Professional Project Management Education

AIT-Chuong trinh Thac si Quan ly du an Xay dung: Thu moi hoi thao

2012-01-23T16:59:00.000+07:00

THƯ MỜI THAM DỰ

HỘI THẢO

NÂNG CAO NĂNG LỰC QUẢN LÝ CÁC DỰ ÁN XÂY DỰNG

ĐÀO TẠO CAO HỌC AIT VỀ QUẢN LÝ DỰ ÁN XÂY DỰNG - KỸ THUẬT XÂY DỰNG VÀ QUẢN LÝ CƠ SỞ HẠ TẦNG

Viện Công nghệ Châu Á tại Việt Nam (AITVN) xin gửi lời chào trân trọng.

Đa số các nhà quản lý dự án và điều phối các dự án phát triển cơ sở hạ tầng của Việt Nam đều có cơ sở tốt về kỹ thuật như kỹ thuật xây dựng, cơ khí, điện, v.v… Để có thể là nhà quản lý chuyên nghiệp điều hành và tham gia các dự án lớn họ cần được trang bị đầy đủ kiến thức và các kỹ năng cần thiết cho quản lý dự án như quản lý về quy mô, hợp đồng, thu mua, tài chính và thời gian hoàn thành dự án,... Do đó, nâng cao năng lực về quản lý dự án xây dựng là một trong nhiệm vụ trọng tâm phát triển nhân lực quản lý cao cấp của các tập đoàn xây dựng lớn, các công ty đầu tư xây dựng cũng như các nhà thầu.

Để đáp ứng nhu cầu ngày càng cao đội ngũ cán bộ chất lượng cao về lĩnh vực kỹ thuật và quản lý xây dựng dân dụng của Việt Nam, Viện Công nghệ Châu Á đã triển khai rất thành công các Chương trình đào tạo chuyên gia về Quản lý dự án xây dựng, chuyên gia kỹ thuật xây dựng về quản lý cơ sở hạ tầng từ 2007 đến nay tại Hà Nội, Thành phố Hồ Chí Minh, Vũng Tàu, Cần Thơ,…Trong khuôn khổ Chương trình, AITVN xin trân trọng kính mời Quý vị đại diện tham dự Hội thảo “Nâng cao năng lực về Quản lý Dự án trong Xây dựng”, được tổ chức lúc 09h00, Chủ nhật ngày 08 tháng 01 năm 2012 tại AITVN, số 45 Đinh Tiên Hoàng, P. Bến Nghé ,Q.1 (đối diện đài Truyền hình HTV), Phòng A1.1.

AITVN xin mời Quý cơ quan, đại diện phụ trách Nhân sự, cán bộ và đào tạo, các chuyên viên kỹ thuật, các nhà quản lý các dự án đầu tư/xây dựng lớn, các cá nhân quan tâm đến Hội thảo và các chương trình đào tạo của AIT tới tham gia Hội thảo.

(gửi kèm chương trình Hội thảo)

Xin liên hệ địa chỉ sau để đăng ký tham gia:

Chị Lê Tường, Điện thoại: 08-910 7423/7472/7473/số nội bộ 117; 01 285 265 168

Eemail: ngletuong@aitcv.ac.vn

Trân trọng,

Nội dung chương trình:

v 8:45–9:00 Đăng ký tham dự

v 9:00–9:15 Khai mạc

Giới thiệu về AIT-AITVN

v 9:15–10:00 Vai trò Quản lý dự án xây dựng trong thị trường cạnh tranh

v 10:00–10:15 Giới thiệu về Chương trình Thạc sĩ Chuyên nghiệp của AIT trong

Quản lý Dự án xây dựng

· Giới thiệu Chương trình đào tạo – các đặc điểm chính

· Giới thiệu về yêu cầu tuyển sinh

· Học phí và các chi phí liên quan

v 10:15-10:45 Hỏi – đáp

Xin chân thành cám ơn!

Trình bày: Tiến sĩ Hadikusumo

Trưởng khoa, Khoa Quản lý Xây dựng, Kỹ thuật và Cơ sở Hạ tầng,

Trường Kỹ thuật và Công nghệ - Viện Công nghệ Châu Á (AIT)

Evaluation of Effective Design in Architectural Process

2012-01-23T13:27:00.001+07:00

Evaluation of effective design procedure is a difficult method to measure the performance of drawings. How can the architect manage this method effectively? How can they understand deeply in the role of design process? It is really a challenging task for them. For these above reasons, their experiences must be trained and modern technology methods applied in order to achieve as much best result as possible. Regarding to the way that the architect can manage the design process efficiently and effectively, they use a standardized method of measurement and common database.

During the past decade, the Vietnam government has opened its door for cooperating with oversea knowledge and business. This policy has resulted in many construction fields included design architectural professional. In practice, the concept of design measurement activities in design phase was an expectation for the perfectibility of output-drawings. Unfortunately, the traditional design consultant only pays attention to the process of design and planning projects lead to lack of concentration how to estimate this design process. Therefore, project participants faced many adverse factors influenced from design process such as: late or inaccurate drawings, maintainability, expensive changes originate, no specific details in technical drawing, and so forth.

With high demand in improvement of design aspect, Vietnam construction requires all design professional commit in quality of design functions. Mr. Nguyen Kim The Anh made a study which major objective was to improve the quality design process for consulting and design architectural companies. To achieve the objectives, the four specific sub-objectives were need to be accomplished:

1. Analyzing the current design management systems of Vietnamese design-consultant Company to identify the necessary improvement.

2. Defining performance of design output to clarify the meaning of design effectiveness.

3. Defining effectiveness criteria for Design Objective Matrix to apply for Vietnamese design-consultant Company.

4. Defining effectiveness criteria could apply on design architectural process for Vietnamese design-consultant Company.

Conclusion

1. Current design managements system

There are six sub-conclusions about the current management system:

i. The respondents perceive that problems of Design Company highly involve to “Business partner”, “Customers satisfaction” and “Management aspects”. They are main reason for low competitive abilities and influence into the company’s image. For better competitive abilities and business positions on free market economy, the research could identify clearly these problems at basis level to propose new improvement solutions.

ii. The traditional management methods such as: “Planning”, “Scheduling”, “Controlling”, “Technologies”, “Value engineering” and “Management Quality” are understood and applied at high perception degree. This fact reflects that these methods exist and apply on Vietnam’s architectural system for long time with repeatedly mentioning, training, and practicing at high knowledge in order to maximize customer satisfaction.

iii. Meanwhile, the degree of “design effective method” could be understood at low perceptions. This fact reflects that this method was not introduced and applied on design companies.

iv. The specific management problems currently happening on design process are “lack of autonomy”, “slowly react with change”, “outdate and unsuitable” and “low motivation”. They come from outdated business management. Design companies do not change their business attitude regarding the transferring from central planning system to free market system. The strict control system and cumbersome structural hierarchies from current managements system could make less power of self-decision-making of designers while they still react slowly against business changes. These limitations will decrease their competitive abilities on free market.

v. In order to make better management methods, respondents mostly suggest two solutions: “modify or add new management methods” and “maintain current management system, but try doing better”. These results reflect that design managers still trust on current systems even some existing but recommend applying new methods for concurrently operating.

vi. The respondent indicate that the high contributions of “management’s motivation”, “management’s commitment”, “designer’s motivation”, “designer’s commitment” and “effort” are value resources to enhance and improve the current managements system.

2. Design effectiveness method

2.1The important of management aspects in design effectiveness

Design managers understand that “human aspects” could be concerning “management ability of design managers”, “experience design”, “setting up schedule for project” and “allocate of budget” are important management aspects to contribute into making better design effectiveness.

2.2 Detail for evaluation of design effectiveness

The results from survey indicate that seven criteria (e.g. “accuracy of design documents”, “usability of design documents”, “cost of the design”, “constructability of design”, “economy of design”, “performance against schedule” and “ease of start-up”) take high perception from respondents. These criteria have proven to be meaningful and fairly comprehensive. Thus, they play important role to all designers, design activities, construction category and construction activity. Each criterion is necessary for designers’ evaluation, and can be assessed immediately after accomplishment of design projects.

2.3 Detail for design architectural

Base on Vietnamese design architectural situation, the high perception and application of ten criteria (e.g. “structures”, “arrangement”, “interface”, “material use”, “technologies”, “energy management”, “time site program”, “originality & uniqueness invention”, “historical reference” and “economy”) play important role into the successful of design architectural process. The mission of these criteria could measure degree and scope of integration that is necessary for creating design activities. Furthermore, there are many sub-criterions could be identified and ranked in order to understand their contribution into the successful of architectural design.

Recommendation

1. Current design managements system

i. Design companies need to solve and eliminate current problems (e.g. “customer satisfactions”, “business partners” and “management aspects”) to fulfill advanced demand of free market economy. In order to do so, they need to create all of problems becoming to database. Setting up the strategic and planning to solve these problems at basic level. Additionally, design companies should create new department focusing into the “customer satisfactions”, “business partners”. Their missions have to attend advance requirements, build up and maintain effective communication systems. It moreover recommends they need to select good business partners and setting up coordinates environment for sharing information.

ii. Regarding with specific management problems (e.g. “lack of autonomy”, “slowly react with change”, “outdate and unsuitable” and “low motivation”). Changing business attitude, purge of managements system, limitation of cumbersome and boosting of self-decision-making ability are introduced to improve the basic level of current problems.

iii. Design companies still maintain and enhance the “traditional management methods” and “human management aspect” at maximum advanced level. They need showing their commitments by contributing time, efforts, money, etc., for learning, implementing and maintaining these methods. Coordination with foreign partners is moreover suggested to gain mutual benefits for both sides.

2. Design effectiveness method

i. Design companies should plan and apply the design effective method as soon as possible to minimize the business risk and current problems occurring on design process.

ii. In order to achieve the best outcome on design process, designers need to focus the criteria of design architectural like guideline for design activities. However, based on actual situation, these criteria or sub-criterions may be to utilize or not to adapt with demands of design missions.

iii. Design managers need to create “Design effective method” to be the guided procedures in order to make suitable for design users.

iv. Design effective method model is partly proposed in this research and apply in design companies to draw their pros and cons. Feedbacks from practical application can help research modifying and making them more suitable for Vietnamese architectural design field.

His thesis abstract is copied and pasted below:

Abstract

Design effectiveness method has the potential to significantly benefits for consulting – design architectural companies to issue the best value outputs design to customers, while improves quality, reduces cost and shortens time. However, it is not widely know and applied on Vietnamese design construction field. Thus, the research focuses on main issues of current management system and design effectiveness method to find the best efficiencies and acceptability criteria suitable with Vietnamese consulting – design architectural companies. The data is mainly collected from thirty respondents at twenty-three companies who currently work on medium and large size design-consultant Vietnamese Company. The research could be utilizing questionnaires design as an efficiency tool to collect responses. The method of breaking responses’ survey is multiple rating list scale. The values “means” were considered as the benchmark to asset and rank the ratio of respondent’s perception on their responses. These results could reflect overall viewpoints of respondents toward research’s objective.

The finding shows higher knowledge and application of traditional management over new management. Meanwhile, design effectiveness method is not introduced widely in design companies. The research recommends solutions to improve management system to satisfy the research objectives. This action will enhance more application of design effectiveness method and boost up the effectiveness, efficiency abilities for Design Company to overtake with famous rivals on design architectural field.

Construction Litigation Analysis: A Case Study of Thai Supreme Court Cases

2012-01-17T15:37:00.001+07:00

Thailand is fast becoming a newly industrialized country and, consequently, plenty of construction works are projected for the future. In the period of construction boom, it is inevitable to have a large number of disagreements that turn into large number of conflicts. These conflicts that end up as disputes reduce efficiency in the construction industry and cause a lot of detrimental problems (O'Reilly, M. P., 1993). All of the parties involved in the construction activity have become increasingly concerned with construction contract claims and disputes and generally agree that the handling of claims and disputes arising in the construction projects is a serious problem (Bruce M. Jervis, P. L., 1988). Whenever a dispute arises, neither owner nor contractor benefit from it. The beneficiaries are, by and large, those engaged in helping litigants through legal process (Cornes, D. L., 1994). Disputes divert resources from meeting project objectives and consequently the project suffers and progress slows down (Hughes, J. M. (2000). Many of these disputes have to be settled by adjudication through litigation at courts of law, which make project cost much more than they should, and those who deal with it lose their reputation when disputes mark the headlines of trade magazines and newspapers (Richard H. Clough, G. A., 2005).

Mr. Tanatat Wisetsurakarn made a research to investigate the information of construction contract and tort disputes in the Thai construction industry which were resolved in the courts of law. Such information can be collected from the law digests. These law digests, namely “Supreme Court Decision”, contain court cases which were decided by the Thai Supreme Court for use by lawyers as case references.

As indicated that the civil liability due to professional practice has caused many issues and subsequent problems. Therefore, it is necessary to initially explore and investigate the Supreme Court cases. Hence, the following objectives were needed to be accomplished:

i. To explore key decision making in court cases that affects the outcome of construction litigation in civil liability in Thailand

ii. To identify the civil liability due to professional practices in construction litigation

iii. To propose the recommendations on the improvement of professional practices to prevent civil liability in construction litigation.

Conclusions

Regarding the study of the acceptance of fault in civil cases for people who work in the field of civil engineering, especially engineers who deal with construction, the study shows that the faults were from engineers. This is because they lacked professional practice in many construction projects. It can be concluded from the results of the analysis that professional civil engineers such as contractors, project supervisor or architects who didn’t work carefully would cause damages to the project owner, the contractor, and outsiders. In terms of civil aspects, engineers have to pay compensation to those who are injured due to a lack of professionalism in their practice. This type of responsibility occurs when one breaks the contract or tort depending on the legal action between the contractor and the ones who receive damages. The damages resulting from violating or tort others will not exceed 1,000,000 baht. For legal cases concerning contracts, the damages will vary depending on the value of the project. The problems found in Supreme Court both in tort cases and in contract cases can mainly be divided into 7 problems as follows. Earthwork found that the piling was done with negligence or without sufficient careful planning, erroneous bid specs / lack of quality found that construction didn’t follow the architectural plan or drawing specifications and careless construction or lack of knowledge about proper construction methods., owner interference found that there was delay from the project owner, warranty period found that did not repair the work to its perfect condition while it was under warranty, project delay found that the construction wasn’t completed in due time, third party harm found that careless practice in constructing tall buildings that were adjacent to surrounding buildings and no signs or precautions to warn people of the construction, the digging, or other activities which caused danger, overdue debt found that didn’t pay wages or didn’t pay wages in due time.

From the aforementioned information, it can be seen that the engineers have high levels of responsibility and must be knowledgeable and experienced in their work. They also have to work carefully to complete their work. Therefore, it is suitable for both engineers and involved personnel to study work data and past court cases that are related to their work, so that they can be careful about their work.

Recommendation for Improving Professional Practices

The nature of work that engineers do causes them to have a high risk for being sued; it would be better if they were informed of legal laws and court verdicts on prior lawsuits similar to their professions. This can be done by giving training to and educating civil engineering students. Concrete examples from legal actions should be added to create basic knowledge so that engineers and students will recognize and take some precautions when they work. In terms of the Engineering Council, it should collect all legal cases and give legal advice to those engineers who have problems or have to go to court because they are being sued. Finally, the engineers themselves should be interested and eager to gain more relevant legal knowledge, and should also prepare themselves in looking into old cases. By doing these things, they will prevent problems which might occur in the future.

His thesis abstract is copied and pasted below.

Abstract

The Thai construction industry has been greatly developed, and experienced. Constructions of several large projects are being carried out in the both public and private sectors. There are an increasing number of construction contracts resulted in claims and disputes. All of the parties involved in the Thai construction industry are fully aware that disputes not only lead to cost overruns, but can end up as expensive and lengthy courtroom battles. However, very few studies related to construction contract claims and disputes in Thailand have been presented. This study is an attempt to gain further insight to construction contract claims and disputes in the Thai construction industry.

This thesis examines the subject-matter of construction contract and tort disputes, which were resolved in the Thai courts of law. The data examined include the reasons behind the legal disputes and the legal principles concerning construction contract and tort law. By using Supreme Court decisions pertaining to construction contract and tort disputes are analyzed and once know the judge key decision and detail story then proposing the specific problem of that case and recommendations for improvement the professional practices. The study indicates that the problems found in Supreme Court both in tort cases and in contract cases can mainly be divided into seven problems as follows. Earthwork found that the piling was done with negligence or without sufficient careful planning, erroneous bid specs / lack of quality found that construction didn’t follow the architectural plan or drawing specifications and careless construction or lack of knowledge about proper construction methods., owner interference found that there was delay from the project owner, warranty period found that did not repair the work to its perfect condition while it was under warranty, project delay found that the construction wasn’t completed in due time, third party harm found that careless practice in constructing tall buildings that were adjacent to surrounding buildings and no signs or precautions to warn people of the construction, the digging, or other activities which caused danger, overdue debt found that didn’t pay wages or didn’t pay wages in due time.

From the aforementioned information, it can be seen that the engineers have high levels of responsibility and must be knowledgeable and experienced in their work. They also have to work carefully to complete their work. Therefore, it is suitable for both engineers and involved personnel to study work data and past court cases that are related to their work, so that they can be careful about their work.

Business Diversification of Real Estate Company

2012-01-12T11:00:00.002+07:00

Thailand’s economy grew at the lowest rate in the past several years resulting in a slow growth in construction. Construction companies encounter financial problems from external factors such as price fluctuation of raw materials and internal factors such as cash flow shortage. Therefore, financial relationship is quite complex, is contacted with lenders, investors, sub-contractors, employees, and customers. The company is careful for managing finance in each function and considering financial problem that can affect financial management in the company.

Business diversification is widely used and the supply chain is one form of diversification. The real estate is one of the business diversify into related business including material supplier, construction, and real estate. The fundamental of the diversification is to create value for stockholders. The additional value is created through synergetic integration of a new business into the existing one thereby increasing its competitive advantage. The real estate company should concentrate on each link between real estate developer and its members especially operation and financial inter-relation. The real estate company decides to diversify because it is more benefits in term of operation and financing. To study business diversification can decrease the cost of construction and can generate the diversity of incomes. It can also make more profit margins and increase the strength of financial capability in Real Estate Company.

Ms. Pichaya Bhanubhak made a study aimed to identify the inter-relationship among real estate developer and supply chain members. Next step, this study is to define the financial relationship through the business diversification and propose the guideline in financial strategy to Real Estate Company. To attain the main objective, three sub-objectives were needed to accomplish: i) to identify the financial and operational inter-relation between real estate developer and its parties through business diversification; ii) to investigate how the real estate developer can diversify business into construction, and iii) to propose the recommendation for financial management that is appropriate for real estate business in handling with the important factors towards diversification into construction.

Conclusions:

The Financial and Operational Inter-relation of Business Diversification in Real Estate Developer

Based on the inter-relation between real estate developer and its parties, it is found that organization business process consists of three major issues including financial, spending, and revenue. There are three parties including material suppliers, land agents, and skilled contractors/skilled labors significantly affect on the operating and financial conditions in the business. Construction material cost, land cost, and labor cost are the main cost of real estate so these expenses relate to sale prices of housing units. Customers are the key parties also relate to the major source of revenue in the company. The key factor has impact on the number of customers who buy the housing products is the sale prices of housing units.

1.There are two parties including financial institutions and investors related to financial. Financial institutions give loan to the company and the company pay back principal and interest payment to them. Investors invest in equity in the company and the company pay dividend back to investors at the end of year. Financial is the process to find funds for operation and investment. The company uses fund for operation to spending to material suppliers, land agents, skilled contractors/skilled labors, and employees. Company uses fund to invest into subsidiaries.

2.Spending comprises of four parties are material suppliers, land agents, skilled contractors/skilled labors, and employees. Cost of materials is the one of the major part in cost of real estate because company purchases materials in high volumes which are more costly for the company. So, company purchases the major construction materials by inviting tenders and entering into long-term price agreement as 3-6 months or 1 year to protect fluctuation of material price.

3.Company purchases land from owners and agents when it develops a project. Skilled contractors and skilled labors hire as outsource contract. High value projects or urgent tasks, company uses bidding process to find competent contractors.

4.Customers are the major source of revenue and the company receives revenue from sales of real estate. More than 90 percent of company’s home buyers borrow by mortgage. Customers lend money from the commercial banks or Government Housing Bank to buy houses and they use their land and house as collateral. They pay principle and interest payment at MRR 4.75% (in 2009). However, the economic slowdown and changing policy of commercial banks or Government Housing Bank on mortgage loans impact confidence and spending of the customers so these situations affect company’s revenue. The company will take the risks of rejection rate of customers that will decrease the revenue from sales of real estate. Thus, the company has appointed a working committee to regularly monitor and track on the bank’s loan policy and the economic status in order to adapt the appropriate strategy.

The business diversification of real estate developer

From the case study, real estate developer diversified into construction business and it also diversified business into sales of real estate. Moreover, the company expands its business in traveling city such as Phuket and Chonburi and foreign markets to capture the business opportunity.

The company diversified into seven subsidiaries that are divided by type of business as following:
1) Subsidiary A to operate as a contractor for home decoration and construction

2) Subsidiary B and Subsidiary C to operate as property developers to sale of real estate

3) Subsidiary D as investors for investment

4) Subsidiary E to operate as real estate developer and housing construction for construction and development of oversea projects.

5) Subsidiary F to operate as real estate developer and housing construction in India

6) Subsidiary G operates as a contractor in India. Furthermore, company manages construction works and constructs houses by itself.

Company A, Subsidiary B, and Subsidiary C sustain in the old market by capture the real estate business. Subsidiary A expands business into construction but it still capture in the old market. Subsidiary E and Subsidiary F expand into new market to capture the real estate business. Moreover, Subsidiary E, Subsidiary F, and Subsidiary G expand to capture the contractor business into new market. There are several benefits from the business diversification as following:

1.The company can reduce the construction period that are shorter than conventional method. The construction of one-story townhouses can build 30 days and two-story townhouses are complete in 60-80 days. The construction period of single-detached houses is about 75-90 days.

2.The company diversified into subsidiary so it can invest more in R&D to improve the efficiency of the business and to improve in high technology to build houses. The company can reduce the cost of construction. Thus, the company can set the sale price that is lower than other developers. The company’s sale prices for townhouses are 15-20% lower than other developers and the prices of the single-detached houses are 10-15% lower than other developers.

3.The company is granted with the Board of Investment (BOI) to exempt tax from BOI promotion privileges because it can build houses that not exceeding 600,000 baht at a unit price including land cost. The company gets the exemption the corporate income tax on net profits receives from sale of residential units in the promoted projects for a period of five years.

4.The company invests into subsidiary A as home decoration and contractor. The company is more flexible to get some benefits. Company separates into two contracts when customers buy houses. The first contract is to sell land and houses that not exceeding 600,000 baht at a unit price to exempt tax from BOI promotion privileges and second contract is decoration by the subsidiary company. The company hires the subsidiary to work in its project.

5.The company invests into subsidiary B and subsidiary C to sales of real estate. It is more flexible in some laws and regulations for the EIA report. Land development for residence, the number of units is more than 500 units or the area is more than 100 rai so the company must do EIA report to office of Natural Resources and Environmental Plans and Policy. Subsidiary B or Subsidiary C develops project after the company in the exceed units to avoid the EIA report.

Her thesis abstract is copied and pasted below.

Abstract

The property market was volatile and impacted by political instability and global financial crisis. These causes affect consumer confidence. However, real estate company adopts business strategy by diversifying business to maintain the business growth. The study focused on diversification of real estate into construction which can affect the operating and financial inter-relation in organization business process to determine the financial outcome of business diversification. The objectives of study are 1) to identify the financial and operational inter-relation between real estate developer and its parties through business diversification 2) to investigate how the real estate developer can diversify business into construction 3) to propose the recommendation for financial management that is appropriate for real estate business in handling with the important factors towards diversification into construction.

The study used qualitative method by using case study as a research design. The research methodology begins with modeling of business diversification which comprise of preliminary modeling and verification. It continued with the data collection by using the modeling to design the case study questions for interviewing and to select the case study. Data analysis is conducted by using explanation which all important evidences are described.

The result from the study showed that there are three main issues in business organization process including financial, spending, and revenue. The financial is the part to find funds for operation and investment. The spending is divided into material cost, land cost, skilled contractors/skilled labors cost, and wages. The revenue comes from to sales of real estate to customers. Finally, the benefits of diversification are to exam tax from BOI promotion privileges, to reduce the cost of construction, to reduce construction period, and more flexibility to operate business such as in some laws and regulations for the EIA report. The modeling of business organization process, business diversification, and money management are developed and discussed in this study. Moreover, the analysis of causes and effects of business diversification are also proposed in this study.

Collaborative Strategy between Stakeholders of Hydropower and Power Intensive Industry in Bhutan

2012-01-10T14:36:00.003+07:00

Before 1960, handicrafts, wood products, bamboo products, agricultural products were manufactured in small scale. The number of industries continued to expand steadily after the implementation of first five year plan in 1961. Today most of produce includes cement, wood products, processed fruits, alcoholic beverages, calcium carbide and other minerals. (Bhutan, 2008). Due to high transportation cost, small domestic markets and under developed infrastructure, industrial development has experienced slow pace. Nevertheless as Bhutan continued cordial relation with India, growing demand for minerals and other products has made inevitable to exploit the available resources.

Industrial growth has increased to 5.8% in 2007 from 3.8 % in 2006. (Royal Monetary Authority, 2009). In spite of unprecedented industrial growth, RGOB has to slacken its development owing to power intensive. The demand of minerals and other products continues to grow but industrial development has to stand still until new hydropower plant is installed which can cater the power to these power intensive Industries.

As per the electricity demand scenario, with considerable increase in domestic demand and based on the existing demand forecast, there will be no power available for export by 2012 during the lean season. Due to increased coverage and industrial demand, 12 MW on average of power has to be added per annum to avoid reduction in export. 1 MW reduction of export of electricity will result in about Nu. 14.89 million losses in cash to the Government. (Department of Energy, 2005). The power intensive industries will be affected as the domestic tariff will make par with the export tariff.

The RGOB is in dilemma as to focus on industrial development which is backbone of socio-economic development or continue to earn enough revenue through the export of electricity. In order to encourage power intensive industries keeping in view the affordable domestic tariff and increased level of revenue through export of electricity, is it possible to have collaborative situation- i.e. “domestic tariff remains affordable while at the same time export earnings continue to grow” (Department of Energy,2005) so as to achieve the national goals of meeting the internal demand of the country at affordable tariff and at the same time increased sufficient revenues from the export of hydroelectricity for investment in socio-economic development sectors to achieve economic self-reliance and Gross National Happiness.

Mr. Karma Gyamtsho made a study which objectives were to: i) explore in-depth into the field of industrialization, hydropower generation and the policies of the Government and identify the key collaborative issues of different stakeholders and their behavioral approaches towards collaborative strategy between hydropower generation and power intensive industries in Bhutan; and ii) develop a collaborative framework between hydropower generation and power intensive industries of Bhutan keeping in view the unique development philosophy & strategy of Gross National Happiness and provide suggestions & recommendations.

Conclusion:

Economic growth in Bhutan through export of electricity and industrial development have become like two sides of coins, both cannot be seen at same time. If Bhutan strives to achieve economic development through export of electricity and industrial development, a complementary strategy of hydropower development by industrialist for its own consumptive uses should be permitted.

The network of interrelationships of the different stakeholders is illustrated in figure below.

The collaborative issues of the different stakeholders surfaced are lack of technical & managerial expertise, high logistic cost, import of foreign workers, land ownership, water user right, equitable regional development, under performance of the machines, excise duty, logistic cost, absence of policy, wheeling charges, feed- in tariff, opportunity cost, high lending rate, high insurance premium, absence of FDI in hydropower sector, environmental clearance, rational power tariff, scarcity of raw materials, excise duty, high lending rate, high insurance premium, equity in investment, access to external source of fund and sustainability. The collaborative approaches to the collaborative issues are human resource development, strategic infrastructural development, more foreign workers, full land ownership, full water user right, balanced development, excise duty refund, policy development, affordable wheeling charges, rights to feed in power, external borrowing, foreign insurance, accelerated environmental clearance, maximum equity in investment and affordable tariff. Based on the study, a collaborative strategy is developed.

The collaborative issues that are desired by the maximum stakeholders are policy development, strategic infrastructural development and human resource development. The collaborative issues such as wheeling charges and feed-in tariff are considered the most significant as it determines the tariff of electricity for the industries.

Recommendations

The following recommendations are made based on the collaborative strategy developed:

1. Policy Development: It is inferred that there is intense need for the policy development by Hydropower plant, Department of Industry, Bhutan Electric Authority, Investor, power intensive industries and department of Industry. The collaborative issues of these stakeholders include the absence of policy which inhibits them to develop such hydropower plant for industrial uses and there is considerable loss of opportunity for the nation. The rational power tariff between industries and hydropower plant can only be determined if the policy is in place and the inclusion of hydropower in foreign direct investment policy can greatly steer the investors. One window clearance system can reduce the lengthy procedures of approvals.

The following recommendations are done with regard to policy development:
The captive power policy formulation should be expedited meanwhile the permit to conduct survey and investigation for hydropower project should be issued to the interested industrialist.

Foreign Direct Investment should be allowed in hydropower sector.
One window clearance system should be established for speedy approvals for projects.

2.Strategic Infrastructural Development: There is also need for the strategic infrastructural development by contracting agencies, machinery supplier, raw material supplier, hydropower and power intensive industries where the collaborative issues is high logistic cost.

Following recommendations are done with regard to strategic infrastructural development:
- Enhanced quality and reliable road network should connect hydropower site and industrial estate.
- Alternate mode of transport such as ropeways and railways should be developed.
- The private sectors should be entrusted with the infrastructural development.

3. Human Resource Development: It also necessitate to have human resource development by the contracting agencies, machinery supplier, hydropower plant and power intensive industries where the collaborative issues includes lack of technical & managerial expertise and underperformance of machines.

The following recommendations are made with regard to human resource development:
- Mandate Indian contracting agencies executing the projects to induct Bhutanese contractors as joint venture.
- Establish more vocational training institutes which provide skill enhancement in Hydro Power and industrial sectors.
- Conduct short term courses and training in hydropower and industrial sectors.
- Financially support private and corporate sector for Human Resources Development.
- There should be involvement of Bhutanese with the reputed firm for the design of machineries and also in the operation & maintenance.

4. Environmental Clearances: An accelerated environmental clearance is also a priority for hydropower plant and power intensive industries where environmental clearance and the scarcity of raw materials are the collaborative issues. It is recommended to have one window clearance system for environmental clearance in the policy and more exploration for mines to meet the inadequate supply of raw materials for the industries.

5. External Borrowing: The permit to external borrowing is also necessary for hydropower plant and power intensive industries where high lending rate is the collaborative issues. It is recommended that the external borrowing should be permitted and the lending should be based on cash flow projection rather than the collateral based.

6. Refund of Excise Duty: The refund and exemption of excise duty is also emphasized by the machinery supplier, raw material supplier, hydropower plant and power intensive industries. It is recommended that there should be exemption of excise duty on import of machineries and refund of excise on the import of raw material.

7. Land Ownership: The land ownership is also area of concern for hydropower plant and power intensive industries. It is recommended that lease period specified in existing relevant policies and regulations should be increased and the lease rate to be made transparent in the relevant policies.

8. Import of foreign workers: It is desirable to allow more foreign workers for hydropower plant, power intensive industries and contracting agencies. It is recommended that entitlement of number of foreign workers should be based on actual requirement.

9. Balanced Development: Equitable regional development is desired by RGOB and is a collaborative issue for hydropower plant and power intensive industries. It is recommended that transmission grid should be extended connecting eastern and western grid. The industrial estate development should be diversified across the country.

10. High Insurance Premium: There is need to access the foreign insurance where high insurance premium is a collaborative issue of hydropower plant and power intensive industries. It is recommended that foreign insurance should be permitted and private insurance company established in the country.

11. Water User Right: The water user right need to assured to the hydro power plant. It is recommended that the full water user right should be assured through the license wherein the quantity and time frame of the use of water is specified.

12. Wheeling Charge: The affordable wheeling charge can be assured to the hydropower plant by BPC through the construction of sub-station and incorporating the cost of sub- station in the wheeling charge thereby reflecting in the contract agreement. It is recommended that wheeling charge be allowed and the necessary infrastructures developed by Bhutan Power Corporation.

13. Feed in Power: Feed in power in the BPC transmission grid is the issue of hydropower plant where the right can be assured through provision of energy banking facilities and willingness of the BPC to take the surplus energy at appropriate tariff. It is recommended that banking of energy be allowed and sale of surplus power to Bhutan Power Corporation at appropriate tariff be made available.

14. Equity of Investment: The investors can be attracted through the equity of investment. It is recommended that 100% equity in investment should be allowed.

15. Sustainability: The core of competency through cost leadership for the power intensive industries can be achieved through the affordable tariff that will be determined by the performance of hydropower plant. It is recommended that electricity duty should be exempted and subsidy on interest should be provided.

His thesis abstract is copied and pasted below.

Abstract

Bhutan still has the incidence to the poverty and unemployment which poses a challenge to industrial and hydropower sectors to create quality employment for the Bhutanese. The rapid industrial growth has increased the domestic power demand affecting the export quantity considerably. The power intensive industries will be affected if domestic tariff becomes par with export tariff. Therefore economic growth in Bhutan through export of electricity and industrial development have become like two sides of coins, both cannot be seen at same time.

It will be prudent if industrialists are permitted to develop hydropower plant for their own consumptive uses and Royal Government of Bhutan continue to focus on revenue generation through export of electricity. As Bhutan has always chosen middle path of sustainable development guided by central development policy of Gross National Happiness, it is necessary to explore the collaborative issues and the approaches of the stakeholders involved in hydropower development for industrial uses before realigning country’s development plan and policies to address these opportunities and challenges. A framework of collaborative strategy between hydropower generation and power intensive industries has to be sensibly derived based on collaborative issues and approaches of stakeholders for effective implementation without deterring the philosophy and strategy of Gross National Happiness.

Construction Claim Types and Causes: A Study of Tala Hydroelectric Project, Bhutan

2012-01-06T12:49:00.001+07:00

One of the key areas of controversy that arises in the field of construction industry is from the claim situation. The inherent problems of most of the construction projects are their uncertainty, complex in nature involving a wide variety of business parties that often extend over a lengthy period of time requiring detail plans and specifications, skillful supervisions and efficient coordination. Thus, in such complex process, the occurrences of claims are common phenomena that hinder the completion of project on time and cause cost overruns. Although the symptoms are well known, the real causes and associated costs that arise due to such claims and disputes are not well understood. Construction contract itself is often very long, complex documents which are not well understood by the parties leading to differing interpretation by the different parties and consequently, disagreements or disputes arises regarding contractual obligations or expectations. When one party feels that the contractual obligations or expectations have not been met by the other party, and believe that they deserve monetary and/or time compensation, they may submit a claim.

It is generally accepted and agreed by both the contractors and the contracting agencies that handling of the claims arising out of the construction projects is a serious problem, and that efforts are needed to improve both methods of preventing claims and procedures for settling them when they occur. It not only drains the energy and resources of the parties in trying to solve them but also brings about adversarial relationship between them. Often, the claims that cannot be settled by negotiated adjustments has to be dealt with higher appellate (arbitration, courts etc) which sometimes takes years to resolve. Thus, it is the common interest of both contractor and owner to device means to avoid claims as far as possible in the first place and manage claim process when it occurs.

With the accelerated hydropower development policy in place to achieve the target of 10,000 MW by the year 2020 in Bhutan, a lot of constructions of hydropower projects are in the pipeline and is expected to see the construction boom within next five years. The construction of Pungtsangchu I and Dagachhu are already in full swing. Punatsangchu II and Mangdechhu projects are expected to begin by early 2010 and the studies are being done on many other projects. It has been estimated that around Nu 442 billion will be invested to generate around 10,406 MW by year 2020 (DGPCL website, 2009).

In view of the expected mega constructions that would be taken up in Bhutan, it is pertinent that we look back to the past projects and learn from the experiences. Hence, this study on the construction claims in the recently completed Tala hydroelectric Project was very important and would be helpful to the project participants in preventing and resolving claims in the upcoming projects.

Mr. Sonam Tobgay made a case study which main objective was to find which causes of claims are important and which types of claims were frequent during the construction of Tala Hydroelectric Project in Bhutan. The objectives of his study were summarized as follows:
- Carry out the comprehensive analysis of the claims, their types and the causes that occurred in Tala Hydroelectric Project.
- Study the frequency and severity of each claim and rank them accordingly.
- Study how the claims have been settled/resolved (study the different modes of resolution applied with references to contract clauses)
- Provide solutions to reduce/ minimize or prevent the claims for the future hydropower projects in Bhutan.

Conclusions:

Two types of claims have occurred in this project namely Change claim and Impact claims. Though Change claims (23/35) were more frequent than Impact claim (12/35), the severity (amount) of the claim and duration for settlement was more with the Impact Claims.

The common causations of claims was also analyzed and result showed that five (05) broad groups namely ‘Differing site conditions’, ‘Delay from Project Participants’, ‘Changes in Design and Specifications’, ‘Force Majeure(Flood)’ and ‘Omissions/Ambiguous Contract Provisions’.

The claims due to ‘Differing site conditions’ ranked first followed by claims due to ‘Delay from Project Participants’. This result supports the similar studies done for hydropower projects in India and Vietnam where they also found ‘Differing site conditions’ as the main cause of Claims (Pillai et.al, 2001 and Thinh V.B, 2004). The Adverse Geological Occurrence (AGO) was the main differing condition claims that triggered and gave rise to both change claims and impact claims in different forms.

The different mode of claim settlement adopted in this project was also studied. Almost all the claims resolved were through negotiation. Only three (03) cases out of thirty-five (35) cases accounting to USD 1,890343.19 (5% of claim amount) went to Arbitration or Litigation, rests of the claims were resolved through mutual agreement or direct negotiation. The findings supports the of study done by Zaneldin (2006) in UAE where he found that more than 77.1% of the claims are resolved using negotiation while only 4.9% of claims are resolved through litigation.

Analysis revealed that duration of claim settlement varied from minimum of six (06) months to as long as four (04) years. The claims that were settled through negotiation took much shorter time than the arbitration cases which took as long as four (04) years. Among others, most of the claim cases that took longer duration for settlement sprung from the ‘omissions or ambiguous/conflicting contract provisions/clauses’(1.64 years) followed by claims due to ‘Force majeure’(1.63 years).

Overall, only 39% of the total claimed amount was successfully achieved by the contractor through negotiation. Rest of the claim either got rejected by the owner in the first place or contractor dropped the case during the process of arbitration or litigation. This indicates that the bargaining power of the contractor is much less than the owners since most of the claim cases were not pursued after being rejected by the owner for fear of future adversarial relationship.

The severity and frequency of claims in different contract packages were also studied and found that major portion of claims appeared from civil works (21/35 cases) with over 81% of the total claimed amount while the rest (19%) was from the hydro-mechanical and electro-mechanical combined. Claims from ‘differing site conditions’ which ranked first were more prominent and high for the contract packages which dealt with underground tunneling works while the claims due to ‘delay from project participants(owner)’ dominated the claim for the electro-mechanical works. This is due to the fact that most all the electro-mechanical items were purchased from foreign countries like Japan, Germany, Italy etc which needed long procurement lead time whereby the supply order for these items and mobilization notifications for other resources were done in order to meet the original schedule. Meanwhile, due to delay in completion of preceding civil works for varied reasons, the electro-mechanical works got delayed leaving the mobilized resources to remain idle. Thus, the claim for compensation for the idling charges of the resources.

All the claim issues being analyzed were originated form contractor side. The contractor put up the claim to client with factual narrative of ‘how’, ‘why’ and ‘when’ claims have arisen along with attachments of detail calculation of claim amount, site records, correspondences, photographs if any, change orders etc. On the other hand, the client verifies the claims referring to the various documented proofs and contract clauses, and makes their own justification. The final approval goes through different hierarchy of officials of different departments for their comments and vetting.

Recommendations for minimizing/avoiding claims in future projects:

Having studied the claim cases in Tala Hydroelectric Project, Bhutan, the author has learnt a lot with regard to how and why the claims happened in this project and the various factors that contribute to the occurrence of claims. The different ways and means adopted by the parties to resolve the claims have also been studied. From the knowledge gained by studying the claim issues in this project, the following are the recommendations for minimizing the occurrence of claims in future projects. However, in view of the constraint of the study: limited study period focused only on one project, the implementations of recommendations would further need the suggestions and inputs of the experts.

1.Involve site people in early recognition of potential areas of claim occurrence and risk sharing by partners.
2.Substantive pre-project site condition and hydro-geological investigations.
3.Proper planning, timely schedule updates and coordination according to the actual progress.
4.Develop clear, complete and unambiguous contract.
5.Have regular constructive meetings at site and device ways and means to prevent claims.
6.Have change orders or variation orders from the client before doing any work beyond the contract.
7.Clear provision in the contract defining the time frame for settling claims.

His thesis abstract is copied and pasted below.

Abstract

Due to the nature of hydropower construction projects being complex, uncertain, having long gestation period, involving many parties and requiring the integration of different work components (Civil, Mechanical and Electrical) together to work as a whole unit, claims are one of the common occurrences in such projects. Since claims are undesirable issues in construction projects, it is the common interest of all the parties involved to prevent/minimize from occurring at the first hand and resolve them in a most amicable way after their occurrence.

In this research, the study was done in Tala Hydroelectric project, Bhutan with the objectives to find out (1) How and why the claims occurred (2) What are the claim types (3) How are the claims raised (4) How are the claims resolved (5) What are the common causes of claims and (6) to provide recommendations for avoiding/minimizing claims in future projects with the experiences from this project. The study result shows that two main types of claims namely: Change Claims and Impact Claims have occurred in this project while the main/recurring sources of claims was found to be from ‘Differing site conditions’ coming mainly from the unforeseen hydro-geological conditions during the underground tunneling works. The methods and measures adopted in resolving the claims issues was mostly through the negotiated settlements while few cases of arbitration did also occur. The fact that most of the claims have been resolved through negotiation indicates that the parties enjoyed cordial relationship which enabled the project to successfully complete despite many hindrances due to encounterance of worst geology.

With the findings and the lessons learnt from this construction project, it is hoped that it will guide and help improve in the project performance and claim management in future hydropower construction projects in Bhutan.

MPM Brochure

2011-11-14T16:10:00.011+07:00

AITVN organizes an Opening Ceremony & Welcome Party

2011-09-26T19:09:00.006+07:00

The AITVN organized an Opening Ceremony & Welcome Party for the 5th entry of the Professional Master Program in Project Management in Construction (MPM Program) at the Majestic Hotel on Saturday, 10 September, 2011.

This event was attended by Dr. Amrit Bart, AITVN Director; Dr. B.H.W. Hadikusumo, SET Representative; Mr. Hoang Don Dung, SCQC General Director; Dr. Nakhle Kattan, Project Director of
Nestle Vietnam; and Mr. Nguyen Van Nhan, CEIM
student and Amata Project Manager.

The ceremony was followed by dinner party with raffle draws as an additional entertainment.

Group photo with new MPM students 2011 intake and MPM alumni from 2007, 2008, 2009, and 2010

In photo: (L-R) Mr. Hoang Don Dung, SCQC General Director, VIP guest
Mr. Ng Eng Wan, MPM faculty; Dr. Hadikusumo; Mr. Nguyen Van Nhan, CEIM student, Amata Project Manager; Dr. Nakhle Kattan, Project Director of
Nestle Vietnam

Awarding of prizes for the raffle draws

AIT khai giảng chương trình Thạc sỹ chuyên nghiệp

2011-09-16T17:10:00.002+07:00

Quản lý dự án đối với các dự án xây dựng quốc tế

2011-09-07T21:08:00.000+07:00

Đặc điểm nổi bật của các dự án xây dựng quốc tế là sự tham gia của nhiều tổ chức quốc tế và quy mô của dự án là rất lớn.

Tại các nước phát triển như Việt Nam có rất nhiều các dự án quốc tế đã và đang thực hiện chẳng hạn như nhà máy điện, đường ống dẫn khí, đường cao tốc, hóa dầu, cũng như các dự án cơ sở hạ tầng công cộng như sân bay, cầu và tàu điện ngầm.

Theo Hofstede (http://www.geerthofstede.nl), mỗi quốc gia có những đặc trưng văn hóa riêng, điều đó được biểu hiện qua đặc điểm chính: một là khoảng cách quyền lực; hai là sự biểu thị giới tính; ba là tâm lý ngại rủi ro; bốn là thuộc tính cá nhân; năm là thiên hướng xây dựng mối quan hệ ổn định. Theo kết quả nghiên cứu của chúng tôi tại Viện Công nghệ châu Á thì những vấn đề về văn hóa có ảnh hưởng đến công tác quản lý dự án. Việc quan trọng nhất đó là giải quyết các vấn đề khi các đối tác tham gia dự án có nhiều đặc điểm văn hóa khác nhau. Chúng ta nên xem xét thuộc tính văn hóa nào có thể mang đến cơ hội cho sự thành công của dự án.

Theo một nghiên cứu đang được thực hiện tại AIT, có ba loại niềm tin có thể được áp dụng trong quản lý dự án xây dựng: niềm tin được dựa trên hệ thống pháp luật, dựa trên sự đánh giá về đối tác của mình và dựa trên mối quan hệ. Tại các quốc gia đã phát triển, sự tin tưởng dựa trên hệ thống pháp luật đóng vai trò quan trọng bởi vì hệ thống pháp luật rất rõ ràng. Riêng tại các nước đang phát triển, niềm tin dựa trên các mối quan hệ đóng vai trò quan trọng bởi vì niềm tin dựa trên hệ thống pháp luật chưa thực sự lớn.

Tóm lại, một số vấn đề then chốt cho việc quản lý thành công các dự án quốc tế như sau:
• Năng lực cá nhân trong quản lý dự án
• Hệ thống quản lý dự án thích hợp
• Am hiểu sự khác nhau về văn hóa và cách quản lý chúng
• Quản lý và thương thảo hợp đồng thích hợp
• Xây dựng niềm tin giữa các thành viên dự án như đã nêu trên.

Chương trình Thạc sĩ chuyên nghiệp Quản lý dự án Xây dựng - AIT đang tiến hành tuyển sinh khóa 5 vào tháng 9/2011. Hạn chót nộp hồ sơ: 10/8/2011.

http://www.professionalprojectmanagement.blogspot.com/

Tp. Hồ Chí Minh
Lầu 6, toà nhà FCC, 45 Đinh Tiên Hoàng, P. Bến Nghé, Q.1.
Tel: 08-39107422 (117) – 01 285 265 168
Ms. Tường (ngletuong@aitcv.ac.vn)

Hà Nội:
B3, ĐH Giao thông Vận Tải, Láng Thượng, Đống Đa
Tel: 04-37669450 (133) – 01 285 687 168
Ms. Lương – luongtth@aitcv.ac.vn

Can Tho:
Trung tâm học liệu, ĐH Cần Thơ
Tel: 0710-3815523
Mr. Phuoc – phuoclt@aitcv.ac.vn

AIT offers Professional Master in Project Management in Construction in Vietnam (Ho Chi Minh City, Hanoi, Can Tho and Vung Tau)

2011-09-07T20:27:00.000+07:00

Tài chính dự án cho đầu tư hạ tầng tại Việt Nam

2011-09-07T20:18:00.000+07:00

Trong hơn hai thập kỷ qua,Việt Nam là nước đứng thứ hai châu Á đạt kết quả cao về xóa đói giảm nghèo, chỉ sau Trung Quốc. Tốc độ tăng trưởng trung bình hàng năm là 7,5% và tỉ lệ đói nghèo giảm từ 51% xuống 8% dân số đã đưa Việt Nam đến con đường trở thành nước có thu nhập trung bình (WB, 2008). Để đáp ứng nhu cầu hạ tầng xuất phát từ mục tiêu xóa đói giảm nghèo, xấp xỉ 11.4% GDP hàng năm cần được cung cấp để đầu tư cơ sở hạ tầng, tăng 2% so với hiện tại. Như vậy, Việt Nam cần xấp xỉ 7 tỉ USD trong năm 2010 để hoàn thành đầu tư vào hệ thống hạ tầng. Trong khi đó, tổng ngân sách từ ODA, chính phủ Việt Nam và người tiêu dùng chỉ khoảng 3.9 tỉ đô la Mỹ (55,7%) như hình. Vậy phần còn lại của ngân sách thiếu hụt là từ đâu? Để trả lời câu hỏi này, chính phủ Việt Nam đã nhận ra sự cần thiết trong việc cải cách thị trường tài chính về việc đầu tư vào các dự án mà trước đây do nhà nước thực hiện và quản lý.

Hình 1: Đầu tư tài chính cho phát triển hạ tầng tại Việt Nam

Thành công của nhiều nước Đông Nam Á chỉ ra rằng hệ thống tài chính cho cơ sở hạ tầng của Việt Nam cần thay đổi từ hệ thống tài chính với các khoản nợ chính phủ và quốc tế thành hệ thống tài chính tư nhân. Đây là lý do giúp cho chính phủ Việt Nam có nhiều thay đổi năng động hơn và thiết lập hệ thống tài chính cho cơ sở hạ tầng theo định hướng thị trường, đặc biệt khuyến khích các thành phần kinh tế tư nhân tham gia. Với nhận thức được tầm quan trọng về vai trò của khu vực kinh tế tư nhân, chính phủ đã và đang phát triển mô hình Hợp tác Nhà nước – Tư nhân (Public Private Partnership-PPP) cho các điều kiện hạ tầng đa dạng.

Mặc dù PPP được ứng dụng để tiến đến việc huy động vốn từ khu vực kinh tế cá nhân từ năm 1990 nhưng khái niệm này chỉ tiếp cận Việt Nam đầu những năm 2000. Tuy nhiên, những bất lợi trong khuôn khổ pháp lý PPP là rào cản chủ yếu ngăn chặn khu vực kinh tế cá nhân đến với các dự án hạ tầng tài chính tại Việt Nam. Để cải thiện tình hình, chính phủ Việt Nam đã phát hành nghị định mới 108 để thay thế nghị định 78 cũ trong năm 2010. Do đó, tiến trình phát triển PPP đã rõ ràng và hiệu quả hơn trước đây. Hy vọng rằng điều này sẽ khuyến khích nhiều hơn sự tham gia của tư nhân vào đầu tư hạ tầng tại Việt Nam.
Điều quan trọng đối với một công ty đầu tư là phải hiểu được cách tham gia vào các dự án PPP. Một khi quyết định tham gia các dự án PPP, các công ty nên biết cách xác định phạm vi tham gia, đưa ra nghiên cứu tính khả thi về tài chính, phân tích ảnh hưởng của các điều khoản nhượng quyền, và kiểm soát rủi ro trong suốt các giai đoạn khác nhau của dự án.

Thông tin liên hệ:
Tp. Hồ Chí Minh: 45 Đinh Tiên Hoàng, P.Bến Nghé, Q.1
Tel: 08-39107422 (117) – 01 285 265 168

Ms. Tường–ngletuong@aitcv.ac.vn
Hà Nội: tòa nhà B3, ĐH Giao thông Vận Tải, Đống Đa
Tel: 04-37669450 (131) – 01 285 687 168

Ms. Lương–luongtth@aitcv.ac.vn

Hội thảo thông tin chương trình tại AIT-VN

- Hà Nội: 9:00, ngày 18/06/2011

- Tp. Hồ Chí Minh: 9:00, ngày 19/06/2011

Prof. Gary E. Griggs gives lecture at AIT-CV

2011-09-07T18:41:00.005+07:00

Prof. Gary E. Griggs, an Adjunct Professor in the Construction, Engineering and Infrastructure Management of the School of Engineering and Technology, AIT-CV delivered a 3-day lecture/course which includes Applied Project Management, Communications and Negotiation Skills, and Legal and Contract Risk Management.

Prof. Griggs is also a Consulting Professor in the Civil and Environmental Department, at Stanford University. Some of his selected projects are:

1. Bay Area Rapid Transit (BART) System, Bay Area, California
2. Doyle Drive Replacement Project, San Francisco, CA
3. San Francisco Municipal Transportation Agency, Central Subway Project, San
Francisco, California
4. Cooper River Bridges Replacement Project, Charleston, South Carolina
5. East Side Access Project, New York City
6. San Francisco International Airport AirTrain, California
7. Central Puget Sound Region Link Light Rail Facilities Design, Seattle, SeaTac, Tukwila,
and Tacoma, Washington
8. State Route 520 Corridor Improvement Project, Seattle, Washington
9. Federal Emergency Management Agency (FEMA) Disaster Response Services
Technical Assistance, Western U.S. and Pacific Territories
10. Mexico City Water Project, Mexico
11. Kaohsiung Mass Rapid Transit, Taiwan
12. Seoul Metropolitan Subway, South Korea
13. Busan Metropolitan Subway, South Korea
14. Florida High Speed Rail
15. Northeast Corridor Improvement Project, Washington, DC to New Haven, Connecticut
16. Iscor Railroad Electrification, South Africa
17. EFVM Railroad Electrification Study, Brazil

World Bank's expert in transportation planning and engineering gives lecture at AIT

2011-09-05T18:43:00.005+07:00

Dr. Asif Faiz, an adviser/consultant with the World Bank in transportation planning and engineering, delivered a lecture entitled “The Promise of Rural Roads” on 30 August 2011 at the Milton Bender Auditorium. All students from the field of Construction, Engineering and Infrastructure Management were encouraged to attend this seminar.

Dr. Faiz’ presentation is based on his keynote address at the 10th International Conference on Low Volume Roads, held in Orlando, Florida in July 2011. Below is the abstract.

Abstract

About 33.8 million km. of roads girdle the earth‘s land mass of 148.9 million sq.km., (an average 0.23 km of road per sq.km of land area); about 61%.of this kilometerage is paved. Nearly all the unpaved roads (13 million km) and an estimated 85% of paved roads (17 million km) are low-volume roads (LVRs) -- with an Average Annual Daily Traffic (AADT) of less than 1000. These 30 million km of LVRs have a wide variety of geometric and paving standards ranging from barely motor able earth roads to modern high-speed two-lane paved highways. The global asset value (replacement cost) of these LVRs is conservatively estimated at about US$ 7.6 trillion (a lower-bound estimate) equivalent to about 50% of the estimated 2010 Gross Domestic Product of the United States. Beyond this classified system is another realm of designated trails, tracks, and paths as well as minor roads that serve enclave development (mines, industrial estates, agricultural plantations , irrigation schemes, tourism, forestry and so on), that together number into millions of kilometers and also contribute to basic access and mobility.

The presentation reviews the role of rural roads in improving rural connectivity, catalyzing economic growth and reducing poverty, managing natural disasters and man-made crises, sustaining rural livelihoods and enhancing livability. In short the paper highlights the promise of rural roads as a harbinger of opportunity, progress and prosperity. In addition, the presentation discusses what sustainability and its more practical subset--livability, mean in relation to rural roads and how the application of context sensitive solutions to rural roads could help achieve a better balance among the economic, social, and environmental dimensions of sustainability.

About the speaker

Dr.Asif Faiz, a Pakistani citizen, is currently an adviser/consultant with the World Bank in transportation planning and engineering. He holds a Ph. D. in transportation engineering from Purdue University and is a Member Emeritus of the Low Volume Roads Committee of the US Transportation Research Board. He has had a distinguished 33 year career in the World Bank including several advisory and management positions. He served as the World Bank's Highways Adviser from 1999-2002, and the Country Manager for Sudan from 2005-08. He is the author of over 60 publications including a book on automotive air pollution. He has received several awards for his professional and research work from ASCE, IRF, Purdue University, and TRB, including the Eldon Yoder Award from the US Transportation Research Board .His professional work covers some 40 countries and he has lived in Pakistan United states, Argentina, Nepal and Sudan.

MPM alumni list: December 2008

2011-09-02T19:31:00.000+07:00

1. Chu Bien Cuong
Project: Project Management Competency Development: A Case Study of Vietnamese Small and Medium-Sized Construction Firms

2. Nguyen Anh Dao
Project: Delay Causations in Construction: A Case Study Of Pipeline Projects

3. Khuong Minh Dat
Project: Risk Management in the Pre-Commissioning Phase of an Oil and Gas Pipeline Project

4. Nguyen Van Diep
Project: Contract Clauses in EPC Oil and Gas Projects: A Case Study of the Pearl Development Project

5. Mai Do Thuy Dung
Project: Fast-Track Project Delivery Strategy for Civil Engineering and Architectural High-Rise Building Projects

6. Do Hong Hai
Project: Risk Management in Offshore Platform Installation Projects: A Case Study of PTSC Offshore Services

7. Tran Duc Hanh
Project: Owner’s Project Scope Development for Seaport Projects: A Case Study of Sao Mai Ben Dinh Project in Vietnam

8. Nguyen Quoc Hanh
Project: Client’s Project Management Strategy for Fast Track EPC Oil & Gas Project

9. Nguyen Tan Hoang
Project: Managing Subcontractor Schedule Performance in an EPC Contract

10. Nguyen Manh Hung
Project: Subcontractor Claims and Management in EPC Pipeline Projects: A Case Study of PM3 – Ca Mau Gas Pipeline Project

11. Nguyen Quang Hung
Project: Safety Audit in Oil and Gas Exploration Projects

12. Nguyen Hoang Loc
Project: An Owner’s Project Planning Approach for High Rise Building in Design and Construction: A Case Study of PetroVietnam Commercial and Financial Centre

13. Bui Quang Luong
Project: An Evaluation of Problems in International Construction Contract Conditions: A Case Study of the Third Provincial Towns Water Supply and Sanitation Project

14. Nguyen Dang Thong Nhat
Project: An Owner’s Project Cost Control Strategy for Building Projects

15. Phan Minh Nhut
Project: Lessons Learned from International Oil and Gas Projects: How PV Engineering Can Improve the Safety Management System

16. Mai Phong Phu
Project: Public Private Partnership Models for a Water Supply Project in Dongnai Province, Vietnam

17. Vo Hoang Phuong
Project: Delay Causations in Water Supply Projects in Dong Nai Province, Vietnam: A Lesson Learned From Nhon Trach Water Supply Project

18. Nguyen Le Hoai Tam
Project: A Conceptual Approach to Green Building Development: Practicalities and Prospects

19. Nguyen Van Thang
Project: Risk Management in an Offshore Fabrication: A Case Study Of “Ca Ngu Vang” Project In Vietsovpetro Joint Venture

20. Nguyen Van Thanh
Project: Quantitative Risk Assessment for the Process System on an Offshore Platform: A Case Study Of QRA for Process System of Platfrom RP-3 of J.V. Vietsovpetro

21. Dang Huu Trinh
Project: Claim and Conflict Management in International Oil and Gas Projects

22. Pham Van Tuan
Project: Safety Improvement Programs in an Oil and Gas Construction Company: A Study of PetroVietnam Technical Services Company (PTSC Production)

23. Dao Manh Tuong
Project: Assessment and Improvement of a Safety Management System: A Case Study of a Diving Contractor in Vietnam

24. Bao Bui Van
Project: Quality Management System for Consultant Supervision for Managing Performance of Building Contractors in Vietnam

25. Lu Dinh Vu
Project: Quality Management System for Supervising Consultants for Managing Performance of Highway Contractors in Vietnam

List of CEIM alumni: May 2011

2011-08-30T15:18:00.000+07:00

Master of Engineering

1. Mr. Hassan Ashraf
Thesis: Claims in Building Construction of Pakistan: A Statistical and Pathogenic Analysis

2. Mr. Thanapon Buaklom
Thesis: Development of Worker Safety Attitude Construct and Model in Oil & Gas Construction Project

3. Mr. Duong Quang Minh
Thesis: Factors Affecting Operation and Maintenance Costs of Ho Chi Minh City Condominium Projects

4. Mr. Nguyen Phung Hai
Thesis: Project Procurement Performance Models: A Case Study of Power Transmission Line Projects in EVN

5. Mr. Asmat Nabi Hotaki
Thesis: Sustainable Construction: A Study of Drivers, Barriers and Design Practices in Building Projects in Thailand

6. Mr. Mukesh Khadka
Thesis: Factors Affecting Constructability Practices in Hydropower Construction in Nepal

7. Mr. Pye Phyo Maung
Thesis: Resource Allocation Strategy for Construction Safety at Hydropower Project: A Study on Shwegyin Hydropower Project in Myanmar

8. Mr. Janeyut Naiyarat
Thesis: The On-Site Behavior of a Construction Project Team during the Implementation of The Planning and Quality System

9. Mr. Nguyen Tuan Tu
Thesis: Strategic Management Implementation of Vietnamese Construction Organizations

10. Ms. Kyawt Phyu Phyu
Thesis: Insurance and Surety Bonds: A Case Study of Petrochemical, Oil and Gas Projects in Myanmar and Thailand

11. Ms. Supatchana Pumpipat
Thesis: Effective Pricing Negotiation Strategy of Variation Claims in Commercial Building Construction

12. Mr. Puoy Puthitha
Thesis: Contractor Prequaification Criteria, Tendering Criteria, and Tendering Procedure in Cambodia Building and Housing Construction Projects

13. Mr. Kittawat Sukosi
Thesis: Quality Management System for Different Construction Project Strategies

14. Mr. Kyaw Min Thu
Thesis: Life Cycle Cost Analysis for Hydropower Projects

15. Mr. Nguyen Quoc Trung
Thesis: Influence of Financial Risk for Project Financing Throughout Real Estate Development Process: A Case Study of a High Rise Apartment Project in Vietnam

16. Mr. Hout Venghong
Thesis: Factors affecting the performance of the international construction contractors (ICCs) Doing Business in Cambodia

17. Ms. Vu Tuyet Mai
Thesis: Orientation Risk Management Model for Pre-Bidding Process in Low-Income Housing Projects with Public Private Partnership in Vietnam

Master of Science

1. Mr. Gentaku Goto
Thesis: Project Life cycle risk management plan in Urban Railway Development Project: A Case Study of Urban Railway Development Applied in Vietnam

List of CEIM alumni : May and December 2008

2011-08-24T16:42:00.002+07:00

May Batch

1. Mr. Phouthasen Sinthavong
Thesis: The Role of Lao Governtment on ADB Operation of Partnership Financin Stratege: Case Study of Vientiane Urbaninfrastructure Services Project

2. Mr. Rathsayam Tiyarathtagarn
Thesis: Factors Affecting Project Delivery Time Delays and Cost Overruns of Project Development at the Royal Irrigation Department of Thailand

3. Miss Surangkana Trangkanont
Thesis: High-end Residential Property Development Process: A Case Study of Projects in Thailand

4. Miss Atcharaporn Suwan
Thesis: A Study of Hotel Renovation Project Management Process in Thailand

5. Mr. Braj Kishor Mahato
Thesis: Conflict Dynamics in Dam Construction Projects

6. Miss Vivi Megawati
Thesis: Financial Management in Construction Small and Medium-Sized Enterprises Towards Financial Capability Enhancement: Case Study in Thailand and Indonesia

7. Mr. Pakawat Pormmoon
Thesis: Framework Implementation of Reduc, Reuse, Recycle, and Residual Management Concept for Thai Construction Industry

8. Miss Suphitcha Phoemphoonthanyakit
Thesis: Strategic Planning and Budgeting Allocation of Intermodal Transportation Logistics Development in Thailand

9. Mr. Jirachai Thaewthiang
Thesis: Corporate Social Responsibility in Construction Companies in Thailand: The Case Study of Preuksa Real Estate Public Company Limited

10. Mr. Tran Ngoc Tuyen
Thesis: The Adoption of Sustainable Construction Principles in the Construction Industry in Vietnam

11. Miss Nguyen Thi Xuan Dan
Thesis: Criteria for Selection Process of Local Infrastructure Project in Vietnam

12. Mr. Tran Quang Ninh
Thesis: Public Private Partnership Models for Low-Income Housing Development of Cantho City, Vietnam

13. Miss Pham Thi Cam Tien
Thesis: Sustainable Construction Development Project to Support Tourism Industry in Phu Quoc Island in Kien Giang Province Vietnam

14. Mr. Le Hai Son
Thesis: Cost Control System in Vietnam Construction Company

15. Mr. Nguyen Duy
Thesis: Motivation of Construction Engineers in Ho Chi Minh City, Vietnam

16. Mr. Tran Minh Tung
Thesis: Project Time and Cost Management in Water Supply Pipeline Construction in Dong Nai Province, Vietnam: A System Dynamics Approach

17. Mr. Tran Huong Quang
Thesis: Corporate Social Responsibility in Vietnamese Construction Industry

18. Mr. Pham Hoang Anh
Thesis: Enhancing Sources of Funds by Private Participation for Transport Development: Case Study in Ben Tre Province

19. Mr. Truong Vinh Hiep
Thesis: Study of Project Management Personnel Needs for Infrastructure Development in Dong Nai

December Batch

1. Mr. Andreas Adihartanto
Thesis: Safety Rules and Procedures Development and Implementation: A Study on Construction Industries in Thailand

2. Mr. Alvin Agustinus Gahari
Thesis: Workers Participation in Safety Management System in Construction Projects in Thailand

3. Mr. Nguyen Khoa
Thesis: EPC Project Management and Problems: A Case Study of International and Local EPC Contractors of Oil Gas and Petrochemical Projects in Vietnam

4. Mr. Dang The Phuong
Thesis: Quantitative Risk Assessment for the Offshore Platforms in "Vietsovpetro" Joint Venture

Construction, Engineering and Infrastructure Management (CEIM) alumni in January and August 2007

2011-08-23T17:14:00.000+07:00

Master of Engineering
1. Mr. Nguyen Viet Dung
Thesis: Risk Management in Port & Waterway Projects: A Case Study of the Southern Focal Economic Area of Vietnam

2. Mr. Phan Thanh Hai
Thesis: Audit Safety Management in Business Progress of Offshore Oil & Gas Project
Case Study: Oil & Gas Projects in Ba Ria - Vung Tau, The Southern of Vietnam

3. Mr. Nguyen Kim The Anh
Thesis: Evaluation of Effective Design Architectural Process

4. Miss Nang Kham Kyi Oo
Thesis: Risk Approaches for Making Go/No-Go Decisions by Thai Consulting Engineering Firms

5. Mr. Pham Hiep Luc
Thesis: Application of Neuro-Fuzzy Networks to Forecast Cost and Duration Variances for Building Projects in Vietnam

6. Mr. Arasavindiran Mariappan
Thesis: Effect of Globalization on the Supply Chain Competitiveness of Large Scale Contractors: A Case Study

7. Miss Ramya Kanaganayagam
Thesis: Kaking Construction Employment Decent Work: A System Dynamics Investigation

8. Mr. James Suvanaphen
Thesis: Technology Selection Practices in Building Construction Projects Through the Perspectives of Design Consultants

9. Mr. Le Phi Hai
Thesis: Business Performance Measurement Framework for Construction Organizations

10. Mr. Aut Thaitrong
Thesis: Performance of Capital Investment Analysis on Project Evaluation in Mass Rapid Transit Projects in Thailand

11. Miss Narumon Jongcharoensub
Thesis: Cost Management Behavior Under Cost Overruns

12. Mr. Somjate Chatutewaprasit
Thesis: Safety Communication in Construction Project

13. Miss Chanagarn Watanantachai
Thesis: Strategic Guidelines for Financial Crisis Management in Thai Small and Medium-Sized Construction Enterprises

14. Mr. Apinun Tantiviriyapan
Thesis: Analysis the Office Market Economic by Using System Dynamic Approach

15. Mr. Nguyen Van Long
Thesis: Project Financing for Power Plant in Vietnam: An Innovative Approach

16. Mr. Dau Xuan Thuy
Thesis: Risks in the Construction of Hydropower Tunnels in Vietnam

17. Mr. Tran Tan Tin
Thesis: An Evaluation of Client Roles in Projects Procured Through the Traditional Process in Vietnam

18. Mr. Dinh Truong Giang
Thesis: Knowledge Sharing Process Within Power Engineering and Construction Company: A Case Study

19. Miss Pham Nguyen Quynh Huong
Thesis: Quality Function Deployment Approach in Apartment Construction Project: A Case Study

20. Mr. Fredy Kurniawan
Thesis: Case Study of Concession Contract in the Public Private Partnership: Financial Clauses Investigation of Don Muang Tollway and Second Stage Expressway in Thailand and Cipularang Tollway in Indonesia

Doctor of Engineering

1. Ms. Suchanya Posayanant
Thesis: Development of KPIS for Local Government Infrastructure Development: The Case of Sub-District (Tambon) Administrative Organization

2. Mr. Oei, Fuk-Jin
Thesis: The Assessment of the Development Role of a Statutory Body from Customer Perspective: A Relational Exchange Approach

3. Mr. Wasan Teerajetgul
Thesis: Knowledge Management in Construction Project Environment

4. Mr. Dussadee Satirasetthavee
Thesis: Optimal Value-Based Pavement Management System

5. Mr. Raju Bahadur Shrestha
Thesis: Factors In Power Purchase Agreements Affecting Investment Flows in Independent Power Production in the Nepalese Environment

6. Mr. Martinus P. Abednego
Thesis: An Examination of the Relationship between Risk Allocation and Project Success on PPP Project through Good Project Governance Assessment: Case Studies of Tollway Projects in Indonesia, Thailand and Vietnam

7. Ms. Piyanut Vorasubin
Thesis: Management of Strategic Assets for Sustainable Competitiveness of Construction Organizations

8 Mr. Thanet Aksorn
Thesis: Safety Program Performance in the Thai Construction Industry

9. Mr. Thanapun Prasertrungruang
Thesis: Modeling the Dynamics of Highway Construction Equipment Downtime

List of the CEIM First Batch in 2006

2011-08-19T16:17:00.000+07:00

1. Mr. Bunpot Luttakoon
Thesis: Assessment of Critical Infrastructures: December 2004 Tsunami in the Southern Region of Thailand

2. Mr. Warut Neamnoi
Thesis: Capital Investment Analysis Model From Outputs/Outcomes Framework of Public-Private Partnership (PPP) Project: The Case Study of the Bangkok Mass Rapid Transit Project

3. Mr. Bhaskar Jyoti Das
Thesis: IT Application for Construction Safety Management: Planning, Monitoring and Trending

4. Mr. Abu Naser Chowdhury
Thesis: Special Purpose Vehicle (SPV) for Infrastructure Projects Financing through Public Private Partnerships (PPPs)

5. Mr. Muhammad N. Mahmood
Thesis: Development of Performance Model for an International Construction Joint Venture: A System Dynamics Approach

6. Ms. Azmeri Rahman
Thesis: Modeling Contractor's and Subcontractor's Trust: A System Dynamics Approach

7. Mr. Arthit Krachang
Thesis: Risk-based Multicriteria Decision Management for a Railway System in Thailand

8. Mr. Nguyen Duy Ninh
Thesis: Stakeholders' Perspective on Risks and Opportunities of Bot Infrastructure Projects in Vietnam: A Case Study of Yen Lenh Bridge Project

9. Mr. Nguyen Tuan Nghia
Thesis: Case Studies on Risk Allocation in Highway Projects Under Bot Scheme in Vietnam

10. Mr. Muhammad Afzal
Thesis: Profiling a Truly World-Class Construction and Engineering Company

11. Mr. Aung Khin Tun
Thesis: Strategic Financial Modeling for Capital Investment Program

12. Mr. Siwachon Limpakornkul
Thesis: A study of safety budgets process in Thai Construction projects

13. Mr. Niraj Baidya
Thesis: Consistency of Safety Management System Implementation: A System Dynamics Approach

14. Mr. Ariono Dhanisworo Indra Budhi
Thesis: Cost Variances During Construction Period: A Case Study of Indonesian Contractors

15. Mr. Prawat Tuptone
Thesis: Constraints-Based Scheduling of Precast Housing Project: A Case Study of Preuksa Village III

16. Miss Yessie Agustina
Thesis: Enhancing Financial Viability Through Government Support Machanism in Public Private Partnership (PPP) Contractual Framework

17. Mr. Allan Janwar Tannaya
Thesis: Subcontractor Management Strategy: An Approach to Manage Subcontractor in Construction Project

18. Mr. Suphachoke Meeampol
Thesis: Project Performance Improvement in the Public Sector: The Case of Thailand

19. Mr. Ektewan Manowong
Thesis: An Assessment of the Performance of Public Hearing as Vehicle of Public Participation in Infrastructure Development Project in Thailand

20. Mr. Surapon Puthamont
Thesis: Strategic Project Selection in Public Sector: Construction Projects in the Ministry of Defence in Thailand

FYI

2011-08-18T14:45:00.000+07:00

Did you know that from 2006 to 2011, there are 24 Ph. D., 175 Masters and 115 Professional Masters graduated from CEIM and MPM fields of study? These alumni come from 17 countries, and 80% of these are male.

Safety and Health Management in Oil and Gas Construction Projects

2011-08-15T16:25:00.002+07:00

Many construction projects are being built in Vietnam. Therefore, safety management is very important for many construction fields in general and oil and gas industries in particular. However, there are still many projects in which they don’t strictly pay attention to safety assurance. This is the main concern of project managers. An unsafe working environment can cause lots of damages to properties and human lives. In order to implement safety in these projects effectively, the project management boards must have serious commitments about the safety performance in construction projects. Improving safety implementation in construction projects will not only bring a lot of benefits but also success in doing business in a long term. That’s why safety becomes a top priority in any operations.

Mr. Pham Van Hung made a case study on Block B – O Mon Gas Pipeline Construction Project. The objectives of his research were to: (1) study theories and best practices in safety management system in construction projects; (2) discuss about the Health and Safety management system practices in Block B-OMon; (3) explore and apply HSMS in the Engineering, Tender and Construction for Block B-OMon Gas Pipeline project; (4) evaluate strength and weakness of Safety & Health Management System in Block B-OMon Gas Pipeline Project; and (5) provide recommendations for improvement.

Conclusions

Health and safety management system plays an important role in any construction projects. Therefore, in order to manage the project effectively, the health and safety management system have to be strictly applied and obeyed. The problems and troubles will be prevented by having safety management system which will result in the reduction financial loss, human damage and property. In addition, the project schedule will be met.

Recommendations

- The managing Board of Block B-OMon Project should update the safety & health management system regularly and continuously, to conform with the government’s policy, law, and regulations.
- The planning and detailed procedure in safety management system of Block B-OMon Project will be updated and improved according to new process and technology and new equipments in order to improve health and safety problems that may occur
- The proposal is to develop the framework that can be used for industrial construction. Therefore, it is required to study more in risk factors in general.

His thesis abstract is copied and posted.

Abstract

Health and safety management system is very important for working environment especially at the construction site. It affects many fields such as labour force, society, and effectiveness of investment project etc. The aims of the health & safety management system application are to develop and manage system plan, programs and prevent any risks and accidents.

Nowadays, in order to reduce risks and hazards and manage the project effectively, many construction companies have improved their health and safety management system. That’s why the health and safety management system are very vital for any gas construction projects in Vietnam. It provides the know-how to manage managee and control the health and safety performance and identify the health & safety problems and methods to make the project successful.

Delay & Contract Management in Construction

2011-08-11T16:07:00.002+07:00

In order to manage a project successfully, project management is very important because this will determine the quality, time, and expense of the project. The process of project management includes:
- Organizing, choosing, advising, and creating investment projects.
- Managing research and investigating projects;
- Analyzing data and evaluating projects;
- Constructing investment projects and profiles for designing the construction’s total estimates will be sent to authorities for approval.
- Signing economic contracts dealing with survey, design, construction, and installation.
- Supplying materials and equipment

The contract is really important since it is not only the basis of payment but also the basis of solving some legal problems. To get well-completed projects, all sides must have knowledge about the conditions of the contract. Managers are searching for the best ways to manage contracts more effectively. By doing so, the project will be more successful.

Mr. Ho Chi Linh made a on Administration Centre and Postgraduates Trainings at Can Tho University to find out the main factors that cause cost inflation, poor quality and delay at all stages of projects. These factors were analyzed in different ways of parties such as the Laws, Authorities, the Owners, the Contractors, Consultants, Sub-contractors. From that, the factors which are effective to prevent and control delays in the project can be seen.

The objectives of his study were to: (1) study the contract management practice of the case study project; (2) analyze the project management problems (time, cost, quality) in relation to contract administration; (3) identify delay causation in construction projects which were completed up to now or are building; and (4) make recommendation for improvement of the future project with similar characters.

Conclusion

Contract management is an important factor which directly affects projects. The contract management includes managing 3 main factors: quality, price and time. Most projects in Vietnam so far have been strongly influenced by these 3 factors, which leads to the poor quality, costs increases or delays. All these problems are popular and are still going on. However, it is possible for us to prevent even during the time the project is on going. With the total area of 18.990 square meters, 9 floors, the total cost is over 133 billion, the Administration and Post-Graduate Building – Can Tho University project is also affected by these factors.

This project was approved by the Ministry of Education and Training in 2008 and the investment was from the government budget. Although it has got supports and grants from the Government, relevant sectors as well as rector board from Can Tho University, the project was still delayed and the original estimated costs still increased due to objective and subjective reasons.

Objective reasons

Dramatic change in market price which affected workers and materials because the rate of price slipping was not specified in the contract.

There have been many problems in the transportation of materials and equipment because the construction site is located right in the center of the city which is very crowded with many students. The supply of materials was limited because of the fluctuation in the market price which significantly affected the progress and quality of the works.

Subjective reasons

The contract is not really logical, which does not express all the regulated contents that can tie the contractors as well as sub-contractors in materials, human sources and finance to implement the works.

The contractors did not provide with enough machines and modern equipment as regulated in the contracts. This is also due to the fact that the contractors selected were not well-qualified and have poor experience.
The contracts did not state clearly the time for the period of pile pressure and experiments, which does not include the time for implementation. This is the reason why the contractors often blame the experimental institutions for delays.

Solution

- Require the contractors to set up a quality management system suitable to project requirements
- Additional engineers, who have got experience about quality management and check equipment before being put into the work
- Contractor Material Supply who are responsible for the quality of their products
- Request the contractor to focus on human resources, equipment and time
- Providing a clear time for each job. Support the contractor to shorten the time.
- Investor has to set up the slippery of price coefficient.
- Having a strict and frequent monitoring, urge the contractors to solve any unexpected problems if occurred.
- Organizing frequent meetings with the contractors to remind and require them to commit and implement all the articles specified in the contract and follow the project timetable.
- Looking for sufficient extra financial sources to compromise slipping rate so as to assure the contractors to implement well with the rest of the project.

● Although there have been certain limitations, the contractors have successfully implemented some works for the project as well as strictly followed the procedure and legal documents. They did well with the work of environmental protection and guarantee the urban scenery, and especially the assurance of work safety. Therefore, there has been no accident in the construction site so far.

● Upon the completion of the project, it will significantly improve the prestige of Can Tho University in general as well as for the work of post-graduate training, scientific research and technology transfer, which promotes Can Tho University to a higher level in the region and in the whole country. This can help Can Tho University become comparable to other universities in the area as well as in the world. This also creates opportunities for the university managers to get access to and study with new technology thanks to good infrastructure because this is the first and biggest building in Can Tho University.

Recommendations

Due to the time as well as the limited scope of the thesis, not all aspects of the project were examined and analyzed. However, based on what has been achieved and not achieved, as mentioned in the conclusion, the following recommendations are proposed for better management to future projects.
- Contracts need to be more detailed with enough articles and regulations, in which all agreements need to be stated clearly.

- Trained engineers specializing in the fields of quality management and cost management.

- The investor should choose capable contractors with enough modern technical equipment as well as financial sources together with sufficient human resources.

- Bid winning price was not lower than the actual price of the project

- Build price fluctuation factor to deal with changing market prices.

- Utilize all funds to ensure implementation of the project.

- Checking materials, components, construction products through quality certificates where production and results of standard laboratory.

- Checking equipment and technology works before installation through quality certificates where production and results of quality testing of equipment.

- Need unified management of construction cost on a clue to avoid cross situation such as is now

- Complete the system of estimating construction

- Additional norms for construction and installation work is not yet in practice the detailed estimates of current, complete content and methods of synthesis unit set up in construction.

- List building , select a method of calculating overall cost consistent with the actual situation in the country, regional and international levels in each period.

His thesis abstract is copied and posted.

Abstarct

Since Vietnam joined the WTO, global platform for the construction industry were opened, bringing many new opportunities and also many difficulties and challenges. But in recent years, most of of projects are behind schedule, exceeding the estimate is very popular to make the management of the project have many difficulties, specially the management contract. In any investment project construction, the key elements necessary to ensure that the range or scope of the project, the total investment (Money) and the progress Time) of project implementation. Three elements make up a triangle project, including Scope - Money - Time is each edge of the triangle project. When an edge that will make these changes, the other edge changed. A project called good management when the triangle is less than the change triangle is created from investment projects approved construction. In fact the work of our building has been lost on the market at the home of their own, most projects are delayed and exceeded the total original investment to affect performance investment results as well as competitiveness.

The cause of the delayed and costs overcome, there are many such as institutional policy, in the uniform of the other central agencies and localities, these factors impact the world market, the capacity of entities involved in construction activities
This study will also discuss on the advantages and disadvantages of EPC contract from both Contractor and Project Company’s point of view and how to manage the EPC contract in accordance with term and condition clauses stipulated in the signed contract documents; how to resolve problems by understanding the contract clauses. However, the improvement of some major clauses are still needed in order to specify and define clearly the duties and responsibilities as well as obligations of involved parties to minimize the conflicts, interfaces, risks and disputes that can be happened during the project execution phase.

Owner’s Project Quality Management

2011-08-09T16:35:00.000+07:00

The business competition in today’s market has been increased swiftly. The customers satisfaction in terms of quality becomes the companies’ primary concern in order to survive. The purpose of the quality management is to make high quality products and focus on customers’ satisfaction. Therefore, the quality management such as ISO 9000, total quality management (TQM), etc have been discussed widely especially in the first class businesses.

PVOIL is one of the leading companies in Petroleum trading. With planned target in 2010, the company concentrates on building, expanding & developing the Petrol retail distribution system. However, the company is having some difficulties in the quality management. Besides, the systems were completed & had high quality.

Mr. Doan Thai Duong made a case study on North Pvoil Petrol Station to research the quality management of the company as well as to set out some solutions in order to complete and improve the quality management of the company & solve the existing difficulties.

The objective of his study is to building quality management of PVOil North Company
Conclusion
After defining the purposes, scope and research methodology, the thesis analyzed arguments such as concept of quality management, quality management procedure in construction works.
On the foundation of analyzing the state, the thesis presented advantages and disadvantages of the construction works quality management of Northern PV OIL through past years, stating objective and subjective reasons for shortcomings, thereof it is a ground for their future development and completion of construction works quality management of Northern PVOIL.

On the foundation of analyzing the practical situation of quality management of construction work in Northern PV OIL, the thesis proposed some completed solutions for the construction works quality management.

His thesis abstract is copied and posted.

Abstract

Petrol station projects quality management in Vietnam.

The study gives a thorough description of the Petrol station projects quality management as practised by the supervising consultant in Viet Nam. The documents and records used in these activities are also reviewed. A model for high level Petrol station projects quality management is defined, including supervising consultants and contractors.

The model depicts the quality management responsibilities and the roles in a scheme relating to Petrol station projects, quality assurance, and the interface between them. The study advances the understanding of how quality management is performed and engages participants in special construction area like Petrol station projects development.

It is very important to assure quality as well as safety of Petrol station projects with the objective to improve the quality of construction projects and to enhance the effect and productivity during PS performance.

The research methodology is highlighted as the main philosophy. Besides, different sources of data will be gathered in this research, including particular project documents, reports from Petrol company, newspapers, construction law and standards in Vietnam etc. An exploratory approach will be adopted by reviewing the available literature to develop a quality management framework for PS projects.

Report the findings of a research study, which was undertaken to examine the underlying factors affecting the quality of a PS project. It also aims to identify factors that show a strong correlation to good quality performance. The ultimate goal is to provide project managers, supervising consultants and contractors with information that can help them become more efficient with their limited resources and, as a result, achieve better quality outcomes.

EPC Commissioning Strategy for Gas Pipeline Project

2011-08-05T16:08:00.000+07:00

The transportation of natural gas from fields (offshore) to the distribution station onshore is normally conducted by using pipeline and many types of equipment at each station for gas processing before transferring to end users. In distribution station, Contractor assumes quite complex constructions of pipelines. However, most of Vietnamese Contractors are inexperienced and have no enough resources to perform an entire big gas pipeline project, therefore commissioning activities containing many problems that may cause impact on quality, schedule, cooperation and cost are usually sub–contracted.

Mr. Le Quang Son made a case on Block B - O Mon Gas Pipeline Project which focused on offering co-operation, communication methodology, especially for commissioning phase of entire Natural Gas Pipeline Project and also interface between field owner and main end user. The objectives of his study were to: (1) discuss the existing EPC commissioning phase; (2) identify risk factors in commissioning process; and (3) conduct EPC Commissioning strategy Process for Block B- O Mon Pipeline Project

Conclusion

Generally, in sequence, the project performs from the start of the project until the project is put into operation and handover is preceded. The commissioning process is the last and important stage. This stage will show how well the construction phase was done. How the project quality is met with project technical requirement. Commissioning Process for Gas Pipeline Project is not the exception.

The result of case study showed that “the commissioning process should be considered from engineering stage, cost, plan for resource …etc. and contract between Client/Contractor will concern the above ones”. The risk factor may happen if it is properly identified.

Application to general Gas pipeline project and real Block B – O Mon Gas pipeline project, also, this process stipulates the minimum requirements for the flooding, cleaning, gauging, hydrostatic testing, dewatering, drying and commissioning of station control system and pipeline (offshore/onshore). To make sure that the pipeline has been installed successful. Many factors will be affected to commissioning implementation such as: safety requirement for sea conditions along the pipeline routes to be taken into consideration, there is a long distance from pipeline terminal to the gas-field so, coordination is very difficult between contractor/sub-contractor and vendor/supplier. The mobilization/demobilization of resourses is vast amount. In addition, height safety requirement for petroleum project, the project has negative impact on the environmental of bulky areas along pipeline. Hence, the strict coordination procedure/contact point with local authorities is very important during commissioning implementation.

However, commissioning activities are not easy to control due to the specification commissioning strategy for pipelines project.

Recommendation

The report shows the status of existing gas pipelines in Vietnam and Block B- O Mon pipeline project which is under development, the advantage/disadvantage of EPC contract in general and how to apply in Block B- O Mon pipeline project. The commissioning is a process that should be considered as contraction phase if the project is targeted to run efficiently. Based on the general project commissioning process, the report concerning the real status of project and propose the commissioning project strategy for Bloc B- O Mon pipeline project as well.

The recommendations for management of commissioning process are as follows:
o It is important to have a good plan not only for commissioning work but also for the whole construction phase which reduce the too many interfaces. In this case, the Client signed a contract to hire telecommunication service with Vietnam Telecom International (VTI) who will take interface between offshore topside and onshore control system and license of telecom equipment also.

o The cost for commissioning phase will be concerned during engineering cost estimating stage.

o The detail plan mobilization/demobilization necessary equipment for work must be arranged probably. Review the quality document and certificates completed with conformance, inspection of materials and equipments are also necessary.

o It is essential to have detailed internal/external cooperation procedure of commissioning requirement. The organization chart/contact point with internal and external must also clear.

His thesis abstract is copied and posted.

Abstract

Oil and Gas projects have been continuously building to get the oil/gas from offshore fields to shore for energy industrial. The transportation of gas from fields (offshore) to the shore is normally by using the pipeline. The Gas Pipelines constructions are quite difficult perform so the commissioning activities for gas pipeline project are difficult more than, that cause of low quality, delay and over cost of project. In some case, the risk occurrence leads to delay the whole project complex. The negative impacts to project (cost and schedule) at CLIENT and CONTRACTORS, or even serious disputes between the involved parties could be raised if no precautions are undertaken.

Commissioning phase is an important part of the decision-making cooperation procedure of all partners who will involve responsible to project. Quality of project don’t met quality requirement of premise target set up and uncertainty can potentially have damaging consequences for some construction projects. Risk can affect productivity, performance, quality, and the budget of a project. Risk cannot be eliminated, but it can be minimized, transferred or retained (Burchett, 1999).

In this report, a EPC commissioning strategy phase of gas pipeline project is presenting.

Owner’s Contract Management Strategy for Housing Project

2011-08-04T16:56:00.002+07:00

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.

Public Private Partnership In Urban Development

2011-08-02T16:37:00.002+07:00

PPP models have been applied in many countries around the world and some infrastructure sectors are more conductive to PPP than others. In which, the power sector and transport sector have received most PPP model. There are ranges of reasons including better potential for cost recovery, higher political commitment due to the sector’s importance for country economic growth etc. Nevertheless, this does not mean that PPP in other sectors is without prospects. With appropriate modalities, support for capacity development, and political commitment to sector reform, PPP is feasible in others sectors as well.

Urban development plays important role in country development; the possible good of urbanization can solve many problems such as housing, environment, infrastructure systems etc. As infrastructure development project, a huge budget needed to urbanize. Mr. Nguyen Thanh Trong made case study to carry out the way to apply PPP model in urban development project, especially in Mekong delta in Vietnam base on real project which has been implemented in Soc Trang province in Vietnam.

The main objectives of his study were to: (1) study existing regulations and law affecting PPP project in Vietnam; (2) study theories and standard guideline and its applications of PPP in urban development projects; (3) analyze PPP Soc Trang province project in terms of structure, risk, law compliance and financing structure and compare to the theory and the standard guideline in order to find out the successful and problems in the project; and (4) propose recommendation for improvement

Conclusion

It is estimated that urban area of Vietnam account for 70% of economic growth and contain around 30% of the population, it is believed that urban development will occur quickly to meet the social demand. The private sector is encouraged to be more involved in urban development by providing resources. In order to have more private sector participation, government supports and clear understanding among the stakeholders, especially in term of risk perceptions, such as potential risks, possible sources of risks as well as risk management strategy are very important.

This project case study had analyzed the success of the project in terms of land acquisition and resettlement, approval from Government Agencies, participation of private sector and also social benefits.

Land acquisition: The success of land acquisition based on proposed compensation land price by the government is equal to actual market land price. In addition, the land owner will receive 10% residential land area in the resettlement sub-project in the line with total land area affected by project.

Approval from Government Agencies: It takes short time for getting approval from Government Agencies due to the procedures to carry out the project strictly with Law on housing and the necessary to implementation project.

Participant of private sector: The most successful of participation of private sector in this project are:

Government offices have a little knowledge about private –public partnership and recognize the important role of private sector in supporting economic growing of the province.

Private sector’s constant skepticism toward the government will be gradually reduced.

Social benefits: The project has maximized the land resource for economic development, changing the value of agriculture land with low productivity by residential land with high value.

Local government orient, regulate and control initiative to stabilize the real estate market in order to overcome the spontaneous development, not follow the urban master planning of the city.

On the other hand, this project case study has identified what kind of government problems including the sources of problem in order to help determine the most strategy solution base on Good Project Governance (GPG) concept and the guideline of WB.

The main problem related to government responsibility in this project is no contract between Public agency and private sector. Without contract, many problems can be encountered in this project, such as:
- The fairness was not achieved.
- Government supporting was not achieved.
- Clear mechanism was not achieved.
- Risks identification was not achieved.

The second problem in this project is no financial modeling, so all key drivers underpinning, and variables likely to impact upon the financial performance of project are not identified. There are no financial feasibility assessment models which can become valuable management tools in all anticipated operating circumstances.

Base on this case study, the lesson that can be drawn is that urban development projects which carried out through PPP approach will be successful when achieving two conditions:
- Urban master plan must be suitable with short term and long term purpose and satisfy with varying demands;
- Advisers must be hired in order to design adaptation mechanisms to new or unforeseen circumstance.

Recommendation for further research

Urban development project always has short term as well as long term purposes and its life cycle is very long, so during its life cycle there are many policies, decisions of local government will impact directly in the efficiency of the project.

For instance, in this project, the local government is implementing an investment concentrated administrative building project adjacent to this project, therefore, in the near future; the value of residential land in this project will be increased. So it is very necessary to research the impact of local government‘s policies on the efficiency of project in order to identify the way of sharing risks and benefits between public sector and private sector in PPP project.

His thesis abstract is copied and posted.

Abstract

For procuring public works projects, Public Private Partnership is a well established methodology in Vietnam for recent years, especially in infrastructure projects. Due to supplying the private sector’s expertise, efficiency, innovation, risk sharing, financing etc. into public project, the quality of public facilities and services can be uplifted.

Public Private Partnership models have been applied in many countries around the world and some infrastructure sectors are more conductive than others, especially it is hardly to find urban development project carried out base on Public Private Partnership approach.

In order to compare with other procurement method, it is important to understand the local situation by an analysis of the project conducted to date. Lessons learn can be applied to other projects or to derived in to legal framework. This project case study will carry out the way to apply Public Private Partnership model in urban development project.

The aim and objectives of this study were achieved via a understanding literature review, deep case study analysis in term of successful and problems encountered and recommendation for improvement.

AIT MPM & CEIM Students Field Trip in Busan and Seoul, Korea

2011-07-27T15:55:00.002+07:00

Resources Allocation Strategy for Construction Safety at Hydropower Project

2011-07-26T15:30:00.000+07:00

Huge scale project such as hydropower projects takes a very long time to fully finish. The construction process is extremely complicated with so many risks involved. Therefore, it is necessary to carry out research to identify, evaluate as well as the monitor the risk sources; to strengthen the control of the potential accidents, to prevent and respond to the severe accidents and to allocate the resources effectively for the construction safety programs during the process of the construction of hydroelectric projects.

Mr. Pye Phyo Maung made a case on Shwegyin Hydropower Project in Myanmar which objectives were: (1) to identify and evaluate hazardous level of the accidents that may occur at the various works of the Hydropower Projects, based on the risk factors which may cause the accidents; incorporated with the former history of accidents cases and experts’ experiences by using LEC method, and then to evaluate the rating of each type of works with respect to the resources allocation strategy at the Hydropower Projects by using the resulted accident hazardous levels from LEC method; and (2) by applying AHP method, to analyze and calculate prioritization of the most effective safety programs with the resources allocation strategies through the specification of the relevant weight of each safety program for the construction safety at Hydropower Projects

Conclusion

For objective number 1.

Based on the analysis results from LEC method indicated that the resulted hazardous levels of accident types were different for each construction work such as follows:

For scaffolding work, the resulted hazardous level (resulted D; it was calculated by averaging all hazardous levels of related risk factors) for each accident type is:
a. “Falling from height place” is level 1 which means “extremely hazardous”.
b. “collapse” and “object hitting”, the resulted hazardous level is also level 1.
c. “fire” and “electric shock”, the hazardous level is level 2 which means very hazardous”
d. “others”, the hazardous level is level 3 which means “quite hazardous”.

For concrete work, the resulted hazardous level of:
a. “electric shock”, “uncontrollable contact between men and materials such as cranes, various types of vehicles” and “others” is level 1.
b. “fire” and “impact from equipment and materials handling”, the resulted hazardous level is level 2.
c. “objects hitting”, the resulted hazardous level is level 3.

For excavation work, the resulted hazardous level of:
a. “earth collapsing”, “mining hazards such as the use of explosives”, “uncontrollable contact between men and materials such as cranes, excavator etc”, “inherent engineering hazards such as the presence of injurious gases, toxic dusts” is level 1.
b. “electric shock” and “others”, the resulted hazardous level is level 2.

For embankment work, the resulted hazardous level of:
a. “embankment collapsing”, “uncontrollable contact between men and materials such as vehicles, cranes etc”, “falling from high places”, and “electric shock” is the level 1.
b. “impact from equipment and materials handling”, the resulted hazardous level is level 2.
c. “others”, the resulted level 3.

For plant installation work, the resulted hazardous level of:
a. “hazards associated with erection the heavy materials such as turbines, boiler plant etc” and “electric shock” is level 1.
b. “uncontrollable contact between men and materials such as vehicles, cranes etc”, “impact from equipment and materials handling” and “Fire”, the resulted hazardous level is level 2.
c. “Others”, the resulted hazardous level is level 3.

According to the data analysis results, the rating of Excavation Work is “1” which means that the overall hazardous level of all types of accident at Excavation Work is the highest. In other words, it means that Excavation Work is the first priority with respect to the resource allocation for construction safety. For Embankment Work, the rating is “2”. For Scaffolding Work and Concrete Work, the rating is “3”. For Plant Installation Work, the rating is “4”, and it is the lowest. These rating of construction works can also be applied for the pair-wise comparisons of those works in the second level of AHP hierarchy.

For the objective number 2.

The data analysis results from AHP method showed the scores of Safety Programs for Prioritization of resource allocation. These scores are the effectiveness of each safety program on all types of construction work at Hydropower Project. Safe Practices and Procedures, Health and Safety Rules and Responsibilities are equal, and they have the highest scores for priority.

Moreover, Joint Health and Safety Committee, Workplace Hazardous Materials Information System, Training, Worker Orientation and Emergency Procedures are nearly equal and have middle scores for priority. Furthermore, First Aid and Medical Services, Inspections and Hazard Assessments, Reporting and Investigating Accidents, Health and Safety Promotion are also nearly equal and have the lowest scores for priority.

By applying these resulted scores, the decision makers can easily decide how to allocate resources on each type of the effective safety programs in the cases of implementing, monitoring, evaluating, adjusting those programs for the Hydropower Projects. In conclusion, there are many evidences that AHP method has been used in many areas such as strategic planning, resource allocation, source selection, business/public policy, program selection and many more. In this thesis, it is obvious that Analytical Hierarchy Process method can also be used in the case of resources allocation for construction safety at Hydropower Projects.
His thesis abstract is copied ang posted.

Abstract

For most of Hydropower Projects, the scale is very huge, rather long time is required in order to finish the projects, and the construction process is also very complicated, involved with very high risks. For the successful promoting health and safety, planning, organization, leadership, control, evaluation, inspecting, investigating, recording, analyzing and reporting are in the important role. An effective safety program includes all these parts. It is needed to be designed to make the most of available time and resources in preventing accidents and occupational disease. Therefore, it is urgent to make a research on how to allocate resources effectively for the construction safety at Hydropower Projects. This study is especially dedicated for identifying and evaluating hazardous level of the accidents that may occur at the various works of the Hydropower Projects, by using LEC method, based on the risk factors which may cause the accidents and then evaluating the rate of each type of works with respect to the resources allocation strategy at the Hydropower Projects by using the resulted accident hazardous levels. Then, it is dedicated to analyze and calculate prioritization of the most effective safety programs with the resources allocation strategies through the specification of the relevant weight of each safety program resulted from AHP method. To cope with those objectives, AHP method and LEC method are major tools in this Thesis. The result reveals that Safe Practices and Procedures, Health and Safety Rules and Responsibilities are equal, and they have the highest scores for priority. Moreover, Joint Health and Safety Committee, Workplace Hazardous Materials Information System, Training, Worker Orientation and Emergency Procedures are nearly equal and have middle scores for priority. Furthermore, First Aid and Medical Services, Inspections and Hazard Assessments, Reporting and Investigating Accidents, Health and Safety Promotion are also nearly equal and have the lowest scores for priority. These results are in the meaning of the effectiveness of the safety programs on the overall works at Hydropower Projects. By applying these resulted scores, the decision makers can easily decide how to allocate resources on each type of the effective safety programs in the cases of implementing, monitoring, evaluating, adjusting those programs for the Hydropower Projects.

Red Book FIDIC Contract Management and Problems

2011-07-25T14:42:00.001+07:00

Why FIDIC red book is very essential for contract management especially for ADA funded projects in Vietnam? Mr. Pham Thanh Trung made a case study in the Project of Wastewater Disposal in Provincial Towns, Programme South, Can Tho which 2 primary objectives were to: (1) study FIDIC Red Book contract structure and contract management related; and (2) analyze the problems occurring in the application of FIDIC Red Book contract to this project, with perception looking from Vietnam law system, Engineer and Contractor and finally to propose recommendations.

Conclusions

The fundamental problems occurred during the application of FIDIC Red Book in this case study project include: choosing the wrong contract form, rejecting the main contents in FIDIC Red Book such as measurement and variations, contract price adjustment, and contract volume. In addition, the specific requirement in particular conditions did not clearly defined about responsibilities, procedures, manners and processes.

The study also helped the Employer to understand about their roles in the project’s delivery; involvement in preparing a management team with knowledge and experience, controlling the work of contractor as well as the Engineer, defining conflict between FIDIC Red Book and Vietnam Law system and provide solutions to resolve them.
Recommendation to improve the effectiveness in application of FIDIC Red Book

To apply FIDIC Red Book Conditions effectively in ODA projects in Vietnam, from this case study, the author come-up with the following conclusions:

1. FIDIC Red Book strongly recommends that the complete design shall be prepared by independent and impartial Engineers whom have enough experiences and skills.

2. The General Conditions for every project should be followed strictly from FIDIC Red Book, especially with some important clauses as Clause 12 Measurement and evaluation, Clause 13 Variations and adjustments and Clause 14 Contract price and payment.

3. The Particular Conditions should be included any changes or additional clauses which the parties have decided to include for adaptation of the local and project requirements. The Particular Conditions must ensure clear responsibilities, procedures, manners and processes for all requirements.

4. When any problems occur, all members of construction project should be closely followed to regular basis procedures, such as Sub-Clause 3.5 Determinations, Sub-Clause 2.5 Employer’s claims, Sub-Clause 20.1 Contractor’s claims etc. Besides, they should be considered to all events, circumstances and factors affecting to the problems. For this purpose, the documentation work is very important to timely record, collect and store every information as well as evidences of events.

His thesis abstract is copied and pasted below:

Abstract

In recent years, ODA has become an important resource to help the Vietnamese government develop infrastructure, education and environmental improvements. Many important projects using ODA funds have been completed and operate effectively, contributing to the economic and social development.

Besides the positive aspects of this project model, there are so many limitations and shortcomings during the implementation process which led to ineffective projects. Limitations, shortcomings are source from site clearance, lack of management experience to run the project. Besides, these project models are requiring complying with the Conditions of the sponsors, and these regulations are direct to protect the interest of sponsors.

One of the document are usually apply by sponsors is FIDIC red book contract. In original, this document is an appropriate regulation for every construction contract follow international regular. However, during the applied, the sponsors and their consultant usually adjust and add more sub clause in particular Conditions for their advantage.

Within this writing, I would be analyzed the problems occurred during the project implementing which follow the FIDIC contract. Includes attitude and solutions of the sponsor, the consulting units, the client and the contractor, and the direct effects due to these problems cause. From the standpoint of a project manager, combine with existing management rules, I would like to suggest solutions to process problems to ensure harmony and efficiency of the project.

Project Management in New Urban Project

2011-07-21T08:55:00.000+07:00

Can Tho City is one of the five central cities, a center of economics, politics, culture, education - training of the Mekong River delta. It is a young city in the process of urbanization to become a powerful modern industrial city in 2020. As reported by Can Tho Department of Construction new urban projects are being invested and constructed with a total area of 1700 ha.

Although the urbanization in Can Tho City is very important and developing quite quickly, the process of implementation of its new urban projects raises some serious problems to be taken into consideration. According to the recent report of Can Tho Department of Construction, new urban projects in Can Tho city are encountering problems such as:

1. Most projects were small in scope; the planning was not consistent and modern. There were many limitations in managing planning and projects.

2. There was not sufficient care and attention to quality control and costs management. The work of examination and inspection was not done strictly.

3. The investment for new urban areas faced many problems and risks such as: changes in policies from the government, shortage in financial resources, the ups and downs of the real-estate market, changes in material prices.

4. The safety management in construction was limited, which was not frequently checked to assure safety at work.

5. The progress of most new urban residential areas was especially all late in comparison to the original plan. Usually, each project was from 3 to 5 years longer than the plan.

Mr. Huynh Thanh Su made a case study Hung Phu New Urban Area Project in Can Tho City which objectives were to: (1) study the project management theories applicable in urban project development; (2) study the existing project management process of new urban development; and (3) analysis the effectiveness of the existing project management process in terms of project management functions, process and outcomes (i.e. cost, quality and schedule)

Conclusion

Industrialization has taken place very fast and strongly all over the world in general and in Vietnam in particular, and it will continue to happen even faster in the future. Constructions works, projects for urban development and new urban areas expand every day. These projects have played major role in improving people’s living environment. However, there has been inadequate attention on researching and applying theories and process of project management in new urban areas for each particular place at a specific time. Therefore, this research paper aims at studying theories in project management in developing cities and the process of managing new urban areas in Vietnam. From the analysis of the quality of project management (managing time, costs, quality and risks) in this case study; the following conclusions were drawn:

Objective 1: Studying theories on project management with the application on new urban projects.

This is done mainly through the study of all documents to accumulate knowledge and methods of project management that were studied previously. From this, main functions of project management and the process of project management in different stages are identified. From all of these, strengths, weaknesses and specific suggestions for real project management tasks are proposed.

Objective 2: Studying the management process for new urban areas in Vietnam.

New urban areas are developing very fast in big cities in Vietnam. The study on current legal documents, mechanism, local policies, the procedure and process of new urban management which have been applied into a specific project can help us find out strengths, weaknesses of the managing process for the management of new urban.

From this, it can be concluded that projects for new urban area development in Vietnam are rather complicated with regards to their investment procedure and process. Although project managing procedures in recent years have become clearer and stricter, in reality, however, its application seems to show many limitations that need to be improved.

3. Objective 3: Analyzing the effectiveness of project management process.

Through the analysis of some major tasks in project management e.g. time, costs, quality and risks, in Hung Phu new urban area, the following conclusions were drawn:

a) In terms of time management:

The whole time for the project was 8 years, which was much slower than the time set in the FS (3 years). Almost all items in the project were slower than in the planned timeframe. The main reason was identified, which was the delay in land clearance (about 7 years after the project initiated) and the uncertainty in financial resources for the implementation of the project. All of these show that there were many limitations in the work of planning and setting the timeframe for the project that needs to be improved.

b) In terms of costs management:

Although the investor implemented the costs management following the current regulations, the estimated costs for the whole project were not accurate due to the delay and the extension of time for the project (the total capital and costs). Therefore, there was a shortage of capital for construction and payment in the stage of execution.

c) In terms of quality management:

In general, project quality management has been implemented in accordance with all the current regulations. However, due to the fact that the examination for all conditions for starting the project (the land clearance must be finished before the project started) was not done well, as well as the poor work of checking the contractors’ ability, the duration of the whole project was much longer, which increased the costs of the whole project and also the product price and affected the quality of the whole project.

d) Risks management:

Although risks have been identified, analyzed, evaluated and plans to deal with them have been developed, the work of risks management for the whole project was not professional and effective.

However, in general, the whole project has gained certain success in financial aspects including: turnover, profit which increased many times in comparing with the expected amount in the FS and all other financial criteria were all positive. The project has successfully developed a new urban area that can meet the demands for housing and urban sustainable development in Can Tho City (social effects). To gain this success, the project management plays a very important role.

His thesis abstract is copied and posted.

Abstract

This thesis paper aims at studying theories in project management that have been studied previously with their application first of all in the management of new urban areas in Vietnam in general and in the case study, Hung Phu New urban area project in Can Tho City.

The thesis analyses the tasks of project management in Hung Phu Project with a focus on the management of time, costs, quality and risks in comparison with theories in project management, from which suggestions for better management tasks for new urban projects are proposed.

From the case study of Hung Phu project, it can be seen that the task of time management was not done properly and effectively due to the problems in land clearance. This, in turn, affected the costs, products prices and the general quality of the whole project.

The thesis proposes that a profound understanding of all legal documents related to the task of project management and to the specific project is of great importance. In addition, the management of time for the project can be seen as the key factor that brings effectiveness to the management of costs, quality and risks of each project. This requires that the work of land clearance should be paid more attention to as this is considered as the number one cause for any delays and lateness of a project.

Project Life Cycle Risk Management Plan In An Urban Railway Development Project

2011-07-19T14:29:00.001+07:00

The common problems in any urban rail projects are procurement which involves huge investment cost and risks treatment in construction and operation of long project life cycle.

HCMC Urban Railway Construction Project is the first Urban Rail Project in Vietnam and there is no good project model available in Vietnam in terms of big scale underground development, urban rail system, legal framework as well as no rail operator.

In addition, in completing this project, big capital is needed and inviting sponsor or investor involves lots of potential risks in Urban Rail PPP project since there is no law and regulation on PPP investment. Therefore, there is no good contractual sample in PPP opportunity in Urban Railway Project. The contractual risk management of concessionaire for Urban Rail in Vietnam shall be considered for the future, because the SPV or Concessionaire will face unforeseeable risks during construction and operation in its Project Life Cycle.

Mr. Gentaku Goto made a case on the Urban Railway Development Applied in Vietnam. His objectives were to: (1) study how to identify, provide treatment Major Risks to be occurred in Project Life Cycle of Urban Railway Project especially in Construction and Operation Phase; (2) study effective Contractual Risk Management in Public Private Partnership of Railway Development Project; and (3) study Key Success Factors and Risks of Urban Railway PPP Project in Vietnam and provide possible solution.

Conclusion

Through literature review and Case study, there are several findings which are useful for Risk Management Plan in the PLC of Urban Rail PPP. Conclusion and findings are summarized below.

Objective # 1

Critical Risks in the PLC of Urban Railway Investment are:

1. There is a tendency that risks can be identified in plan stage of the RMP, while system requirement shall be clarified in this stage. In case study, through preparation of the preliminary design and tender document and basic cost estimate, major risks are identified.

2. It seems that risks are allocated in the contract for its treatment (risk mitigation, avoidance, transfer, allocation, etc.,), while system requirement shall be apportioned into the contract as legal document.

3. Contract document is not a perfect RMP tool, but just a tentative basis of continuous risk management plan. During execution stage, uncertainty in the system requirement shall be continuously and verified to meet the requirement and for further risk treatment.

4. Upon Completion of Execution, System Acceptance shall be made in order to meet the System Requirement. After all uncertainties in the System Requirement are solved, such System is accepted and validated for commencement of the Railway Operation.

5. Risk management in the PLC shall focus on 5W + 3H e.g. When in the PLC stage? Where is the Scope of Work? What kinds of risks are identified? How much is the impact? How often it likely to occur? How much is the severity? To which way such risk will affect to other, and how to treat such Risk?

6. Legal and Political risks always interfere with the project progress in all stages in the PLC, in terms of feasibility of the investment, financial and taxation, construction quality, environment, traffic issues.

7. Project cost increases to VND 47 trillion due to change of demand, design requirement, safety improvement etc. It requires the approval by the National Assembly, one of the biggest Legal Risks, causing over 1 year delay of the project progress. Such delay will cause further cost increase.

8. The major reasons of the cost increase comprises of exchange fluctuation risk (46%), 30% demand increase risk (31%), allocation of future risk in contingency and escalation (29%), price increase for material, labor and equipment (20%), improvement of safety, reliability and convenience (19%).

9. Exchange rate fluctuation is the biggest risk and is commonly occurred in project investment in Vietnam, which should be avoided and eliminated by financer, because such risk factor affects cost increase of VND 12.0 trillion out of total cost estimate of VND47.0 trillion. If this risk is successfully eliminated, National Assembly approval may not need to wait because VND 35.0 trillion is the border line in terms of Law and Regulation (Resolution 49). JICA, as financer of mega project, may be required for big decision making for granting exchange rate fluctuation amount, for risk avoidance purpose, with some barter from Vietnamese side.

10. Demand increases by 30% risk affects scale of facility and equipment in preliminary design causing the project cost increase such as necessity of bigger station box in both underground and elevated, more rolling stocks etc.

11. Contingency rate is increased for change order by 4% and for escalation by 25% in order to allocate risk factor in the future. Due to the risk evaluation in the preliminary design stage and tender stage, the general consultants evaluate more uncertainty in the future of the PLC.

12. Other than the above mentioned major influenced factors, price increase of oil and construction materials, and improvement of safety, reliability and convenience requirement also affect cost increase by 40%. Those kinds of risk factors are not able to be avoided due to requirement by the employer, financer and customer in the future.

13. Technical risks such as design error risk, system integration risk, maintenance risk are not critical because it can be managed by continuous risk management and verification.

14. Demand forecast for revenue calculation shall be less estimated rather than carefully estimated, because demand forecast were overestimated on the average by 65% for major urban rail project investments overseas. It will affect decision making on investment risk treatment, so more conservative investment and cash flow planning is required.

15. At last, establishment of SPV is also critical risk for HCMC City, because this is first urban rail operator and maintenance service provider, on behalf of host government.

For objective number 2:

1) More public means the government body has empowerment for owing assets, technology, know-how, man power, using tax fund, in more traditional and closed (monopoly) market.

2) More private means the Special Purpose Vehicle (SPV), as a private entity, is empowered for owning assets, technology, know-how, man-power, using private fund, in more flexible and competitive market.

3) Eight (8) major responsibility dimensions of PPP options (Ownership, Competitiveness, Strategy, Organization Structure, Personnel Staffing, Funding, Know-How, and Public Image) shall be evaluated for contracting out. If successfully utilize private technology, know-how, funding in competitive market, the project cost will be reduced and money for value will be achieved.

4) Through the stakeholder analysis, it is important that contractual relationship between major party as SPV and the other party shall be analyzed and major risks behind the relationship between the SPV and others are identified. To reduce uncertainty, it should be clearly defined scope of work, responsibility and obligation of parties, time frame, and budget.

5) Procurement of consultant, contractor, input supplier, and off taker etc, shall be done through tendering consisting of 5 steps (request for proposal (tender document), proposal, evaluation of proposal, contract negotiation, contract signing). During the process, risks are identified, mitigated, controlled and apportioned into the contract. The requirement consists of technical and financial.

6) Contractual document shall indicate budget, schedule, man power, scope of work, responsibility and obligation of the both contractual parties, payment condition and technical and other requirements and shall be a basis to continuously monitor the performance against the system requirements in the PLC.

7) Through the contract negotiation, the employer (or the contractor ) ‘s thinking shall be accessed in terms of risk management as below:
- insufficient contingency or budget
- limited study budget
- very limited scope of work (partial construction etc.,)
- procurement of contractor without consideration of quality assurance, safety and health assurance of labor
- misunderstanding that construction cost estimate is the ceiling amount assures the final completed cost estimate, while it actually is tentative estimation we suppose.

8) A clearly defined scope of work is essential, because the employer tends to understand expanded scope of work in case its definition is vague. Especially, if the employer, in many cases, does not understand limitation of the consultant (contractor), prior conditions and assumption for the work,
- service scope and period
- experience and specialty of expertise
- responsibility undertaken

Payment of fees to consultant (contractor) shall not be affected by the factor. The contractual parties cannot control within their capability such as delay or climate factors.

9) Procurement process of the consultant (contractor), its quality and capability shall be evaluated fairly and allocate enough, but not too much fees toward the scope of work. If enough remuneration fee is not secured by the employer:
- quality of the service will be terribly low and will cause bad reputation, losing employment, bankruptcy due to low cost bidding, uncompleted report and output etc.,
- it may cause cash flow problem, low quality outcome, increase of total project life cycle cost, increase of construction cost, further design required and downloaded during the construction stage etc.

10) The relationship between the employer and the consultant (contractor) shall not be against relationship and both sides should share same goal on the project, and objective and prospect shall co-exist.

11) Resources shall not be over-committed in the Contract because it will lower the quality in case committed resources are totally replaced by mobilizing cheaper resources such as young expert.

12) Quality oriented planning is required in the contract to satisfy quality requirement in consideration with understanding of scope of work, implementation plan, manning plan, appropriate scheduling and appropriate budget allocation.

13) Contractual risk shall be mitigated and avoided by doing the followings:
- to understand and carefully study obligation in the service contract
- to identify important but burdensome terms, and provide legal advice on such terms
- to negotiate to eliminate such burdensome terms

For objective number 3:

1) The consultant should understand the importance of performing with due diligence, efficiency and economy in order to meet requirement of money for value, service quality and provide enough performance toward amount of fee.

2) Huge transfer of facility from MAUR, the project owner, to O&M Company will suppose after completion of infrastructure and railway systems and equipment. There is big risk in huge transfer especially; O&M Company is newly established. Therefore, transfer of MAUR staff to new O&M Company as well as gradual transfer of railway facility from MAUR to O&M Company is recommended.

3) After completion and operation of the Railway System, the project will be audited by 3rd party auditor. It is essential for the Employer (as well as the General Consultant) to record effectively and periodically key monitoring indicators for explanation to 3rd party in terms of :
- Improvement of public services: time and accessibility from Ben Thanh to Cat Lai Interchange
- Life opportunity: Increase of population having accessibility less than 10 minutes walk to nearest station.
- Revitalization of region: Increase of Business Zone Area along rail line
- Increase of employment: Increment Ratio of Population working for the Firm along Rail Line.
- Local society: Increment of Sub-Contract Nos. and Value with Local Contractor in the Region.
- Safety : Reduction of Car/ Motorbike Accident along the rail line and city
- Environment : CO2 reduction at the point

4) Transparency operation of the project in the PLC should be ensured for design requirement, tender selection transparency, 3rd party verification on tender result, disclosure of project outline and explanation, construction procedure, documentation recording system, demand forecast and other survey result related to the rail line on website etc. In terms of railway operation, safety, accuracy, environmental friendly and financial validity shall be monitored and opened in website.

5) Performance specification for the project shall be clearly set in the employer’s requirement in tender document and agreed in the contract. After contracting, the contractor shall perform; verify their work to meet the system requirement. Finally, at the completion of work, the system requirement shall be validated through commissioning and testing and system acceptance by the authorized party for rail operation.

6) Legal & regulation requirement: it is important for all the stage to study legal requirement in terms of overall project management, design, tendering, construction quality, environment, operation, government permission, auditing and accounting, taxation, etc, as well as to know whose authority to approve it if the proposal is beyond the law and regulation. Those legal restrictions shall cause critical issues such as delay of schedule, cost increase, re-work, and finally the cancelation of the project. Considering severity, risk treatment shall be considered case by case.

7) Risk capital: Funding is ensured by HCMC People’s Committee for Urban Railway Line 1 for establishing Operation and Maintenance Company as the State Owned Enterprises by funding 100% government fund. In the future, RMP for Share Issued Privatization (SIP) is also needing long term strategy for privatization, because SIP is required huge transfer of assets, human resources, technology and know-how to private sector. It takes time to develop competitive and transparent market for rail operation services.

His abstract thesis is copied and posted.

Abstract

To obtain benefit from Urban Rail Investment, it takes several decades to show actual reasonability of the investment while huge capital expenditures are easily spent through the Project Life Cycle. Two theory approaches are taken in Literature Review and Case Study to apply Risk Management Plan in the Project Life Cycle in order to identify, handle, control, treat major risks which will be occurred in the Project Life Cycle of Urban Railway Investment including Design, Construction, Operation stages as well as to apply Public Private Partnership in Urban Rail in order to study effective Contractual Risk Management among the Stakeholders in Public Private Partnership of Railway Development Project.

The Case Study for Ho Chi Minh City Urban Railway Construction Project (Ben Thanh –Suoi Tien Section) Line 1 is analyzed in order to apply actual Risk Management Plan to breakdown Risk Factors of Project Delay and Cost Increase etc, and find our Key Success Factors of Urban Railway PPP Project in Vietnam. This research can hopefully be a hint to find out connection between Risk Factors in activities in the Project Life Cycle.

Keywords ; Risk Management, Project Life Cycle, Urban Railway, Public Private Partnership, Stakeholder Risk Management, Construction and Operation

Project Management Strategies in Public Construction Project

2011-07-18T14:41:00.000+07:00

The organization of PMU in public construction in Cantho City, Viet Nam is in initial development and in the process of improvement. There’s no enough manpower to do some functions and some people have to do many tasks at the same time. They are lack of knowledge and experience to operate and coordinate the project. During the project management process, they face organizational problem, poor quality, delay and so on. The Project Management and Project Management Unit is one issue which Cantho city pays much attention to.

Mr. Ta Chi Nhan made a case on Cantho University PMU And Dormitory Project Of Cantho University. The objectives of his study were to: (1) identify the project management functions practiced in PMU; (2) discuss the effectiveness of the project management functions in terms of project performance; (3) investigate the selected PMU order to analyze the strengths and the weaknesses of the management in practice; and propose recommendation for project management improvement.

Conclusions

After the review, analyses and study of the project management functions, practice in PMU and dormitory project of Can Tho University, it was revealed that project time management, cost, and procurement are applied. However, the risk and scope management function are not taken in to consideration.

The actual performance of this project is considered poor because the time completion was 7 months delayed and the cost overrun is about 120%. The reasons for the delay are as follows:

1. Construction contract between the owner and EPC contractor was unit-price contract which based on basic design. At that time, the technical design drawings and cost estimating are not clear. A lot of details were not specified as to what type and size. Therefore, the owner-supervisor has no sufficient information to supervise and the construction team has no sufficient information to implement. They had to wait for the design team to make a clear technical design.

2. Communication management plan is not good. The owner contacted with construction manager who did not have enough power to solve the problems from design to construction.

3. Supplying fund from state to the owner for project was untimely.

The reasons for cost overrun is because of unclear technical design and unit-price construction contract, the design team adjusted the design drawings and the owner had to pay for new specifications of doors, fences, electrical equipments, water supply equipments and so on.

The case study has also found out strengths and weaknesses of PMU in practice of project management in each area. With a general view through the three phases of this project (FS, design, construction), the following have been recognized:
- In terms of project time management, PMU was good at schedule development and control schedule in FS phase, but they could not control schedule in design and construction phase.

- In terms of project cost management, the strengths were that PMU applied good tools and technical, they hired verification consultant about cost, but PMU made a mistake in which type of contract when determining budget.

- In project quality management, PMU checked quality management system (quality plan, QA, QC) of construction team of EPC contractor and it was good. In contrast, performance quality control of design team of EPC contractor was not good. Major defect (lack of specifications in technical design) came from time for design shortly. As a result, PMU could not control quality of technical design.

- In project human resources management, the owner hired supervisors and had a good project team management.

- In FS phase, project communication management of PMU was good at communication plan (schedule, meeting plans), but in design and construction phase, flowcharts of the information flow in the project had problems.

- In terms of project procurement management, the owner and PMU selected good FS consultant, verification, supervise consultant by their dossier of proposals. In design and construction phase (EPC contractor), the owner and PMU conducted procurements (as unit-price contract) not good.

- In project safety management, PMU and the owner’ supervisor checked safety plan, safety plan execution, administration and reporting of contractor. They were good. But they have not examined health for staffs and workers.

- In project environmental management, contractor had environmental plan, assurance, and control good.

Recommendations

In order to help PMU in implementation project management functions better, government should add more policies, regulations and require implementation strictly such as follows:
a. The owner is not allowed to assign EPC contractor in unit-price contract which base on basic design.

b. The government should provide sufficient capital funds to keep the building schedule in accordance with the approved building schedule.

c. More policies and instructions for project management should be applied.

His thesis abstract is copied and pasted.

Abstract

For a successful construction project, good implementation of project management functions is required first and very important. In Vietnam today, the State invests in many public projects. Most of them, state establish project management Unit to manage project directly according to law and regulations of Vietnam.

This report review project management theory, management functions commonly applied in developed countries and developing countries, studying concurrent the project management functions according to laws and regulations of Vietnam.

The report studies a typical project management Unit in Can Tho city, identify and analyze the practical application of project management functions. Since then, the report reviews the strengths, weaknesses and suggests improvements for this project and can be applied to other similar projects.

Risk and Project Contract Management for Preventing and Solving Disputes in FIDIC Contract

2011-07-13T16:32:00.001+07:00

Any project has to deal with problems/issues that can affect its objectives. These issues are sometimes predictable, but in some cases it is impossible to predict. Once it is predicted, the project team shall have proactive counter-measures, and thus limit the possible impact of risks. Risk management is the process of pre-defining risks that may occur in the project, analyzing, and finding appropriate measures for the purpose of increasing the opportunity of success and minimizing damage to the project. Regardless of the size and nature of the project, risk management should be implemented in accordance with the ordering process with the appropriate tools and effective solution.

It is essential to reinforce the capability of identifying risks and contract management in construction projects closely. The control and adjustment of risks are to carry out risk dealing with plans in reality in order to reduce and minimize risks of the project. Moreover, strict management of contract is the only way to prevent disputes and litigations of the project. It is wise that the parties should seek negotiation, discussion or conciliation once disputes occur. Using an amicable settlement approach is simple, effective and inexpensive while adopting claim and arbitration approach is more complicated, costly and time consuming.

Mr. Dang Thai Son made a case study on can tho bridge construction project to: (1) study issues on project risk management: implicit risks, the tenor and process of project risk management; (2) study issues on project contract management: signing and implementing the project contract, amending, canceling or terminating the contract; and (3) find approaches to mitigate risks as well as to prevent and resolve disputes, litigations in project contract.

Conclusion

Risks are unavoidable in construction projects, yet it is still possible to prevent them before and during a project. With such a length (15.85 km), Cantho Bridge was a typical example for risk management. The project has received full financial support from the Japanese government which is Twenty Four Billion Eight Hundred Forty Seven Million Japanese Yen (¥24,847,000,000). However, there was still delay in land requisition. Although only two local households did not agree on their compensation, they affected the progress of the project. In addition, shipping equipment and complex custom procedures also hindered the progress.

On the good side, the Contractor has implemented good management for best results. To start with, the Contractor designed a hierarchy of management with well-targeted goals as well as backup plans. This helped the project progress even in case of force majeure. Second, good management on quality and quantity also contributed to the success of this work. Various aspects of working requirements such as materials, equipment, construction methods and skilled labors were focused and well-prepared. Thirdly, the Contractor showed that environment was taken with extreme care so that almost no effects on the local landscape and ecosystem were done by pollution from the construction. This was done thanks to a third-party specializing in the field of environmental protection. Finally, the Contractor always followed the most important motto: "Safety first." The disastrous accident in foundation settlement showed the nature of risk on the one hand; but on the other hand, it showed that the Contractor prepared and implemented practical and helpful steps in preventing diseases and treating injuries to workmen. As a result, construction workers felt better and secure to continue their work and the project could be completed in due time.

After Cantho Bridge was completed, it has provided the researcher with practical experience in terms of capital, specific infrastructure conditions, hi-tech quality of the contractor and compensation negotiation. This study showed us that reality is always unexpected but with well-planned risk management, we can still handle and heal the uninvited damage to project effectively and in time so as to fulfill the project as pre-planned.

In conclusion, throughout the analysis, we see that Can Tho Bridge Construction Project achieved more successful factors than its constrained ones. This project obtained good delivery system from setting to closing out phase thanks to have good environments such as stable society economy and politics, favorably legal environment especially the great support from the project stakeholders: Financier (JIBIC), Owner, Consultant, Contractors, Suppliers and others (Local Authorities and so on).

Among the three Contract Packages, Package -1 and Package-2 achieved good target. Especially Package-2 completed all the works of the project on schedule without complaints even exceeding the progress compared to that set by the Ministry of Transport. Although Package-2 was a major item of the bridge and very complicated for construction, with all endeavors and efforts of the whole expatriates, engineers, staff and workers of the Main Contractor: Taisei-Kajima-Nippon Steel Joint Operation and his sub-contractors, finally they made good delivery system for the project.

However, the project suffered big delay from Package-3, the Contractor of this Package received many complaints from the Owner because he could not manage his work schedule, while the works of the other two Packages were successfully completed.

Once again, apart from the strengths achieved as analyzed in Chapter 3, there are many weaknesses that the project stakeholders should pay much attention to and should take them as valuable recommendations for future projects:

- Before carrying out the construction of any project, the Project Owner together with Local Authorities shall ensure land requisition to be well-executed and give right of access and site possession to the Contractor at appropriate time without any delay and obstruction from local residents.

- When making the estimation for a project, besides calculating an official capital source for the main items of the project, the project planner should carefully calculate an extra money fund for nearby existing land compensation including the crops. Therefore, the Project Owner will be able to get sufficient land area and provide further access to the Contractor for construction. Because the construction activities of the Contractor definitely affect to the neighboring structures of the inhabitants.

- The Project Owner should thoroughly consider selecting competent, qualified contractors who are healthy in finance and capable of high technology. Not to give the award to the bidder of the lowest price, and poor equipment and poor technology transfer.

It was time for Vietnamese Government and its subordinating Ministries consider carefully when deciding to select the bidder especially for foreign ones. Before inviting them for bidding, a well pre-qualified selection of experienced, prestigious and competent bidder list should be made and elimination of unqualified bidders from the list should be done. If doing so, the Government saves a lot of time and money for unreasonable loss and damage from rectification of defects and re-works.

His thesis abstract is copied and pasted.

Abstract

Risk management is an indispensable job because it will help the project reduce and minimize the extraordinary impacts occur which affect to the general objective of the project.

In this study, we should learn about the concept of risk with its two specific characteristics: probability of occurrence and degree of impact. In addition, the classification of risk is also a meaningful deed; each kind of risk is different, therefore, risk management issue is also totally different. To manage risk, a process of six steps can be applied. First, making risk management plan for general orientation of work and scope of performance to manage the risks. Then, carrying out risk determination, it means to list out the risks might occur in the project. Since then analyzing probability of occurrence and the degree of impact of the risks, Control and adjustment of risks are to implement the plan for dealing with actual risks.

Contract management is extremely important in the project management. Referring to the contract, the project manager will treat and adjust the relationship as well as contradiction between interests and liability of the parties concerned in the project. Therefore, being a project manager, he or she needs to master the sequence of steps of signing and implementing the project contract, the arising issues and conditions of alteration, omission or termination of project contract as well as the approaches to resolve and settle disputes in the contract. Once dispute arises, it is wise that the parties should seek for negotiation, discussion or conciliation. This approach is simple, effective and little cost while claim and arbitration approach is more complicated, costly and waste of time.

“Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser – in fee, expenses and waste of time.”

Abraham Lincoln

Sustainable Construction: A Study of Drivers, Barriers and Design Practices in Building Projects in Thailand

2011-07-12T16:55:00.002+07:00

Over the period of last few decades the path for the development that has been chosen globally is in contradiction with global agenda of sustainability. Its drawbacks have been witnessed in the form of excessive depletion of natural resources, waste generation, and emission of environmentally harmful air. Statistics shows that the construction sector world-wide accounts for the production of 40% of raw materials, which is around three billion tons. Consequently, processing such huge amount of material is causing significant amount of air, land and water pollution (Burgan and Sansom, 2006 cited in Ndungu, 2008).

More precisely the construction industry accounts for one-sixth of global fresh water consumption, one-quarter of global wood consumption and two-fifth of global material and energy flows, and almost one-quarter of ozone-depleting gases come from air-conditioning units in buildings. Apart from global resource consumption, the industry also generates waste on a scale that dwarfs most of other industrial sectors. Given the conflicting scenario of the rapid depletion in global natural resources simultaneous to the acceleration in global population, it is imperative that the attendant demands on global natural resources are balanced with the ‘carrying capacity’ of the physical environment (Ebohon and Rwelamila, 2001).

Specifically, buildings worldwide account for 17% of fresh water consumption, 25% of wood harvested, 33% of carbon emissions, 30-40% of energy use and 40-50% of raw materials used.

Despite all these issues and numerous actions taken worldwide that calls for adaptation of more sustainable construction strategies into practices; so far very little resemblance is seen in the actions and practices of the construction industry in general and building sector in particular.

Mr. Asmat Nabi Hotaki made a research which aims were to: (1) assess the implementation of sustainable construction practices of the design phase in building projects in Thailand; (2) determine the factors that best promotes (drivers) the implementation of sustainable construction practices in building projects in Thailand; and (3) determine the factors that best prevents (barriers) the implementation of sustainable construction practices in building projects in Thailand.

Conclusions

1. Implementation of Sustainable Constriction Practices of the Design Phase

For the first objective of this study, it was concluded that:

First, it was determined that the overall willingness level of clients towards implementing (the 21) sustainable construction practices in building projects in Thailand varies from medium (Willingness Index =54.4%) to medium high (Willingness Index =76%). Furthermore, five (5) out of 21 sustainable construction practices that were relatively rated high were concluded as those practices which the clients are more willing to implement it in the building projects . It was tagged as the most desirable practices of the clients.

Second, it was determined that among the six main constructs of the design phase of a building project that represents the 21 sustainable construction practices studied in this research; Clients in Thailand are relatively high willing to implement those practices which are concerned with ‘Indoor Environmental Quality’ of a building, which puts this construct on first rank, followed by the construct of ‘Site location’ on the 2nd rank, ‘Protect and Conserve Water’ on 3rd rank, ‘Optimize Energy Use’ on the 4th rank, and the constructs of ‘Atmospheric Conditions’ and ‘Material Usage’ which achieved equal values are placed on 5th rank. It is illustrated in Table 5.2. It came of no surprise that clients in Thailand are relatively high willing to implement those practices that are concerned with the Indoor Environmental Quality of a building because studies conducted previously shows people spends 90% of their time indoors. So the pollution of the indoor Environment is sometime more harmful to health of occupants then the outdoor environment. This might have led to the high willingness level of clients to incorporate the practices of indoor environmental quality to their projects.

Third, the following three (3) sustainable construction practices of the design phase were identified by the respondents as those practices which are Mostly implemented by their clients’ in Building projects in Thailand:
1) Consider energy implication in building orientation.
2) Supply adequate levels of heating, ventilation, air- conditioning (HVAC) system and fresh Air for creating more pleasant and productive environment.
3) Reduce energy usage in all types of facilities in the building / Ensure minimum performance of the appliances.

Looking at the results, it can be seen that those practices which the clients are showing high willingness to implement it in their building projects, are eventually implemented in actual also in the building projects.

Fourth it was identified that the following are the sustainable construction practices of the design phase amongst the 21 practices which are RARELY or Not AT ALL implemented by their Clients’ in Building projects in Thailand.
1) Consider/Implement refrigerant leak detection systems.
2) Minimize habitat (human, animals, and plants) disturbance.
3) Design with long-lasting, modular and standardized building components.

2. Factors that Promote the Implementation Sustainable Construction Practices

For the second objective of this study, it was concluded that:

First, the survey revealed that the top five factors that contribute relatively high (in Actual) to drive (promote) the implementation of sustainable construction in building projects in Thailand are: ‘Greater availability of green products’, followed by ‘Superior building performance’, ‘Increasing client (owners/developers) awareness about sustainable construction’, and ‘Willingness and demand of client (owners/developers)’.

Second, it was identified that the top five significant drivers (In respondents own opinion) that promotes the implementation of sustainable construction practices in building projects are in the following order: ‘Increasing client (owners/developers) awareness about sustainable construction’ followed by ‘Greater availability of green products’, ‘Willingness and demand of client (owners/developers)’, Enforcement of legislation which would include building regulations, and ‘Planning policy of government and local authorities that include sustainable construction as part of planning criteria when awarding planning clearance and building permission’.

Third, the result of wilcoxon paired sample test showed that there is significant difference in the actual contribution of the drivers and in the significance of the drivers based on the opinion of respondents. From which it was concluded that in actual these factors are not highly driving the implementation sustainable construction practices but the respondents thinks that they are significant to drive the implementation of sustainable construction practices in building projects in Thailand.

Fourth, three underlying constructs were identified from conducting factor analysis that promotes the implementation of sustainable construction practices in building projects in Thailand, namely: ‘Effective Government Interventions’,‘ Benefits and Strategic Advantages’, ‘Client Awareness and demand’.

3. Factors that Prevent the Implementation Sustainable Construction Practices

For the third objective of this study, it was concluded that:
First, from the mean ranking of the variables it was identified that the top five key barriers (in actual) that hinders or prevents the implementation of sustainable construction practices in building projects in Thailand are: ‘Perceived higher upfront investment costs of the project’, followed by ‘Lack of education in sustainable construction’, ‘Lack of client (owner/developer) demand for adopting sustainable construction practices in their projects’, ‘Lack of business case understanding while making decisions, whether to invest in a project or not’, and ‘Lack of consumer awareness regarding the benefits of sustainable buildings’.

Second, based on the significance of each barrier which is the own opinion of respondents they have ranked the following factors as the top five significant barrier that prevents the implementation of sustainable construction practices in building projects in Thailand: ‘Perceived higher upfront investment costs of the project’, ‘Planning policy of governments and local authorities’ that does not include sustainable construction as part of clearance criteria when awarding building permissions’, ‘Lack of consumer awareness regarding the benefits of sustainable buildings’, ‘Lack of client (owner/developer)demand for adopting sustainable construction practices in their projects’, and ‘Lack of business case understanding while making decisions, whether to invest in a project or not’.

Third, from the factor analysis, the research identified two underlying constructs that prevents the implementation of sustainable construction practices in building projects in Thailand, namely: ‘Incognizance Born impediments’ and “Dearth of standards and education”.

Recommendations
- The architects should try to suggest their clients about the inclusion of such practices that makes the buildings sustainable, and try to make them aware of the adverse affects of using the conventional way of buildings.
- The involvement of clients in the design phase of a building project is very important; once the clients get the understanding on the sustainability issue, this can make the shift in the culture.
- The client’s should not take their decision based on financial terms only , rather they should think of the longer term benefits of sustainable buildings, and think of the affects of the buildings on the environment and human health.
- The institutions should try to include the courses that focus on the agenda of sustainability in construction. This will make the future generation aware of these concepts.
- Other professional institutes should also take efforts to eradicate the barriers as identified by this research, by organizing trainings and workshops for the stakeholders involved in the building industry.
- The governments need to support the movement of the implementation of sustainable construction in building projects, through making positive changes at policy level to enforce the sustainability agenda.
- Moreover, the business cases of the sustainable buildings should be promoted highly by the government, to eradicate the misconceptions about using sustainable construction practices, especially about the higher upfront investment cost.
- Both the private and public institutes and other organizations should try to expedite the process on developing the labeling standards for green buildings in Thailand.

His thesis abstract is copied and pasted.

Abstract

Sustainable construction is an emerging concept that aims at incorporating the general sustainable development concepts into conventional practices of construction industry. While the foundation of knowledge in this field is continuously expanding around the world; in Thailand sustainable construction practices are not yet widely applied in the construction industry in general and building industry specifically. This is resulting in several problems to the environment and human health. Thus, this research is carried out to assess the implementation of sustainable construction practices (of the design phase); and to determine the factors that best prevents and promotes the implementation of sustainable construction practices in building projects in Thailand.

An electronic questionnaire survey was used to seek the responses of architects working in Architectural firms. A total of 50 usable responses were achieved from 50 architectural firms. Thereafter, the data obtained was analyzed through utilizing different statistical methods, such as descriptive statistics, nonparametric test and factor analysis.

The study determined five sustainable construction practices of the design as those practices which the clients are more willing to implement it in their building projects in Thailand. Moreover, three practices were identified as those which are mostly implemented in buildings projects in Thailand; and three practices were identified as those which are rarely or not at all implemented in building projects in Thailand. In addition, it was determined that the clients in Thailand are relatively high willing to implement those practices which are concerned with ‘Indoor Environmental Quality’ of a building.

Furthermore the study determined five factors (drivers) that promote the implementation of sustainable construction practices in building projects in Thailand. Also the result of nonparametric test showed that there is significant difference in actual contribution and in respondent’s opinion on each driver. The results of the factor analysis identified three underlying factors that drive the implementation of sustainable construction practices namely: 1) Effective Government Interventions, 2) Benefits and Strategic Advantages, and 3) Client Awareness and Demand.

Lastly, the study determined five factors (barriers) that prevent the implementation of sustainable construction practices in building projects in Thailand; and from factor analysis identified two underlying factors the hinders the implementation of sustainable construction practices in building projects in Thailand, namely: 1) Incognizance Born Impediments and 2) Dearth of Standards and Education.

Keywords: Sustainable Development, Sustainable Construction (Practices), Construction Industry, Building Projects, Drivers, Barriers.

Project Organization and Responsibilities Management in Construction Project

2011-07-11T19:04:00.001+07:00

The management of any project is also a series of difficult tasks and challenges because of the variation in the implementation process as well as in determining the final output.

On the basis of knowledge on "Organizational management in construction project", combined with the actual work being applied to the formulation of the organizational chart of project management and regulations functions, duties and powers of the divisions, departments on the gas pipeline project of Lot B-Omon (EPC contract-onshore part), Mr. Nguyen Viet Hien made a case to: (1) study the theories and practice of project organization structure and responsibilities; (2) study the existing practice of PVC in project structure and responsibilities; (3) discuss the effective of the structure and responsibilities in terms of communication, coordination, work performance, job satisfaction and productivity; and (4) propose recommendation for improvement.

Conclusions

With the knowledge learned from AIT and through research, the management and administration of construction gas pipeline project Block B-O Mon see the nature and importance of the stage of organization and assignments for various departments, and parts, individual, which is extremely large. It is crucial to the successful implementation and management of projects with high efficiency.

It is also found out that the managers face risk and volatility in process implementation, in managing any project which also set difficult tasks and challenges.

Although, currently the process technology and process for project management advanced models have been deployed and applied by the managers, the fact also showed that even when the detailed plan was map out, and using the method of operations are very professional, but can still the elements and issues adversely affect the success of the project.

Some key issues in the company's project management system are summarized such as follows:
1. Practice of project organization structure and responsibilities: In the organization chart, there are no parts forecasting, evaluation and control risks and remediation projects.

2. The theories of project organization structure and responsibilities: The organization charts applied the horizontal structures, so it’s lack of coordination/communication between the Site office with the Head office and between departments, sections of the Site office.

Below are some solutions for the effective structure and responsibilities in terms of communication, coordination, work performance, job satisfaction and productivity:

1. To set up or hire professionals perform forecasting, evaluation and control risks and remediation projects.

2. Increase manpower to form a coordination group; strengthen the communications.
3. Many non-standardized process: Implementation is based on practical experience, lack of standard documentation procedures, instructions, guides of implementation. Many useful tools and techniques are not applied in the process of project management. Project management officers are not trained and not equipped with modern management knowledge.

4. The establishment of planning and implementation process is not good. There is no specific planning for the management of projects. Work scope, or quality plan for each project work are also unclear. Control activities and implementation project of the project team members almost exclusively based on experience.

5. There are no standards and procedures, no formal system operations to measure and assess the level of success and failure of each stage, processes, projects and the implementation of project team members. So there is no firm foundation to plan for performance improvement of project managers.

6. There was a formal process to evaluate and audit procedures, guidelines and recommendations, implement improvements (in quality management system ISO 9001). However, due to limited knowledge and skills of staff in modern project management, it may not have much performance improvement as expected.

7. No procedures or guidelines for collecting information of subcontractors or suppliers on the project issues, the lessons learned to store in a convenient place for use in analyzing and managing projects in the future. So, there is also no official information about the history and lessons learned knowledge database system. All project documents, after completion of the project, needed to be kept in the library.

8. The specific issues such as lack of leadership skills and professional skills; lack of human resources; the corporate culture has no adequate attention; lack of equipment, instrument with new technology in construction; implement management and operating under the ISO was not good; missing parts management information and communication technology and project management software; lack of coordination between the site office with the Head office and departments, sections of the site office, have no best policies yet and the conditions for employees to work long- term attachment to the company; there are not parts forecasting, evaluation and control risks and remediation projects; and bonus issue may be addressed to encourage.

Recommendations

To manage and operate projects with high economic efficiency of the company should focus on improving a number of areas

1. Need to further strengthen the training of managers of modern construction projects for the company staff. The training includes knowledge and skills in project management for individuals, for organizations, and the experience in the administration and project management. It is needed that the introduction of management systems procedures and guidelines to the construction project management teams by international professional staff. The staffs need training and orientation on the management to further their vision, to appreciate better the importance and effectiveness of the project. Building management systems and common standards and procedures is necessary to guide the project team members to be more effective in managing the project.

2. The company should pay more attention on the process of planning the project to ensure that all work will be started and completed under his control.

3. The company needs to improve the system of formal procedures and guidelines to standardize all project management processes within the company. Guidance on the scope of each process is also needed. This helps to keep the consistency of quality and improve the effectiveness of management processes.

4. The company needs to improve and enhance the effectiveness of ISO9001 assessment and audit procedures used by auditor’s competent professionals, in construction project management, and training of project’s good and creative self-auditor.
5. The company must establish and apply the official standards, tools, guidance on measurement and evaluation of the success, failure of the project aim to gather experiences and lessons learned for the management projects in the future.

6. The company should develop a project management office or a center, where the project management staff can easily access the historical information and learned all the projects lessons, reference tools of modern project management and engineering. And besides, the company should develop procedures and guidelines for collecting, and storing the data. These works will be helpful for the management of future projects especially newcomers.

7. The specific issues such as: Training or hiring new people with sufficient skills to meet the work of construction projects to work in the project; Dealing with partners vulgar, may utilize and enlist the help up to the job of Investors and other stakeholders; Rent Contractors outside the work required to use new technology (HDD); Strengthening human resources and Establishment of ISO and IT management team in charge; Increase manpower to form a group: set up and manage and coordinate the process; Increase salary, Enhance cultural life, recreation... information to employees; Making the reward process, timely laborers on construction sites...

His thesis abstract is copied and posted.

Abstract

We know that with any country the development is also based on the platforms: There are firm infrastructures; there are perfect superstructures. Construction industry in the world in general and Vietnam in particular, in recent years had an integration process and booming. It is increasingly contributing to make the infrastructure more and more sustainable. It will set the stage for the construction and development of the country stronger in the future.

The operation and effective management of construction projects have special meaning for large construction enterprises: its highly profitable enterprise, for the country, it reduces the costs of the project, it saves time to perform construction projects, it ensures the quality, engineering, art, durableness and safety of the works ... Get to know the great significance that, and increasingly for the purpose of improving knowledge of general and personal knowledge of the executive management of construction projects under way to reach economic efficiency and the highest profit; How to implement the most advanced project, the best.

So I found myself out and register for the course of AIT MPM. With the knowledge learned through research and apply the "Project organization and responsibilities in construction project management - A case study of the gas pipeline project block B-Omon", I have prepared this thesis. It partly reflects the process of implementing the construction organization for the project. It is a solid foundation to establish the best prerequisites for the next stage of the project implementation process.

Improvement of Organizational Structure for Power Plant Project Management of PetroVietnam

2011-07-07T15:53:00.001+07:00

PVN has invested & built the first power plant since 2005 with only one Management Board (MB). The objectives of the MBs change very fast but the organization structure for all MBs is still same from the beginning. Therefore, PVN’s management for power projects has still some outstanding issues which are the weakness in organizational structure for project management.
Mr. Le Anh Thong made a case study which objectives were to: (1) deeply understand the existing organizational structure of PVN power plant project, to analyse the strength and weakness, advantages & disadvantages of the existing system; and (2) propose recommendation for improvement.

Conclusion

The objectives of PetroVietnam Power Plant Projects (PVN’s PPP) are usually changed very fast, but PVN has still kept the type of organizational structure which is “Functional Structure” since 2004. Although this structure has some advantages, but this structure is not suitable with growth of PVN’s PPP which has caused some weakness and disadvantages in its management so far. With four individual Management Boards, they have not achieved perfect result in time. It is very difficult to control the scope, contingency funds, overall project value; and also it is very difficult to monitor or audit the project’s progress, stakeholder’s commitment, results achieved and the leading indicators of failure, and so on.

Recommendation

Therefore, with the study and analyses of this case study, the proposed improvement is given in which the essential issue of this proposed improvement is the recommendation to apply the Matrix Structure for One General Management Board instead of the Functional Structure for Four existing Individual PVN’s project management organizational board. Consequently, the advantages of the Proposed PVN’s project management organization will be almost same the advantages from the Matrix Structure.

The most important advantage of the Proposed Improvement is efficient use of resources of the whole Proposed General Management Board where specialized individuals can be shared and transferred from one Branch to another or in any PVN’s projects. Therefore, the project management cost is minimized; the total quantity management staff shall be decreased, but the professional grade is easily increased. These are the most useful & efficiency of this proposal.

With the detailed analyses and proposal, the strength & advantages of the proposed improvement are very clear and prevailed to compare with its disadvantages. Besides, there has the proposed solution to solve for these disadvantages. Therefore, it should be considered as preliminary study to apply in the PVN’s thermal power project management with the additional study needed.

However, the proposed improvements will not be enough to improve everything for PVN’s project management. It is necessary with best effort to apply some other solutions in order to gain actual significant improvement and overcome other outstanding weakness of PVN’s project management.
His thesis abstract is copied and pasted.

Abstract

Electric Power is an essential energy for people’s daily life and one of the major factors in labor productivity growth. It helps to develop the economy of the countries in the world, especially for the developing countries like Vietnam. Consequently, it’s very important to know how to manage power plant projects effectively and successfully.

PetroVietnam (PVN) who is the biggest Economic Group of Vietnamese State-Owned Groups has been assigned by Government to invest & build some power plants. So it is necessary for PVN to improve their power plant project management. With the scope of my report, I will mention about the improvement for organizational structure of PVN’s thermal power plant project management and my Management Board.

The Objecctive of my Report is the Proposal to improve ORGANIZATIONAL STRUCTURE of PVN’s PPP to manage PETROVIETNAM POWER PLANT PROJECTS (PVN’s PPP), and solve their weakness/disadvantages & gain better effectiveness and success.

The reason to find the above Ojective are the objectives of PVN’s PPP are usually changed very fast, but PVN still has kept the beginning type of organizational structure from 2004 up to now, and some weakness/disadvantages were found in PVN’s PPP management so far.

Therefore, the case chosen for my report which is the organizational structure of PVN’s PPP.

By the analyses based on theory of organizational structure for project management colland my experience during a long time work in PVN’s PPP, my recommendation of the Proposal in my Report is the application of the Matrix Structure for One General Management Board instead of the Functional Structure used by many PVN’s individual Management Boards that expected to gain the above Objective to PVN’s PPP management.

Risk Management on New Residential Development Project

2011-07-05T16:41:00.002+07:00

In recent years, many real estate companies in Vietnam have been establishing and many New Residential Zone Projects were established. In Binh Duong City many of new residential zone Infrastructure development projects have been delayed and these projects suffer cost over run due to many reasons such as land compensation issues, lack of social agreement, insufficient capital for buying the land, late permitted from authority especially in master plan and architectural city design, poor in design and construction, water treat and environment issue and so on. In those projects managers could not deal with the risks and uncertainties which they met in project implementation process.

Mr. Bui Hai Nam made a case on Vo Minh Duc Project, Binh Duong Province to find risk management means that are associated with the project network structure. The objectives of his study were to: (1) find out risk factors in construction and analyzing the relationship of these factors and thereby enhance understanding of construction risks ; (2) propose strategies to effectively eliminate or mitigate major risks, and (3) propose solutions that identify and prevent risks in similar projects

Conclusions

In general, risks from various sources in construction is unavoidable, but it can be minimized. There are several ways to handle risks such as the risk of their transfer to other subjects, reducing the negative impact of the risks, and accepting some or all of the consequences of a specific risk.

The determination of activities and investments, analysis and evaluation, with measures to control and reduce the impact of risks is urgently needed to ensure the feasibility and effectiveness of the project. Risk management should be evaluated and implemented from the first steps of the project and continue in all project implementation cycle. The process involved a construction project in general, as well as developing infrastructure for new residential projects, must be carefully prepared from the initial stages until the end, handing over the project for investors. Moreover, there are several organizations and partners participated in a construction project, especially in new urban projects in infrastructure development. The organization is concerned with land owners, customers, designers, contractors, subcontractors, consultants, suppliers, materials, electricity, water supply, customers, agencies and public facilities, and government. Thus, the establishment of a relationship, and this all opinion really are necessary.

In the project of new urban development, there are many risks affecting the progress of the project implementation, project quality, project financing and timing of delivery and government customers. To cope with risk, it is necessary to establish a strategy that can be effective and efficient in response. Risks and uncertainties from various sources can not be eliminated, but can be reduced, transferred or retained.

There are several ways to handle risks such as transfer risk to another party, avoiding risk, reducing the negative impact of the risks, and accepting some or all of the consequences of a particular risk.

In large projects, limiting the risk is extremely important. Effective implementation of the limited risk will save a lot of time and money to the owner and main contractor for the project.

To deal with risks, it is necessary to establish an effective strategic and effective response. Thus, this research project attempted to identify risk and implement a risk management study for the new urban projects.

Identify major risks

- There are many consulting organization specialized in designing technical infrastructure to participate in the design.
- There are many different contractors from specialized technology, building on the same site on the surface and underground at the same time.
- Running time the project lasts.
- After building the technical infrastructure is completed, the developer must transfer to the agency offices, government management.
- Based on the level of impact and likelihood, we can draw the main risk factors affecting the project schedule. The results are summarized in Table below.

His thesis abstract is copied and pasted.

Abstract

A lot of the risky management researches are targeted to the construction projects. Number of studies are stressing the importance and superiority of the co-operation and less formal risk management means, but concrete methods are not introduced. In addition, the use of already developed risk management methods is modest at construction sites.

Projects Urban VO MINH DUC of ThanhNguyen Real Estate Investment & Constructions Corporation has been building between 2008 to 2012. But so far, the project has achieved only about 20% workload on its completion. The progress delay has been caused by so many factors and different causes. Risks appear frequently causes damage to the efficiency of investment projects. The question for us to research, resolve and identify and evaluate the impact of risks, control them to ensure effective pre-defined investment project.

The major risk factors in this project:
- Political environment, nature, infrastructure;
- Economic environment, currency markets;
- Technical factors within the project;
- Non-technical factors within the project;
- Implementation of construction factor.

Research was conducted in 10 / 2010, when five full interview is done in construction projects urban Vo Minh Duc. Interviews were targeted to the representatives of the designers, builders and customers. Apart from the documents obtained from the interviews, subjects also use data sources of other projects and the investors are from The Highlands Company

Theory and practice in managing risk in projects Vo Minh Duc urban poor. In this project, the limitations of risk management is lack of organization, lack of required conditions such as time, resources and cost, managers are not familiar with risky management. In addition, policy factors from the State is also cause to delay for this project.

CEIM open applications for August 2011 intake

2011-07-01T17:20:00.000+07:00

We open the application for August 2011 intake for AIT Thailand campus. Limited numbers of scholarships are available for talented applicants. Some of the scholarships are Royal Thai Government scholarship, The King of Thailand scholarship, The Queen of Thailand Scholarship, Asian Development Bank scholarship etc.

What is CEIM? CEIM master and doctoral programs aim to prepare engineers to manage large construction projects starting from planning, design, tendering, construction and commissioning.

What will you learn? you will learn important knowledge and skills in project management in construction such as project planning/scheduling, project cost and financial management, organizational management, project contract, project risk, project quality management, project performance management and project financing.

Where will you work after graduation? You can work in strategic industries that highly need project management such as:
- Contractors (highway, building, oil/gas and energy)
- Consultants
- Property and real estate developers
- Bank and Invesment companies
- Public Private Partnership Consortium
- Financial and Banking institutions that lend fundings for construction projects
- hotel and apartment development
- oil and gas construction

What else will you learn during your study with us in AIT?
AIT is a very multicultural insitute. Our students and faculty members come from different parts of the world such as Thailand, Vietnam, Bangladesh, India, Taiwan, Pakistan, Indonesia, China, Korea, European Union. Aside from studying knowledge, you will also learn different cultures and different ways of thinking from your friends; and develop your global international networking.

Please contact CEIM Secretary (Ms. Woranuch, phone 025246060 or email woranuch@ait.ac.th) for further information.

Visit CEIM: http://www.set.ait.ac.th/ceim
How to apply? http://www.ait.ac.th/AIT/admissions/admissions

Regards
Dr. BHW Hadikusumo
Associate Professor
CEIM Coordinator
MPM Coordinator

Contractor Prequalification Criteria, Tendering Criteria, and Tendering Procedure in Cambodia Building and Housing Construction Projects

2011-07-01T16:41:00.001+07:00

The construction industry can be considered as one of the largest industries that can contribute significant fraction of national product in Cambodia. However, people in this business face many problems such as prequalification, tendering and selecting a contractor.

Mr. Puoy Puthitha made a research to give the suitable selection criteria whether it will be effective in building construction projects in Cambodia. The process of contractor selection can be achieved, unless the prequalification, tendering criteria and tendering process will be linked to project performance in term of time, cost, quality, and customer satisfaction. It means that different project types and objectives should have different proportion on each selection criteria.

The purpose of his research is to define contractor prequalification criteria, tendering criteria, and tendering procedure in Cambodia building and housing construction projects and then how the contractor prequalification, tendering criteria and tendering procedure affect the project performance. The specific objectives of his research were to: (1) study effective contractor prequalification criteria; (2) study effective contractor tendering criteria; (3) study effective contractor tendering procedure; and (4) how contractor prequalification criteria, tendering criteria, and tendering procedure affect project performance.

Conclusion

There are four main findings in this study such as follows:
1. The effectiveness of contractor prequalification criteria in building construction projects.
2. The effectiveness of contractor tendering criteria in building construction projects.
3. The effectiveness of contractor tendering procedure in building construction projects.
4. Contractor prequalification criteria, tendering criteria, and tendering procedure have different affected on project performance.

In order to get the effective or significant factors and sub-factors from contractor prequalification criteria, tendering criteria and tendering procedure, the results were combined the ranking by mean with the correlation analysis results.

Contractor Prequalification Criteria

1. Financial Consideration: financial stability, financial status, Bank arrangement and bonding capacity.
2. Past Performance: failure to have completed projects, schedule overruns, cost overruns, past failures, owner/contractor relationship
3. Technical Ability: technical expertise, possessed plant and equipment, experience
4. Management Capability: past performance and quality, project management organization, experience of technical personnel

Contractor Tendering Criteria

1. Price: fixed capital cost, variable tender costs during the contract period, maintenance costs
2. Technical Skills: design quality, technical expertise
3. Methodology: program of works, division of works into sub-contracts, key performance indicators, reporting and recoding systems
4. Relevant Experience: project cost
5. Past Performance: quality standards, target performance level; tender price, variations and final cost.

Contractor Tendering Procedure

1. Tender Evaluation: tender quality (technical evaluation); tender price (financial evaluation); determine lowest bid; responsiveness, and responsibility
2. Tender Submission: sealing and marking of the tenderers, tender forms and tender specification document; tender terms and condition for bid preparation; post offer negotiation
3. Prequalification and Registration: prequalification requirement

The following description in details about the conclusion of this research study will support the conformation of each objective. All the results are computerized by SPSS software in order to get the data analysis results.

Project Performance in Building Construction Projects

Most of consultant companies in Cambodia had carefully focused on the process of selecting the qualified contractors in order to get the project successfully. In addition, the project owners were spent enough time in selecting the qualified contractors, particularly running projects and the quality control. As a result, the projects were finished within the budget, the quality of construction projects was good, and the contractors could be able to satisfy to the customer’s requirements.

The Effectiveness of Contractor Prequalification Criteria

Financial consideration found to be the main key factor for contractor prequalification criteria in Cambodia building and housing construction project, this result is related each other, which mean in order to be successful in performing the effective contractor prequalification process, the project owners have an important role in making the right decision for selecting the main contractors for construction works based upon the financial information of the contractors.

The Effectiveness of Contractor Tendering Criteria

The Price found to be the important factor for contractor tendering criteria in Cambodia building and housing construction project. Most of the tenderers still rely on tender price which has been proven its competency to acquire the contracts. The other contractor tendering criteria also are quite significant stimulated in contractor selection?

The Tender evaluation found to be the important selection process for contractor tendering procedure in Cambodia building and housing construction project.
This process is to financially and technically evaluate the tenderers’ performance in order to acquire the projects. The other contractor tendering procedures also are quite significant stimulated in performing the construction tendering practice.

The Correlation between Contractor Prequalification Criteria and Project Performance

The result shows that past performance, technical ability, and management capability are perceived to be the dominant contractor prequalification criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, financial consideration was perceived to affect only time, quality, and customer’s satisfaction. But Contractor’s organization and Past experience did not show any correlation with project performance. It can be concluded that most of the project owners focused on these two factors as somewhat important on how to acquire the qualified contractors by regarding to the perceived impact of the other decision factors on contractor prequalification decision making; the projects were still cost overrun and overtime. That’s why the customer did not satisfy in their performance. This is due to external factors such as lack of accurate data from the contractors, imprecise information, subjective information, and subjective judgment. Furthermore, they were also suffered from the rising of construction costs because of the materials fluctuation, lack of updating their technical performance, and lack of government regulation. Particularly, the projects were stopped due to heavy rain and flooding. Therefore, the external factors need a lot of information for assessing their impacts in order to achieve the project successfully in construction industry,

The Correlation between Contractor Tendering Criteria and Project
Performance

The result indicates that Price and Methodology are perceived to be the dominant contractor tendering criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, Technical skills, Relevant experience, and Past performance were perceived to affect only cost, time, and quality. But Resources and Management skills and systems did not show any correlation with project performance.

However Resources, Management skills and systems can be considered as somewhat important. The contractor tendering criteria had the moderate mean for resources, management skills and systems, the projects were not success. This is because the project owners did not much focused on the information of resources, and management skills and systems. Even these two criteria were somewhat important in selecting the qualified tenderers, the projects were still cost overruns, over time, unqualified quality, and the client didn’t satisfy. It might be affected by other external factors which were concerned with project performance.

The Correlation between Contractor Tendering Procedure and Project
Performance

The result indicates that Tender evaluation and Tender submission are perceived to be the dominant contractor tendering procedure affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, prequalification and registration were perceived to affect only cost, time, and quality. But Contract award/execution, Tender opening, and Invitation to tender did not show any correlation with project performance. However, the Contract award/execution, Invitation to tender, and Tender opening can be concluded as somewhat important. Even the project owners had depicted clearly their requirements in construction contracts during their contract award/execution, invitation to tender, and tender opening; the tenderers were not successful yet to receive the owner’s requirement. Furthermore, the tenderers had been considered as some part of important in these stages, but the project owners and consultants were still not accepted their performance yet as well. The reason is that it might be affected by other external factors which were concerned with project performance.

His thesis abstract is copied and posted.

Abstract

The construction industry today is a highly competitive industry with an enormous amount of risk, particularly many conflicts, problems, adversity, and uncertainty. The construction projects are usually confronted with many conflicts, problems, and uncertainty due to a result of failure in selecting a competent contractor. To perform the project success, the owner’s team has an important role to figure out these many conflicts and problems such as schedule delays, cost overrun, low productivity, and contract disputes by being able to evaluate the contractor’s performance in the proper way. This study is based on quantitative research through questionnaires and carries on to first identify the contractor performance criteria in terms of prequalification criteria, tendering criteria, and tendering procedure and to help the project owners to assess the tenderer’s performance. Second, this study aims at describing how the contractor prequalification criteria, tendering criteria, and tendering procedure affect project performance.

This study was conducted in Cambodia building consultant and construction companies to study effective contractor prequalification criteria, tendering criteria, and tendering procedure for being able to select the competent contractors. In each case, the criteria have been ranged the scores in order to facility the project owners are able to evaluate with flexibility. The result found that first financial consideration, past performance, and technical ability in contractor prequalification criteria; second price, technical skills, and methodology in contractor tendering criteria; third tender evaluation, tender submission, and contract award/execution in contractor tendering procedure respectively are important and should be applied when performing contractor prequalification and tendering systems in practice. They all are the main concern in order to achieve the successful projects.

Based on the correlation analysis result, it shows that different contractor prequalification criteria, tendering criteria, and tendering procedure are significantly positively and differently affected on project performance. That means different contractor prequalification criteria, tendering criteria, and tendering procedure have different affects on project performance. Furthermore, the results from the correlation analysis show that Past performance, Technical ability, Management capability, Price, Methodology, Tender evaluation, and Tender submission are perceived to be the dominant contractor prequalification criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, Financial consideration were perceived to affect only time, quality, and customer’s satisfaction. At the same analysis, Technical skills, Relevant experience, Past performance in construction tendering, and Prequalification and Registration were perceived to affect only cost, time, and quality. But Contractor’s organization, Past experience, Resources, Management skills and systems, Contract award/execution, Tender opening, and Invitation to Tender did not show any correlation with project performance. Practically, the two case studies above showed the correlated study between quantitative and qualitative study. The result indicated that the factors among the construction tendering practices above were tended to the project successfully.

Factors Affecting the Performance of The International Construction Contractors (ICCs) Doing Business in Cambodia

2011-06-29T11:05:00.002+07:00

International construction business is the kind which embodies with serious economic, social, and political ramifications leading to the failure of the international project success in term of time, quality and cost (Walewski, 2003). The difficulties such as client communication, understanding new market, avoiding local politics and supervising the diverse group of professionals are confronted by the international construction business (Kangari and Lucas, 1997). Moreover, the inability to understand the clients’ requirement affects the project success in international business (Ling et al., 2006). The increasing of the misunderstanding, delay and costs resulting from unfamiliar environment and different institution such as regulations, norm, and cognitive-cultural belief with diverse participant are critical things (Will and Levitt, 2010). As Han et al.,(2005) stated that the risk factors associated with overseas construction projects can diminish project profitability .There are many researchers found that the delay and cost are increased due to the confusion among project participants (Flyvberg et al., 2003; Miller and Lessard, 2000; Orr, 2005), and due to dispute resulting from different cultures (Ghopshal, 1987).

Mr. Hout Venghong made a research on an international construction contractor (ICCs) doing business in Cambodia in order to: (1) investigate the current practices of the factors affecting the performance of the international construction contractors doing business in Cambodia; (2) develop the causal relationships affecting the performance of ICCs model of each investigated factors and figured out how each contractor copes with; and (3) propose the recommendation and a framework to the international construction contractors to take into account in order to do business in Cambodia.

Research Findings

Investigated factors affecting the performance of the International Construction
Contractors (ICCs) doing business in Cambodia

Based on the data gathered, there are five factors influencing the decision making of the international construction contractors doing business in Cambodia taking to the account to strategize accordingly in order to execute the project lucratively. The current practices of the factors affecting the performance of ICCs doing business in Cambodia are:
(1) condition of the host country and project owner,
(2) international construction contractors’ ability,
(3) characteristic of organization and participation,
(4) entry mode, and
(5) Uncontrollable variables with nineteen sub-factors.

Develop the causal relationships affecting the performance of ICCs model of each investigated factors and figured out how the firms response to each factor

1. Cambodian Government policy. The government does not have clear procedure for project approval and construction law and regulation for the construction projects. The tax and custom system, still, are not transparent which can affect to the project schedule and performance as well. The unethical practice, construction law and regulation should be completely addressed the firm from the beginning of the planning stage. The procured materials have to be taken with high attention in order to meet the projects’ objectives to avoid delay and cost overrun. Lack of construction law and regulation with weak legal system leads the firm hiring a legal advisor or international lawyer to prepare the legal documents related to avoid the conflict during the projects execution. The legal advisor or lawyer is asked to involve after the international construction contractors awarded the contract.

2. The unskilled labor issue in Cambodia construction sector. This is a big problem challenging the international construction contractors, especially when the project is complex and very specialized. Because construction market in Cambodia is not really attractive yet. There are quite few tall buildings and complex projects in Cambodia. Consequently, this provides less opportunity to the local laborers to experience with similar project. Even the local labor cost is cheap but the problem is unskilled laborers who are mostly farmers, so they will quite the project to go back home.

3. Lack of local skilled engineers who are able to use English as official language, especially for technical terms in construction project. The knowledge of local engineers was considerably limited since they did not have a chance to involve with similar complex projects. The local contractors are lack of knowledge in quality control and they are mostly not qualified for either big projects or specific projects. The employment of the staffs has to be mixed because the local staffs need to coordinate at construction site between the local labors and foreign staffs. The research is also found that the entering of the international construction contractors is to consider market attractiveness with the local government support.

4. Owner delayed payment. It plays a crucial role to the quality of the project, delay payment will results to time delay.

5. No local financial institution to help the contractors or subcontractors. The lack of the big local contractors to join the international construction contractor is one constraint that the international firms do not want to do business in Cambodia. The firm has to ask for the home country contractor or the third country to execute the project. This is still riskier than joint venture with the big local contractor in case they find the suitable local contractor to make a joint venture.

6. Most of the projects are under loan or grant projects from ADB, World Bank or the other financial institution, therefore the international construction contractors did not want to bid the projects, because they are so competitive. On the other hand, the contractors who want to launch their projects with high quality to maintain their good reputation will not bid the public projects, because the project volume reflects to the skilled labors and many subcontractors to execute the project as well.

Recommendation

Based on analysis of current practices of the international construction contractors doing business in Cambodia, below is the summarized recommendation for the International Construction Contractors.

His thesis abstract is copied and pasted.
Abstract

This study aimed to investigate the factors affecting the performance of the international construction contractors (ICCs) doing business in Cambodia. Five firms in Cambodia were investigated through case study approach explanation building strategy as specific analytic approach in case study. The current practice factors/sub-factors were verified with nine industry experts and practitioners experienced in Cambodia construction industry. The administered research questions developed by a researcher being conducted with seven top management level of ICCs. In addition, the secondary data and the direct observation of the construction projects are carried out to get the supportive evidence to the result from the interview session. However, the short interview with the persons who were responsible at construction site was carried out during project direct observation. The research showed that the unethical practice, unclear tax and custom system, material availability, unskilled labor issues, lack of construction law and regulation, lack of legal system, unwillingness of local government support, different practices between the contractor and designer. From the finding, the response of the international construction contractors was pointed out with the each investigated factors accordingly. Objectively, the causal relationships affecting the performance of ICCs doing business in Cambodia was developed with the recommendation for better practices in Cambodia construction industry.

Key words: Factors, Performance, International construction contractors, Business,
Cambodia

Influence of Financial Risk for Project Financing throughout Real Estate Development Process: A Case Study of a High Rise Apartment Project in Vietnam

2011-06-27T16:45:00.002+07:00

Many risks and opportunities occur in real estate market, especially during development phases (Mou, 2007). However, in Vietnam, there is a lack of knowledge about the influence of financial risk in real estate development process. Therefore, Mr. Nguyen Quoc Trung tried to research the influence of financial risk to project financing throughout development process. Furthermore, his study tried to explore relationship between the financial risk, the development process and the project financing to reduce its influence. The objectives of his study were: (1) to investigate the real estate development process in high rise apartment project and to indentify financial risk factors in each activity of process; (2) assessment the critical factor of financial risk on the development process and the influence of these factors to project financing throughout development process; and (3) purpose the conclusion and recommendation to reducing the influence of these factors on the project financing throughout the development process.

Research findings

1. The real estate development process and financial risk factor happen on this process in high rise apartment project

The first objective of this study is to find the financial risk and development process of high rise apartment project. After analyzing the data, it was found out that financial risk has 4 categories: legal risk, leverage risk, financing risk, inflation risk and risk of construction cost. While the development process of high rise apartment project includes 4 phases, there are project allocating, feasibility study, contract – license – commitment and execution and sell. The financial risk factor in each phase of development process is verified by expert and this supports for the developer, the real estate company and who related in development process of high rise project to get the overview picture of real estate development process and the financial risk happen in each step of process.

2. Assessment the critical factor of financial risk on the development process and the influence of these factors to project financing throughout development process

Base on the frame work, the development process and financial risk happen in each step of process. The researcher assessed all financial risk factors in each step of development process throughout the case study. This assessment was done by the development team of Project A, who directly manages this project. The assessment of influence of financial risk factor in development process and database of this project is analyzed to get the critical factor of financial risk on development process. The financial model of project is integrated with the critical factor of financial risk throughout development process for analyzing influences of critical factor of financial risk to project financing model throughout development process.

This finding shows the practice of development process in high rise apartment project and the influence of financial risk on development process. In this finding, the legal risk and leverage risk can lead to financing risk, inflation risk and risk of construction cost on the development process. Every activity of development process has relationship to each other. So, in each phase of project, the financial risk factor has impact to each other. This finding also shows the gap of perception of Real Estate Company about the influence of financial risk on development process. The Real Estate Company always wants to control the cost of the construction project but the real estate company forgets that the more important is the maximum profit of project. With this reason, the real estate company does not understand the demand of housing characteristic for project design of each segment in market. They always focus on the cost if this project is mid end or low end project. The delay for project operation increases the inflation cost and construction cost but decrease the profit of project.

3. Recommendation to reducing the influence of financial risk to project financing throughout development process.

The project financing in real estate development process is the key for successful project. To reduce the influence of financial risk in each phase of development process is the key for making decision for risk management. In order to achieve the maximum profit of project and control the cost of project, all of financial risk need to reduced and controlled. The recommendation to reducing the influence of financial risk to project financing model throughout development process is summarized in the table below.

His thesis abstract is copied andposted.

ABSTRACT

The real estate company always want maximum the profit and minimum the cost of project. With this purpose, the real estate company manages the financial risk to get the profit and control the cost. The real estate development process is complex project and very risky. In this process, the financial risk impact to project financing dramatically. With this reason, the influence of financial risk to project financing throughout development process is studied to support the real estate company and actor related in development process in order to make solution reducing the influence of financial risk to achieve objective of project.

This research was conducted to fulfill the three objectives. (1) to investigate the real estate development process in high rise apartment project and to identify financial risk factor in each step of development process; (2) to assess the critical factor of financial risk on the development process and the influence of these factors to project financing throughout development process; (3) to purpose the conclusion and recommendation to reducing the influence of these factors on project financing throughout the development process.

The result of this study found that the perception of Real Estate Company do not correspond with the influence of financial risk. The financial risk factor impact the both source of fund and use of f

und of project which is included the project financing model throughout each phase of development process. All of consequence of risk factor is show in execution and sale phase. This makes profit of project decrease dramatically and increase the construction cost. This study also shows that Vietnam has not yet created a convenience environment for the real estate business.

Key words: Real estate, development process, project financing, financial risk, risk factor, case study, Vietnam

Life Cycle Cost Analysis for Hydropower Projects

2011-06-22T16:31:00.000+07:00

Life cycle cost is a key economic figure resulted from condensing an almost overwhelmingly large quantity of data (Pelzeter et al, 2007). The accuracy and sensitivity of these data can be difficult to analyze to become reasonable inputs for life cycle costs assessment.

For hydropower projects, there is a master plan to develop these projects in almost every country. However, because of the available budgets, the projects are needed to be ranked in order to decide which projects are necessary, economical and beneficial more than others. Life cycle cost analysis is one of the useful ways in decision making process and long term planning of the project. So, different projects are needed to compare their life cycle costs and incomes. Because of the various factors that can affect on hydropower projects, the uncertainty and the risks are high and difficult to predict.

Mr. Kyaw Min Thu made a case study which major objectives were to: (1) compare the life cycle costs and net present values of hydropower projects/plants with different types of turbine; and (2) identify the major cost contributors in life cycle cost of each project,
Conclusions

In this research, life cycle cost analysis of hydropower projects installed different types of turbine are conducted on the costs incurred in the hydropower plants to determine the most beneficial technology in terms of cost effectiveness. The hydropower plants for this research are selected among the hydropower plants in Thailand which are operating under management of EGAT. To conduct the analysis, all accessible cost data are collected and the researcher followed the cost categories of responsible agencies. All the costs incurred in the selected hydropower plants that can be accessed are considered and then converted into the same period to analyze. The costs data are converted in the same unit (thousand baht per year) at the end of each year within the analysis period.

Moreover, the energy generated data from each selected hydropower plant are collected and calculated the incomes of the power plants each year using the average energy sales price. The incomes getting from the energy generation are considered and calculated as one of the parameters in life cycle cost analysis for wider perspective to determine the outputs. The net present values of the hydropower plants are achieved from the costs and incomes incurred each operation year in the hydropower plants. The analysis’s results are converted into cost per capacity and cost per energy as the capacity of the hydropower plants can affect the results of the analysis.

Among factors influencing the selection of the turbine types of hydropower plants, the result of life cycle cost analysis can be just one of those factors. A final decision may include a number of additional factors outside the LCCA process, such as availability of funding, capability to perform the required construction, expertise and experiences with a particular turbine type and so on.

1. Comparison of Life Cycle Costs of Hydropower Plants

As the capacities of the hydropower plants that can get enough data to conduct analysis are different, the analysis is performed to get the values for unit capacity and unit energy generated for each hydropower plants.

Based on the data analysis for three types of hydropower plants with three different types of turbine, the Francis turbine power plant is more cost-effective than other two types of power plants with respect to the life cycle cost per installed capacity, life cycle cost per energy, net present value per installed capacity and net present value per energy.

The Kaplan turbine hydropower plant and Pelton turbine hydropower stand as decreasing order with respect to their life cycle costs per installed capacity, life cycle costs per energy generated and net present values per capacity and energy generated by the Pelton turbine plant has the larger values than that of Kaplan turbine plant. Thus, the Pelton turbine hydropower plant is more favorable than that of Kaplan plant in terms of cost-effectiveness.

2. Major Cost Contributors in Hydropower Plants

The present values of each cost categories involved in total costs of hydropower plants for each year are calculated to find out the contributors and their ratios in the life cycle costs. The researcher follows the responsible agencies in categorization the costs incurred in the hydropower plants.

In every plant, the life cycle costs spent for civil structures are the largest in the life cycle costs for the whole plants, in other words, life cycle costs of civil structures are major cost contributors in whole life cycle costs of hydropower plants. However, taking account only the operation and maintenance costs, the costs incurred for the electromechanical equipment are the larger than for the civil structures.

In terms of costs per capacity and energy generated, for each cost category, the hydropower plants can be arranged as Kaplan, Pelton and Francis turbine hydropower plant in decreasing order.

According to the results of the analysis, Francis turbine power plant has the least cost per energy generated in all cost categories so Francis turbine is the most favorable among hydropower plants with different types of turbine.

Thus, life cycle costs of civil structures in the analysis period are the major costs contributors in all types of plants while the operation and maintenance costs of the electromechanical equipment are major cost contributors among the total operation and maintenance costs of hydropower plants

His thesis abstract is copied and pasted.
Abstract

The hydropower projects are needed relatively large amount of investment relative to most of the other projects in construction industry. Thus, the decision making on selecting the technologies using in the hydropower plants are needed to analyzed well because of the costs incurred in the whole life of the plant come from the decisions made before starting construction and operation of the plant. Life cycle cost analysis is worth to be conducted as it can give the results not only on the initial costs but also on the costs in the whole life of the studied assets.

In this study, the objective is set to conduct the life cycle cost analysis for the hydropower plants which are installed different types of turbines. The life cycle cost analysis for each type of plant is carried out and the results are shown as per capacity and per energy generated of the plant. The main components of the inputs, which are historical data from hydropower plants, are gathered from the representative agencies. The comparisons of the results of the analysis are performed to select the most cost-effective technology for the hydropower plants in long term basis.

As the results of the analysis, it is found that Francis turbine hydropower plant is more cost effective over than other types.

Factors Affecting Operation and Maintenance Costs of Ho Chi Minh City Condominium Projects

2011-06-21T16:16:00.004+07:00

The management of condominium project during the operation stage is an emerging problem for project owners. Normally, the owners focus on development stage and construction stage of the project. They mainly concern in problems related to planning, design, and execution (Arditi & Nawakorawit, 1999a).

In order to recommend to owners or property managers appropriate solutions to control and reduce O&M expense. Mr. Duong Quang Minh made a study which, first, will develop operation and maintenance cost system of existing condominium projects. The purpose is to identify the most important costs in this system. Second, the study will investigate the reasons that cause the cost. Thus, the three main objectives of his study were to: (1) build a generic framework for operation and maintenance cost system of existing condominium projects; (2) find out and assess factors affecting on operation and maintenance cost of existing condominium projects; and (3) recommend solutions to reduce or control the impact of the factors that influence on O&M costs.

Conclusions

For Objective 1

The study analyzed cost data from five case studies to identify the most important cost of operating condominiums. Each cost was given a brief definition, its components, and characteristic. Then, the study developed the generic framework of operation and maintenance cost of condominium projects. The framework is benchmark to compare O&M costs between condominiums.

From the benchmarking, the study found that cost for condominium management is the highest cost with about 46.42 percent of total O&M cost. In addition, energies supplying for common activities of condominium are also high with about 18.26 percent of electricity consumption and about 9.23 percent for water consumption. Also, costs of cleaning and waste disposal are high by about 9.61 percent and costs for maintaining lifts are 6.01 percent.

The reasons behind this high cost include:

1. Management cost: The reason may be inappropriate choices between in-house or out-source employment.

2. Energy consumption cost (Electricity and water supply): There are three main reasons that cause high expense for this cost center such as general facility influences, installation of an old-fashion technology in the facilities, and maintenance policy including lack of daily inspection and preventive maintenance.

3. Maintaining lift cost: Maintenance costs of lifts are costs connected to planned maintenance works to the lifts in the common areas of condominium.

4. Cleaning and waste disposal cost: Reasons that may cause cleaning service cost is lack of design specification of cleaning tasks and inappropriate choice of construction material, specially decorated material.

Objective 2

There is no significant difference between in-house and out-sourcing employment condominium managers. In general, both managers pay attention into reducing operation and maintenance costs. However, based on characteristic of each employment type, the condominium managers have different maintenance strategy to perform the maintenance task effectively. Therefore, they have different perception about the factors that influence to O&N costs.

Recommended solutions to reduce or control the impact of the factors that influence on O&M costs

For new condominium projects, property manager is usually the one that handles all the defects or design faults after the completion of construction stage. Base on accumulated experiences in handling the defects from different building projects, the property manager can feed back what they have suffered from the experiences to the project team. Besides, as the property manager's role is to manage the property, they usually meet the tenants that propose many expectations or requirements to make better living condition of condominiums. These expectations may be valuable information for the owner to make the right decision when investing in new condominium project. In order to better manage the project, property manager should:

• Select appropriate in-house or out-sourcing staff to perform maintenance tasks efficiently
• Imply conservation energy program in order to control and reduce energy consumption
• Pay attention in the management of maintenance task for lift system
• Pay attention in the management of cleaning tasks

The recommendations for the first finding are shown in the below.

There are two recommendations for condominium managers. One is for in-house employment condominium and another for out-sourcing condominium.

For in-house employment condominium, if the condominium owners decide to employ in-house staff to perform the maintenance task, they should invite maintenance specialists to give their advisories during the design stage in order to reduce the maintenance costs as well as operation costs. On the other hand, if there is no participation of maintenance experts in the design process and there are many problems occurring during the operation stage, the project owners should use external staff to perform the maintenance work.

For out-sourcing employment condominium, there is a strong wish of out-sourcing condominium manager about the provision of construction material information. In order to perform maintenance tasks efficiently, the project owner should ask the designer that provides the specification about the characteristic of construction material using for the project. Especially in the case that project owner decides to use out-sourcing staffs.

His thesis abstract is copied and pasted.

Abstract

High-rise residential property management sector in Vietnam is still staying at the early stage of development. There is lack of maintenance concept of building development because most of project owners are only attracted in completion project. Condominium managers have not appropriate maintenance policy for the completed building, and it deteriorates faster than expected service year. Maintenance issues become emerging problems that should be concerned. This study aims to investigate practical management of condominium projects in Ho Chi Minh City through management of operation and maintenance expenditures.

Around the areas of HCMC, the researcher visited many exiting condominiums that have been operating since year 2000. In achieving these objectives, opinions of in-house employment condominium managers and out-sourcing employment condominium managers were sampled through structured questionnaires. The data collected were analyzed using descriptive and inferential statistics. There is a difference between condominium manager’s perception about two sub-factors affecting on operation and maintenance cost. They are “Lacking of involvement of maintenance experts during design stage” and “Materials selection does not comply with the client's activities due to inadequate accurate material information source”

On the other hand, real cost data were also collected from five condominium projects. The purpose the study was that identified the most important O&M costs of condominium by comparing costs among condominiums. Benchmarking was established to compare cost each other. The result of comparison was that found out six most important cost including management cost, electricity consumption, water consumption, cleaning and waste disposal, and lift maintenance cost. After all, the study proposed many solutions that not only help condominium managers managing their assets better but also help other participants concerning about maintenance issues for developing new projects.

Factors Affecting Constructability Practices in Hydropower Construction in Nepal

2011-06-20T15:51:00.002+07:00

Nowadays, the construction industry lacks constructability, which causes many problems, such as increased cost and time required for constructing a project, reduced productivity of project personnel and equipment, and low-quality construction (Nima et al., 2002). In this connection, it is worthwhile to investigate the drawbacks of the existing practices and application of constructability concepts.

Systematic application of constructability concepts will enhance constructability of a project. Consequently, schedule, quality and cost are optimized and all the parties are benefitted from the project. Nepal is practicing constructability concepts in hydropower development however these concepts are not recognized with importance by the key practitioners. Mr. Mukesh Khadka made a case study which objectives were broadly divided into following three parts:

i. To find out constructability concepts and implementation barriers applicable for different phases of hydropower project namely conceptual planning, design and procurement, and construction/field operation.

ii. To identify the degree of importance, level of application and major implementation barriers of constructability concepts in hydropower construction in Nepal.

iii. To propose recommendations for the effective application of constructability concepts in the hydropower project construction in Nepal.

Conclusions

1. Identification of constructability concepts and implementation barriers

For Nepal, thirty-six constructability concepts suitable for hydropower projects are identified out of which seven concepts are suitable for implementation during conceptual and planning phase, twenty-one concepts for design and procurement phase, and last eight concepts are suitable during construction or field operation phase. In hydropower industry, 49 implementation barriers were obtained from expert review and play key role to deter the implementation of constructability concept.

2. Identification of degree of importance, level of application and major implementation barriers

The result of this study confirmed that six concepts are very important constructability concepts in overall respondents’ opinions. The very important constructability concepts are (1) provide detail and clear design information, (2) investigate the impacts of design on safety during construction, (3) documentation of works of good contractors based on quality and time, (4) carry out thorough investigation of the site, (5) evaluation, documentation and feedback of the issues of the constructability concept, and (6) technical specification. Remaining thirty constructability concepts is accepted as important constructability concepts for hydropower construction in Nepal.

The research has also revealed that none of the concepts are being highly applied in hydropower construction in Nepal. All constructability concepts are believed as concept with medium application except three concepts namely, (1) innovation on temporary construction materials/systems, (2) employ any visualization tools such as 3D CAD to avoid physical interference, and (3) design to avoid return visit by trade which fall into category of concepts with little application.

During the study, major constructability implementation barriers were identified and ranked as top ten implementation barriers. These barriers were further grouped into three dimensions named as (1) Ineffective communication and coordination, (2) Socio-political influences, and (3) Insufficient resources using factor analysis. Ineffective communication and coordination between parties may cause conflicts that could eventually impact the project constructability adversely leading to dissatisfaction of the project parties, reworks, variation orders and claims. Not following the execution plan of the project may hamper the critical path of the project thereby causing the time and cost overrun of the project. Socio-political influences are the major barriers of hampering implementation of constructability concepts. Disruption by local people and road strikes imposing various reasonable and sometimes unreasonable causes seriously hamper the project constructability. Insufficient resources due to limited project budget also hinder the implementation of constructability concept. Due to lack of incentives given to the employees, it is very difficult to implement the constructability improvement concepts as employees are the key player for applying them.

Recommendations

Further study is recommended for the following subjects:
• Further study considering large number of hydropower projects of various sizes, different financing models and identification of specific barriers for each constructability concept is necessary in milieu of developing guidelines for hydropower projects

• Further study can be extended to find the detail procedures for effective application of those constructability concepts in hydropower construction and to find the most suitable contracting approach which facilitates effective constructability application.

• A study on suitability of constructability issues in various kinds of contracting approach can be done.

His thesis abstract is copied and pasted.

Abstract

Nepal has favorable condition to develop numerous hydropower plants yet it is facing eighteen hour load shedding per day during dry season. Traditional approach adopted in Nepal for hydropower construction involves many problems such as design changes, reworks, poor safety practices, time delays, cost overruns, disputes, claims which hampers constructability of the project. In this context, it is worthwhile to conduct research which focuses on investigation of the degree of importance and level of application of constructability concepts and identifying the major barriers hindering effective implementation of those concepts. The findings would be appropriate for the preparation of baseline required in constructability improvement guideline for hydropower construction in Nepal.

Thirty-six constructability concepts and forty-nine implementation barriers related to hydropower construction in Nepal were selected for detail study after extensive literature review and expert verification. Through questionnaire survey, opinions on those constructability concepts and implementation barriers were collected from fifty-three managers/engineers associated with hydropower developers, consulting firms and construction companies involved in hydropower construction in Nepal. The quantitative data gathered were then analyzed using various statistical techniques to conclude and recommend further studies. The result of this study revealed that six constructability concepts were accepted as very important concepts by overall respondents and the remaining concepts were considered to be important. To the contrary, none of the concepts are being highly applied in hydropower construction in Nepal. Further, ten major constructability implementation barriers were identified and grouped as ineffective communication and coordination, socio-political influences, and insufficient resources using factor analysis.

The effective implementation of constructability concepts in hydropower projects in Nepal can be attained by developing guidelines for the application of those concepts. For preparation of the guidelines the concepts identified by the study need to be verified with hydropower projects of various sizes and different financing models and detail procedures for applying those concepts should be documented. Also, identification of specific barriers for each constructability concept is necessary in milieu of developing guidelines for hydropower projects.

Keywords: constructability, buidability, implementation barriers, hydropower, Nepal

Effective Pricing Negotiation Strategy of Variation Claims in Commercial Building Construction

2011-06-16T14:15:00.001+07:00

The valuation of variations is near daily task on large construction contracts. It is a norm in the construction industry where one of the contracting parties disagrees about the valuation of work done. Thus, the valuation of variation orders has been admitted as one of the main causes for conflict and disputes in construction management. A mechanism is required to accommodate the process of the changes in order to derive a more objective decision-making. An appropriate mechanism should be identified as a potential feasible solution for modeling the decision making process in the valuation of variation.

As abovementioned, Ms. Supatchana Pumpipat conducted a research studies for proper quantification of variation claims by emphasizing the varied works impact to cost structure which will be claimed by the contractors. Therefore, the major objectives for her study were to: (1) classify the variation works types in civil works of commercial building project and identify the problems that incurred in managing variation; (2) find out how to price the varied works that is generated from variation order that could be caused of claims and disputes; and (3) propose proper valuation process and the effective negotiation on the accepted price for both contractor and owner.
Conclusion

Based on the Case Study, the rebuilding shopping mall project garnered variation orders that were classified into five (5) categories such as:

i) New work – are the additional item in the some part of building for more suitable and aesthetic of the building. Frequently, this category is initiated by owner

ii) Modified work – are the existing of buildings becomes unsuitable for their present use, and then improvement, repair and maintenance are often required to keep them in usable condition.
Change work – are covered amend in some parts or whole scope of work that is stipulate in the contract

iii) Move work – are Moving things without creating any damage to those items including storage of those items, they assume a duty to be included in this section.

iv) Demolishing work – are move the existing part out and would not be reused. And the occupancy of debris that comes from the demolishing process will be agreed before starting work.

v) Correcting Work – items that are corrected or fix the damage of building. Most of them are architectural work.

At first, the author would like to identify the specific valuation method in each variation categories but based on interview, the valuation methods is not related to the variation categories. The valuation methods depend upon the condition and the character of the varied work.

The formulation procedure was initiated in order to manage the emerging variation orders. Basic flows of steps were provided but still flaws were found in processing time in every step. Some VO can be process without any difficulty and some may takes time to verify the submission documents, verify evidence, to gather data to confirm entitlement of the contractor to claim VO. Resolutions to variation order impact through variation order management were viewed and as to the effectiveness of current procedure. Current procedure is useful but can be developed to improve processing period and administer each changes lessening the probable effect to the whole project particularly on the cost.
Actually, the problems of this project are generated in every stage of variation procedure which will only base on the contractor’s viewpoint such as follows.

1. Notification - Information of change is given by either the PM or Contractors or whoever identifies the variation and all site instructions that may constitute a variation should readily indicate and require the Contractor to submit quotation. In the event that the Contractor submits a proposal like for example value engineering, this is the only time when the Project Management team conducts a preliminary analysis on time, cost, quality and the overall effects of the change in the construction.

2. Evaluation – the stage of gathering data to confirm support documents submitted by the Contractor. Determine the quantities, cost and time involved in the variation request. Coordinate the change with the trade in the construction for probable effect on the progress of the work and the work itself. At the same time coordinate with the contractor’s QS for comparison, checking and correcting evaluation. This will greatly discourage dispute in final cost later and save time on repeated evaluation in cases of disagreements.

3. Negotiation-in the event that the contractor still does not agree and cannot settle among QS of both parties, it is only then that the variation is elevated to negotiation. And in times that QS from both parties cannot decide on particular issues, negotiation among PM is recommended to settle the variation.

4. Final Approval– will include informing the Accounting department for the additional cost due to the variation for budgeting and cash flow management.

Nonetheless, one of the common reasons for dispute is the valuation of variation. The current traditional approach has been claimed inadequate to provide a scheme of compensation for any delay or disruption involved due to variations. Actually, rules for variations, when appropriate, the rate and price quoted is used in the valuation for variations. However, the rate or prices may not necessarily be an accurate figure for individual work items. In other words, it represents the collective amount of the project. Therefore, the rules of valuation should not be implemented in a loose way, simply because the rates to which they are applied are imperfect.

A valuation scheme in valuing variations has been provided. The possible outcomes of the scheme when the valuation is to be determined are as follows:

1. Applying original rate and price from similar works in the bill of quantities.

2. Using the original rate and price of similar works as the basis of valuation, applying necessary adjustment and/or allowances.

3. Determining new rate and price derived from fair valuation.

However, there was an issue arise on this scheme as it is potentially creates conflicts and disputes. The conflicts and disputes has been identified, namely the distinction of the varied works compared to the original works, i.e. similar character and/or under similar conditions. In the case of similar work characteristics and/or work condition, the varied works are valued using the original rate and price of similar works in the Bill of Quantities. If the work character and/or work condition is not similar but in the opinion of the assessor is still appropriate, the original rate and price of similar works in the Bill of Quantities will be used as the basis of valuation applying necessary adjustment and/or allowances. If the work character and/or work characteristic are totally different from those mentioned in the Bill of Quantities, new rate and price will be established by fair valuation. A mechanism for valuation of variations is essential if our understanding of construction management is to be advanced.

On the other hand, difficulties may arise among the related parties in perceiving the conditions to be encountered during execution. Each party may perceive the works characters and/or work conditions differently according to the nature of their own needs and for their own benefits. A framework has been developed to fairly assess all changes resulted from authorized variations and relate the changes to the final decision of valuation method to be. The form of contract also has been especially drafted to accommodate the risks of different perceptions on this matter and distribute the risks fairly to the involved parties. This result in the recommended way to deal with variation events is to look back to the forms of contract to make a careful assessment.

Finally, based on the findings, it can be concluded that each of the condition of contracts has stipulated clearly the rules for method of valuing the claims of variation works. However, the adequacy and appropriateness of the mechanism are different based on the different types of contracts. The selection of the type of contracts to be used for a particular project may influence the project implementation in terms of contractual administration related to claims for variation works. By selecting an appropriate type of contracts for a project to be implemented may reduce the tendency of disputes arising from valuation of variation claims. Disputes related to claims of variation works can be avoided by overcoming the problems of the disputes. This may only be achieved through the proper selection of type of contracts which contain the most effective methods of valuing the variation claims. Despite the fact that BQ rates/Contract rates is the most instant method and agreeable among the contracting parties, it is recommended that this method should be improved by rationalization of the rates accordingly depend on the nature of the work of similar character executed under similar conditions. In other words, the BQ rates/Contract rates despite being the most agreeable rates they should be adjusted accordingly so that the rates for varied works will be fair to both contracting parties.

Recommendation

It is also suggested that the application of Information Technology by using an expert system as a potential decision-making tool in the valuation of variation claims to be further explored as it has the potential to deliver the best solution in the valuation of variations which based on the expertise of the professional decision-makers. It has been previously explored that the valuation of variations needs a mechanism that represents the expertise and knowledge of the human experts for its decision-making. Decision-making by experts regarding the valuation methods to be applied, based on the determination of the extent of the changes affecting the work characteristics and/or work condition, plays an essential role in the valuation scheme.

However, the majority of human decision making is answerable to more than a single person, and involves higher level functions that can be constrained and frustrated by any attempt to enforce rigid or methodical practices. In other words, consensus decision-making is required from several human experts for an appropriate decision. The human experts for the valuation of variations are the quantity surveyors due to their important role and involvement in financial and technical aspects of a construction project management.

Here are some knowledgeable key points to manage a Variation Order:

- Out-Source Information - for variations that need price comparison, outsource information must be obtained such as price indices from the government, quotations from suppliers and price information from consultants.

- Data collection – is to collect the correct information to support the validity of the any variation order. It can be Site Records such as site diaries, weather charts, site instructions, inspection reports, shop drawings and materials approval, RFIs and other forms of communication like emails, transmittals, minutes of meeting and project reports.

- Investigation - For variation order due to differing site conditions, site investigation is imperative. It is essential in determining the actual site situations and for observing if the proposed change were feasible to the site. It is also done to verify quantities, type of material applied by the contractor and to confirm the methods proposed for application for use.

- Know your references - reference materials would be the basis for evaluation first, entitlement of the contractor to a variation order, validity of the change, and determination of quantities either additive or deductive. Reference may include Construction Contract, Drawings, Specifications and other forms of site communications.

Her thesis abstract is copied and pasted.

Abstract

Construction industry is often described as a volatile industry which can be true in implementing a project. Construction itself is more often unpredictable due to the different situations a project may face. Variations may occur in the preparation, during construction and even upon completion of the project. The veracity of inconsistent nature of construction, variation management procedures must be considered to minimize the effects particularly to project cost, time schedule and overall quality of the project.

There are an increasing number of construction contracts resulted in claims and disputes. All of the parties involved in the Thai construction industry are fully aware that disputes not only lead to cost overruns, but can end up as expensive and lengthy courtroom battles. However, very few studies related to construction contract claims and disputes in Thailand have been presented. This study is an attempt to gain further insight to construction contract claims and disputes in the Thai construction industry.

The big challenge for Thai Construction industry is to advance the management styles to cope up with challenges faced in a project. Procedures in managing contract and change orders are viewed to know the effectiveness and liability ensuing steps observed. Disruptions in cash flow and programme when mitigated and handled correctly may create confidence in handling changes that transpire in any project.

However, knowledge and skill in managing this challenging changes and observing effective procedures may eventually create a norm in Project Management system in the industry where tradition of strong relationship among Owner and Contract still prevails.

From the aforementioned information, it can be seen that the engineers have high levels of responsibility and must be knowledgeable and experienced in their work. They also have to work carefully to complete their work. Therefore, it is suitable for both engineers and involved personnel to study work data and past court cases that are related to their work, so that they can be careful about their work.

Risk and Project Contract Management for Preventing and Solving Disputes in FIDIC Contract

2011-06-15T14:16:00.000+07:00

A project is highly successful when risks are strictly controlled and the contract is effectively managed.

Mr. Dang Thai Son made a case study on the Can Tho Bridge Construction Project. In his study, the following core issues were aimed to achieve:

* To study issues on project risk management: implicit risks, the tenor and process of project risk management.

* To study issues on project contract management: signing and implementing the project contract, amending, canceling or terminating the contract.

* To find approaches to mitigate risks as well as to prevent and resolve disputes, litigations in project contract.

Conclusion

Risks are unavoidable in construction projects, yet it is still possible to prevent them before and during a project. With such a length (15.85 km), Cantho Bridge was a typical example for risk management. The project has received full financial support from the Japanese government which is Twenty Four Billion Eight Hundred Forty Seven Million Japanese Yen (¥24,847,000,000). However, there was still delay in land requisition. Although only two local households did not agree on their compensation, they affected the progress of the project. In addition, shipping equipment and complex custom procedures also hindered the progress.

On the better side, the Contractor has implemented good management starting with the designed hierarchy of management with well-targeted goals as well as backup plans. This helped the project progress even in case of force majeure. Second, the contractor had good management on quality and quantity on various aspects of working requirements such as materials, equipment, construction methods and skilled labors that were focused and well-prepared. Thirdly, the Contractor showed that environment was taken with extreme care so that almost no effects on the local landscape, and ecosystem were done by pollution from the construction. Finally, the Contractor always followed the most important motto: "Safety first." The disastrous accident in foundation settlement showed the nature of risk on one hand; but on the other hand, it showed that the Contractor prepared and implemented practical and helpful steps in preventing diseases and treating injuries to workmen. As a result, construction workers felt better and secure to continue their work and the project could be completed in due time.

After Can Tho Bridge was completed, it has provided the researcher with practical experience in terms of capital, specific infrastructure conditions, hi-tech quality of the contractor and compensation negotiation. This study showed that reality is always unexpected but with well-planned risk management, we can still handle and heal the uninvited damage to project effectively and in time so as to fulfill the project as pre-planned.

In conclusion, throughout the analysis, the Can Tho Bridge Construction Project achieved more successful factors than its constrained ones. This project obtained good delivery system from setting to closing out phase owing to good environments such as stable society economy and politics, favorably legal environment especially the great support from the project stakeholders: Financier (JIBIC), Owner, Consultant, Contractors, Suppliers and others (Local Authorities and so on).

Apart from the strengths achieved as analyzed, there are many weaknesses that the project stakeholders should pay much attention to and should take them as valuable recommendations for future projects:

- Before carrying out the construction of any project, the Project Owner together with Local Authorities shall ensure land requisition to be well-executed and give right of access and site possession to the Contractor at appropriate time without any delay and obstruction from local residents.

- When making the estimation for a project, besides calculating an official capital source for the main items of the project, the project planner should carefully calculate an extra money fund for nearby existing land compensation including the crops. Therefore, the Project Owner will be able to get sufficient land area and provide further access to the Contractor for construction. Because the construction activities of the Contractor definitely affect to the neighboring structures of the inhabitants.

- The Project Owner should thoroughly consider selecting competent, qualified contractors who are healthy in finance and capable of high technology. Not to give the award to the bidder of the lowest price, and poor equipment and poor technology transfer.

It was time for Vietnamese Government and its subordinating Ministries consider carefully when deciding to select the bidder especially for foreign ones. Before inviting them for bidding, a well pre-qualified selection of experienced, prestigious and competent bidder list should be made and elimination of unqualified bidders from the list should be done. If doing so, the Government saves a lot of time and money for unreasonable loss and damage from rectification of defects and re-works.

His thesis abstract is copied and posted.

Abstract

Risk management is an indispensable job because it will help the project reduce and minimize the extraordinary impacts occur which affect to the general objective of the project.

In this study, we should learn about the concept of risk with its two specific characteristics: probability of occurrence and degree of impact. In addition, the classification of risk is also a meaningful deed; each kind of risk is different, therefore, risk management issue is also totally different. To manage risk, a process of six steps can be applied. First, making risk management plan for general orientation of work and scope of performance to manage the risks. Then, carrying out risk determination, it means to list out the risks might occur in the project. Since then analyzing probability of occurrence and the degree of impact of the risks, Control and adjustment of risks are to implement the plan for dealing with actual risks.

Contract management is extremely important in the project management. Referring to the contract, the project manager will treat and adjust the relationship as well as contradiction between interests and liability of the parties concerned in the project. Therefore, being a project manager, he or she needs to master the sequence of steps of signing and implementing the project contract, the arising issues and conditions of alteration, omission or termination of project contract as well as the approaches to resolve and settle disputes in the contract. Once dispute arises, it is wise that the parties should seek for negotiation, discussion or conciliation. This approach is simple, effective and little cost while claim and arbitration approach is more complicated, costly and waste of time.

“Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser – in fee, expenses and waste of time.”- Abraham Lincoln

Business Cooperation Contract Management in Gas Pipeline Project – A Case Study of Block B – O Mon Gas Pipeline Project

2011-06-14T11:19:00.001+07:00

The signing of the business cooperation contract (hereinafter called BCC) to develop the Block B Gas Pipeline Project among PV Gas, Chevron, MOECO, and PTTEP will help to ensure the country's energy security and to promote industrial development in the Mekong Delta. The project will also save a significant amount of foreign currency for Vietnam on fuel imports, create more employment for the community, protect the environment by using a clean fuel, ensure a stable source of power, and open opportunities to connect with the gas pipeline systems of other countries in the region. However, how to well monitor and manage the pipeline project under the BCC is the challenge for operator.

Under BCC, each party will appoint a representative to the board of coordinators (hereinafter called BoC) to provide overall supervision and direction over and control all matters pertaining to the system operation. Therefore, the operator cannot decide on its own for the system operation which may lead to run late project, over-budget or fail to meet key needs of parties and so on. There are definitely some shortcomings in project under BCC need to be over, that are:
i. Take time for mutual agreement among parties;
ii. Misunderstanding and misinterpreting of stipulated clauses in contracts
iii. Conflict between contractor and the project company during project execution
iv. Conflict between cultures

A BCC is generally applied for managing the oil and gas project, in case of problems or disputes happen during the project execution, then these problems and disputes shall be resolved in accordance with stipulated clauses in the signed contract, therefore Mr. Phung Quang Hiep made a case study which main object was to focus the Phung Quang Hiep
issues related to BCC:

1. To study BCC contract objectives
2. To study BCC contract conditions
3. To study BCC contract implementation and problems occurring
4. To propose effective solutions for project management under BCC

Conclusion

BCC Objectives:

The purpose of this report is to describe the BCC objectives in which the project is implementing the design, procurement, construction, ownership, operation, maintenance of the upstream Block B & 48/95 and Block 52/97 facilities to ensure economic, efficient System development on an integrated, aligned basis, as set forth in this Contract.

BCC Conditions:

These objectives are concretized under BCC conditions of conditions precedent and participating interest. Block B – O Mon pipeline project has some difference phases. Therefore, the writing displays them in three main groups of technique, finance and legality. Technical phases include construction, operation and maintenance of system; transportation proposal and capacity; usage of the system, transportation of gas and tariffs; as well as decommission. In addition, financial issues of BCC are focused on taxation; government and corporation support; work program and budget; and contracting procedures. Also, BCC requires legal items in operation that are, insurance and litigation; default, assignment of participating interest; withdrawal; and dispute resolution.

BCC Implementation And Problems:

The above analysis is to result to business cooperation contract management for block B – O Mon pipeline project through making up factors affecting to take time for mutual agreement among parties, underground drivers of misunderstanding and misinterpreting of stipulated clauses in contracts and conflict between contractor and the project company during project execution as well as conflict between cultures. To response to these problem statements, this report concentrates on studying problems occurring and proposing effective solutions for project management under BCC as well.

This project may be continued if precedent conditions are satisfied or waived. That foreign- factors take part in business of gas pipeline and that disadvantages are caused by BCC have created some outstanding problems to system operation. The report asserts that issues of finance, accounting, culture, legality, risks, approval and human resource are needed to analyzed, improved and boosted. Otherwise, project will be delayed in the manner of time and quality and not achieved project objectives.

Effective Solutions for Project Management under BCC:

For finance and accounting issues, the operator has to harmonize regulations between BCC and Vietnamese Corporation Accounting which is first priority while the parties are required to obtain deep understanding of investee country, that is, Vietnamese laws. Moreover, due to four different management cultures the operator should set up harmonious business culture, seminars, team build to interpersonal communication and friendly atmosphere and especially maintain internal control of approval procedure and authorization for expenditure procedure. A unified and well defined organizational chart for human resource management is so important for continuous system operation. All above is to minimize business risks led by project specialization.

In addition, the report shows out main experience lesson groups to solve these problem statements. First, the operator should take full advantages of local authorities and governmental support in all tax and foreign currency issues. Second, the operator needs to have closer direction and management of higher authorities to keep the project be in the right way. Third, taking an initiative of finance, positioning negotiators of BCC in the board of operator and maintain frequently periodic meeting are considered as meaningful recommendations to unbind stuck bars during implementing project and achieve project objectives in timely and quality basis.

His thesis abstract is copied and posted.

Abstract

Natural gas is a fossil fuel extracted from the ground that can be used as a source of energy for household, industrial and commercial use, as well as to generate electricity. So, natural gas is an important factor for the development of countries that have strong economies and people who enjoy good living conditions. To be able to have a viable and efficient supply requires the construction of a pipeline from faraway regions that have large reserves of natural gas to onshore terminals. In Vietnam, the projects of pipeline construction and operation are almost under direct foreign investment of which business cooperation contract is the most favor.

The management of this contract is a challenge to Vietnamese operator due to foreign factors. This report let a case of BCC for block B – O Mon pipeline project as a study of project management in construction. It tries to work out common and regular problems this kind of BCC is encountering. These difficulties are divided into four groups that are, take time for mutual agreement among parties, misunderstanding and misinterpreting of stipulated clauses in contracts and conflict among contractors and the operator during project execution as well as conflict among cultures.

Moreover, BCC conditions and project phase operation are analyzed in details. Above all, the author suggests some solutions focusing on outstanding problem statements to improve the project operation and implement it in the manner of time and quality.

Project Schedule Internal Risk Management in EPC Gas Pipeline Project: A Case Study

2011-06-08T15:19:00.002+07:00

Oil and gas sector is considered as a backbone of any country’s economy. In Viet Nam, the promotion of gas industry development since the early 1990s has significantly contributed to the economic development of the country.
The demand of domestic gas consumption is being increased in a very short time. Therefore, Petro Vietnam has cooperated with national and international petroleum companies to speed up the plan of developing and building of the new gas fields in the southeast sea and southwest sea of Vietnam. As a result, lot of new pipelines will be installed to transport gas from field to shore of Vietnam, and this process involves many risks. Due to the unique characteristic of this project, the risk management during project execution became very important activity because the risks may have effect on cost, schedule and quality of the project. Risk management is a key to successful project implementation.

For most effective and efficient risk management, it is recommend to plan, analyze and manage risk in all phases of project life cycle specifically from design to construction phase.

Mr. Pham Binh Lam made a case study which objectives were to: (1) describe key activities in EPC gas pipeline project ; (2) identify risk factor in implement the EPC gas pipeline project which may affect the project schedule; and (3) propose risk solution that can be used to manage in the EPC gas pipeline project

Conclusion

Based on the data collected mainly from Bloc B&52-Omon gas pipeline project of Petro VietNam Gas Corporation, the author has clarified that EPC gas pipeline project contains high risk during project execution. The very important stages are from engineering stage to construction stage because these stages influence the quality of gas pipeline project. There are a lot of risk factor impacts on the project schedule in these periods such as experience, knowledge and skill of owner, contractor, subcontractors, design change, and environment impact. Pipeline construction in the offshore environment as well as onshore environment which across many rivers and canals are difficult and dangerous activity which lead to accidents and incidents frequencies happen especially if this project have a long distance from offshore to onshore pipeline route. It will not only cause project delays but also directly and indirectly cause very high project cost.
Major risk factors which may affect EPC gas pipeline project schedule has been identified by and facilitated during the brainstorming session of key experience stakeholders in this project such as top management, project manager, site manager, HSE manager, office personnel and the author.

The author has proposed appropriate strategies to reduce major risks schedule in EPC gas pipeline project by conducting a Framework on EPC Schedule Risk Management through a real gas pipline project case study -Block B – Omon gas pipeline project.The results are shown in the table below.

Recommendation

In order to obtain efficient schedule risk management in EPC gas pipeline project this study proposes a number of recommendations:
- Experience project management team should be appointed to the selection EPC contractor

- The EPC contractor has to contribute audit procedure for detailed designer to select qualified designer effectively. In addition, review and approval by Project Management team (PMT) of both selection of detailed designer and approval of designed document

- The EPC contractor and subcontractor should contribute an effective and efficient safety management system

- An effective communication and coordination system between lower stake holder (e.g. EPC contractor, subcontractor, vendor, etc) should be set up

- The owners should have high commitment of all people involved especially top management commitment in all stage of project and hand over authority to make decision.

- The Risk Management Plan should be reviewed during the EPC phase as specified in the Project Management Plan to ensure that appropriate actions have been taken and followed up. Reviews should also occur at the commencement of a new project phase or if there are significant changes to the project scope or operating environment.
His thesis abstract is copied and posted.

Abstract

In order to adapt the demand of domestic gas consumption is being increased in very short time PetroVietnam has cooperated together with national and international petroleum companies to speed up the plan of developing and building new gas fields in the southeast sea and southwest sea of Vietnam. Therefore a lot of new pipelines will be installed to transport gas from field to shore of Vietnam. In oil and gas project specify gas pipeline project contains high risk during project execution because of interacting activities of many event in condition of limited time, human resource and budget and the participation of many different parties in the project with the role, responsibilities as well as different objectives make the project more complex. Additional, only four gas pipelines project that built in Vietnam. Due to the unique characteristic of these project, the risk management during project execution is became very importance activity because the risks effect on cost, schedule and quality of the project. Risk management is a key to successful project implementation The author has identified mayor significant risks which impact project schedule and has proposed appropriate strategies to reduce major risks schedule in EPC gas pipeline project by conducting a Framework on EPC Schedule Risk Management through a real gas pipeline project case study -Block B – Omon gas pipeline project.

Quality Management System for Construction Material Testing: A case study of Jupiter Inspection J/S Company

2011-06-07T15:19:00.001+07:00

In recent years, there are many modern infrastructure which have been constructed with high-technology in Vietnam. However, the technical management is not caught up with the development of actual construction. Many serious accidents are still taken place causing numbers of deaths. Therefore, the management of construction work has been more and more taken into account. One of the solution for enhancement of construction work quality is to strengthen the inspection of construction quality by expanding the network of laboratory and auditing centers in all regions and industries in the country.

The activities of these laboratories have positively contributed to the construction quality and timely being into operation for the planning, design, construction and acceptance of such works as bridge and road, infrastructure, industrial and civil works. The development of civil industry, in general, and the activities of laboratories, in particular, are the reasons for the establishment of Quality Management System (QMS).

Ms. Nguyen Thi Vui made a case study, which objectives were to: (1) study QMS of company; and (2) evaluate the effectiveness of the QMS

Conclusions

Based on the result of the study, the quality management system in Jupiter Company was based on the ISO 9001:2008 requirement system. These are:

a) an organization structure, responsibility and authority in QMS which are regulated under the applied Law,

b) procedures of QMS (Operating procedure, Supporting procedure, and system management procedures),

c) resources for performing all activities in QMS,

d) document system, and

e) leadership representative of quality management system.

In general, although, there are some difficulties in the implementation of QMS, but still it has some remarkable effect such as follows:

1. Making the company manage the quality and operation of production line and trading activities systematically and in a planned method, in order to minimize and exclude all cost arising after inspection, as well as cost of maintenance and repeating of work.

2. Making company increase the efficiency and reduce cost of supply of means and facilities for people doing the job according to correct procedures from the beginning. As well as having close control, then the quantity of repeated work and cost for corrective actions carried out for defective products are limited, due to lack of control and reduction of consuming for time, material, human resource and money.

3. Increase the competition with other company due to the proper QMS. The company is now well qualified for bidding and might take part in many large and important projects such as Project for Expressway of HCM City – Long Thanh – Dau Giay; Ben Luc – Long Thanh Expressway; Trung Luong Can Tho Expressway. At the same time, it creates jobs for foreign countries such as TOA (Japan), BCOM (France), Hyder (UK), SMEC (Australia) Hanshin (Korea) Wilbur Smith (USA), and Nipon Koei (Japan).

The company’s prestige has improved in terms of quality security from the professional level of staff, document system, accuracy of equipments, making the test results with high accuracy. Besides, the progress of the project is always satisfactory with planned handing over schedule and then meeting the customer’s requirements as well.

In short, QMS is a correct solution, a unique way for the development and stability of the company. When QMS is supplied, internal force (organization) and external force (customer) will have mutual link in terms of benefits and responsibility, a solution for the benefits of many parties.

Her thesis abstract is copied and posted.

Abstract

The report expresses the key issues in Quality Management System (QMS) that known as the critical factor for organizations wants to develop and survive in the construction work.

This study, which refers to the theories and the standards system, has expressed the concept of quality in construction, the QMS in organization, requirements for QMS in construction materials testing and its benefits.

The study based on theoretical considerations as well as practical experience gained in the materials testing process. To ensure the correct identification of substances, to ensure that the processes undertaken.

Report the findings of a research study, which was undertaken to examine the underlying factors affecting the quality of a construction project. It also aims to identify factors that show a strong correlation to good quality performance. The aim of this report is to improve the quality of materials testing services and to define common quality assurance criteria.

Insurance and Surety Bonds: A Case Study of Petrochemical, Oil and Gas Projects in Myanmar and Thailand

2011-06-06T16:27:00.003+07:00

Human beings, business firm, organization, government and society want security but everybody and property cannot be fixed and established because risk is generally underlying those. Risks can be easily understood among the projects, but they are difficult to describe. Construction projects require many resources such as financial capital, human resources and material resources. It is very important to mitigate the construction risks, and complete the project with target time and necessary quality. Analyses of the various risks and understanding of these risks are very important to mitigate these risks. The insurance company is of primary significant of the risk management. It shows that insurance is a form of risk management primarily used to avoid against the risk of a contingent loss (Tsanakas and Desli, 2005 cited in El-adaway and Kandil, 2009). Insurance is determined as the equitable risk transferring. The insured need to pay equitable insurance rates called premium to insurance company (Harrington and Niehaus, 2004 cited in El-adaway and Kandil, 2009).

The insurance premium payment is a major cost of project. If insurance is used, the premium must be paid in advance. If any losses happen in project, the project can get indemnification. However, the using of insurance can get loss of premiums. Therefore, the contract manager and risk manager need to consider about insurable risks. All kinds of insurable risks are not insured. Bunni (2003) mentioned that classification of risks on the basic insurability is shown in figure below.

There are many risks in the construction project. Each project activity may be its own risks such as occurrence of physical damages, accidents, materials delivery delays, unforeseeable problems, unforeseeable site conditions, natural hazards, political affects, etc. These risks will affect to the client, contractor, design professional, employees, third party and public. For instance, the contractor cannot be able to finish the project with contract price because of the economic situation and changes, the site condition changes, the difficulties of resources and others. Therefore, contractor’s default is one of the most important risks in construction projects (Arditi et al. 2000 cited in Al-Sobiei et al. 2005).

Contractor’s risks cannot be eliminated by the client, but it can be partly or totally transferred to the bonds (Al-Sobiei et al. 2005). When the project meets the unforeseeable contractor’s failure, it is very difficult to finish on time because the projects may have financial difficulties, delays and others. However, the surety bonds can provide to the client as a guarantee to complete the project and defaulting financial payment from the contractor (Russell, 1990; Mills, 2001).

Ms. Kyawt Phyu Phyu made a case study which objectives were to : (1) study insurable risks which can be managed using insurance and surety bonds; (2) study the insurance and surety bonds in oil & gas and petrochemical projects; and (3) develop a framework on risk and insurance

Conclusions

Objective 1

It was found out that there are many kinds of risks in oil and gas and petrochemical projects. Their risk management (risk transfer) approaches are the insurance, surety bonds and other approaches. However, most of the appropriate risk transfer approaches are the insurance and surety bonds and the detailed conclusion for objective-2 are described in table below.

Objective 2

it was found out that most of the projects don’t have the same insurances and surety bonds because of their project nature, project types, different project parties, different risks management system. The insurance premiums are also different relating with risks, project types, company background and others. If the risks are high, insurance premiums are also high. There are eleven (11) kinds of insurance and four (4) kinds of bonds on petrochemical and oil & gas project in this research according to case study.

(i) Recommendation Insurances for offshore pipeline project

The recommendation insurances for offshore oil and gas projects according to case study are:
1. Construction All Risk Insurance
2. General Third Party Liability Insurance
3. Marine Hull and Machinery Insurance
4. Protection and Indemnity Insurance
5. Worker’s Compensation Insurance
6. Transportation Insurance

(ii) Recommendations Insurances for Transportation and Installation Offshore
Facilities Projects

The recommendation insurances for transportation and installation offshore facilities projects according to case study are:
1. Construction All Risk Insurance/ Erection All Risk Insurance
2. General Third Party Liability Insurance3. Worker’s Compensation Insurance
4. Marine Hull and Machinery Insurance
5. Protection and Indemnity Insurance
6. Transportation (Marine Cargo) Insurance
7. Builder All Risk Insurance

(iii) Recommendation Insurances for Urea Fertilizer Factory Projects

The recommendation insurances for Urea Fertilizer Projects according to case study are:
1. Construction All Risk Insurance/ Erection All Risk Insurance
2. Transportation Insurance
3. Fire and Exploration Insurance
4. Worker’s Compensation Insurance
5. General Third Party Liability Insurance

(iv) Recommendation Insurances for Refinery Projects

The recommendation insurances for refinery projects according to case study are:
1. Construction All Risk Insurance/ Erection All Risk Insurance
2. General Third Party Liability Insurance
3. Worker’s Compensation Insurance
4. Construction Plant and Equipment Insurances
5. Business Interruption Insurance

(v) Recommendation Surety Bonds for Petrochemical and Oil and Gas Projects

In petrochemical and oil and gas projects, bid bond is needed in the bidding stage. In the construction and operation phases, performance bond (bank guarantee) and advance payment bond are important according to case study.

Objective 3

Main types of insurable risks in petrochemical and oil and gas projects are loss of life and personnel injury, material damage, material in transit and contractor’s risks. The insurable risks for oil and gas projects are collusion, oil pollution related with marine property. The researcher shows the detailed level of respective insurable risks in below figure. The project’s participants transfer these kinds of insurable risks to insurance and surety bonds, and the detailed descriptions are mentioned in figure below.

Her thesis abstract is copied and posted.
Abstract

There are many uncertainties, risks and probability and possibility of loss of chance in every firm, business, projects and human beings. The oil and gas project and petrochemical projects have many uncertainties and risks because these projects are related with geological risks, probability of existing oil, oceanography, and others. Insurance and surety bond are very important in projects because they can protect the risks, contractor’s default, and the project can get the financial and performance security. This study is emphasizing on insurable risks with appropriate types insurance and surety bonds.

This study emphasizes on the case study approach on petrochemical and oil and gas projects. The study was conducted to two oil and gas projects from Myanmar, two urea fertilizer projects from Myanmar and two refinery projects from Thailand to study types of insurable risks, insurance and surety bonds.

Orientation Risk Management Model for Pre-Bidding Process in Low-Income Housing Projects With Public Private Partnership in Vietnam

2011-06-03T16:38:00.000+07:00

Although PPP is not a new approach to access infrastructure capital mobilizing in the world, this model has just applied in Vietnam since 2000s (DPI, 2010). The incompletion framework of PPP is one of the barriers that private sector could not be accessed to low income housing projects. As a result, there are only 6 projects which have been launched until 2009 Ngan Ha (2010, Jan 21), and all of them had an investor collection process without tendering process. This reality is not only “crowding out” private participation but also increasing the overall risk to the GOV in its PPP program (WB, 2008).

In order to improve this situation, in early 2010, GOV issued new 108 Decree to replace 78 Decree which was applied before. Thus, PPP procurement process is now clearer than before. Project partner must be selected through transparent tender bidding & negotiation phase. Hence, with the new regulation, risk evaluation plays a critical role in pre-bidding period.

Nevertheless, according to World Bank report (2008), in Vietnam current situation, ‘projects are not very well developed before they are bid out’. This is a key point needed to be thoroughly comprehended by stakeholders if they do not want to be ineffective of PPP program.

Mr. Vu Tuyet Mai made a research to find out the answer for the following questions:
1. What are the risks included in pre-bidding process for every aspect of PPP stakeholders who have difference objectives, functions, risk perception, how to manage those risks properly based on stakeholder’s competence and experience?

2. What is the existing risk management model which is used by stakeholders in the PPP low income housing projects running without bidding process in Vietnam?

3. What are the basic differences and how to capture the new risk management model from existing one?

The objectives of his research were to: (1) investigate risk factors can occur in pre-bidding stage for stakeholders of PPP low-income housing projects when apply the new regulation in Vietnam; (2) find out the existing critical risk factors in pre-bidding stage of low-income housing project in Vietnam; and (3) develop the risk management model in pre-bidding stage to help PPP stakeholders to achieve individual and project objectives under the new regulation.

Conclusion

Even though PPP model is familiar to infrastructure projects in general and low income housing project in particular around the world, it was just piloted in Vietnam recently, and now is in the improvement process. In parallel with gradual correction of policy system is the comprehension of related partners in project structure about risk management orientation. Hence, the goal of this thesis is pursuing this orientation to partly contribute to the completion process.

The result of the first objective is that the risk factors can face stakeholders in LIHPs would be investigated follow bidding process which should be applied in PPP practices. Thus, public sector plays the most important role in pre-bidding process and takes responsibility of social outcome. As a result, they take 19 risk factors in whole pre-bidding process, much higher if it will compare with 7 risk factors of private sector and debt funder.

The result of objective number 2 is that although all LIHPs in Vietnam now have not applied bidding regulation, those were analyzed exposed the real process of investor selection and their risk management related. In other words, those showed the evidences of real risk factors occurring now. Also, the ways stakeholders managed them and their result have been investigated.

For the last objective, the orientation model not only reduces many risk factor sprang from current selection process, but also recommend the solution to solve the risk related with policy and regulation in Vietnam now.

His thesis abstract is copied and posted.

Abstract

Risk management issue becomes more and more important in low income housing projects in Vietnam, especially in the transitional period of improvement of policy in recent years. Pursuing the suitable risk management model in pre-bidding process which needs to be applied from now as ruled in new regulations is the main propose of this thesis. In order to catch up requirements in pre-bidding, every stakeholder has to face with some determined risks to meet their needs. Moreover, current investment condition in low-income housing projects has contained many existing risk. Therefore, combination between risk simulation in pre-bidding and risk occurring could show the orientation of risk management model for the near future.

The thesis used methodology of case study analysis. After finding out risk factors in pre-bidding and verifying by experts, two most typical projects that run by PPP scheme have been chosen to analyze. The result of study shows that low-income housing project in Vietnam were challenged by many risk factors. They were caused by either current process of investor appointment or existing vague regulation and policy. For this reason, the thesis oriented the risk management model in order to reduce the main risks factor and transfer some risks to the sector enable to manage well. Obviously, this model needs to be perfected gradually through project by project and period by period. At least, the first model of risk management can help stakeholder to optimize their interest in low-income housing project with applying bidding process instead of investor selection before.

Claims in Building Construction of Pakistan: Statistical and Pathogenic Analysis

2011-05-31T10:35:00.000+07:00

The Causes of Project failures in terms of cost over runs, schedule over runs and depleted quality have been identified particularly for different countries conducting case studies and questionnaire survey based upon the opinions of Employers, Consultants and Contractors operating in that Country. Generic identification of causes of claims in one country may not be very helpful for the other country and would not address the particular problems prevailing in the relevant Construction market of that country. According to Acharya et al. (2006), the sources and reasons of conflicts are different according to the nature of the projects and conditions of a particular country. The differences in the types and levels of conflicts from country to country are due to the unique local environment of the country in which the project is going to be executed. Therefore a study is required to investigate the frequently occurring causes of claims and their types in Building construction market of Pakistan. The sector of Building construction is chosen because Building construction is the sector in which both Public and Private sector clients invest and develop the projects; Economic downturn in the Industry and double digit inflation have already created problems for Employers and contractors to procure and to deliver the projects respectively. Therefore, the projects under planning stage should be planned and designed in such a comprehensive manner so that they could survive the harsh and tough market conditions of Pakistan.

Causes and types of claims provide an insight into the list of factors responsible for the development of claims but lack in identifying the underlying causes of claims. Love et al. (2010) also state that many of the causes of claims and disputes identified in many studies are not dissimilar in nature and moreover do not identify the underlying causes of disputes which are essential if the reduction in claim and dispute potential is required. Therefore, it is required to find the pathogenic influences on the causes of claims and disputes so that proactive measures could be aligned in organization rather than aligning reactive measures.

Mr. Hassan Ashraf made a research in order to reduce the dispute potential in project beforehand and to view causal factors behind disputes through holistic approach. The objectives of his study were to : (1) identify the critical causes and types of claims against frequency of occurrence, degree of severity and level of importance in the Building Projects of Pakistan; (2) identify the Pathogenic Influence on the causes of claims in Building Projects of Pakistan; and (3) To propose recommendations for the minimization of claims and disputes.

Conclusions

1. Causes of Claims

Competitive market conditions, delayed payments by the Employer, ineffective planning and scheduling by contractor, poor financial management of the contractor, price hike of materials, improper technical study by the contractor during the bidding stage of the project, are the causes which have been identified as critical causes of claims against level of importance based on overall response. The causes are mainly related to economic conditions of Pakistan which lead to less number of construction projects resulting into tight competition for project award, these tight competition forces contractors to bid low and then proceeds for claims practice at the later stages of the project. Contractor’s incompetence and market inflation also lead to claim causation due to poor quality of work and escalated costs of work respectively. It was also seen from both case study of project “A” and the response of survey that inadequate early planning of the project also lead to claim causation due to limited understanding of Employer about the project and what is really required out of the project.

Scope changes and design changes and variations are most of the times caused by inadequate early planning of the project by the Employer. It has also been seen that regulatory and execution delays in terms of delays in obtaining permits also lead to claims and even disputes like in project “C” the conflict between Employer and Contractor was developed due to unavailability of permit `and consequently the contract was suspended and ultimately terminated by Employer which led to Claims by Contractor and counter claims by Employer.

It is seen that poor financial management of the contractor also leads to claims and this fact is endorsed by Contractors themselves by ranking this cause very high on scale of frequency and severity, this result leads to an interesting yet critical finding that delays in payments by the Employer would certainly push the contractor to adopt extreme measures in order to get its payment and to keep its company alive; most of the times this cause leads to conflicts and ultimately become the cause of suspension of works by Contractor. So, this is to be understood by Employers that Contractors should be assisted in terms of timely financial compensation as their financial management is already poor and delays could lead to conflicts and disputes. Studying the project details, evaluating costs and assessing the risks properly also leads to reduction of conflicts and claims in implementation phase of the project, Cause “Improper technical study during bidding stage of the project” was ranked high on the scale of frequency and degree of severity which shows that this is a cause of considerable importance.

2. Types of Claims

Extra Work Claims and Change Claims were found to be mostly occurring according to overall response. However, according to Employer’s response extra work claims and change claims were found to be critical types against level of importance and Delay claims, change claims, delayed payment claims, and extra work claims were found to be critical types against level of importance based on consultant’s response. Similarly, according to contractor delay claims, extra work claims, changes claims, delayed payment claims and design error & omission claims are critical types of claims against level of importance. These results signify that extra work claims and change claims are quite important types of claims in the Building construction of Pakistan and if the claims need to be minimized then it could be thought that reduction in these two types of claims would certainly help in mitigating the negative impact of claims on the project performance.

3. Pathogenic Influence on the Causation of Claims

Pathogenic influence was determined by identifying the causation of claims from case studies and then finding out the reasons for these causations. Mostly it was found out that task, Practice and Circumstance were the three pathogens which were mostly responsible for claim causations; Convention and Organization pathogens were also found out to be present but mostly practice, task and Circumstance pathogens gave rise to claim causations. Also, it is worth to be noted that Circumstance pathogen is the critical pathogen as it leads to the development of the other pathogens.

Recommendations for the minimization of claims are as follows:
• Adequate planning of the project needs to be done by the Employer in terms of major and minor deliverables of the project, financing issues, availability of technical resources with the Employer to get the project executed effectively.

• Engaging experienced Design consultants for the Design development in such a way that errors and omissions don’t take place in the Design Documents and the Design produced is workable and practical. Also, preparation of Tender Documents should be prepared with no ambiguities and errors. Pre-Bid meetings must be arranged to clarify the reservations/misunderstanding of contractors if any.

• Procuring project is the most crucial aspect in terms of preventing or minimizing claims. Claims generate from the poor analysis and allocation of risks among stakeholders of the project. Considering the project complexity and financial constraints, projects should be procured with such innovative contractual schemes where risks are rightly distributed among all stakeholders. Unjust allocation of risks will ultimately result in conflicts, claims and disputes which need to be avoided for smooth completion of the project.

• Standard form of contracts should be used on projects to increase the understanding of the contractual provisions and contractual provision for “price Adjustment” should be drafted in such a way that inflation and price hike of materials and equipment could be adjusted without creating any conflicts and disputes.

• Cooperative and problem solving approach should be employed on a project which is called as partnering so that negative attitudes which could lead to conflicts and misunderstanding are minimized.

• Engaging third party to review the contractual documents prepared for bidding purposes. This would help in decreasing the errors and ambiguities in documents which would later help in smooth execution of project.

• Escrow-of- bid documents clause need to be mentioned in the contract agreement so as to avoid the opportunistic behavior of the contractors during the course of execution.

His thesis abstract is copied and posted.

Abstract

Construction industry is getting competitive and complex due to increasing demands of the Employers and global economic downturn. This complex environment leads to claims and dispute causation which is totally counterproductive for the project Success. Therefore, this study was conducted to identify the types, causes of claims against the frequency of occurrence, degree of severity and level of importance so that preventive and corrective measures could be taken accordingly. Causes and types of claims provide the information on the elements which are responsible for claim and dispute causation in general terms with no pin pointing detail. For that matter, Pathogenic influence on the causation of claims was determined in order to know the practices, tasks, circumstances and other pathogens which lead to claim and dispute causation.

Data analysis was done on the responses of 59 respondents belonging to all three target populations i.e. Employer, Consultant and Contractor. Causes and types of claims were ranked against frequency, severity and level of importance. Most important causes which have been revealed from this study are delayed payments by the Employer, competitive market forcing contractors to bid low leading to tight profit margins, ineffective planning and scheduling by Contractor, poor financial management of the Contractor, price hike of materials and increased rentals of plant & equipment, and improper technical study by the Contractor during bidding stage of the project. For types of claims, extra work claims and change claims found out to be the most critical. Case studies were conducted to figure out the pathogenic influence on claims causation; Practice, task and circumstance pathogens were found to be the main pathogens responsible for claim and dispute causation. Recommendations were developed specifically for Employers, Consultants and Contractors with the theme of preventing and avoiding claim causation.

Key Words: Claims, Pathogens, Building Construction, Causes of Claims, Types of Claims, Pathogens and Types of Claims.

Strategic Management Implementation of Vietnamese Construction Organizations

2011-05-30T14:10:00.003+07:00

Nowadays, more and more foreign companies invest into developing countries which have a lot of potentialities and Vietnam is one of them. Besides that, Vietnam’s participation in the World Trade Organization (WTO) in November 2006 also brings numerous opportunities for domestic and foreign investors.

Therefore, Vietnam construction industry in generally speaking or Vietnam’s property market is facing with many opportunities and is considered long term potential market for both domestic and foreign investors. If Vietnam has strategic planning, goal development, good vision, and mission or knows what the steps should be executed for the future market, chance of success is a seeable thing. On the other hand, strategic planning and implementation management is an important key which will lead to success.

But in Vietnam, strategic management receives less attention. Some companies or organizations think that the future can be depended by many factors which related to God. Besides that, Vietnam’s investment climate is change slowly which affected to investment abilities of investors. According to Haley (2000), that is the barriers prompted many investors to leave.

Mr. Nguyen Tuan Tu made a case study which major objective was to find ways to improve the Vietnamese construction companies in related to planning and implementing in strategic management (focus on implemented in strategic management). To support his major objective, three sub-objectives were needed to accomplished:

• To study about strategic planning development and implementation of companies from the top to operational structure in public and private contractors.
• To analyze the critical problems in strategic management implementation in public and private contractors.
• To conclusion and propose recommendations to improve the implementation in strategic management applicable for Vietnamese construction organizations.

Conclusion

To study about strategic planning development and implementation of companies from the top to operational structure in public and private contractors

Strategic planning development and implementation of public and private contractors were defined following vision statement application, organizational structure, leadership style, organizational culture and project management style. The results indicated that there were many significant differences between two groups in strategic management implementation and T-test was used to analyze the mean of those significant differences.

Specifically, public contractors have mechanistic system, task oriented leadership style with focusing on rules and procedures while private contractors have organic system, relations-oriented leadership style focusing on relationship between leader and members, communication among each members. Besides that, public contractors pay attention on hierarchy culture because of stability and performance with efficient operation but private contractors are different. Competitiveness and productivity were paid attention so marketing culture is suitable to private contractors.

To analyze the critical problems in strategic management implementation in public and private contractors

From the results of objective 1 and respondents’ experience in data collection, five critical problems which affect to strategic management implementation in public and private contractors were discussed. There were four critical problems having significant difference between two groups such as: strategic manager is not enough managerial skill to monitor implementation strategies, organization has rigid structure following rules and procedures so a result control mechanism may be ineffective, networking structure in organization is limited in each department and financial risk affects to strategy implementation. The mean of public contractors is always greater than private contractors; it means public contractors agreed with those problems appearing in their organization. To solve those problems, suggestions or recommendations can be delivered as follows; top management and supervisor team should involve to implementation in the organization. Besides that, top management or supervisor team also pay attention on networking which create good relationship between each member and to reduce the financial risk, top management must be careful in analyzing and allocating of budget.

Generally speaking, the main reason which created problems in each contractor is separately characteristics of organizational structure and leadership style. Or we can say that, organizational structure and leadership style will affect to culture in the organization. However, culture also plays an important role in establishing and solving problems in the organization. So to overcome those problems, management should participate not only in planning but also in implementation.

To propose recommendations to improve the implementation in strategic management applicable for Vietnamese construction organizations

The proposed framework of strategic management implementation has been suggested in figure below. First, strategic management implementation should be started with Leadership and commitment by top management combined with organizational structure. Work environment in the organization will be defined by three groups (work tasks, goals, procedures; work group behaviors and manager behaviors). Second, the process can be continuously done by effect of Leadership, commitment and organizational structure to organizational culture. From that point, organizational culture will affect to internal environment. In other hand, people attitude and behavior are main factors which affect to outcomes of organization. Finally, audit and evaluation are the keys to check whether strategic management has been implemented effectively in order to improve the organization and fulfilled existing gaps.

His thesis abstract is copied and posted.

Abstract

To gain and maintain a contractor’s competitive advantage is not easy as it depended on a large number of factors. In other words, identification of problems in strategic management implementation allows one to reduce the vast numbers of obstacles to bring back success for the organization. Based on literature review and expert’s experience, this study describes how Vietnamese public and private contractors implemented strategic management in their organization.

The study was surveyed in two big cities in southern of Vietnam - Ho Chi Minh and Can Tho city. Strategic management implementation can be delivered into framework, namely, leadership style, organizational structure, organizational culture and project management style. The result in this study indicated that there was significant difference between two groups contractor about strategic management implementation. From that point, it provides a vehicle for guiding a contractor in managing its organization in order to improve competitive advantage which helps them to survival in new market. Additionally, this study also provides insights into the management of competitiveness for contractors in operation of Vietnamese construction organization.

Keywords: Construction, Leadership style, Organizational structure, Organizational culture, Project management style, Strategic management, Implementation

Quality Management System for Different Construction Project Strategies

2011-05-27T16:41:00.002+07:00

Construction industry is a big business which needs a lot of capital investment. Each project has sophisticated mechanism which composed of any elements to manage. Therefore, head offices should have effective strategy to boost the organization to grow up. Moreover, quality of the company should follow strategy to enhance the managerial power of the organization.

Quality management is not only helping the organizations to grow to the market’s higher level but also increase creditability of the company to encourage a lot of customers. Without quality management, the organizations will have difficulty to improve, because if the organization manages to build the project without any quality standards, then they can get many claims or reworks. Therefore, quality improvement is one of the success factor that lead to the project successful.

Juran has identified the hidden costs of poor quality as represented in Figure below. Many organizations are only concerned to a few cost of poor quality such as reprocessing and rejects, but in reality there are many costs of poor quality such as delays, and damaged goods.
Therefore, quality management is important to implement in the organization to ensure the quality of products or services. Moreover, it also can be reduce cost and time that can lead the organization to be loss by increasing their quality level.

Hidden costs of poor quality Juran (1993, P.23)

Mr. Kittawat Sukosi made a research to study the project strategy and quality management. In order to accomplish this major objective, three majors were needed to achieved:

1. To study quality activities in the differences of project strategy of construction sites in Thailand.

2. To study how construction sites measure quality performance in the differences of project strategy.

Conclusion

Quality management is important for conducting premium performance of construction services.

Nowadays, quality management has been used for many construction companies in Thailand. In order to study about the relationship between project organization and quality management, two objectives was established. The first objective is “To study quality activities in the differences of project strategy of construction sites in Thailand”. This objective was established for study the mechanism of quality management activity in differences of strategy. The second objective is
“To study how construction sites measure quality performance in the differences of project strategy”. The purpose of this objective is to study about measurement of quality performance in differences of strategy.

Quality Activity

The project which established differentiation strategy is required to conduct ISO 9000 series, especially ISO 9001:2008 (newest version), while cost-leadership strategy is not require ISO standard. Quality manual report is just only established for differentiation project. Cost leadership strategy is focused on zero defects, while differentiation strategy has varied aspects such as safety and environment. QMR and quality manager is in-charge only differentiation project.

There are some activities which implemented for all cases such as quality inspection and testing, internal quality audit, equipment calibration, and corrective and preventive action. Environmental inspection and testing is implemented for some differentiation strategy. All cases are conducting safety management, but only differentiation project were implemented based on OHSHA 18000. Quality improvement program are performed for both strategies. However, the improvement relies on the quality activity that implemented and keeps record for analysis.

Quality Performance

In order to measure quality management, quality performance is an indicator of quality measurement. Cost-leadership strategy measures cost reduction and amount of rework in order to reach zero defect objectives. Customer satisfaction is implanted for both strategies, however, the factors of customer satisfaction checklist is differences. Internal audit is implemented in every case. The audit report can be used as a quality performance; again, the issue of internal audit of each project is different. Non-conformance report is performed only in differentiation project in order to improve work procedure by using this report. All cases have performed safety report, however, only differentiation project will raised safety to be a major issue in quality management. Moreover, environmental report is implemented in the differentiation project (only
on case study).

Recommendation for Further Study

This study is completed to discover the familiarities and differences of quality activity and quality performance. As a result, there is one case which they implement all of quality management system (QMS), safety management system, and environmental management system.

Interestingly, this approach can be implemented as an integrated management system. Therefore, the further study can be about the advantage and disadvantage of integrated management system.

His thesis abstract is copied and posted.
Abstract
The research aims to study relationship between project strategy and quality management. The scope of study was limited in Thailand. Qualitative method was used as a research methodology in order to accomplish the research objectives. Five cases in Thailand were selected in this study.
All of data in this study was given by the interviewees. Cross case analysis was implemented in order to find out the familiars and differences of quality activity and quality performance in each case study.

The result of the study was divided into two parts. The first part is quality activity in differences strategy. Cost-leadership strategy is performed quality management, but ISO 9001 was not established as a quality management system. However, quality assurance (QA) and quality control (QC) are implemented such as quality inspection procedure, internal quality audit, quality inspection and testing, and quality documentation system. Construction project which used differentiation strategy is established ISO 9001, especially 2008 version. Safety management is performed in order to reduce accident which can lead to enhance quality performance. The quality activities are based on ISO 9001:2008 such as combine audit, safety inspection, quality inspection and testing, environmental inspection and testing, control of non-conformance work, and quality documentation system.

Quality performance is the second result. Cost-leadership strategy is using cost of rework and number of defected nonconformities work in order to measure quality performance. Audit result is also the tool to evaluate quality performance throughout the entire project. Audit report, nonconformance work report, safety report, and environmental report are as the indicator of measurement of quality performance which the project which used differentiation strategy is using. Moreover, customer satisfaction is one of the quality performance indicators which both of strategies is evaluating. However, the measurement approach of customer satisfaction of each strategy is different.

The On-Site Behavior of a Construction Project Team during the Implementation of the Planning and Quality System

2011-05-25T13:35:00.001+07:00

Changing the procedures and process of the traditional system to the new system involves so many problems.

First, staff members of the contractor have many questions with the new system, but they would not want to find the answers.

Second, the payment of the subcontractor is often delayed and uncorrected in accordance with B.O.Q even though the system has applied the earned value concept.

Third, the traditional on-site work processes have not matched with new system because lack of documentation support on-site.

Fourth, many staff members do not understand how to perform their work in better ways; furthermore, some of them are reluctant to change and think that this is a burden.

Fifth, top management needs to review the accurate information but the project site always covers the truth.

Sixth, sharing the values and norms from existing employees to new employees are lacking and so on.

These problems arise from the lack of knowledge about the benefits of the program and what is the process flow from top to bottom. In addition, due to reluctance of some staff to change and play with the new approach, leaders of the team need to play the crucial role to unite all employees in the purpose of motivation and creating the commitment. As a result, the acknowledgment of which process systems are changed in functions of the project site, and who are in the important position to make the change occurring during the new system implementation in accordance with change management concept are unavoidable.

Mr. Janeyut Naiyarat made a case study which primary purpose was to investigate and find out how construction project teams to behave during the implementation of the new system. To achieve the main objective, the following sub-objectives were needed:

 To investigate the on-site behavior of project teams while the implementation of planning and quality system

 To propose the on-site behavior of project teams affecting the success of the implementation of planning and quality system

Conclusion

The on-site behavior of the construction project teams

Organizational Support - Based on the result of data analysis, the organization provided full support from top managers. There is the specific policy for Planning and Quality system. For staff, the new operational procedures are established along with Planning and Quality form in each project. To transfer know-how to all, the new operational form is demonstrated by executives on-site. Moreover, to ensure the continuous use of Planning and Quality system, construction projects are visited periodically by executives and audit team. Finally, the incentive and rewards are given to appropriate staff accordingly.

Top level (Project Manager, Project Engineer, Site Manager) – Results showed that most of the staff in these levels comply with the policy. The enforcement of the new policy is adopted by top level as well as the specific procedure is established regarding with natures of the project.

Middle level (Senior Site Engineer, Senior Office Engineer) – Result showed that all staff are enforced to comply with the policy by the top level. However, while most of them seem to be forced to participate and use Planning and Quality form, senior site engineer as a key leader in the fourth case study perceiving the opportunity to grow will to lead his project to success in the new system implementation. For others, they all emphasize on the progress of work according to their leaders.

Operational level (Site Engineer, Office Engineer) - Most of site engineers are new graduates and lack of experience, so it depends on the leaders to provide any activities to facilitate site engineers. The behavior of site engineer can reflect the understanding of leaders and the group climate of each case study. In case study I and IV, most of them realize about the benefits by using Planning and Quality form and will to collaborate with all activities and use the form continuously in order to improve individual and project performance. On the other hand, staffs in other case studies reluctant to use the operational form because of lack of understanding about the benefits and lack of facilitating from their leaders. However, to submit the form with the consideration for passing the probation, they make the illusion by trying to fill in the form. Therefore, there are both case study I and IV can success in the implementation of planning and quality system.

The behavior affecting the success of the implementation of the new system

Organizational Support - Based on the result of data analysis, the organization provided full support from top managers. There is the specific policy for Planning and Quality system. For staff, the new operational procedures are established along with Planning and Quality form in each project. To transfer know-how to all, the new operational form is demonstrated by executives on-site. Moreover, to ensure the continuous use of Planning and Quality system, construction projects are visited periodically by executives and audit team. Finally, the incentive and rewards are given to appropriate staff accordingly having good performance.

Top level (Project Manager, Project Engineer, Site Manager) - Staff in this level so as the leader of the team have to comply with the policy. The top level is necessary to participate in entire processes in order to show the serious emphasis on the new system and get staff involvement. Other responsibility of top level is to modify the form regarding with the nature of the project for operational level. Also, the tasks should be assigned effectively to subordinates by top level in order to enforce indirectly to use the form and to get understanding. Moreover, to ensure that staff is using the form constantly, monitoring closely at the early stage and periodically at the next stage has to be performed. Importantly, to develop the team during the implementation of the new system, the arrangements of formal and informal activities are strictly concerned.

Middle level (Senior Site Engineer, Senior Office Engineer) – Executives and top level has to comply with the policy. They have to participate and have to use Planning and Quality Form, while the senior site engineer should cooperate between top level and operational level and to lead the project to success in the new system implementation. In addition, the modified documentation designed by agreeing with all staffs in the team should be developed by senior site engineer. Moreover, to get staff using the form continuously, closely monitoring should be adopted in the middle level.

Operational level (Site Engineer, Office Engineer) - Site engineer should listen and comply with the policy. Participating in all activities to be a part of a team and getting understanding the new system. To understand the benefits and to use the form effectively, site engineers should try out using it and learn from mistakes. In addition, asking questions while having problems and proposing idea while finding the better ways are necessary for site engineers. Importantly, to improve the performance of the project, using the form stably and reporting the progress realistically are essential to detect the problems on-site. The weakness of the form can identify in order to amend to be practical and conformant with the uniqueness of each project.

His report summary is shown below.

His thesis abstract is copied and posted.

Abstract

In construction company especially building sector, there are huge amount of investment by developer while economics expansion; as well, intelligently spending the budget with refined contractor must be concerned. It is the most important for building contractors to improve or change their operational system in order to compete with others. The sample contractor in Thailand is implementing the new system so-called planning and quality system. The purpose of this system is to facilitate staffs on-site via the tools such as the two-week schedule, the cost control plan and the quality checklist. It affected directly to site engineer who normally work with less emphasizing on documentation. To comply with the new policy, staffs in this contractor have to change their working style. Therefore, a change management process is necessary to adopt because the change always has problems, for example, reluctant to change due to lack of understanding and knowledge, lack of sharing information and fear of losing control and overload of current tasks and responsibilities. Moreover, the practical behavior of construction project team during the new system implementation is not well known and the existing literature is very rare in Thailand.

In order to know how to behave of construction project teams during implementing the new system, the objective of this research are established to 1) To investigate the practical behavior of project teams while the implementation of planning and quality system, 2) To propose the behavior of project teams affecting the success of the implementation of planning and quality system.

The data was collected via interview in four condominium projects implementing the new system located in Bangkok and Nonthaburi. The interviewees have classified into three groups of each project. The first group is the top management level that comprises of project manager, project engineer and site manager. The second group is the middle management level that comprises of senior site engineer and senior office engineer. The last group is the operational level having a responsibility to use planning and quality control form that comprises of site engineer and office engineer. The following section is to present the finding of this study.

Development of Worker Safety Attitude Construct and Model in Oil & Gas Construction Projects

2011-05-20T15:52:00.002+07:00

In construction industry, there are lots of factors that affect accident rate. Attitude of the worker is the one of factors which has influence to it. Thus, worker attitude is important to prevent accident from occurring.

The companies have implemented a lot of safety programs in construction site to reduce the accident rate in the construction industry. Also, they want to increase productivity of their work. However, the safety programs might have influences to worker positively and negatively. The companies must be alarmed and take extra care in these both effects of safety programs.

Although there are many researchers conducted study related to safety programs, still the problem now is that, companies do not know how to develop workers’ attitude. Therefore, companies cannot implement safety programs to make safety attitude and behavior for workers in construction site.

Mr. Thanaporn Buaklom made a research which aimed to determine the worker’s attitude constructs and model in Oil and Gas industry. To accomplish this primary objective, three specific objectives were also needed as follows:

• To develop safety attitude constructs and model.

• To study the implementation level of safety program in Oil and Gas industry.

• To determine the correlation between safety program and worker attitude.

Conclusion

The effect of difference worker attitude base on Age and Experiences to worker attitude

As the result of this study, age and experience were analyzed to determine their different effects to safety worker attitude. Normally, the age and experience have effect to the worker attitude. However, in the Oil and Gas projects, they play more attention in safety occupation. Thus, the safety attitude was established at the beginning stage of work, and it was found out that the age and experience have no influence to the worker attitude. In conclusion, the age and experiences of worker have no effect to worker attitude in Oil and Gas projects.

Development of worker attitude constructs and model

There are six factors for worker attitude constructs found. The worker attitude was established from the environmental impact such as worker experience, company support, and personal perception and so on. Therefore, to develop the worker attitude, the important factors have to consider. In addition, this study found the factors that construct the worker attitude. If the companies try to improve worker attitude, they have to improve these factors such as Personal motivation for safe behavior; Personal effectiveness; Positive safety practice; External motivation; Cognitive; and Belief

These factors present the element to improve worker attitude in construction work. The personal motivation for safe behavior is the most effective to worker attitude, because this factor is influenced by the company’s motivation to do their work safely. In addition, the worker can improve their behavior following these factors. Moreover, each factor can represent some element as shown in the table below.

The implementation level of safety programs in Oil and Gas industry

This objective measured the implementation level of safety program. To achieve this objective, this study distributed questionnaire to safety managers, and conducted an interview to know how they implement the safety programs in their company. Moreover, the data was ranked by the implementation of safety programs. The result is shown in the table below.

The meanings of range are:
Ranges Level of implementation
1.00-1.50 Poor level
1.51-2.50 Fair level
2.51-3.50 Good level
3.51-4.00 Excellent level

The meaning of ranges explained about implementation level as elaborated in the previous chapter.

As the result of this study, there are two safety programs which were most implemented 1) In house safety rule 2) Personnel Protection Equipment. These two safety programs are provided for carefully preventing the accident with worker. These are proactive safety programs, which implement before the accident occurred. The reasons for implementing these programs are to easily supervise the worker. Therefore, the safety managers prefer to implement these two programs. Thus, these programs are highest implementation level in oil and Gas industry.

On the other hand, the behavior base safety program has the lowest level of implementation because this program builds for change the risk behavior of worker. For example, the worker is risk taker, who want to work with risk behavior, behavior base safety program are provided to change the behavior of worker; to work safely which is difficult to change. Therefore, this safety program has a lowest level implementation.

As the result of this study, the implementation level of safety programs show the capability of company to implement the safety programs in their company. Each company has different approach to implement safety programs. Some company want to emphasize on management programs, thus, the company will provide more special safety programs. Especially in Oil and Gas industry, they have more safety programs to implement in their work places. Therefore the implementation level of safety program tends to have high implementation level.

The Regression model between safety programs and worker attitude

This research used multiple regression method to find the correlation between safety programs and worker attitude. The data was collected from safety managers and workers in Oil and Gas industry.

The result showed that, there are no significant relationship between safety programs and worker attitude. The model summary of multiple regressions show R square equals .083 which means safety programs has correlation to worker attitude only by 8.3% Consequently, the correlation among safety programs and safety attitude is very low.

The main reason that makes this situation occurred is the assessment of safety program which cannot use to predict the relationship between safety programs and worker attitude in Oil and Gas project. Moreover, there are many factors which affects to worker attitude as cognitive and personal perception. Thus, the safety program cannot signify which safety programs have direct influence to worker attitude.

On the contrary, the safety programs have impact to worker attitude in term of indirect way to worker. This effect encouraged the worker to work safely in the site. This effect is shown by the average that worker attitude is high. This means that the worker attitude have effect from safety programs.

The correlation between organization and worker attitude

These analyses determined the correlation between organization and worker attitude in the company. The relationship between organization factor and worker attitude is the effect of organization to safety attitude. Normally, the organization factors have influences to company employee. In this study, the researcher focused on the influence of organization to worker attitude.

To achieve the objective, which organization factors were implemented in the company, safety managers were interviewed, and the worker attitude comes from the factors analysis.

The result showed that there is a little correlation occurred between personal effectiveness of worker and organization structure, leadership, management style, communication, job responsibility, training and trust. The result explained that the relationship among organization factors and worker attitude is in term of personal effectiveness.

Conclusion, the personal effectiveness is sensitive with the organization factors. There is a small correlation between personal effectiveness and organization factors; while it is evident the other organization factors have no relationship with factor of worker safety attitude.

His thesis abstract is copied and posted below.

Abstract

The construction industry started to boom recently. The construction works have greatly impact in developing the economy particularly in Thailand. Many infrastructures have been built and many investors have been encouraged to bring their business in the country. Many new technologies have been used to upgrade the construction process, but despite of this new knowledge, problems keep on arising at different level in any construction site. Therefore, this research was conducted to study about safety in construction work which is specifically related to safety attitude of worker.

Moreover, the safety programs in construction works were also studied. There were three objectives in this study such as follow:
(1) to develop worker attitude construct and model;
(2) to study the implementation level of safety programs in Oil and Gas industry; and
(3) to determine the correlation between safety programs and worker attitude.

In order to carry out the research objectives, the author collected data from workers and safety managers by using questionnaire. These data were analyzed by using Statistical Package for the Social Sciences (SPSS) software. In addition, the safety managers were interviewed to understand more the safety occupation they applied in their companies.

As the result of this study, the worker safety attitude construct was found having six factors. These are personal motivation for behavior, personal effectiveness, positive safety practice, external motivation, cognitive and belief. These factors represent the worker attitude, which the company can apply to develop more the worker attitude.

For the implementation level of safety programs, the result of this study shown that the safety programs were more implemented in the work place. It was also found out that among the safety programs which implemented; in-house safety rules and personal protection Equipment have the highest levels.. In the contrary, behavior base safety has the lowest level of safety programs implementation.

The correlation study between safety programs and worker attitude revealed that these two have no correlation at all. These can explain that the safety program have indirect impact to worker attitude. Moreover, there are many factors which affect the worker attitude. Thus the safety programs are not the only possible reasons having direct impact to worker attitude. iv
In conclusion, this study suggests to policy implementers, construction firms and to the reader to develop factors for worker attitude too. The implementation levels of safety program are shown. Therefore, this research can be of great help to the construction industry to develop safety occupation in the future.

Internationalization Process of Pakistani Contractor

2011-04-26T16:06:00.002+07:00

The fourth paper “Internationalization Process of Pakistani Contractor” which was presented during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011 is authored by Mr. Hassan Fazliani.

His full paper presentation is posted below.

Construction Claim Negotiation In International Projects

2011-04-21T16:05:00.001+07:00

Mr. Ahsen Maqsoom is the third student who presented his paper entitled “Construction Claim Negotiation In International Projects” during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011.

The topic of his doctoral research is “Factors affecting the internationalization of multinational construction firms”. Below is his full poster presentation.

Building Trust in Contractor - Owner Relationships: Case Study in Vietnam

2011-04-20T14:18:00.003+07:00

Mr. Nguyen Thanh Tam is one of the Doctoral students who presented his paper during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011. The title of his presentation was “Building Trust in Contractor - Owner Relationships: Case Study in Vietnam”.

His poster presented is posted below.

Theoretical Framework of Strategic behaviors in Thai contractors: an empirical case study

2011-04-19T16:39:00.002+07:00

Four students from the Construction, Engineering and Infrastructure Management field of study presented their paper during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011.

One of the presenters, Colonel Arthasith Hastheetham presented his paper on “Theoretical Framework of Strategic behaviors in Thai contractors: an empirical case study”. This study is also published in Engineering, Construction and Architectural Management, 2011, Vol.18 issue 2.

CEIM open applications for August 2011 Intake.

2011-04-19T12:15:00.001+07:00