Vietnam joined the WTO in 2006 that gave
it opportunity and a major challenge to foreign investors who invest directly
in Vietnam as well as local investors. Like in any countries, unstable market
as a great impact to real estate business and Vietnam could not avoid it
especially that construction industry directly affected when the market goes
down. The main reason is because some investors unable to project financial
performance until completion of the project.
Nguyen Truong Hung made a case study to: (i) study the behaviour of project owners during slow construction market; (ii) study risks of contractor affected by Owner and market; (iii) study risks management (in term of solutions and strategy); (iv) discuss the strengths and weakness of the solutions
Summary
Risk management is an integrate part of project management. Therefore, risk
management should be executes immediately at the commencement of the project
and must maintained throughout the course of the project implementation process.
Risks can occur in any phase of project, a negative effect of risks to project
finance, because of project cost overrun. Contractor cannot avoided risks,
however, if contractor implementation of strict risk management system, risk
can minimize, transferred or retained. There are several ways of risk
dealing such as transfers the risk to another party, as well as avoiding the
risk, reducing the negative effect of the risk due to carry project, as well as
accepting some particular or all of the consequences of a particular risk. The
active and early identification of risks, analysis and evaluation them, with
control or measures and reduce the impact of risk is urgently needed, to ensure
the feasibility and efficiency of the project. The benefit of risk management
as well as effectives of project management is save time, avoid cost overrun,
ensuring is project complete on schedule as planned, with good quality.
Report
listed the behaviours of investors occurred in construction projects in Vietnam
when economic and market decline lead to Owner’s economic risks, and unstable
market situation in Vietnam.
This report
identify the major risks that construction contractors have occurred in the
construction projects , many risks occurred in the construction phase ,
especially in the economic and slow market situation period .But the report
only give particularly serious risks occurred for construction sector in
Vietnam due to impact of economic difficulties and market decline sharply, and
it real affected contractors.
As a result,
the report described how contractor analysis as well as manage the risks, and
their strategy to overcome the risk.
The report
also highlighted strengths and weakness of contractors when they implementation
the risk management system, and suggest solutions as well as give
recommendations to manage risks.
Abstract
Construction business and Real estate business began to face
difficulties since the first Quarter 2010 due to European economic downturn has
affected foreign investment FDI in Vietnam to decrease, and interest bank rate
is too high , and significant GDP decline has direct impact on the construction
on the construction sector and real estate business. Investors face many risks
in the project and this has indirectly affected to contractors, suppliers of
projects. Therefore, risk management, especially risk management due to
difficulties economic and slow market situation as to be appreciated in order
to minimize the risks.
Risks cannot eliminated, however, if
contractor implementation of strict risk management system, risk can minimized,
transferred or retained, There are several ways of risk dealing such
as transfers the risk to another party, avoiding the risk, reducing the
negative effect of the risk, as well as accepting some or all of the
consequences of a particular risk. The active and early identification,
analysis and evaluation, with control measures and reduce the impact of risk is
urgently needed to ensure the feasibility and efficiency of the project. The
benefit of risk management as well as effectives of project management is save
time, avoid cost overrun, ensuring is project complete on schedule as planned,
and good quality.
This study listed Owner behaviours often occur in construction
projects when they encounter difficulties in the market, and contractors in
risks management strategy to overcome the risks due to operating through the
construction projects.
1 comment:
Tag: PM205A56. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it
1. Plan your day using time management techniques
As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.
If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.
Related post: Free ebook 104 secrets to become a great project manager
2. Include stakeholders in important project conversations
While you will have plenty of responsibilities regarding the project, don’t neglect your clients.
Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.
Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.
3. Regularly communicate with your team
Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.
For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.
4. Anticipate project setbacks
Even the best-laid plans often go awry.
Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.
Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.
Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.
Related post: 92 free project management templates
5. Stay focused on the details
A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.
Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.
And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs
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