Project Time and Cost Management in Water Supply Pipeline Construction in Dong Nai Province, Vietnam: A System Dynamics Approach

The primary objectives of any construction projects are to complete the project within the limited period of time, to meet the determined quality based on the standard and specifications, and to keep the project cost under the estimated budget. The concept and practice of project time and cost management in construction industry have been used in recent years in Viet Nam, since at that time, the country had the open-door policy to lure the investment from FDI projects.

It has been proven that, in construction industry especially in water supply pipeline construction, time and cost management played an important role among several construction project management activities. The efficiency of time and cost management can result in the success or failure of construction projects. Hence, it is considered that there is the necessity to develop the model for effective project time and costs management in water supply pipeline construction in Dong Nai province.

Mr. Tran Minh Tung made a case study which objectives are to (1) find out critical factors affecting the project time and cost in water supply pipeline construction project and analyzing the relationship of these factors and thereby enhance understanding of construction delays and cost overruns; (2) develop a generic model based on the factors identified using system dynamic approach; and (3) formulate implementable policies that may aims to reducing project time and costs in water supply pipeline construction project in Dongnai Province, Viet Nam.

He found out that the problem of time delays and cost overrun in the construction industry is a global phenomenon. Project delay and cost overrun have frequently happened in most of construction project and water supply pipeline construction project is not exception. Below are his conclusions and discussions:

1. The critical factors and their interrelationship
By using exploratory research, he found out that there are several critical factors affecting the project cost and time in implementing a water supply pipeline construction project. Project cost and project time completion are significantly influenced by factors in six aspects such as:
a. Labor - by hiring the seasonal laborers, the labor cost can be reduced but the quality and labor productivity will also be affected. However, ‘training’ can enhance the workforce’s productivity; reduce rework and supervisor on site. Besides, ‘Financial difficulties of contractor’ along with ‘late monthly payment’ can negatively influence the ratio of labor turnover which causes laborers shortage.
b. Quality – from this point of view, project cost and time completion rate have related with rework that causing by ‘errors in construction pipeline’. The higher schedule pressure increases, the more ‘errors in construction’ happen. Conversely, the increase of ‘tighter in control and monitoring’ results in ‘error in construction pipeline’ reduction and therefore ‘fault in testing pipeline’ will be increased.
c. Schedule pressure - project cost and time can be influenced by the variance of ‘schedule pressure’, ‘speed up work’ and ‘work remaining’. The increase of ‘speed up’ helps reducing ‘work remaining’ which decreases the project time completion. Also, ‘coordination closely among other Department’ in Dongnai province also helps decreasing ‘the necessary time to consult among these departments’, which can reduce project delay and cost overrun.
d & e. Material and equipment - ‘accuracy material planning design’ helps delivering material on time, saving material and increasing ‘purchasing coordination’ which reduces ‘late delivery of material’. The effectiveness in ‘accuracy material planning’ has positively affected to project time completion. However, ‘late delivery of material’ can happen by the consequence of ‘late payment to suppliers’, ‘financial difficulties of contractors’. In another aspect, the result from simulator shows that ‘qualified subcontractor’ can increase quality of equipment, which reduces rework, leading to accelerate project time completion rate.
f. Safety - project cost and time have the relation with ‘labor productivity’, ‘the rate of labor turnover’, and ‘unsafe act and condition on site’. The higher schedule pressure increases, the more ‘unsafe act and condition’ happen. Conversely ‘safely construction method’ and ‘supervisory effort and monitoring’ help reducing ‘unsafe act and condition’ on site.

2. The system dynamics modeling

It is not difficult for the practitioners to capture the behavior of construction project. The dynamics model will facilitate practitioners to identify the problems related to performance gap by adjusting inputs of exogenous variables with their real scenario. It also makes possible for practitioners to find out the reasonable strategy to implement project in an effective way. Beside, in order to reach the usefulness of system dynamics model, the managers should develop the ability to understand construction project as a whole rather than simply concentrating on the detail of specific issues.

With the aim of setting up the model, the critical factors that have a potential to affect project cost and time in water supply pipeline construction project were identified and analyzed in term of their probable impact on construction process. Then, adopting by system dynamics approach, the generic system dynamics model has been formulated in this study by integrating a number of endogenous and exogenous factors to make dynamic interactions visible.

The generic performance model, when calibrated and tested with data from Nhon Trach water supply project in Dongnai Province, Vietnam, the simulated behavior (base run) of the adopted model has been replicated with the historic behavior (reference mode). This implied that the generic model dynamics performance model can be able to simulate the dynamic of project cost and time during implementing project.

3. Policies for improving

In order to considerably improve project time and cost performance in water supply pipeline construction project, five policies having the most potential were evaluated. The result showed that delay and cost overrun can be reduced by carrying out several important policies during the construction phase, including accuracy design, quality improvement; qualify subcontractors, multi-skilled training and material management.

His thesis abstract is copied and posted.

ABSTRACT

Normally, achieving the project within predetermined time, budget, and quality is the basic purpose of construction project control. Unfortunately, most water supply projects can not be completed within specified time and budget. Most projects showed massive cost and time overruns.

In general, the problem involved with project delays and cost overruns are avoidable. In an attempt to solve these problems, there are various strategies have been applied. Among them, many factors were found as the main source lead to manage time and cost in project efficiently.

This thesis analyzes factors affecting project time and costs in water supply pipeline construction in Dongnai Province, Viet Nam. The qualitative research is conducted to fulfill the objective of the research. Data collection is based on case study in water supply pipeline construction in Dongnai Province. It will be found out from this study that there are a lot of factors affecting project time and costs in water supply pipeline construction. Research objectives is the development of the model involved with the factors affecting project time and costs in water supply pipeline construction project.

In analysis, the model including the factors for reducing project time and cost in water supply pipeline construction projects will be built by using system dynamics modeling. Finally, some strategies deal with project delays and cost overruns are proposed.

Sustainable Construction Development Framework Tourism Industry In Phu Quoc Island In Kien Giang Province Viet Nam

Kien Giang, a province at the Southwest end of Vietnam, is one of the biggest provinces in the Mekong Delta, lies next to the Gulf of Thailand, Although it is located relatively far away from the Economic Centers of Viet Nam, compared to the other provinces, it is close to ASEAN countries such as Thailand, Malaysia, Indonesia, Philippine and Cambodia.

Kien Giang is a province with a large tourism potential with its location and islands compared to other provinces in the Mekong Delta. Kien Giang also has flat lands, islands, sea, mountains, forests, caves, rivers, streams, beaches, primeval forests and many other famous landscapes. Kien Giang has many places of historical interest such as Mui Nai beach, Hang Pagoda, Father and Son islet, Thach Dong (Cavern), Mac Cuu Royal Tomb, Hon Dat, U Minh Forest and especially Phu Quoc Island which are attracting to visitors from inland and abroad.

There are flights from Ho Chi Minh City to Phu Quoc and from Phu Quoc to Rach Gia. These good conditions has enable Phu Quoc develop Trade and Tourism in the short term as well as in the long term.

Ms. Pham Thi Cam Tien made a research study regarding the issues affecting construction development in Phu Quoc Island in order to propose a strategy for the future growth of tourism on the island. Her study objectives are (1) to study the current situation of Phu Quoc Island of Kien Giang Province related with sustainable development in tourism; and (2) to study sustainable construction development factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island.

After conducting her survey and interview, the result of the data analyses revealed several issues related with tourism in Phu Quoc Island that affect on sustainable development. In general, Phu Quoc Island is the potential Tourism Island with many long beach as well as waterfalls along the Island. The number of tourists travelling to Phu Quoc is getting bigger and bigger, thus achieving the sustainable development in tourism. But Phu Quoc Island must follow the ecological development standard. The government as well as the investors should have policy to protect environment and nature on the Island. They should have rules and rewards for protecting the nature and environment in the sustainable development construction project.

The sustainable construction development factors and frame work which are applicable in Bai Sao and Bai Truong tourism project in Phu Quoc Island showed that Bai Truong project, is rather big project which is more concentrated on the specific environment investigation and have orientation sustainable development for the island which is divided and developed in small project following the ecological standard. The construction planning is designed into short term and long term stage and has planned to preserve the forest and coach resources.

On the other hand, Bai Sao Project also follows the sustainable development process such as investigating the environment using local material and protecting the natural atmosphere. Bai Sao is concentrated on architecture development. It tried to design ecological architecture with is familiar with nature and coach. Besides, Bai Sao project is attached special importance to the customers – tourist – with hi-end ecological leisure center.

Ms. Cam proposed some measures for improvements of Local Area Tourism Project and the Roles of the Public and Private Sectors. She suggested that a local area tourism project should be accompanied by a concept or urban design drawing which shows diagrammatically the form, layout and disposition of buildings and their relationship to open spaces and other areas. It is very important that these plans will also form the basis for a set of development control procedures relating to land use and urban design guidelines which also cover urban planning policies and measures. Nevertheless they can contain smaller action plans devoted to tourism, such as the upgrading of the waterfronts of both towns, the preservation of the historical core and creation of activity nodes in Duong Dong. As for the roles of the Public and Private Sectors, both should therefore assume collective responsibilities in realizing a quality environment for tourism on the island.

Her thesis abstract is copied and posted.

ABSTRACT

This thesis was conducted to respond the current situation of the tourism development in Phu Quoc Island – Kien Giang province where tourism is recognize as one major income generator for local people. Many interesting activities have been conducted a long to the beaches of Phu Quoc Island in order to attract tourists. The thesis was studied to identify the environmental impacts of current touris m and to provide recommendations for sustainable tourism development in Phu Quoc Island.

This thesis began with site investigation, interview with key informants. This studies issues affecting construction development in Phu Quoc Island and proposes a str ategy for the future growth of tourism on the island which followed the main objective – to study sustainable development and construction factors and framework which are applicable in tourism project, in particularly in Phu Quoc Island. In order to develop study area, the current issue of environment and developed orientation of Phu Quoc Island were conducted. Finally, the results of the analysis and collected data were include and combined to become basis system of sustainable tourism development in Phu Q uoc Island – Kien Giang province.

Delay Causations in Construction: A Case Study of Pipeline Projects

Delays are perhaps the most common form of construction claims or even disputes. The problem is that, the parties involved in the process could hardly identify the reason and responsibility of each one in the specific task. Delays and claims resulted from the works are not carried out precisely as the contract required. Accordingly, avoiding delays is crucially concerned not only with good practice during the planning and execution of the works but also with the proper operation of the contract machinery.

In the pipeline project, delays also occur. This delay is a serious concern for the owner and the contractor too because the owner needs the exact start-up date and the contractor looks for the effectiveness of the resources and avoiding the punishment. The preparation for the claims, if any, is appreciated.

Mr. Nguyen Anh Dao made a research study with these objectives (1) to identify delay causations in the construction of the pipeline project; (2) to explore the impact of delays on time extension and cost; and (3) to investigate the appropriate strategy to control delays and develop a guideline of information management for delays prevention and control.

Mr. Dao’s conclusions are the following:
1. The delays caused in the construction of pipeline project is the actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.
2 Construction mismanagement resulted in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties, and have direct impact in the delays on time extension and cost.
3. Construction delay analysis represents a very complex task. Thus, construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. In these conditions, they could be able to react and take the appropriate corrective measures to avoid and minimize delays.

Mr. Dao’s made several recommendations and guideline for delays prevention and control. These are:
1. The General Contractor (GC) needs calculate careful every parameter, every single work, schedule and estimates the total budget.
2. In EPC contract, details engineering take the key position to the success of the project from the quality, schedule to the total budget. Thus the following recommendations help: choose the excellent engineering company instead of cheapest qualified one, and review or give comments before giving the approval in the details engineering office to make sure that there’s no thing to block the engineering process.
3. The purchasing materials and equipments process is always important, but it’s the main weak point of almost Vietnamese contractor since Vietnamese law defines that the time for an international bid preparation is at least 30 days. And the schedule performance, profit or lost are mostly depend on this process.
4. In large and sophisticate project, the experience of GC is the most important reason for the success of project implementation. The strong finance, technical ability and numerous resources are all needed to well perform project.
5. The project’s success resulted from the finance ability of VSP. Using own money to buy all materials, equipment, to hide subcontractors… and will get back from oils production in future.
6. Main contractor should consider effective strategy in order to manage subcontractors effectively and efficiently. The strategies including procurement scheduling, quality control, cost, and safety will be discussed in this study.
7. The need to choose ways (or channel) to communicate between the service of subcontractors and the site management or inside contractors can help the flow of works run smoothly. And the communication process becomes easier and faster.

His thesis abstract is copied and posted.

ABSTRACT

Construction mismanagement results in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties. Although the problem may start with a single subcontractor, it can result in all contractors feeling some impact to their work.

The actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.

The construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. The conditions in the schedule, that they are able to react and take the appropriate corrective measures to avoid and minimize delays.

The construction firms and the contractors need to feel in the same rhythm of their project. Especially in large and sophisticate project, our desire to complete the works on time and within budget is hard to fulfill. We can only achieve this goal if we have the experience, competence staff and numerous resources, strong financial aspects, and most of all we use it reasonable.

A Study of the Hotel Renovation Project Management Process in Thailand

Tourism and hotel industry is the one of the major sectors that plays an important role in the economic development of every country. The tourism and hotel industry also supports the growth of other industries, provided that when the tourism and hotel industry area is developed, the business activities will increase as a whole. Thus, the satisfying performance of the tourism and hotel sector is vital key for the prosper beginning of several other parts of the economy. In Thailand, the tourism and hotel industry is a crucial component which greatly influences the economic growth. Tourism is increasing each year which is the reason why, most hotels in Thailand always renovated their hotel to keep up with the competition, to maintain or increase market share by satisfying the current or potential customers, to upgrade the hotel to a higher category, to comply with the new trends and technology and to maintain image and standard.

But hotel renovation projects are very complicated. The process consists of four fundamental interrelated factors involved therein, which are driver analyses, planning and controlling, implementation, and evaluation (Ahmed Hassanien, 2007).

Ms. Atcharaporn Suwan made a research with these set objectives (1) to investigate major problem and specific obstacles occurring in hotel renovation projects; (2) to investigate the existing practice of hotel renovation project management process from the viewpoints of hotelier, consultant and contractor; and (3) to propose the recommendation to improve the hotel renovation project management process.

According to her data analysis, most of external parties that comprise of consultant and contractors have agreed that the two main obstacles of hotel renovation project are lack of money from the owner. This is because some case studies had to set the unrealistic budget and already the budget is fixed from the owner at the first tendering process. Moreover the budget was limited since over budget from the mock up room at the first stage.

Another result of her data analysis is that most of internal party has agrees that the two main obstacles of hotel renovation project is time limitation. The hotelier would like to finish renovation work before high season period in order to gain more revenue during that time and doesn’t want to disturbed their customer. Therefore the period of renovation work was limited base on the traveling season.

Her thesis abstract is copied and posted.

ABSTRACT

Tourism and hotel industry is one major earning of Thailand’s economy, as well as, tourism satisfactions of hotel play the important role among hotel market. Increasing of tourism in each year will affected hotel industry. Therefore most of hotels in Thailand always renovated their hotel for various reasons. However, according to the nature of renovation project will often be subject to a number of diverse constraints. Some may be of a physical and dimensional nature; others are imposed by design considerations. There are various considerations that arise from the original construction. Moreover renovating the hotel and maintaining hotel activities, problems in managing the scope of renovation project and complicated hotel renovation process have been considered as well. These aspects of the hotel renovation process are not well understood and there are a small number of papers that analyze renovation behavior in Thailand.

In order to understand the hotel renovation process, therefore the objectives of this research are established to 1) investigate major problem and specific obstacles occurring in hotel renovation projects, 2) investigate the existing practice of hotel renovation project management process from the viewpoints of hotelier, consultant and contractor and 3) propose the recommendation to improve the hotel renovation project management process.

The data was collected from interview survey in three large scale hotel renovation project of the major destination of Thailand such as Bangkok and Chiangmai. The interviewee has been separated in to two group of each project. First group is internal party that comprise of hotelier, general manager and chief engineer. Second group is external party that comprise of consultant and contractor. The findings were already explained in detail and recommendations for improvement were propose in this study.

Owner’s Project Scope Development for Seaport Project – A Case Study of Sao Mai Ben Dinh Project in Vietnam

Project planning as a back bone of the project management places an important role in any project, especially for Seaport building area. A project is considered successful if it is finished in time, within budget and satisfied owner’s requirements. There are merely two phases of any project such as project plan and project control. The project plan plays the most important role and affect to whole project, planning require a deep study from owner, managers, specialist and many outside professors.

An owner’s inadequate project planning may cause project delay and cost over-budget as well as unpredicted risks. But what is the adequate project planning and how does the owner know on what is the right ways to make plan? Specially, Seaport building which affects very large area: economic, social, politic, etc. Project planning before building is very important.

Mr. Tran Duc Hanh made a research to develop a guideline for project owner to build up project scope to ensure the completion of projects. And to investigate owner’s project scope development to construct Sao Mai Ben Dinh port building project. His specific objectives were to (1) determine the critical project scope development that the owner should attempt in planning of whole project; and (2) investigate a case study that includes an owner’s project scope development plan to construct Sao Mai Ben Dinh port building project.

Based on his research, he proposed four general scopes of planning from owner’s point of view and applied to real case of Sao Mai Ben Dinh project. These are:

1. A general schedule for planning project from owner’s point of view is established.

2. Applying the ideal for real case of Sao Mai Ben Dinh project, at this stage a project charter is defined to determine the purposes and objectives of the owners.

3. A feasibility study is performed and then the risk plan and economic analyses are established. Based on these, a master plan of project is made.

4. An analysis on the result of the plan show that the project is well planning and project bring high advantage to owner.

His thesis abstract is copied and posted.

ABSTRACT

This research proposed a general scope for planning of seaport project, at this point of view we developed a general requirement for plan and some special characteristics of seaport development which owner should pay more attention to. A real case of seaport project, Sao Mai Ben Dinh Project, is established to present the applying of study in real. Most of the important area of seaport project scope is figured out in this research. Base on these, owner has a general view about his project and which part he should pay more attention to in order to make the project success.

Quality Management System For Supervising Consultants For Managing Performance Of Highway Contractors In Vietnam

Construction quality is a critical factor in determining project acceptance and resultant contractual payment levels. Participants in the construction industry have become notably conscious of the role of quality as an essential means to achieve client satisfaction and gain a competitive advantage. Acceptable quality levels in construction have long been a problem to attain on time and within budget in a highly dynamic, complex, and competitive environment. With inefficient or nonexistent quality management procedures, significant expenditures of time, money, and resources are wasted on construction projects (Rounds and Chi, 1985).

Over the past several years, the construction industry has expanded very fast in Vietnam. The construction industry mainly focuses on profit. Due to intensive competition, customer’s requirements are overlooked. It is crucial to the industry to attend to quality and service ability. An example is the 2007 Can Tho bridge disaster. It is not only the responsibility of the participants but of the industry as a whole. No matter what the scope of projects, they have to take people into account because construction is for utilization by people.

Mr. Lu Dinh Vu made a case study which main objective is to develop a QMS framework for supervising consultants that can be effectively used to manage the performance of highway contractors in vietnam. In his study, he investigated the construction methods associated with quality control. The quality control framework was prepared based on the vietnamese standard and regulation. This contributes to compiling important standards and regulations directly affecting quality control in construction. In addition, his case study also analyzed the communication process of managing quality which showed the relationship and duties of the participants in the construction project. Each participant in the project has different roles, but the same objective towards construction quality.

Mr. Vu’s findings regarding the problems on implementing quality on project and its solution can be seen on the table below.

His thesis abstract is copied and posted.

ABSTRACT

The study discusses the quality management system of the consultant supervision function as implemented in highway construction projects. This function is shown as an interconnected system that recognizes the main quality system management activities. Documents and records used in these activities are also reviewed. A model for high quality system management is defined, including supervising consultants and contractors.

The model depicts the quality management system responsibilities and roles in a scheme relating construction quality control, quality assurance, and the interface between them. The scheme can be applied to any construction domain and quality management organizational structure. The study advances the understanding of how quality management is performed and engages participants at several management levels.

The main objective of this study is to develop a quality management system framework for supervising consultants that can be effectively used to manage the performance of highway contractors in vietnam.

An exploratory approach by reviewing the available literature to develop a QMS framework for supervising consultants and test the applicability and effectiveness of this QMS framework in a real case study project. The case study project aims to answer following questions:
- Is the QMS framework applicable?
- Is the QMS framework effective?
- What are the problems and obstacles in implementing the QMS framework?

For the QMS framework to work effectively the role of the supervising consultant is very important, QMS framework must be implemented on a step by step basis, including inputàprocessàoutput.

- In case study, the major highway construction works have been presented. They are guidelines for contractors who implemented them to achieve construction quality.
- A case study has been conducted to investigate the building methods associated with quality control. The quality control framework as presented in the report was prepared based on the vietnamese standards and regulations. This contributes to compiling important standards and regulations directly affecting quality control in construction.

Corporate Social Responsibility in Real Estate Construction: A Case Study Of Preuksa Real Estate Public Company Limited

In the past, developer companies usually engaged on CSR depending on management priorities or market drivers such as laws and regulations, and stakeholders. They always make their own strategic choices regarding how they want their image to be in the market. Even though companies know how to develop CSR, they will still face problems such as when should companies be considered as being a socially responsible business, how to put CSR concept into practice, and when should CSR questions be raised, companies are not ready to answer and often lack of information and knowledge (Panapanaan, 2006).

It shows that although companies know their goal and how to promote CSR, it is still difficult to succeed on CSR effects. One of the most important things that can lead companies to fail on their business achievements is how company’s mission, vision, and strategy apply in practice level. These can cause companies to face problem on both internal and external companies caused by owner or director’s decision making.

In order to overcome these problems, Mr. Jirachai Thaewthiang made a study that focused on developing the information for Developer Company to succeed their goals on CSR. His objectives are to (1) determine how developer company succeeds in real estate construction with Corporate Social Responsibility; (2) identify mechanisms and problems faced when developer company conduct business with Corporate Social Responsibility; and (3) propose recommendations to improve the implemented Corporate Social Responsibility.
He found out that generally, the developer company’s objectives are to construct and sell projects to customers. Evidently, this type of business dealing with real estates and construction projects in Thailand is in a highly competitive market and rivalries.

Therefore, there should be some mechanisms that can ensure or, at least, promote the successful housing business. Corporate Social Responsibility (CSR) is a tool that many succeeded developer companies employ in their business conduct. Preuksa Real Estate Public Company Limited applies this concept and prospers in its business.

In Mr. Thaewthiang’s study, he discussed on how company conduct its business on CSR. Five CSR areas are mainly focused for its long term succeeds: customer, community, employee/worker, environmental and subcontractor/supplier area. However, customer area is still the major target area that company focuses for CSR involvement according to market target. Yearly budget generally allocates from yearly target sell for CSR activities. This is the main key that easily brings company conduct business on CSR. Although there is high investment, it can improve company image and value for long term succeed. Finally, there are four easy steps to improve on CSR involvement through these improvement factors: understanding, identification, development, and integration. These steps can easily understand and conduct business on CSR and also how to involve step by step.

His thesis abstract is copied and posted.

ABSTRACT

Generally, the developer company’s objectives are to construct and sell projects to customers. Evidently, this type of business dealing with real estates and construction projects in Thailand is in a highly competitive market and rivalries. Therefore, there should be some mechanisms that can ensure or, at least, promote the successful housing business. Corporate Social Responsibility (CSR) is a tool that many succeeded developer companies employ in their business conduct. Preuksa Real Estate Public Company Limited, for instance, applies this concept and prospers in its business. Accordingly, this study investigates and observes how this particular company implements its CSR in the current project site as well as in its administration.

The purpose of this study is to: 1) determine how developer company succeeds in real estate construction with CSR, 2) to identify mechanisms and problems faced when developer company conduct business with CSR, and 3) to propose recommendations to improve the implemented CSR.

The data was collected in all levels from the top to the bottom levels, which comprise everything from the mission statement to the public interaction of the selected companies by interview, observation, and documentation on how it conducts housing business using CSR. This study’s findings are discussed and analyzed in detail to propose recommendations to improve housing business on Corporate Social Responsibility.

High-End Residential Property Project Development Process: A Case Study of High-End Residential Property Projects In Bangkok

In Thailand’s attractive cities such as Phuket, Pattaya and Samui, most high-end residential property products are developed by foreigners, large real estate companies from Bangkok and by local Thai developers who joint with foreigners for brand credit. All developers have already known this process but the key factors and particular property development process for this market is still ambiguous for local Thai developers.

It is impossible to provide the guideline for local Thai developers in order to promote their competitive potential without understanding the whole process of property development. Ms. Surangkana Trangkanont made a case study to investigate the high-end residential property project development stages to know the key factors of successful project are. Her three sub-objectives are to (1) investigate how the high-end residential property project development process is developed; (2) identify the significant keys in high-end residential property project development process; and (3) propose the high-end residential property project development process and significant keys the high-end residential property project development.

She found out that the project development process is one of the important issues for high-end residential property project. To be competent, the local investors and developers have to scrutinize on how the high-end residential real estate development project process is done. The high-end real estate project development process conducted feasibility study which is related to saleable area, source of fund and term of repayment, project cash in and out flow or project cost and revenue including project return rate. The more details of feasibility study, the more possible successful project is. The database of feasibility study derived from the developer company database or the results of marketing analysis in terms of project concept and absorption rate. If the result of feasibility studies satisfies the developer, the project concept will follow. Project master plan, project landscape, project facilities and amenities including project unit and project unit models are appeared on blueprint. The project management team is only emphasized on construction works and sale. However, the project management team becomes the most important when the project execution and control are run.

Her thesis abstract is copied and posted.

ABSTRACT

Currently, some major cities in Thailand become more attractive to prosperous people both Thais and foreigners. They want to live in there but the native developers fail to meet their needs. This is because the native developers lack of the high-end residential property project development process system. The research; therefore, firstly aims to investigate the high-end residential property project development process. Secondly, it aims to identify the significant keys in high-end residential property project development process.

Finally, the high-end residential property project development process and the significant keys of high end residential property project development are proposed. To be systematic investigation, the theoretical framework is created and become the roadmap of the research including which issues should be concerned. Next, the case study research methodology is conducted in order to comprehensive the high-end residential property project development process.

After that, five high-end residential real estate projects in Bangkok and perimeter are investigated their project development process. Each project development procedure of each project case study is compared to one another by using logic models and cross case synthesis technique in order to examine the project development process and draw the
phenomena respectively. The results of the research show the key parameters, factors and
influences of each project development procedure. Then, the high-end residential property project development process is proposed including the significant issues concerned by developer.

Risk Management In Offshore Platform Installation Projects: A Case Study Of Ptsc Offshore Services

The development of petroleum industry during past years has created bigger demand, bigger market on both size and scale. Vietnam is a nation with enormous oil and gas resources. These opportunities have attracted international oil and gas companies to invest in the oil and gas sector in Vietnam. Production of oil and gas is probably the most demanding aspect of offshore operation. At the end of the day, we have to deliver the project safety, smoothly and profitably. In order to improve quality, safety and commercial issue of an oil and gas project, service companies continue to investment lots of new equipment including multiple offshore support vessel, accommodation barge, heavy crane barge, anchor handling tug and towing tug vessel.

However, in term of safety, technical and commercial aspect, the oil and gas service company now is dealing with some problems in offshore platform installation activities such as heavy investment in offshore platform installation project and the need in a very careful risk management to ensure that the offshore platform installation work can be successful implemented.

Mr. Do Hong Hai made a case study to (1) identify the risk factors in the offshore platform installation project; and (2) conduct a risk management study for offshore platform installation project.

He found out that the offshore platform installation is normally performed by Contractor to ensure that the work is completed successfully before handover to first oil activities and put project into operation stage. Risk factors in offshore platform installation project are Politics, Economic, Health and Safety, Commerce, Environment, Financing, Natural Events, Contract Condition, Software. The Offshore platform installation is one of the very important stages of exploring and exploiting petroleum activities in the continental shelf with much money in total investment.

He also conducted a risk management study for the real offshore platform installation and simulate with the frame work that referred before. The Compression Module installation project in this case study utilized the systematic approach to manage the main risk. The Compression Module project had a very successfulness in risk management and met the expectation of client BP. The involvements of some stakeholders as client, contractors, and subcontractor have very good attitude in the risk management.

His thesis abstract is copied and posted.

ABSTRACT

In the Project management, risk management is a very important sector using particular method to achieve the best practices in the project of company. Risk management is a systematic approach to managing unexpected related to a threat, through a sequence of human activities including: Risk identification, Risk classification, Risk control, Risk monitor, Risk evaluation.
In the organization, there are some ways of risk dealing such as transfers the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk. Some kind of traditional risk managements are focused on risks stemming from physical or legal causes (e.g. natural disasters or fires, accidents, death and lawsuits).
The purpose of risk management is to reduce different risks. It may refer to numerous types of threats caused by environment, technology, humans, organizations and politics. On the other hand it involves all means available for humans, or in particular, for a risk management entity (person, staff, and organization).

Factors Affecting Project Delivery Time Delays And Cost Overruns Of Project Development At The Royal Irrigation Department Of Thailand

In Thailand, water management is considered as one of the major problems. To solve these problems, the Royal Irrigation Department (RID) under the Ministry of Agriculture and Cooperatives (MOAC) was created. The Royal Irrigation Department construction projects are government projects that provide water resources to the community in Thailand.

Mr. Rathsayam Tiyarathtagarn made a case study to identify the problems related with project time delays and cost overrun in irrigation projects and also to develop a framework for managing irrigation project effectively. His three sub-objectives are (1) to investigate the project life cycle of irrigation project development; (2) to identify specific factors causing time delay and cost overruns for irrigation project development; and (3) to propose recommendations for effective managing the delivery time and cost in the process of irrigation project development.

Mr. Tiyarathtagarn found out that the major factors affecting RID’s project delivery time delays and cost overruns are project approval, land acquisition and asset compensation, design change and change order, increasing of material prices, failure to timely site access and poor planning and management.

His thesis abstract is copied and posted.

ABSTRACT

It is very important for public projects to be completed on time and within budgets. Normally, achieving the project within predetermined time, budget, and quality is the basic purpose of construction project control. Unfortunately, many construction projects at the Royal Irrigation Department can not be delivery within specified time and budget. Many projects show massive cost and time overruns. In cases, the government had to increase project time and cost. In general, the problem involved with project delays and cost overruns are avoidable. In an attempt to solve these problems, there are various strategies have been applied. Among them, many factors were found as the main source lead to manage time and cost in project efficiently.
This study wants to find out the factors causing project delivery time delays and cost overruns of project development at the Royal Irrigation Department construction project.
In order to understand the irrigation construction process, therefore the objectives of this research are established to 1) investigate the project life cycle of irrigation project development, 2) identify specific factors causing time delay and cost overruns for irrigation project development, 3) propose recommendations for effective managing the delivery time and cost in the process of irrigation project development.
The data was collected from interview survey by case study in three large scale projects of RID; PASAK, KAWNOI and NAMKUMN Project. The interviewee has been conducted in the viewpoint only of Royal Irrigation Department. The findings found that the factors pertinent the executive’s role or project sponsor in the conceptual and planning phase and factors pertinent project manager in planning, construction and closing phase. The recommend are the executive’s role need to more attention during conceptual and planning phase and work closely with project manager during construction phase. The project manager should more consider in detail work by using Work Breakdown Structure during planning phase. More controlling and monitoring in construction phase are very important. Every problems, obstacle and lesson learn during construction must be present by project manager in term of summary reports or seminars need to be conducted after project had closed.

A Study of Project Management Personnel and Competence Need For Infrastructure Development In Dongnai

Vietnam economy gains strength everyday. In Hanoi and Ho Chi Minh City, many infrastructures have been built since the country entered WTO. Dongnai Province is also aiming to be economically and socially developed in 2010. Thus this province focuses on the maintenance and development of the infrastructure sector in order to attract foreign investments. As a result, there have been many construction projects for building from 2000 up to this date. However, Dongnai province is now facing problem regarding slow progress and poor quality infrastructures. Therefore, the development of human resources to meet the above target is needed for consideration.

Mr. Truong Vinh Hiep made a case study which primary objective is to survey and to assess adequacy human resources in public infrastructure projects. His two minor objectives are (1) to estimate adequacy project management personnel; and (2) to assess the current competency of the project management individuals, teams, and organizational.

He found out that the project management personnel need one million dollar in order to forecast the number of total construction personnel at three organizations: owner, designer, and contractor in Dongnai province in 2007. In terms of the project management competency level, the individual contractor needs to be a good example, to get the support staff, project sponsor, technical personnel, functional manager, and project manager to manage the scope, time, quality, communication, and human resource. However, the capacity of the project manager is only fair within some areas for instance the cost, risk management, and motivation their staff. Hence, these fields they need improvement in order to meet the high requirement for the projects in the future.

Another conclusion regarding the project management competency is that the individual, team, and organization in the owners and contractors of the large-scale projects are higher than small-scale projects. However there is no significant difference in the individuals, teams, and organizations in the designers between large-scale projects and small-scale projects.

In assessing the project management competence among different projects such as building, road, and water supply system projects using the Kruskal-Wallis test, Mr. Hiep found out that there is a significant difference in project management competence among these projects. This means the capacity of the individual to do their jobs on the projects; cooperation of team members or commitment to complete the project requirement in the team as well as the organization’s support for their workers to execute jobs effectively among buildings, roads, and water supply system projects have seemed difference. While the capacity and ability of the individual to do their works or the cooperation of the team members as well as the organization’s support for their workers to execute jobs effectively between the designer and contractor does seem the same.

His abstract thesis is copied and posted

Abstract
The current competence assessment of the project management personnel in the construction field is necessary for Dongnai province to meet the demand of economy and sociality development to 2010 and 2015. Therefore, this study will provide the information regarding the project management personnel for infrastructure development in Dongnai province. The author observed and interviewed the project managers in the twenty construction projects within three organizations: the owner, designer, and contractor and get the following results:
In term of the project management competency between large-scale projects and small-scale projects, the Mann-Whitney test found that the individual work on the projects, the cooperation of these group members as well as the organization’s support for their worker in the large-scale projects seems to be higher than that of the small-scale projects. When we compare the project management competence among three project types: water supply system, road, and building projects from the Kruskal-Wallis test, there is a significant difference among these project types. But the post-hoc test doesn’t find significant difference in project management competence among these projects. However, when we compare the project management competency among different organizations: the owner, the designer, and the contractor from the Kruskal-Wallis test, there is a significant difference among these organizations and the post-hoc test also finds that the project management competence of the owner is higher than designer. But there isn’t any significant difference in the project management competence between the designer and the contractor.
For this study, the author assessed the current competence of the human resources in the construction field in Dongnai province. And it also provides the data for further research in the future to find the negative cause to affect the project management competence and to setting up the plans to improve these areas which the project management competence level is low as well as find the processes to manage the projects more effective.
Keywords: project management, competence, infrastructure, assessment, organization, personnel.

Construction, Engineering and Infrastructure Management (AIT Thailand) August 2009 Intake

The Construction, Engineering and Infrastructure Management field of study accepted 16 applicants for Masters Program and 1 applicant for Ph. D. for August 2009 semester.


No - Name - Degree - Country

1. Mr.Asmat Nabi Hotaki - Master - Afghanistan
2. Mr. Hout Venghong - Master - Cambodia
3. Mr. Puoy Puthitha - Master - Cambodia
4 . Mr.Timo Juhappeka Myllynen - Special - Finland
5. Ms. Kyawt Phyu Phyu - Master - Myanmar
6. Mr. Kyaw Min Thu - Master - Myanmar
7. Mr. Pye Phyo Moung - Master - Myanmar
8. Mr. Mukesh Khadka - Master - Nepal
9. Mr.Hassan Ashraf - Master - Pakistan
10. Ms. Supatchana Pumpipat - Master - Thailand
11. Mr.Janeyut Naiyarat - Master - Thailand
12. Mr.Wattanachai Tanjedreu - Master - Thailand
13. MissPorntanat Kongsrisawat - Master - Thailand
14. Mr.Thanapon Buaklom - Master - Thailand
15. Mr.Kittawat Sukosi - Certificate to Master - Thailand
16. Ms. Mai Tuyet Vu - Master - Vietnam
17. Mr. Somjiat Sudprasert - Doctor - Thailand

Private Participation In Developing Transportation Infrastructure: Case Study In Ben Tre Province

Vietnam’s economy is growing fast and the transport sector must meet the need of the national economy. Improving efficiency in the transport sector investment will be essential for regional access, integrated economy and efficient freight movement to and from terminals, ports, industrial zones, and for public services. Due to financial incapability for transport infrastructure, Vietnam has had to invite overseas and domestic private sector for improving financing sources. Most transport projects have been invested by the government budget and ODA funds. These sources cannot meet the demand.

Vietnam is facing an urgent need to find new means to finance transport capital investment. Therefore, encouraging private sector participation in the transport sector is critical issues for the government. To execute these issues the government needs to learn experiences in mobilizing private sector from other countries to apply for Vietnam. Vietnam should give up monopoly in some fields and give clearer policies for private sector.

Mr. Pham Hoang Anh made a research study to find the suitable ways to increase the fund supply for development of transportation infrastructure in Vietnam. His 4 objectives are to:

1. Investigate legal environment for PPP transportation infrastructure projects;
2. Investigate the current and future gaps of funding sources in developing transportation infrastructure.
3. Propose PPP models and test the applicability of these proposed PPP models for each kind of transport infrastructure projects.
4. Propose the recommendations for the local government in applying PPP models to fill the future funding gaps for the transportation projects.

He found out that there are 8 laws and legal regulations governed for PPP transportation projects. These complexities discouraged the investors especially foreign to invest. On PPP transportation projects at provincial level, there are 7 government parties participating in the project from the primary ideas to complete project. This process runs slowly and its complexity, these make the process of implementation of PPP transportation projects spend much time.

Based on his survey, he found out that most of developers in transportation projects are state-owned enterprise construction contractors so there is deformation about kind of capital in PPP transportation projects. In the case of Ben Tre province, the capital for transportation development is mainly dependent on allocation of budget (central, provincial and district budget), in which provincial budget contributes 50% in total.

Government budget supply will meet around 37% of total financial demand for transportation development. Between public supply and real demand is a huge financial gap. The role of private sector is very necessary in this situation to fill such the financial gaps. The partnership between public and private sector, private participation will possibly contribute 16% of total necessity investment capital in case of minimum contribution of private sector, around 41% at maximum contribution and 28.5% at average value of contribution.

With minimum private participation, the total obtainment capital is around 53%, and 65.5% for the average value. It reaches 78% of total financial requirement. It means that the Transport Master Plan of Ben Tre province up to 2020 will not be able to fulfill by 2020. The utmost, only 78% of the plan will be accomplished. Therefore, the Transport Master Pan is not feasible.

His thesis abstract is copied and posted.

ABSTRACT

The wave of transportation infrastructure investment has been booming in Vietnam recent years. Meanwhile the government budget is inadequate to meet huge demand for transportation improvement. Private participation is considered as a critical solution to solve this problem, their contribution is going to be expected to share financial burden with government budget in future. Therefore, the study concentrates on main issues of Public-Private-Partnership (PPP) models in order to apply for transportation infrastructure projects and current legal system related to PPP transportation projects. Thirteen PPP transportation projects were analyzed in light of financial and legal issues. An investigation was conducted among transportation sector’s participants including officers, investors, developers, expert and bank’s staff. The case study was conducted in Ben Tre province. The future financial requirement for constructing all future transportation projects in the Transport Master Plan was determined. The PPP models for each kind of transportation projects were proposed to identify private financial contribution to fill a part of financial gap. The study suggests possible solutions to solve difficulties of the government in applying PPPs for transportation development, such as diversification of financial sources, administrative reform, and more.

Strategic Planning For Multimodal Transportation Hub: A Case Study Of Chiang Sean Port 2 And Pakbara Deep Seaport Project

Nowadays, Thailand logistics development is in the level of Physical Distribution which supports only delivery of the goods to the consumers. This level also covers the activities of the transportation, the stock of goods, material management, and packaging of the products. Thailand logistics transport modes, however, are not integrated. The lack of efficient logistics in multimodal transportation logistics obstructs Thailand to be the good logistic hub. So the Government of Thailand needs to focus in transport infrastructure to link all modes to be multimodal transportation.

Since Thailand developed the strategic planning, the success appropriate level has not reached. One of main reasons is lack of continuity in implementation of plans, each implementation of plan is not developed in the same direction and all plans are not integrated together. In addition, due to limitated budget and resources. In order to optimize resources in the right direction and achieve highest efficiency, Thailand needs the strategic planning which be created by basing on the multimodal transportation to be the guideline and to be indicator to meet the goal. It is obvious that GOT needs to improve implementation plan of strategic planning because of the strategic planning is a vital part in budget allocation process.

Ms. Suphitcha Phoemphoonthanyakit made a research which aimed to improve the strategic planning for multimodal transportation hub development in Thailand. Her 3 specific objectives are to (1) investigate the existing strategic planning of multimodal transport logistics and to get the key multimodal transportation parameters so that the strengths and weaknesses can be identified, (2) find out the appropriate strategic planning for multimodal transportation hub development project; and (3) propose the recommendations for improving strategic planning which appropriates for multimodal transportation hub development project.

Her result showed that in order to develop multimodal transport projects, the key parameters which should be considered are technical development, project demand, project return, laws and regulations, environmental concern, resources availability, and political concern.

From the expert interview, the researcher found out that the root causes of problem come from:
a. The department does not have the same direction to develop their projects.
b. The department proposes the projects by lacking of consider the strategic plan under the ministry.
c. The department proposes the projects by aiming target that they have to get the budget of their project at least same amount of previous year or otherwise more then previous year.
d. The department proposes the projects by sticking on their function of work.
e. The department proposes the projects and conducts the feasibility study by themselves so the bias may occur in order to make the project feasible.

She also found out that the projects which each department propose could not meet the key parameters of multimodal transportation hub. The main factors that causes the case studies could not be the multimodal transportation hub are:

a. The case studies lack of railroad transportation infrastructure development project and have low the opportunities to be the hub due to the demand are not high.
b. The demand forecast of case studies are significant different from the actual demand from interview and site observation.

For budget allocation for multimodal transportation, researcher uses budget allocation process toward the case studies in order to find out the characteristic of budget allocation of case studies. After researcher towards the budget allocation process to the case studies completely, the researcher found that three main problems occurred.

The first problem is the budget allocation for four year implementation plan is not optimization. On the right way, the budget should be allocated to projects that are multimodal transportation instead because they can give more advantages to logistics transportation system. The root cause of this problem comes from, OTP could not develop the case studies by integrating with other projects in order to be multimodal transportation.

The second problem is the budget allocation for yearly implementation plan is not optimization. This problem is similar with the first problem. The difference is the excursion area, the first problem occurred at four year implementation plan but the second problem occurred at yearly implementation plan. The OTP could not develop the case studies by integrating with other projects in order to be multimodal transportation.

The third problem is no budget allocation to case studies. The root cause of this problem comes from:
a. Lack of continuousness in project development due to the political problem.
b. Lack of budget expenditure data of previous yearly during budget requisition forming.

Her thesis abstract is copied and posted.

ABSTRACT

Due to the main national policy of the government to strengthen the position of Thailand as the economic and transport hub of the region, it is necessary to develop the multimodal transportation which can efficiently link all modes of transport, i.e., land transport (highway and railway), waterway transport, and air transport so that it can reduce the national logistics costs and lessen the energy consumption of transport sector. Although Thailand has developed the strategic planning but still it has not reached the success up to the appropriate level as targeted. Moreover, Thailand has limitations in budget and resources. In order to optimize resources in the right direction and achieve highest efficiency, Thailand needs the effective budget allocation system to comply with multimodal transportation logistics plan.

A research has been done based on the two case studies which were conducted on the river port in the north part and deep seaport in the south part of Thailand. A qualitative research technique has been used by taking into account expert’s interviews, site observation, and main data source.

The finding of this study has shown that the strategic multimodal transportation planning of Thailand has some deficiencies and obstacles in project integration. Therefore, the recommendation of strategic multimodal transportation planning which is developed in the study will help the Government of Thailand, the Bureau of the Budget, Ministry of Transportation, and The departments under the Ministry of transportation, and other participants in project integration to follow the same direction and properly allocate the budget for the projects to achieve the multimodal transportation goal.

Workers Participation In Safety Management System In Construction Projects In Thailand

The construction project faces many problems like accident during construction. Many researchers mentioned that maybe because most of the workers were unskilled since they worked before in agriculture but due to seasonal works, they changed their jobs. Moreover, they had their own unsafe habits from previous works especially in agriculture carrier.

In developing country especially in Thailand, to manage the system to provide safety for the workers and others from risks arising out of work activities, it is necessary for every employer’s concerned with construction (client, professional adviser or contractor) to recognize the hazards and manage operations to eliminate them as far as is reasonably possible (Davies and Tomasin, 1996). Hence, the manager level has to provide Safety Management System for the workers. However, the workers especially in Thailand need workers participation to implement as business core function since the company cannot choose better the safety programs whether they fit in best or not for the company. Besides, the accident happening rate in the construction project still remains at improper levels. Furthermore, by having an affective safety programs and the way workers participation can be embedded in organization because it can encourage mutual cooperation between management and workers in the operations of the programs and decisions that effect their safety and health (Aksorn and Hadikusumo, 2007, p.2).

Mr. Alvin Agustinus Gahari made a case study on “Workers Participation in Safety Management System in Construction Projects in Thailand” which primary objectives are to (1) investigate the workers participation in safety programs and (2) investigate methods to encourage the workers participation

Based on his research, below are the conclusions drawn:

1) Skill and knowledge, with clear safety program can encourage workers participation in safety organization.
2) Leadership, trust, open communication, skill and knowledge, incentive and clear safety program can encourage workers participation in risk analysis and method statement.
3) Open communication, incentive and clear safety program can encourage workers participation in safety inspection.
4)Clear safety program can encourage workers participation in safety training.
5) Trust and incentive can encourage workers participation in safety committees.
6) Leadership, trust, open communication and incentive can encourage workers participation in accident investigation and analysis.
7) Leadership, trust, open communication, with skill and knowledge can encourage workers participation in personal protection programme.
8) Leadership, skill and knowledge, with clear safety program can encourage workers participation in in-house safety rules and regulations.
9) Leadership and clear safety program can encourage workers participation in safety orientation.
10) Leadership, trust, open communication, skill and knowledge, incentive, with clear safety program can encourage workers participation in Job Hazard Analysis.
11) Leadership, trust, open communication, skill and knowledge, incentive, with clear safety program can encourage workers participation (overall).

His thesis abstract is copied and posted.

ABSTRACT

Safety in construction projects has greatly risen in current years particularly in Thailand. The relationship between workers participation in safety program and workers participation encouragement was very important in this study. It caused that different construction projects have generated some troubles, one of which is accident during construction. Accidents do not happen naturally but are caused by certain reasons, most of which can be predicted, controlled or avoided.

Prior to works begin can be happened by accidents, and also subsequent to the works have been completed can be happened by them, because of lacking design or construction, causing fatality or wound to those engaged on maintenance work and to members of the public. The success of any business counts on the workers and they are the bottom line as well. Protecting workers from hazards not only constructs good business sense, but also the right thing to do. In addition, manager level was able to erect Safety Management System with workers participation. Thus, it is proposed that this research was able to focus on safety responsibility in safety program, leadership, trust, open communication, skill and knowledge, incentive and clear safety program.
The required data was collected by using questionnaire survey. The objectives were to investigate the workers participation in safety programs and investigate methods to encourage the workers participation in Thailand construction project. The statistical methodology that used for examine the hypotheses was the Pearson’s correlation method. The result indicated that workers participation affects safety program. Some methods to encourage workers participation tended to follow safety programs.

There were 54 respondents returned questionnaires from their projects. All of questionnaires were visited personally and tracked through phone call and more visits were also conducted.
The construction projects that have in-house safety rules and regulations in their construction projects have a tendency to improve safety performance instead of without in-house safety rules and regulations. This safety program was the first rank or else the most important in this study. Furthermore, some methods can encourage workers participation in safety programs.
Further study is supposed to include not only less experience but also more experience especially for the person who has responsibility in safety. Moreover, this study would be better if it includes the estimation value of the construction project so it can be known the construction projects which have a good or bad safety program.

Criteria For Infrastructure Project Selection: A Case Study In Cantho City, Vietnam

Vietnam has been successful in expanding access to infrastructure services over the past twenty years. The investment in infrastructure spreads all over the country, supports to growing economy, and expands the basic services to poor rural areas. Entering WTO since October 2006 offers Vietnam, new chances in economic expanding and opens new challenges for infrastructure as well. Dealing with high demand in infrastructure services, the Vietnam’s authority tries to attract capital from many sources of funds in order to expand and invest more infrastructure projects in both central and local government. However, the investments are still spreaded, uncompleted and the maintenance works are also neglected. One of main reasons is weakness and shortcoming in planning, selecting and budget allocating process. Setting project selection between different projects commonly accord with the absence of economic criteria. It will be a wasting of resource to carry out the project that brings the lower socio-ecomomical benefit compared with others. The efficiency and effectiveness of selecting infrastructure projects are hence the main concern of local authority.

Nguyen Thi Xuan Dan made a study to develop infrastructure prioritization criteria for each kind of infrastructure project at local government in Vietnam. His study focused on (1) in-depth understand laws and regulations for transportation project investment then specify shortcoming of regulations existed, (2) investigate and evaluate the current project selection process in Vietnam in term of criteria as well as procedure of so that its strengths and weaknesses can be identified; and (3) develop and propose criteria for each step of infrastructure project selection process in Vietnam.

He found out that there are many laws and regulation related to the infrastructure project investment. It consists of four main laws that are Law on Organization of People’s Councils and People’s Committees, Law on Budget, Law on Construction and Law on Investment affect the making investment project. Relevant laws include Law on land, Environment law, Law of tendering and Technical standards and grad of the project in Vietnam. In addition, there are a large number of Decrees, Circulars, and Guidelines for investing infrastructure project in Vietnam. In the review of laws and regulations and interview information, the three short comings of current regulations were identified: (1) taking long time to recommend, adjust when getting problems in large mechanism of Vietnam government with vertical horizon administration, (2) limitation of updated regulation documents, and (3) and deficient in good coordination of circulars and guidelines.

His study also pointed out some weaknesses that still exist in the current selection process such as (1) there is no establishment of criteria, guidelines and regulations for prioritizing project. Without prioritization, the project selection passes the conceptual and investment elaboration stage difficultly and complicatedly, (2) the setting up of criteria for project selection process is also not paid attention. The selection of project is based on this importance factor and project policy compliance under budget availability.

His thesis abstract is copied and posted

ABSTRACT

In accordance with the fast growing of socio-economic development in Vietnam, the demand for enhancing and expanding the infrastructure structure is very high. However, under budget limitation of developing country, local government should have an adequate selection to possibly pick the most promising project for investment. The objective of this study is to propose the criteria for selection process of infrastructure project of local government. In order to achieve this target, the investigation of existing project selection process was carried out to identify strengths and weaknesses three stages conceptual, investment project elaboration and approval stage of this process. Data collection related to the investigation was collected from legal documents, working report and interview information from Cantho, Vietnam. Using secondary data analysis, the study specifies five factors influencing the project selection. Since, the identification of criteria from these factors for each stage of selection process was eight, eleven, and six criteria should carefully consider in conceptual stage, investment project elaboration stage, and approval stage. Finally, based on the evaluation of developed criteria, recommendations are conducted for improving the criteria of infrastructure project of local government in Vietnam.

An Owner’s Project Planning Approach For High Rise Building In Design And Construction: A Case Study Of Petrovietnam Commercial And Financial Centre

In Vietnam, the concept and practice of Owner’s Project Planning (Cost, Scope, Schedule and Quality) have been used in recent years. The purpose of Owner’s Project Planning is to: (a) describe briefly what project planning is and how it is carried out; (b) identify the major obstacles to effective planning and suggest ways of over-coming them (Laufer, 1989).

Mr. Nguyen Hoang Loc made a research to study the owner’s project planning approach for building project in design and construction and to develop a guideline for project owner to develop project plan to ensure the completion of projects.

He found out that the use of Owner’s Project Planning in the construction industry has greatly increased in recent years. Sophisticated technology-based products has required a high degree of design, manufacture, installation, and commissioning skills that have not been readily available to the industry’s Owners. As a result, Owner should outsource to contractors including Cost, Scope, Schedule and Quality, Procurement, Risk and Safety inspection.

However, many of contractor companies do not have the necessary expertise to undertake work satisfactorily and, as a consequence, are unable to give their clients the service they require. Therefore, owners need plan approach for building in design and construction which must be done by the project owner to ensure a successful completion of project, and owners needs to develop a strategy that allow him to manage contractor effectively and efficiently.

He also found out that there are similar owner’s projects planning strategy from local owners. It can be concluded that owner’s project planning strategy in terms of procurement and cost from local owners has been aligned and organized, but in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the owner’s project planning strategy in local owner in order to improve the contractor management performance. In contrast, it can be concluded that owner’s project planning strategy from international owner in case D, has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.

His thesis abstract is copied and posted.

ABSTRACT

In Viet Nam, the concept and practice of Owner’s Project Planning (Cost, Scope, Schedule and Quality) have been used in recent years. Owner’s Project Planning Approach for the High Rise Building in Design and Construction in the Construction Industry Development has been greatly important, especially high rise building projects. Project Planning is the bridge between the ideas and execution. The purpose of Project Planning is to define the exact parameters of a project and ensure that all the pre-requisites for Project Execution and control are in place. Project planning marks the completion of the Project Plan, no work is left uncovered. At the conclusion of Project Planning, the Business Case is revised and re-evaluated based on the completed Planning documents and a decision is again made to either halt the project, or to commit the resources necessary for Project Execution and control.

The Objective of Owner’s Project Planning is effectively and efficiently including Cost, Scope, Scheduling, Quality, Procurement, Risk, Safety, Manage the relationship in terms of partnering, Leadership Style and Communication. Therefore, Owners need to develop a Project Plan that allows him to control of Design and Construction for High Rise Building Project. In order to understand how the Project Planning is being operated together with the strengths and the weaknesses of high rise building in Design and Construction, Owner’s Project Planning Approach for Petrovietnam Commercial and Financial Centre were investigated through documentation, objective, problem, archival, and interview.

The planning of capital investment project is a project process, which processes from feasibility studies, to preliminary planning and lastly to detailed planning. In this thesis, the project has focused on normative techniques of planning and control namely.

Search in the current literature deals mainly with the following types of Owner’s Project Planning Approach for High Rise Building Project in Design and Construction:
- Cost planning.
- Scope planning.
- Schedule planning.
- Quality planning.
- Risk planning.
- Procurement planning.

Project Planning, especially from the Owner point of view, is a relatively new field. After more than a decade of intensive development it is still difficult to point at significant progress in the understanding of planning principles.

A number of key elements are added to the Project Plan, including project-specific items such as change control, acceptance management and issue management, as well as externally-focused items such as organizational change management and project transition. The initial list of project risks is augmented, and detailed mitigation plans are developed.

Motivation Of Construction Engineers In Ho Chi Minh City, Vietnam

The economy of Vietnam grows rapidly, especially in HCM city which has always reported as have high levels of economic activity, constantly leading in terms of economic growth since entering WTO. Under the strategy for industrial development to 2010 and the vision for 2020, HCM City is expected to become an industrial city by 2015 and play the role as an economic driver of the southern focal economic zone and the whole country. These development policies provide a chance for development of construction industry in the City. On the other hand, the HCM city people’s committee will have new policies to improve the goal of construction industry. One of these is increasing the productivity of construction engineers through motivation of construction engineers.

In industrial construction, one of the issues confronting constructors and owners of construction project is how to improve construction productivity. Stated in another way, how can construction projects be completed cost effectively? It is believed that increasing construction engineer productivity through improved motivation would result in significant savings in construction costs. The behavior of engineers affects project productivity. There fore, the study of engineer motivation is very important.

Mr. Nguyen Duy made a case study to know the wants of the construction engineers in HCM City, Vietnam and how it contributes to effective motivation policies and programs to increase their productivity. His study’s objectives were: (1) to survey construction engineers’ needs and their satisfaction in the Vietnam construction industry; (2) to propose some recommendations to motivate construction engineers working effectively; and (3) to specify the validity of the expectancy theory toward motivation of construction engineers in the Vietnam construction industry.

Mr. Duy’s concluded that the construction engineers’ needs and satisfactions did not meet. Almost all engineers considered a three high need factors such as good orientation and training, good relationship with colleagues and good welfare condition. The company must be properly addressed these factors if it wants to carry out the policy that will motivate the engineers effectively.

The result of his study implies that engineers’ general satisfaction and intrinsic satisfaction are higher than satisfaction on their need factors. This means engineers’ professions are attractive for them, but the outcome of work can not meet their needs successfully.

His study also illustrated that the validity of expectancy theory was not strongly supported. But expectancy theory still provided a conceptual base for understanding the motivation of construction engineers. Analyzing the relationships predicted by expectancy theory implied that job clarify is useful to improve the expectancy of engineers even though the expectancy has no strong relationship with effort and performance.

His thesis abstract is copied and posted.

ABSTRACT

Construction industry is the one that drives virtually ever economy. It is needed to provide the infrastructure, plants, industries and houses for the population. For the industry to serve the economy it needs resources. One of the most important and critical resource in construction is manpower. This resource, unlike other resources, is the only one that free will. As a result, it is important for manager of construction to understand the factors that influence construction engineer performance. To motivate construction engineers, it is necessary to know how they respond to their environment and what they need. A survey was developed base on expectancy theory. This survey was conducted in construction industry in HoChiMinh city, Vietnam. The study was carried out to determine the factors that affect the motivation of engineers, for example, physiological (breathing, food, water, sleep,...), safety (security of body, of employee, of health..), belonging (friendship, family, ..), esteem (confident, respect by others, achievement,..), self-actualization (morality, creativity, acceptance of facts,…). Hence, proposing some recommendations to motivate construction engineers working effectively. Further more, this research also specify the validity of the expectancy theory toward motivation of construction engineers in the Vietnam construction industry.

Financial Management For Small And Medium-Sized Enterprises In Construction: Case Study In Thailand And Indonesia

Southeast Asia is now developing the small and medium sized enterprise which becomes the backbone of the economy of the particular country. In Thailand and Indonesia, construction industry influences the economic growth. The interesting fact is that in Thailand, construction relies more on small and medium-sized enterprises or “SMEs” which construction plays significant role in influencing the GDP of the country. Indonesia has more or less similar circumstances as that in Thailand where small and medium contractors have an important role in process of growth domestic product. As the major part of construction industry in Indonesia, the development of construction SMEs will be essential.

Ms. Vivi Megawati made a case study to understand how the entrepreneurs manage their construction SMEs and the fundamental system they adopt for the financial management.

Her study mainly aims to investigate and assess operational factors that affecting the financial capability of the Construction Small and Medium-sized Enterprises. Identifying the key operational point will help the construction SMEs to enhance their financial capability. To accomplish her study’s the main objective, she outlined three sub-objectives to (1) identify key operational parameters affecting financial management in construction SMEs; (2) investigate the existing financial management practices affecting the financial outcome of construction SMEs; and (3) propose recommendation for financial management that are appropriate for construction SMEs in handling with the key operational parameters

Her conclusions based on the result of her survey.

1. Financial management in construction SMEs - it is found that construction SMEs is vulnerable to financial crisis due to the misconduct of financial management. Improper management practices have brought some construction SMEs to financial difficulties and even bankruptcy. It is can actually be avoided through appropriate financial management according to the character of construction SMEs itself.

2. Indonesian and Thai SMEs practice in financial management - construction SMEs both in Indonesia and Thailand exhibit the misconduct in financial management. However, some companies involved in the study are seen to have adequate financial management to sustain the business. The size of the firm usually determines the properness of financial management although in some parts, decision maker structure does.

Her recommendations for Thai and Indonesian construction SME owners in managing the financial management in securing long-term competitiveness are the following:
1. Thai SMEs can consider decentralization in purchase authority to expand the business since centralized purchase authority is cumbersome for some extent. Decentralization allows prompt purchasing which can affect the productivity especially when the size of the project is big.

2. Indonesian SMEs can be more professional in financial management. If the company wants to expand the business, Indonesian SMEs can raise long term debt for higher capital to be able to bid higher project.

3. Improve inventory management. The construction SMEs must properly and promptly update and record any changes made in inventory especially in balance sheet. Stock card may become the good instrument to monitor the flow of inventory. Depreciation can be applied to formalize all the inventory purchasing made by the company. For the second-hand equipment which is usually used until it has no salvage value, the depreciation can still be applied to the value of zero.

4. Construction SMEs must have good and competent estimators. Without the owners involvement in the technical operation (as estimator or project manager) it is necessary to have good and competent estimator which is accompanied by project manager or site manager for more accurate estimation.

5. Construction SMEs must consider other ratio analysis. Bank as the loan provider examine the company based on their financial performance shown in their financial ratios. Thus it is necessary for the owners or managers to recognize the important ratio analysis such as liquidity ratio, Debt/Equity ratio and debt service coverage ratio (DSCR) which is produced from reliable and exact financial statement. It will help construction SMEs to get access to loan from formal sources.

Her thesis abstract is copied and posted.

ABSTRACT

Construction SMEs are the backbone of the construction industry both in Indonesia and in Thailand. However, the management is seldom maintained properly to achieve the optimal outcome. The study focused on the financial management of construction SMEs which affect the whole operational and determine the success of the firms. The study aims to investigate the financial factors and the interrelation between each factor which influence the financial outcome and financial capability and recommend the effective operational method for financial management.

The study uses case study as a research design. The processes begin with factor identification which consists of preliminary factor and verification of the factors. It is the continued with the data collection using the abovementioned factors to design the case study question. Data analysis is conducted toward the evidences using explanation building method in which all the important evidences are revealed and explained.

Results from factor identification shows that financial function in construction SMEs can be divided into four major parts namely: 1) money management, 2) accounting, 3) financial controlling and 4) financial advisory. The money management itself is the integration of three sub-parts: financing decision, working capital management, and investment decision. Accounting consists of recording and reporting process. Financial controlling concern both project and organization financial control. Eventually, financial advisory concern the advisory process which base the decision taken within the company regarding financial control system, dividend and retained earnings, income diversification, and tax planning. The framework shows the interrelation between each factor is developed. The causes, consequences, and recommendation for handling with all the factors mentioned above were discussed in this study.

On Site Cost Control System In Construction Company In Viet Nam: A Case Study Of Three Construction Companies In Ho Chi Minh City

Cost control is conceived to ensure that costs stay in line with the planned needs established by the company to achieve economic targets. Every construction firms needs information about costs in order to plan, evaluate, decide, and budget, among other purposes. The cost control is a process that should be continued through the construction period to ensure that the cost of the building is kept within the agreed cost limits. The cost control can divide into two major areas; the control of cost during design stages and the control of cost by the contractors once the construction of project has started. The main objective of cost control is gaining the maximum profit within the designated period and satisfactory quality of work.

Most of Viet Nam Construction Company have cost control system established by themselves; but the systems are system less and ineffective. Mr. Le Hai Son made a case study on “On Site Cost Control System In Construction Company In Viet Nam: A Case Study Of Three Construction Companies In Ho Chi Minh City” to understand the current practice in their organization and explore what factors are effective or deficient that needs improvement.

His study was carried out to study the cost control method in a construction project, to identify the cost control method frequently used by the contractor during the construction stage and to identify the problem faced in controlling the costs on site. The objectives of his study are (1) to study and understand the current on site cost control system in Vietnamese construction companies; (2) to investigate and identify effectiveness and deficiencies cost control system; the factors caused those effects in relation with measurement identification; and (3) to recommend how to improve the cost control system of company base on the attributes founded.

His study revealed that the common trend in Vietnam Construction Company is that cost control procedure has not been systematized. The organizations have initiated a development plan and only a few of them have successfully established their cost control systems. This shortage, therefore, is a major factor that causes contractors' business failures during the current economic recession period. They used the system designed by themselves and applied for all projects they achieved.

Mr. Le Hai son’s study also revealed that site personnel in the organizations have less participation in cost control. According to the companies' policies, the budget is set and solely approved by head office. Normally, head office doesn't let site personnel know budget and assigned them to control only in term of quantity. As a result, site personnel have no cost-conscious mind and are not motivated to monitor and control cost. For cost analyzing and reporting, the responsibility is taken by accountants who can generate information based on bills and invoices. Certainly, the generated cost information can't reflect the real on-site situation and can't provide great benefits to management to take right and timely corrective actions.

In this case study, most of cost codes system used by the contractor or construction management company is not examined to identify their effectiveness in controlling project costs. Therefore, monitoring of actual expenditures of each work item and monitoring of work progress in comparison with budget and actual cost can't be achieved.

His study found some problems that affect to cost control system of company come from following reasons:

1. Human factors and type of training cost engineers –Viet Nam does not have professional estimators, hence construction management on cost control had not yet assessed appropriately. Training mission to provide engineers and expert in this field had not yet considered important.

2. Estimate norm - Viet Nam has many norm systems, but they are deficient, inadequate and complicated. Many construction works in norm are not appropriate with reality leading cost management, setting up estimate, verifying, approving and executing have difficulties during last period.

3. Material calculation method - it is necessary to have a regulation that stipulate adequate real cost, it can be considered that we can follow the announcement from prestige supplier; therefore we can compare and chose.

4. Labor cost calculation- each province has different comprehension and calculation method about labor cost and caused difficulty in establishing and managing the cost.

5. Treat inflation for construction buildings- the internal and international market price have powerful fluctuation.

6. Reserve expenditures for building construction -With the regulation for reserve cost about fifteen percentages “for feasibility study” for both inflation and quantity are not appropriate. Modification of the project, additional cost and efficiency investment can not avoid and the difficulties with investment project from capital sources will increase.

His thesis abstract is copied and posted.

Abstract
In a recent consulting assignment we realized that there was some lack of understanding of the whole system of project cost control, how it is setup and applied. Consulting engineering companies need an adequate cost control system to improve their profitability and productivity. It is important to keep current on a project's cost by maintaining a reliable cost control system. Most of Viet Nam construction companies do not have an appropriate cost control system that can maintaining a reliable cost control system ;enables a contractor to analyze the productivity of workers, the performance and efficiency of equipment, the cost of materials, and the proper allocation of overhead expenses. The goal of this study is surveying current practice about cost control system in Viet Nam construction company and suggestion factors for improving the system. The study was implemented with case study from three different scale companies. For assessing effectiveness and deficiencies, the system from three companies were evaluated by comparing with measure identification propose by Eknarin Sripraset (2000). The survey indicated that most of systems are self design ; in addition there is no integration between code accounting and cost code. These two main factors contribute to the deficiencies of the system and make the company loss severe benefit.

The Roles Of Lao Governtment On ADB Implementation Of Financial Partnership Strategy

Asian Development Bank (ADB) is a monetary institute to implement Financing Partnership with its clients in Member Developing Countries (MDC). ADB has to formulate its strategies agenda to respond the need and challenges of world’s dynamics. Lao P.D.R. is a member development country of ADB. Both of Lao government and ADB conduct the FPS together for poverty reduction in many sectors economic through Country Strategy and Greater Mekong Subregion Program (GMS). Presently, the Lao government recognizes that the social developments are required economic growth. The development of infrastructure system, human resources, agriculture and health need financial partner, because of financial term and capacity-building from both government and private. But Lao government officers still have less experience on preparing financial partnerships management. Many projects in Lao P.D.R met with inadequate financial infrastructure. In short, ADB Financing Partnership strategy is the complex process and needs the efficient coordination with partners and clearly articulated execution to lead to the goals. The proper collaboration of ADB and Lao government are provided virtual lesson and it is able to prevent consequent problems and reduce conflict between ADB and Lao government or third party partners.

Mr. Phouthasen Sinthavong made a case study on “The Roles Of Lao Governtment On Adb Implementation Of Financial Partnership Strategy: A Case Study Of Vientiane Urban Infrastructure And Services Project’ which major objective is to find out treatment method for the FPS improvement, when such problems arise. To achieve the study’s major objective, three sub-objectives were needed to (1) to investigate the current strategy on ADB implementation of the FPS approach to encourage Projects or program in Laos; (2) to identify the strength and weakness of applying the FPS under project or program of ADB encouragement; and (3) to propose recommendation on how to improve the implementation of FPS between ADB and Lao Government for project or program encouragement.

He found out that the Lao government promulgated the Law on Local Administration to support urban revenue collection. It was recognized in Law on Local administration and empowered to raise local revenue for provide of urban service. The mechanism operation was slow than target date this affected directly to the implementation of VUDAA on revenue collection. Paralleling with the Law on Local Administration, Local governor issues the decree regarding fees and charges but there still was a need for further refining as to how the fees and charges were assessed and how they will collect. However at the project completion the base fees and charges were insufficient to provide the type of service. However, the project was completed by its main objectives; this is fundamentally the consequence of Lao government support.

He also found out that ADB’s undertook thirteen Review Mission, including the inception Mission and Midterm Review Mission. The Review Mission was the good performance of ADB to monitoring the project implementation. Each Review Mission met the problems and they were solved among the financial partners. This operation should illustrate the sufficient and efficient result to other project. Additionally, there are some weaknesses of ADB implantation on applying the Financial Partnership to the project implementation in Laos. Although the AFD funded component for Capacity Building was undertake within the same office ADB component and the Review Mission proposed that there was close cooperation between VUDAA management and ADB funded component in aspects of the project. The Review Mission also proposed that Review Mission were undertaken by ADB without the involvement of AFD.

His thesis abstract is copied and posted.

ABSTRACT

The infrastructure development in Laos, especially Vientiane, requires a great of number capital for investment. The financial partnership with monetary institute is critical way to develop infrastructure for Lao government and it will be accelerator to catalyst the economic growth and reduce the poor among community.

This research aims to investigate the financial partnership between Lao government and Asian Development Bank, which is a monetary to support fund for development in Asia Pacific. How the Financial Partnership be done and its effect after conduction is the main objective to meet in the research. Eventually, the result from displayed that there are many flaws from the implementation of Lao government on involve project implementation and financial partners such as; lack of better liaison initial among financial partner, Low competency of Lao employee, inadequate financial infrastructure in Laos and low of planning and control and equipments. To meet the efficient infrastructure development, Lao government continued to operate the Financial Partners is not only with ADB but also other monetary institutes or the other governments, whom are interested to assist Lao government for country development.

Keywords: financial partnership strategy; financial infrastructure; financial partner; fund; implementation; ADB