ten most severity causes of delay including: (1) Rising price of material, (2) Lack of capability of contractor, (3) poor experience of contractor, (4) Financial problems of owner, (5) Financial problems of contractor, (6) Improper construction method implemented by contractor, (7) Insufficient data collection and survey before design, (8) Unskilled workers, (9) Lack of labor, (10) Delay work caused by subcontractor.

The important causes of delay were identified by important index, which was accounted based on the frequency and severity of each cause in the list of delay causes. According to the result of this study, top ten of important causes of delay in high-rise building in Vietnam are: (1) Rising price of material, (2) Financial problem of owner, (3) Contractor lack of capability, (4) Financial problem of contractor, (5) Delays work caused by subcontractor, (6) Unskilled worker, (7) Contractor poor experience, (8) Delay payment problem, (9) owner change orders, (10) Slowness decision making.

Effects of delays in high-rise building project in Vietnam.

Almost groups of causes have correlation with six effects of delay. All most the relationship between causes and effects of delay are the moderate correlations (the correlation coefficient from 0.3 to 0.7). However, the causes that created by the special character of project are not related with effects of delay. All correlation between this group with effects of delay is weak (correlation coefficient is lower than 0.3). Groups of causes, which created by owner and contractor, are the causes have strongest correlation with effect of delays.

• Time overrun
• Cost overrun Dispute
•  Arbitration
• Litigation
• Total abandonment

Avoid and minimize delays in high-rise building project in Vietnam.

In these current years, Vietnamese construction industry has seen an alarming increase in delays in construction projects. Especially in high-rise building project, this problem is more general and serious. Therefore, finding the way to avoid and minimize delays in high-rise building is a necessary mission, and many efforts are underway to find the solution. In this study, one of major purposes is find out the important factor, which can be applied to avoid and minimize delay According to the results, tops ten important factors can apply to avoid and minimize delays in high-rise building project in Vietnam are: (1) Ensure adequate and available source of finance until project completion, (2) Competent project manager, (3) Selection of a competent and reliable consultant to carry out the work, (4) Comprehensive contract documentation, (5) Perform a preconstruction planning of project tasks and resource needs, (6) Frequent progress meeting, (7) Adopting a new approach to contract award procedure by giving less weight to prices and more weight to the capabilities and past performance of contractors, (8) Contingency plan, (9) Multidisciplinary/competent project team, (10) Ensure timely delivery of materials.