Key Factors of Effective Fast-Track Projects

Many large scale building projects in Vietnam have common issues relating to budget overrun, lost revenues or other benefits and quality non-achievement. Delays bring negative effects to the Owners in terms of lost time lead to lost money, lost business chances and even lost company reputation.

Delays are often caused by slow decisions, miscommunication, unanticipated reviews before and approval, or rework to correct planning and implementation errors. Delay may be at least partly due to underestimated durations or poorly conceived schedule logic.

Other causes of problems are:

- project size and complexity;

- unforeseen technical difficulties;

- schedule changes;

- poor contract administration and policies

- poor project definition;

- labor problems and equipment/materials resources;

- government policies changes, etc..

Aside from these, there are pressures from the market to the Owners to shorten their project duration to catch the demands.

Mr. Le Viet Hoai made a study to figure out some key factors to complete building projects successfully without a major effect on the budget and without sacrificing quality. The objectives of his study were to:

1. identify key factors of effective fast-track projects applying for high rise building projects;

2. identify problems and also advantages during project delivery with fast-tracking.

 Conclusion

1. Key factors of effective fast-track building projects

Based on the literature review, a successful project from the perspective of the Owner is to meet intended purpose, within financial, time and regulatory constraints. There some factors to be concerned during delivery of fast-track building project effectively:

(i) Selecting of project delivery method to achieve the required result is important to project. Selected delivery method determines the contracts between the various parties, and the practices needed to form and administer the contracts as well as risks are assigned. Selection needs to be carefully made on each project which based on specific conditions, and primary constraints of the project. Mixing of more than one of the theory delivery methods to be our own appropriate hybrid method as in this project report is encouraged.

(ii) Fast-tracking not only refers to overlapping activities between design and construction work. The extent of fast-track can be extended to the early stage of project. Fast-tracking can apply between development stage and detail design by stating detail design after finalizing preliminary design while feasibility is in progress. Hence, construction work can earlier start accordingly.

(iii) Fast-tracking can also make inside each package of construction work where typically follows the traditional process design – bid – build. Invitation to Bidders can be earlier issued to Contractors without waiting for the whole detail design and estimates are complete. Construction of the package can start earlier or even when contract award is in progress (if you had a general agreement to cover whole project before).

Total process in fast-tracking using strategy is illustrated in figure below. If well managed, overall process can reduce 2-3 months of project duration.

By step by step contracting to Contractor combined with carefully monitoring package estimates and regularly updating to project budget can be useful to the Owner to avoid budget overrun.

2. Problems and also advantages during project delivery using fast track

By using fast track project, the project owner can take a main chance by catching up market demand. Gain benefit from earlier project completion equivalent with earlier revenue, and financial return. Besides that, some beneficial changes in designs can be feasible made during delivery. In other hand, less debt financing due to early completion. Furthermore, risk on construction can be earlier transferred and company reputation can be following proven on real estate market.

Although that fast track delivery is popular used as a strategy, there are many problems that can occur when fast track delivery due to lack of knowledge and inexperienced consultants as well as project management teams. Therefore, the negative effectiveness of unsuccessful fast track projects is significant and can lead to more delay and cost.

The challenge for most fast-track projects is construction contract negotiation. Pricing disputes often occur in each trade on which price is reasonable or comparative. The Owner doesn’t have much advantages in this case and process may last for long time.

In addition, fast-tracking is likely to face with that coordination is more complex, being compressed into a short time, and requiring especially capable coordinators to maintain priorities.

On the other hand, drawing control is more difficult because there are more revisions, even if only to add the detail not available at first issue. These adjustment revisions may be considered as design changes justifying additional money and time by contractor. When there are too many of these differences to resolve in compressed time frame, accumulating conflicts may damage the cooperation.

A fast track project method is not a must for all projects, as it depends on each project type and business strategy. The project owners should carry out a benefit analysis and have a business target to decide which strategy is suitable for their case.

Therefore, experienced consultants and project managers should provide a suitable plan for project owners based on analyzed and feasibility studies.

His thesis abstract is copied below.

Abstract

The frequent market imperative for minimized project durations to catch the demand has brought the Owner to better facilities for project to be delivered in less time, at less cost, and with fewer risks. Fast-track is certainly selected to meet these demands and become popular. With fast track project delivery system, a stage can start before the prior one is complete, especially the overlap between design and construction works, which allow project earlier completion than with traditional method. There no doubt that fast-tracking offers many advantages and benefits, such as an earlier project completion, earlier operation, earlier financial return and earlier transfer risk to construction. Therefore, fast track project delivery in building projects becomes applicable strategy. In order to understand how fast-track is implemented and key factors of effective fast-track project together with problems and advantages, a case study is explored by approaching its documentations, interviewing involved persons. The results show that fast-tracking not only refer to overlapping activities between design and construction but also can extend to development stage or even inside each construction package effectively. Their application is widely during project stages. However, fast tracking can become a threat to quality, cost and even schedule if not done carefully. Therefore, in order to apply fast track project successful, owners should have proper plan.

Keywords: fast-track, fast-tracking, strategy, building project, delivery method, key factors, effective project.