Owner’s Risk Management for Civil Construction Projects in Vietnam

Construction is one of the riskiest industries compared to others. Risk in construction often causes time and cost overrun. As a result, the projects were delayed or exceeded the estimated budget, behind the schedule. Moreover, risk can affect productivity, performance, quality and the budget of a project.

Nowadays, risk management is considered as one of the most important factors of decision making of every business as well as the construction industry. As construction projects are becoming more and more complex, dynamic, they are bared to more risks and uncertainties. Hence, effective risk management has become one of the key problems that deal with the industry.

Vietnam is now on its way of modernization, industrialization and trying to integrate with the world economy. Industries are faced many kinds of risks due to the continuous changes in social and economic condition. Therefore, construction industry is not only provided many opportunities, many chances but also many risks, uncertainties and threats.

In construction projects, many parties are involved such as owner, consultant, contractor, sub-contractor, and supplier etc. Each party has its own risks. There are some researches about the contractors’ risk in Vietnam’s construction industry. Consequently, it is significant to have a research about the risks that owners have to face in their financial investment in construction projects and the way they managed their risks as well as how to control construction risks smoothly because they are one of the most important parties that are involved in the projects from the beginning until completion and afterwards.

Based on the necessity for improving and escalating the owner’s risk management in construction projects mentioned in the statement of the problems, Mr. Nguyen Thanh Huy made a study intended to achieve the following objectives:

1. To determine, rank, classify risks facing owners in civil construction projects in Vietnam from the view of frequency of occurrence and degree of impact.
2. To determine the difficulties in applying risk management in civil construction projects.
3. To investigate how risk management is practiced by project owners in civil construction projects in Vietnam.
4. To give recommendations for improving risk management in practice.

General conclusions

This study focuses on the risks and risk management in the owner’s perspective in civil construction projects in Vietnam. It seems to be beneficial to owners in civil construction projects. In this research, the survey questionnaires were used to get the ideas of respondents about the listed risks in terms of frequency of occurrence and degree of impact. Moreover, a case study was conducted in two subjective chosen public entities in order to determine the level of risk management in practice by owners.

Major risk factors affected owners in civil construction projects in Vietnam

The mean values are carried out to determine and rank the risks in terms of frequency of occurrence and degree of impact. The top twenty risks in terms of frequency of occurrence and degree of impact are determined.

The top twenty risks which have high frequency of occurrence are: (1) Long procedure for approval and permits; (2) Unable to finish work on time; (3) Contractor takes jobs in several projects; (4) Design changes; (5) Corruptible government officials; (6) Late internal approval process from the owner; (7) Frequent changes in law; (8) Incomplete design scope; (9) Improper project feasibility study; (10) Increase of resettlement cost; (11) Improper project planning and budgeting; (12) Ineffectiveness and lack of supervision of consultants; (13) Inadequate or ambiguous specifications; (14) Lack of funds to proceed with work; (15) Delays in approval; (16) Inadequate tendering price; (17) Lack of knowledge and experience on construction; (18) Increase of material cost; (19) Impractical planning and scheduling; (20) Communication and coordination problems.

The top twenty risks which have high degree of impact are: (1) Inefficient and poor performance of contractors; (2) Lack of knowledge and experience on construction; (3) Long procedure for approval and permits; (4) Improper project planning and budgeting; (5) Ambiguous clauses of contract; (6) Shortage of experienced and skillful workmanship; (7) Poor design; (8) Poor quality of procured materials; (9) Unable to finish work on time; (10) Inadequate or ambiguous specifications; (11) Lack of funds to proceed with work; (12) Design changes; (13) Impractical planning and scheduling; (14) Inadequate tendering price; (15) Improper project feasibility study; (16) Ineffectiveness and lack of supervision of consultants; (17) Low quality of work; (18) Dispute with residents around site; (19) Incompetence of project team; (20) Late internal approval process from the owner.

The four risks which have high ranks in both frequency of occurrence and degree of impact are: “Long procedure for approval and permits”, “Unable to finish work on time”, “Design changes” and “Contractor takes jobs in several projects”

Moreover, factor analysis is used to test the interrelations among top twenty highly ranked risk events in terms of degree of occurrence. These risks could be grouped into five factors with most significance. They are: (1) Incompetent consultant/designer/project owner, (2) Social issues, (3) Contractor issues, (4) Approval issues, and (5) Improper feasibility study.
Hypothesis testing also pointed out that perceptions towards risk events were not dependent upon the level of experience and the size of public entities. One of the reasons explains these results: within 5-7 years until now, project management is considered one of the most important parts in project. Therefore, people are more and more interested in this. Many young engineers have the conditions to be trained their knowledge of project management as well as risk management. As a matter of fact, even without having much work experience yet, they still can have nearly the same perceptions towards risk events as those experienced ones. Moreover, even there is a difference in size of organization, but both of large and small entities are state-owned corporations and use the government budget, have the same policy about budget usage. Therefore, it is not surprising that both of them have the same awareness about risk events.

Major difficulties during risk management implementation
Risk management is relatively a new area in project management in Vietnam. Hence, the people who carry it out in projects face many difficulties. During this research, some difficulties that owners face when they apply risk management in their projects were determined. They are: (1) Lack of qualified experts, (2) Lack of historical data, (3) Poor communication among responsible people and (4) Unfamiliarity with tools and techniques. These finding difficulties seem to be important because it provide useful experiences for other companies who intend to apply risk management in their business.

The practice of risk management by owners in civil construction projects in Vietnam
By interviewing respondents in both the two public entities (large public entity and small public entity), risk management in practice by owners are investigated. There are some main points about risk management in practice in the two public entities.

- Regarding to risk management planning, there are some remarkable points to ponder. Risk management planning is considered most important and significant step in risk management. However, there is no policy, procedure, specific department or people assigned to manage risk in both public entities. Experience is considered the important factor to face risks. In the LPE, project documents, project budget, project size and project scope are most frequently used while in the SPE, project documents and project budget are most popularly used for risk management planning.

- Related to risk identification: The Risk identification in the LPE is better than in the SPE. Project management team, board of directors, contractors, consultants and external experts are involved in risk identification in LPE while in SPE, management team, board of director and consultant are involved. The approval project profiles, project budget, time schedule, project output, some government policies towards those projects, policies of lenders or law, experience from past projects, all information related to projects are inputs for risk identification in both entities. In terms of tools used, project document review, risk checklist, brainstorming are most frequently used techniques while fish-bone diagram and influence diagram are seldom employed. In general, risk identification is quite well performed.

- Risk analysis: Qualitative and quantitative risk analysis is used simultaneously by interviewees in both entities. In terms of qualitative analysis, ‘external consultations’ is the most frequently used method by both entities. Moreover, in terms of quantitative analysis, ‘interviewing’ and ‘expected monetary value’ are most frequently used tools by most interviewees. In contrast, ‘simulation’ and ‘sensitivity analysis’ are least frequently used tools. Nevertheless, there is no specific risk management software used by both entities.

- ‘Sharing based on agreement’ can be considered the most frequently used strategy by owners to allocate risks between them and contractors in risk response. In both entities, all five strategies to cope with risks are used frequently. Furthermore, ‘risk transfer’ is most frequently used and most effective strategy. While ‘risk retention’ is the least frequently used and effective strategy. Noticeably, contract management is well done in both entities.

- Risk monitoring and control, ‘Technical performance measurement’ is the most frequently used and effective procedure in the LPE and second most frequently used and effective procedure in the SPE. ‘Additional risk response planning’ is also the second most utilized tool in the LPE but it is least frequently used in the SPE. However, most respondents agreed that risk monitoring and control in their entities is not effective.

Generally, ‘risk management planning’ and ‘risk identification’ are best carried out while ‘risk analysis’ and ‘risk response’ are poorly done in SPE. But in LPE, ‘risk management planning’ and ‘risk identification’ are best carried out in their entities while other processes are poorly done. Most respondents evaluated the current risk management in their entity also in the medium level. In addition, it is noticeable that in both entities there is no formalized framework, procedure and system for risk management. Moreover, there is also no person or department assigned to manage risks. The practitioners depend on their experiences from past projects to handle risks.

Recommendation

Risk management is considered a new field applied in project management in Vietnam. Therefore, it is still not paid much attention. Based on the case study about the practice of risk management in Vietnam, risk management is poorly applied in projects. Moreover, most entities don’t have the policy, procedure or systematic risk management. Furthermore, they do not assign professionals or department for managing risks. Hence, as compared to other developing or developed countries, in Vietnam, risk management is simply carried out and doesn’t have much effect. Consequently, the author would like to suggest some recommendations in order to improve the current situation. They are as follows:

First, corporation should set up framework, policy or system for risk management. It is essential to apply risk management in every type or scale of projects in corporation.

Second, it is necessary for corporations to assign risk experts or department to take care of risk management in projects.

Third, corporation had better have periodic risk training program for its employees and purchase some software for risk management. Therefore, they can recognize the benefits of risk management and also know how to handle risk management in their projects.

Fourth, it is required to have top management commitment or support in risk management. It is better to allocate some budget or contingency for risk management.

Last but not the least, the government should set up standard, policy or framework for project management that include risk management. Relatively, the government also needs to enforce risk management as a requirement in each project (prior to approving project).

His thesis abstract is copied and posted.

Abstract

Risk and uncertainty are inherent in all construction works irrespective of size, complexity, location, or even the speed of construction. For years the construction industry has had a very poor reputation for coping with risk, with many major projects failing to meet deadlines and cost targets. Both clients and contractors have suffered as a result of this. Nevertheless, like many other developing countries, Vietnam has encountered many problems that caused negative impacts on many construction projects. One of them is the lack of systematic risk management. Consequently, an assessment of present risk management practiced in civil construction projects may be useful to those involved as well as to improve this system in the future.

This research focuses on the identification of major risk factors that owners often face in civil construction projects. A questionnaire survey involving sixty seven engineers from owner organization was designed and executed. The perceptions about the influence of experience and companies’ size levels towards risk events are tested. Moreover, the research identified major difficulties that owners often face when they apply risk management on projects. In addition, in this research, the case study about the application of risk management in practice was conducted by interviewing the respondents in two chosen public entities (one large public entity and one small public entity). The above main points are useful because they can serve as lessons learned for the companies which are going to implement or improve risk management.

The key risk factors identified are: (1) Incompetent consultant/designer/project owner, (2) Social issues, (3) Contractor issues, (4) Approval issues, and (5) Improper feasibility study. Major difficulties that owners faced with when they applied risk management in practice are: (1) Lack of qualified experts, this is the main obstacle thoroughly appearing in many main processes in risk management cycle, (2) Lack of historical data, (3) Poor communication among responsible people and (4) Unfamiliarity with tools and techniques. Hypothesis testing also pointed out that perceptions towards risk events were not dependent upon the level of experience and the size of companies. Furthermore, by conducting the case study, the application of risk management in practice was only evaluated at the medium level. Additionally, it is noticeable that in both entities there is no formalized framework, procedure and system for risk management. Moreover, there is also no person or department assigned to manage risks. The practitioners depend on their experiences from past projects to handle risks.

Testing Of Herzberg’s Motivation Theory In The Construction Industry

Among the motivation theories, Herzberg’s two-factor theory (Herzberg et al., 1959) has been popular over the past 30 years. It has been widely studied and few managers are unfamiliar with its practical factors and recommendations (Steers, et al., 1996; Robbins, 2000). Since the construction industry has many unique characteristics, e.g. cost and schedule strictness, plentiful conflicts, labor-based, on-site working and short-term employment (Nave, 1968; Schrader, 1972; Laufer and Jenkins; 1982). Mr. Rathavoot Ruthankoon made a research to discover the answers in the following problems:

Problem I: Herzberg’s two-factor theory may not be valid for construction professionals. The theory should be tested.

Problem II: Herzberg’s theory may lack methodological validity. Therefore, the theory should be tested using different research instruments in the same environment.

Problems III: Relationship between job satisfaction and performance in factor classification would strengthen the theory.

Problem IV: Herzberg’ theory can be expanded to group-based work. The conclusion of the theory on project performance may be different from those stated in the original research by Herzberg.

The four research objectives were derived to answer the four research problems above. Each objective is broken down into sub-objectives providing narrow scope under main objective.

Objective I: To test Herzberg’s motivation theory in the construction industry by replicating Herbzerg’s methodology (critical incident interview). This objective is split into four parts; interview and count factors, group factors concerning effect on job satisfaction, group factors concerning effect of different positions, and compare results with Herzberg’s original study. This process is exactly the same as in Herzberg’s study to facilitate comparison

Objective II: To test the validity of Herzberg’s methodology by using another research instrument and to compare the results with the interview result. The second objective is broken down into four parts. First, Objective 2.1 is to design questionnaire using results from the interview in Objective 1. Concept of Objective 2.2 and 2.3 are the same as Objective 1.2 and 1.3 that group factors concerning effect on job satisfaction and effect of different positions. Objective 2.4 is to compare the result between interview and questionnaire to find out the differences between the two research methods.

Objective III: To group factors in the theory using job satisfaction and performance. Effects on commitment, attendance, turnover, and absenteeism are considered in Objective 3.1. Objective 3.2 is to compare the result with grouping without consideration for performance.

Objective IV: Analyze the data on performance at the project level using a construction project as the unit of analysis. Objective 4.1 is to group factors concerning effect on project performance (time, cost, and quality). Objective 4.2 is to compare the result between factors grouping with project performance and Herzberg's original result.

Conclusion

Objective 1
The result of a replication of Herzberg’s critical incident interview on construction staff shows some differences from the result of Herzberg’s study (1959). This result shows a strong evidence that the theory does not have situational validity in the Thai construction industry. In addition, some differences were found among samples of project engineers, site engineers, senior foremen, and junior foremen. It is concluded that the theory is not stable across positions.

Objective 2
The result shows that some factors from the questionnaire did not appear the same as in the results from the interview. Lack of methodological validity of Herzberg’s theory is confirmed. In addition, some differences are found among samples of project engineers, site engineers, senior foremen, and junior foremen in the questionnaire result. This also confirms that differences in position have effect on the theory.

Objective 3
The result of the third objective shows that the effect of level of satisfaction on overall job satisfaction is not necessarily the same as its effects on performance, organizational commitment, and attendance. For example, a motivation factor that leads to increase in job satisfaction may not lead to increase in performance but may lead to increase in organizational commitment. Absenteeism and tardiness are found to have no significant relationship with any factor.

Objective 4
The effects of satisfaction level on project performance are different from the result at the individual level and also different from Herzberg's result. Motivation factors are not always the same for project performance.

Her thesis abstract is copied and posted.

ABSTRACT

Four objectives are accomplished in this dissertation. The first objective is to test Herzberg's theory using a replication of Herzberg’s methodology in the construction industry. The second objective is to test methodological validity of the theory by comparing results from the replication interview with the results from a questionnaire survey designed specially for theory testing. The third objective is to use effects of factors satisfaction on employees' performance into factors grouping process. The fourth objective is to find the relationship between factor satisfaction by project team members with project performance in terms of time, cost, and quality.

The target population of this study is engineers and foremen in construction sites in the Bangkok area. A sample of 125 site staffs from 40 construction sites participated in critical incident interviews for objective 1. Results from the interviews were used for the questionnaire design for objectives 2, 3, and 4. A sample of 344 site staffs from 42 construction sites in the Bangkok area returned valid questionnaires.

The result of a replication of Herzberg’s critical incident interview on construction professionals shows some differences from the result of Herzberg’s study (1959). This result shows strong evidence that the theory does not have situational validity in the Thai construction industry. The result of second objective shows that some factors from the questionnaire did not appear the same as in the results from the interview. In addition, some differences are found among samples of project engineers, site engineers, senior foremen, and junior foremen in the questionnaire result. The result of the third objective shows that the effect of level of satisfaction on overall job satisfaction is not necessarily the same as its effects on performance, organizational commitment, and attendance. On the fourth objective, the effects of satisfaction level on project performance are different from the result at the individual level and also different from Herzberg's result. Based on the result of this study, motivation and hygiene factors are regrouped into 4 groups namely, performance-related, technical-related, position-related, and feeling-related factors according to their characteristics.

Management in Strategic Assets for Competitiveness of Construction Organizations

Globalization presents formidable challenges to developing countries as they struggle to compete in the world market. In Thailand, after the Asian economic crisis in 1997, a few construction firms which had survived through the crisis, needed to thoroughly re-examine the opportunities for previously overlooked cost-cutting and operational improvement. A construction firm often dangles between success and failure due to the fragile makeup of its capital structure, which generally consists of high debt financing rather than the equity. This situation is a result of the limited equity capital and results in high risk, and therefore, a high cost of debt to finance the large amount of money required to facilitate construction operations. To compete successfully, the construction organization has to skillfully and cautiously evaluate the investment in assets in order to obtain the most efficient use of the total available capital. Given that construction organizations generate their main income through contracted projects, managers have put a priority on allocating resources towards construction project needs. However, this practice in resource allocation does not optimize the utilization of organization’s resources as a whole. For sustainable competitiveness of construction organizations, the budget must be allocated with comprehensive strategic considerations. The aim is to continuously cultivate resources and capabilities to cover all the organization’s vital organs. It is hoped that through this approach, the organization’s core competencies can be strengthened.

During the previous decade, the Thai Government has continuously invested in large infrastructure projects such as the Bangkok Sky Train lines, Underground Train lines, Cable-stayed Bridge, as well as the renowned Suvarnabhumi International Airport. These projects require high technological capabilities which can not be fulfilled solely by local contractors. As a result, a number of international engineering and construction firms from Europe, United States, Japan, and China entered the region to undertake these sophisticated projects. Furthermore, following the Free Trade Agreement which Thailand has with many countries, an alarming number of foreign investors invested in large capital projects. Their targets included power plants, manufacturing plants, luxurious hotels and residential projects throughout the country. Local contractors who wish to survive in this new circumstance or enter into emerging regional market need to craft effective strategies and rapidly develop the required resources and capabilities to seize opportunities.

Ms. Piyanut Vorasubin made a research which purpose was to investigate the strategic assets and their mechanism in providing sustainable competitiveness for construction firms. The following research questions are addressed in her study:
1) What are the strategic assets underlying core capabilities of Thai construction firms?

2) How should construction organizations develop strategic assets in order to achieve the sustainable competitiveness of the organization?

The main focus of her study is to provide answers to the question stated above in the following areas:
1) To identify the strategic assets underlying core capabilities of construction firms in the Thai construction industry.
2) To explore how strategic assets drive performance of Thai construction firms.
3) To propose a methodology which guides construction firms to effectively manage strategic assets for the competitiveness of their organizations.

Research Findings

Strategic Assets underlying Capabilities of Construction Firms
Factor analysis with Varimax rotation was used to identify strategic assets underlying the six capabilities of construction firm. The six strategic assets found underlying the three direct capabilities are: 1) reputation development; 2) client relations; 3) networkability; 4) bargaining power; 5) project management; and 6) construction technology. The eight strategic assets found underlying the three support capabilities are: 1) financial stability; 2) risk and investment management; 3) strategic management; 4) organizational culture; 5) human resources management; 6) information technology; 7) learning organization; and 8) development and innovation.

Mechanism of Strategic Assets in Driving Firm’s Competitiveness

Strategic management was found driving all direct strategic assets and also closely correlated with most of the support strategic assets, especially risk and investment management and learning organization. Outstanding human resources management was found to negatively impact networkability and construction technology. However, it was found strongly correlated with other support strategic assets including organizational culture, strategic management, learning organization and information technology. This indicates the indirect effect of human resources on other support strategic assets. Without a firm’s long-term direction and appropriate culture, competent staff could harm the performance of the construction firm. Construction technology, which is a fundamental direct strategic asset required for long-term competitiveness of construction firms, was driven by learning organization and development and innovation.

Most construction firms in Thailand focus on direct strategic assets with the exception of construction technology. Among the eight support strategic assets, development and innovation is rated the lowest. Strategic management is not emphasized as it should be, in fact given an 8th ranking. These three strategic assets are important to long-term success of a construction business. The lack of these three assets would make construction firm vulnerable to changes in the market environment.

An Improvement Mechanism of Strategic Asset Management

Four parts are required to attain sustainable competitiveness in construction firms. Firstly, construction firm must develop organizational motivation in order to motivate and align the firm’s human resources as well as allocate other tangible and intangible resources beyond project level towards the existence of the firm. A construction firm needs to develop strategic management together with effective risk and investment management in order to drive the organization toward its long-term goals. Secondly, a construction firm should strengthen its operational foundation to guarantee continual flow of projects matched to the firm’s construction capacity. This is so that financial stability can be achieved. Three relational assets, specifically bargaining power with suppliers and subcontractors, client relations, and networkability, drive project procurement and marketing capabilities are necessary for the construction business. Professional project management must be developed to ensure the quality of construction services delivered. The quality of previous work will accumulate and result in an excellent reputation which is the strategic asset providing competitive advantage in the construction industry. However, to sustain financial stability, effective risk and investment management in line with the firm’s strategy must be developed too.

Thirdly, management must create an encouraging working environment so synergy among the firm’s human resources necessary for long-term development of organization can occur. Three strategic assets are required to create such a working environment namely excellent human resources management, positive organization culture and efficient information technology. Construction technology which is difficult or impossible to imitate by competitors is very critical to the long-term competitive edge of a construction business.

Nonetheless, the development of the three parts previously described cannot alone give the firm a technologically leading edge. The last part necessary for sustainable competitiveness of construction firm is development of technological excellence. This requires learning organization and continuous development and innovation to be in place. Not only great effort and time but a significant amount of long-term capital is necessary for such investment. Thus, financial stability, as discussed earlier during the development of strong operational foundation, is the prerequisite to build technological excellence. Sustainable competitiveness can be secured if long-term financial stability together with continuous development of efficient construction technology is successfully developed.

Recommendation for managers in Managing Strategic Asset

The improvement mechanism for strategic assets management, recommendations are made to assist managers of Thai construction firms in securing long-term competitiveness are detailed as follows.

1) Create organization motivation
• Set up an effective firm performance evaluation system to be able to assess firm’s strengths and weaknesses.
• Establish long-range planning extending beyond 3 years by setting long-term goals and identifying firm’s target clientele
• Develop cash together with investment policy and procedure in order to achieve long-term goals including retain earnings during profitable years and upgrade quality of cash flow forecast.
• Keep utmost discipline in matching source and utilization of funding.

2) Develop strong operational foundation
• Create relationship with investors and international construction firms.
• Develop informative client and potential client database.
• Establish procedure for suppliers/subcontractors evaluation and selection in order to develop long-term contractual relationship.
• Establish systematic project cost database for all completed projects.
• Set up periodical meeting to review firm’s cost structure. •Form project team with clear authority and responsibility.

3) Create encouraging working environment
- Develop excellent business philosophy to promote good ethics, team environment, creativity, and adaptability of staffs.
- Enhance staff participation by gathering staff’s feedbacks in development of business plan and policy.
- Establish career development path and fair staff promotion policy.
- Integrate accounting information system with the project tracking system in order to provide effective decision support.

4) Develop technological excellence
• Establish periodical cross-project and cross-department meeting as formal channel to exchange knowledge and experiences for creative problem-solving.
• Develop business operation manual in order to accumulate firm’s knowledge.
• Find opportunities to send staffs to external training, seminar, and continuing education valuable to firm’s long-term goals.
• Constantly monitor best practice from construction as well as other industries.
• Find potential partner for valuable technology transfer.

Her thesis abstract is copied and posted.

ABSTRACT

This study focuses on the management of strategic assets by construction firms in order to achieve competitiveness with the following three objectives: 1) to identify the strategic assets underlying core capabilities of construction firms in the Thai construction industry; 2) to explore how strategic assets drive the performance of Thai construction firms; 3) to propose a methodology which guides the construction firms to effectively manage strategic assets for the competitiveness of their organizations.
The pre-survey consisted of four case studies and in-depth interviews with industry experts. From pre-survey results and previous literature, a preliminary list of 106 resources and competencies valuable to construction firms was developed. The questionnaire was then designed using these 106 items, categorized under six organizational capabilities: marketing, procurement, construction, financial, business management, and learning and innovation. Questionnaires assessing the level of importance given to these resources and competencies were sent to 1,027 Thai construction firms, out of which 258 sets were returned.

Using the factor analysis technique, these 106 items were reduced to 14, termed as the strategic assets. To identify how these assets drive the firms’ performances, they were classified into direct and support strategic assets. The direct strategic assets were those directly related to the firms’ products and services, including excellent reputation, exceptional client relations, strong networking, strong bargaining power, efficient construction technology, and professional project management. The eight support strategic assets, which were indirectly related to the firms’ products and services, included financial stability, effective risk and investment management, explicit strategic management, positive organization culture, efficient information technology, excellent human resources management, effective learning organization, and continuous development and innovation. Multiple regression analysis was used to explain how each support strategic asset affects each direct strategic asset.

The framework in managing these assets was developed by stressing the important role of developing explicit strategic management together with excellent human resources management and positive organization culture. These three strategic assets are the key drivers in generating and upholding effective learning organization and continuous development and innovation which are required for sustainable competitiveness of construction firms. Based on the 14 strategic assets found, recommendations were made for managers of construction firms as follow:1) create organizational motivation; 2) develop strong operational foundation; 3) create encouraging working environment; and 4) develop technological excellence.

Delay Causations In Water Supply Projects In Dong Nai Province, Vietnam: A Lesson Learned From Nhon Trach Water Supply Project

In recently years, Vietnam has been remarkably successful in expanding infrastructure construction project. After the planned economy changed to market economy, Vietnam economic development has increased considerably. The key economic zone of the South of Viet Nam is the one which has developed with the fastest speed in the whole country, including triangle of strategic economic: Ho Chi Minh City, Dong Nai Province and Ba Ria–Vung Tau Province, of which Dong Nai province plays an important role in the development of this zone.

During the execution of construction project, timely construction of a project was commonly considered the key of project success. Project time can be evaluated as the vital factor in project management view of point because it affects directly on the profit of project if project time delay happens.

The perception of project time management in construction industry has been applied in Viet Nam for recent years. As at that point Vietnam carried out the open-door policy to attract the investment from FDI (Foreign direct investment) projects. For this reason, it is essential to collaborate with oversea business and knowledge for Vietnam’s construction industry. However, many problems have been revealed due to the deficiency of the proficiencies in project management, such as:

- Project delays take place usually in the development projects due to deficient transmission among other parties, weather condition, social policy or other factors. It is surmised that more than 80% of projects in Dongnai Province have the problems with time project delays.

- Even projects were finished on time; there are still many claims during the execution project.
Besides, the implementation of project time management in construction industry in Viet Nam and Dongnai province does not still achieve the effectiveness. Several projects delayed for a short time while some projects have been gone on for many years. Annually, the result of water supply project delays causes the huge loss of total investment. Because clean water is indispensable for the local citizens, the delay of water supply construction projects emerges as one of the most vital problems in urban management.

Normally, the success of a project is admitted if it was completed punctually, with the reasonable cost and quality. It is proved that the finish of every construction project will be on time and under budget only if it has been managed efficiently and effectively. Particularly, several previous researchers demonstrated that at least a half of project delay causations can be avoided by a proficient policy in project management.

Mr. Vo Hoang Phuong made a case study which two objectives were to: (1) identify delay causations in water supply projects in Dongnai Province, Vietnam; and (2) develop a framework to control and prevent delays in future water supply projects.

CONCLUSION

Delay causations in water supply projects in Dongnai Province, Vietnam.
Evidently, it is found that there are several delays causation seriously affecting on time extension and cost. The impact of delays on time can be realized by the comparison between project schedule and the real situation. Throughout the research, the Nhon Trach water supply project can be considered a case study to illustrate the success in control and prevent delays causation. Figure below shows the attempt to control and prevent delays during the construction of Nhon Trach water supply project. In the initial contract, the project is expected to complete within 26 months and it has been maintained 26 months.


A framework to control and prevent delays in future water supply construction projects
In order to significantly prevent and control delays in water supply construction project, five guidelines having the most potential were considered. The result from the real situations showed that delays can be prevented and controlled by carrying out several important strategies during the implementation construction project, including accuracy design in survey and investigation site condition, communication system improvement; qualify subcontractors, the overall standardization and price escalation management strategy.

The following is the guideline to control and prevent delays in water supply construction project:



His thesis abstract is copied and posted.

ABSTRACT
In general, completion project with destined time, cost, and quality is the basic target of construction project management. Regrettably, most water supply projects cannot be finished within intended time, budget and resources. A large amount of projects frequently performed time overruns.

Normally, time delay always happened in water supply construction project. With the purpose to solve problems, it was found that several approaches have been affected project time completion. There are many factors found as the major source leading to manage project time completion affectively.

This report summarized the delay causation factors involved in water supply construction project in Dongnai Province, Viet Nam. This research will be conducted by using qualitative research. Through a case study in water supply construction project in Dongnai Province, the data will be collected to analyze the facing problems. It was discovered from this study that there were many factors causing project time delays in water supply construction project. From the case study, effective solutions for controlling the delays will be investigated. Finally, a framework for controlling and preventing delays in future water supply construction projects is proposed.

Assessment and Improvement of a Safety Management System: A Case Study of a Diving Contractor in Vietnam

Offshore diving is reputed a dangerous and risky job because of its working conditions: high pressure and caisson disease, working alone in dark and deep water, using many types of equipment supporting from surface so safety requirements in diving operations are very high and strict.

In tendering for an offshore construction project, diving contractors are required to submit their safety management system to client to demonstrate that their businesses are managed efficiently and responsibly, and that they can provide a reliable service without excessive downtime caused by work-related accidents and incidents.

While offshore diving in some areas is heavily regulated, there are other areas where there may be little or no outside control of diving activities. In such areas the diving contractors themselves are left to establish their own internal controls by means of their company manuals and procedures. (IMCA D014)

To establish and implement or assess OHS MS of a diving contractor, beside applications international standards, national laws and regulations, and diving specific requirements should be considered and complied.

Mr. Dao Manh Tuong made a study which aim is to review requirements for safety management system of a diving organization, assess safety management system for diving services of PetroVietnam Manpower Training College (PVMTC) to identify non-conformances of the safety management system. From result of the assessment, some recommendations are suggested to improve the system. PVMTC is selected for his case study because they are the biggest diving contractor supplying diving services in oil and gas industry in Vietnam. To achieve the main objective, the sub-objectives are defined to: (1) review requirements for safety management system of a diving organization; (2) assess the existing safety management system of a Vietnamese diving contractor – PVMTC and identify the gap and non-conformances of the safety management system; (3) draw some recommendations for improving the current safety management system of the diving contractor.

Conclusions

OHS MS requirements of a diving organization

OHSAS 18001:2007 standard defines a model with elements of an effective OH&S management system for an organization and specifies requirements for the elements of the system. OHSAS 18001:2007 standard can be applied to any type and size of organizations (OHSAS 18001:2007).

The Regulations No. 41/1999/QD-TTg requires organizations operating in petroleum industry to have establish and develop effective safety management system but it does not specify a model of safety management system which organizations have to follow. In IMCA D014 – “IMCA International Code of Practice for Offshore Diving”, it does not require diving organizations to establish and maintain a safety management system for their organization. It requires diving organizations to establish a management system and prepare some documents to manage a specific diving project.

A comparison of requirements shows that there are correspondences between OHSAS 18001:2007, Regulations No. 41/1999/QD-TTg and IMCA D014. Documents of a safety management system comply with OHSAS 18001:2007 standard is also fulfilled requirements of Regulations No. 41/1999/QD-TTg. These documents could be reviewed and revised periodically or when necessary as defined by organizations. Documents required by IMCA are more detailed and extended for OHSAS requirements to control operations of a diving organization. Documents required by IMCA have to be reviewed and revised for each diving project.

Assessment of PVMTC’s OHS MS for diving services

The documentations of OHS MS in PVMTC are in general compliance with the Vietnam legal requirements. There are only two documents need to be prepared as required by regulations. Those are lists of relevant regulatory requirements and lists of specific requirements that fulfill the regulatory requirements in the area of safety and working environment.

The review of documentation and records of diving systems and of diving projects in Technical Services Department has shown that documentation; procedures and guidelines, and records for routine activities of diving system are prepared and performed very good and fulfill IMCA requirements. However, documentation required by IMCA to manage a diving project is not prepared adequately and regularly. They are prepared only when clients request. For example:
Diving project plan
Safety management system interface documents
Risk management process matrix
Risk assessment
Management of change procedure
Procedure for site-specific risk assessments
Procedures for control assessed hazards and risks

Recommendation to Improve the Existing OHS MS of PVMTC

From findings of the assessment some recommendations are suggested to improve the existing OHS MS of PVMTC to desired safety management system which complies with OHSAS 18001:2007 and fulfills specific requirements to which the organization subscribes.
1. Adapt the existing OHS MS to conform to OHSAS 18001:2007 and integrate with quality management system.
Improve organization structure focus on project management structure.

3. Identify and assess applicable legal requirements and other requirements.
4. Perform risk & hazard assessment for all activities of a diving project.
5. Standardize and document procedures for some routine activities and processes of a diving project.
6. Implement and maintain OHS programs and procedures

His thesis abstract is copied and posted.

ABSTRACT

Offshore diving is reputed a dangerous and risky job. Safety requirements in diving operations are very high and strict. A commercial diving contractor has to conform to various regulations, standards, codes and guidelines from local governments, the clients, and the insurers of the diving contractor or other outside organizations, societies, advisory committees and associations. To establish, implement or assess OHS MS of a diving contractor, beside applications international standards, national laws and regulations and diving specific requirements should be considered.

The aim of this thesis is to review requirements for safety management system of a diving organization, assess safety management system for diving services of PetroVietnam Manpower Training College (PVMTC) to identify non-conformances of the safety management system. From result of the assessment, some recommendations are suggested to improve the system.

The OSH MS assessment was conducted using checklists based on reviewing of requirements of OSHAS 18001:2007, Vietnamese applicable laws and regulations, and of diving specific requirements of IMCA. The assessment consisted of review of written documentation and performance of the existing OHS MS. No formal interviews or walk-through inspections of operations and work areas was done.
Finally, conclusions and recommendations for improving the existing system of PVMTC are drawn from findings of the assessment.

Fifty four students from AIT Center in Vietnam visit AIT Thailand

Fifty four (54) students from Professional Master in Project Management from Vietnam came to AIT, Thailand from 28 Feb. to 7 March 2010 for their internship. During their visit, the professional master students took four courses on applied project managements. The 4 courses are:

1) Applied project management in Housing and Real Estate projects
The lecture was given by Dr. Theerathon Tharachai, Assistant Director, Research and Business Development Property Perfect (Public) Co.,Ltd.

2) Applied project management in Commercial Projects
Mr. Burin Kunnatipapong, Country Manager of Bovis Lendlease, Thailand served as the lecturer.
3) Applied project management in Petrochemical Projects
Mr. Lim Kean Peoh, Operations Manager, Technip Engineering (Thailand) Co.,LTd.and Mr. Polshom Chan-Urai, Managing Director, REPCO (Engineering Company in SCG Chemicals Group) shared their expertise to the students.

4) Applied project Management in Public Infrastructure
Dr. Maitree Srinarawat, Managing Director of Roads Association of Thailand provided the lecture.

Below is the group photo.

Key Performance Indicators For Local Government Infrastructure Development: The Case Of Sub-District (Tambon) Administrative Organization

A series of National Economic and Social Development Plans have been developed and implemented successively by different Thai governments, the latest being the Ninth National Economic and Social Development Plan for 2002-2006. The Ninth Plan decentralizes the responsibility to enhance the Thai people’s quality of life from the central to local governments (National Economic and Social Development Board, 2002). In rural areas, the Plan specifies measurable objectives; the core of which being rural infrastructure projects. However, these objectives should be achieved by adhering to a strict balance among the economic, social, and environmental impacts of development projects.

Rural infrastructure is an extremely important aspect of rural development as a key to rural social and economic life (Csaki and Haan, 2003; United Nations, 2004). In Thailand, rural infrastructure was placed as an important sector to support rural economic, social, and quality of life. The latest Thai National Economic and Social Development Plan (2002-2006) had realized by focusing on encouraging local administrative units to solicit in appropriate standardized infrastructure development. As part of the guideline for the formulation of operational plans and development program, a work plan must clearly identifies and prioritizes programs, projects and measures to assure development outcome accomplishment.

To enhance the capability and to empower the production and service sectors at the grassroots, in 1995, the Tambon Administrative Organizations (TAOs) or the sub-district local governments (the smallest local government units in the country) were established. Under the Sub-district Council and Sub-district Administration Act of 1994, TAOs are responsible for planning and management of infrastructure. These cover the infrastructure development and maintenance. The development endeavors encompasses conceptualization, execution, and operation at local level. It is the mission of TAOs to provide and promote efforts aimed at the availability and accessibility of infrastructure services (Leungbootnak and Charoenngam, 2003).

The successful completion of an infrastructure project in a reasonable time typically needs a large amount of investment funds (Ariaratnam and MacLeod, 2002; Clark et al., 2002; Dvorak et al., 2003). However, it is important to note a limited budget has been made available to the TAOs to support development programs. Accordingly, a decision by a TAO to invest in a particular infrastructure project always involves a trade off between the expected benefits from that infrastructure project and alternative infrastructure of social development projects. Therefore, the central government demands accountability for budgetary investments and disbursements undertaken by local governments. TAOs must therefore carefully select projects that are expected to optimize outcomes from such activities.

Due to the tight financial constraints, the government demands TAOs to enforce transparency and accountability in project investment decisions. The management of such infrastructure facilities and services is therefore crucial to use performance measurement as a tool to give decision makers an idea of how well that services are performing (Andrews, 2004; Gargen, 1997; Kelly and Rivenbark, 2003; Neely, 1999). Performance measurement is the phase of management that assesses how good a job the organization or individual is doing. In the context of rural development projects, performance measurement is an instrument for ensuring that a rural infrastructure investments successfully incorporates the desired development strategies (Ghobadian and Ashworth, 1994; Kloot, 1999; Pollanen, 2005). So, TAOs need performance measurement systems to determine how well the project is performing. This measuring instrument provides the feedback needed to evaluate performance on the entire infrastructure development process, from project planning through implementation, and maintenance.

To ensure that the developed project corresponds to rural people needs, it is crucial that performance measurement tool is designed and maintain. The Balanced Scorecard (BSC) provides the accurate understanding of a framework for the performance measurement (Crager et al., 2005; Kaplan and Norton, 1996a). In order to measure performance, the appropriate Key Performance Indicators (KPIs) need to be determined (Cox et al., 2003; Enos, 2000; Verweire and Berghe, 2004).

This dissertation aims to provide a practical perspective involves the focus of the performance measurement of rural infrastructure development in TAOs. Therefore, this study examines the current use and perception of TAOs regarding such performance measurement systems. The commitment of the TAOs to the implementation confirmed the benefits of the performance measurement intentions. A review is given of relevant literature regarding the evolution of performance measurement systems and their application to rural infrastructure development projects. The review additionally includes: the relationships of rural infrastructure and performance measurement, the function of the Balanced Scorecard, the function of the performance measurement, the function of value-chain and the function of critical success factors necessary for KPIs development.

In an attempt to measure the performance, the indicators are necessary to develop for the interpretation (Bruijn, 2002; Magistretti et al., 2002). The identification of the KPIs as well as align them with TAO strategies then becomes the key to realize:
· National Economic and Social Development Plan which emphasis the aims of sustainable development and well-being of Thai people
· Need for a comprehensive measurement of infrastructure development in rural area
· Importance in clarifying the infrastructure project development in their efficiency and effectiveness, and
· Importance in the approaching to the satisfaction of people in the community.

In response to the government’s obligation, Miss Suchanya Posayanant initiated a project which aim was to develop the indicators to measure the performance of infrastructure development in relation to the TAOs’ strategy of service delivery to the community. The study set out to measure the success level of infrastructure development of TAOs in supporting the delivery of infrastructure services to the community. The basis of the assessment systems is developed with performance measurement perception. To accomplish the set of goals, the main objectives are as follow:

1. Examine the existing practices of performance measurement systems and to comprehend the evaluation problems of rural infrastructure development. So that need and justification for the measurement improvement can be identified
· To measure TAO’s expectations and perceived accomplishments of infrastructure development in the areas of economic, social, and environmental development
· To examine the current practice of performance measurement in rural infrastructure development by TAOs
· To determine level of perception of TAOs’ expectation and accomplishment on economy, society, and environment issues
· To examine TAOs’ needs and awareness by using performance measurement in their rural infrastructure development

2. Design the performance measurement framework and Key Performance Indicators (KPIs) in response to the identification of the efficiency and effectiveness of infrastructure development in the approach of the Balanced Scorecard (BSC), Performance measurement, and Value Chain model.

3. Determine the appropriateness of the KPIs so that proper indicators can be proposed for rural infrastructure development of TAOs. The difference among TAOs characteristics in applying KPIs is the primary focus.

4. Determine the KPIs’ utility. For determining the utility of KPIs, a Prototype KPIs has been developed. The purpose is to fulfill the primary research objectives. The development and testing of a Prototype KPIs help TAOs to identify and measure the infrastructure project success and ultimate achievement.

Conclusions

The performance measurement in TAOs
From the survey results, most TAOs currently do not use and do not have access to a formal performance measurement scheme. Learning and growth was the only area in which over 90% of the TAOs use certain forms of performance measurement systems. In all other perspectives, more than half of TAOs had no measurement systems installed. Among the TAOs that have implemented performance measurement, the systems in use were reported informal systems and are usually based on informal and subjective discussions between TAO chiefs or committee members with the village people during meetings. In general, TAOs could provide an informal determination that rural infrastructure projects in their respective areas had effectively contributed to economic, social, and environmental development. However, because of the lack of formal performance measurement systems, it was difficult for TAOs to provide documentary evidence of the performance measurement of their projects.

It was shown that more than 95% of TAOs stated that formal performance measurement systems were needed to provide feedback on rural infrastructure efforts. They also revealed their intention to adopt these formal systems, if provided. Based on this, the BSC has proven to be an effective tool in evaluating rural infrastructure development performance in TAOs. The BSC allows them to assess performance from four important perspectives - mission effectiveness, people satisfaction, internal process as well as learning and growth. Where specific measures are likely to take place, the value chain provides TAOs with great insights into how development process are aligned and measured. Accordingly, the BSC-based performance measurement was developed for TAOs.

The development of KPIs and its framework
The BSC provides a comprehensive framework to define set of KPIs that reflect the CSFs of TAOs. The KPIs are classified and more clearly recognized by adopting the value chain model of TAOs as a framework. This section involves the development of the KPIs by providing concrete example on how the KPIs would look and support the rural infrastructure development in TAOs. As a result, the three phases approach for developing and using the KPIs are:

1. Identify critical success factors (CSFs) for TAOs
The CSFs represent key area of activities that TAOs must meet in order to improve their performance in the development of rural infrastructure. These CSFs established by the BSC approach during the data collection. This focus directly linked to the mission, vision, and strategy, and four performance perspectives: (1) mission effectiveness, (2) people satisfaction, (3) internal process, and (4) learning and growth. Each perspective is analyzed through a set of CSFs: (1) achievement of infrastructure to support social-economic development; (2) people participation; (3) effectiveness of project delivery; and (4) employee competency. These critical areas ensure strategic success achieving in order to provide public facilities and services.

2. Identify value chain model of TAOs
The value chain model for TAOs provides a template that offers a way of analyzing sequence of the infrastructure development activities. Observations and interviewing to TAO chiefs during the second visits to TAOs were found to be valuable in developing and refining the value chain model. The study proposes the value chain model as instrument to align performance measurement along the different development stages. Figure 1 shows a template of CSFs meant to measure project development performance that parallel among the value chain processes.

3. Identify key performance indicators (KPIs)
Once the BSC and CSFs are defined, the KPIs are necessary to specify both to measure the objective’s performance in such critical areas and to demonstrate a tangible success in the extended value chain. Based on these factors in mind, a total of 31 KPIs were developed to measure rural infrastructure development shown in Table 1. KPIs can be classified and more clearly recognized by adopting the value chain model of TAOs as a framework (Figure 2).






Testing the appropriateness of the KPIs
The third research objective was to test the preliminary KPIs appropriateness in different TAO characteristics. Where a set of 31 KPIs was defined, it was found that a statistically significant difference existed among the TAOs. The appropriateness test was grouped into the following four categories:

1. Acceptable: the KPIs measure and track TAOs performance success of the infrastructure project towards (1) Economic development; (2) Social development; and (3) Environmental development.

2. Importance: the KPIs can be used to support and make more effective management decisions.
3. Database readiness: the availability and accessibility to the database which enable TAOs to keep track of the KPIs’ role in the organization.

4. Information Accuracy: the accuracy of information becomes important to certain the KPIs that give sufficient accuracy to the rural infrastructure concern in TAOs.

The majority of the TAO respondents agree that the preliminary KPIs are acceptable for TAOs. However, the TAOs may be counted in a different infrastructure project with different objectives and providing different appropriateness of the KPIs. Due to the priorities and performance criteria, some of the KPIs applicability perceptions are different. Further analyses reveal significant differences among the TAOs, depending on their region and level. The information accuracy of the KPIs depends on the “Personnel Proficiency”, which is determined by the experience and knowledge the employees gained from their individual projects. The scorecard perspectives are considered as a framework approach to the performance measurement indicators.

Implementation of KPIs
This section has presented to support TAOs in practice to better handling and ensure the success of their infrastructure development. In addition to the previous section, the prototype KPIs was perceived as a helpful tool that encourages the performance measurement that reflects the efficiency and effectiveness of the development projects. The results were then subjected to an expert opinion focus group to further verify the KPIs appropriateness.
This phase describes the findings from the focus group interview, which was gathered from participants across 12 TAOs with four types of development focus area – agriculture, industry, commerce, and tourism. The participants have experience in rural infrastructure development more than five years. All of them worked in the first-level TAO, which generates income more than 20 million baht per year. Below is a summary of the guidelines and findings on transcribing interview data:

Applicable to TAOs
- TAOs use these KPIs as measurable indicators of their project development success towards achieving their mission.
- The KPIs were tied to the four BSC perspectives. The indicators clearly assign proper target measures for each rural infrastructure development objective.
- The KPIs in the mission perspective were considered as the most concrete indicators.

2. Importance for Decision-Making Process
- The KPIs are relevant enough to support the measurement of infrastructure development success.
- The KPIs are a helpful performance management tool for evaluating of the management processes and results of infrastructure development.
- The improvement of infrastructure development is based on planning and actual data in the KPIs database.

3. Database Readiness
- The KPIs provide specific predefine measures which enable TAOs to focus on database access.
- TAOs have database gathered from the planning and output data of infrastructure projects to support those KPIs.
- TAOs need to keep information database current.

4. Information Accuracy
- The KPIs require unbiased personnel to measure performance based on these indicators.
- TAOs can provide accurate information to fill in the KPIs for measurement decision.

The example detailed of the prototype KPIs demonstrates the usefulness to measure accurately the TAO’s rate of improvement. The prototype provides two levels of measures. The executive report highlights the development performance against four perspectives. And the operational reporting is designed to support the detailed measurement. The approach was therefore, first, TAOs set targets for each KPI based on information from the past year. Then, measure performance against the KPIs and compare with target performance. The results of the comparison support the understanding and clarifying of key development problems. These KPIs aid decision making for improvement in the process of generating planning and execution of infrastructure. The use of KPIs will help TAOs move towards the kind of performance improvement desired.

Her dissertation abstract is copied and posted.

Abstract

The purpose of this study was threefold. One, the study was to examine the perceptions and current practice of Tambon Administrative Organizations (TAOs) in rural infrastructure development regarding the performance measurement systems. The aim was to determine TAOs’ commitment to adopt formal measurement system if provided. Two, the key performance indicators (KPIs) appropriateness was accordingly explored to provide accurate picture for TAOs to the satisfactoriness of the development results. Three, a prototype KPIs was developed for TAOs that help define and measure the project success and ultimate achievement.

In order to examine the existing practices of performance measurement systems, documentations and personal interviews was conducted. To explore in depth of TAOs’ performance measurement practices, the questionnaire survey was administered to a sample of 120 TAO chiefs, who had extensive experience in infrastructure development and management. 43 responses were returned representing a 36% response rate. Descriptive statistics and chi-square analysis showed that while most respondents have developed informal means to evaluate the effectiveness of infrastructure initiatives, the TAOs have realized the importance of performance measurement. The TAOs have affirmed to formally adopt performance measurement if such systems were made available to them. Based on the results, the commitment confirms the significance of the KPIs development and application.

To further create KPIs, documentation, observations, and expert focus groups were held to give an insight into the adaptation of the Balanced Scorecard (BSC) framework which link critical success factors (CSFs) and TAO’s value chain. This had led to a specific measure of TAO’s performance in rural infrastructure development. To test and further determine the KPIs’ appropriateness, the method used was questionnaire survey and included both descriptive and Kruskal-Wallis one-way analysis of variance. The sample was purposively selected from 617 TAOs that were first established administration and have become a dominant in infrastructure development activities at the local level. 298 questionnaires were returned, generating a 48.30% response rate. There were ten experts to the focus group interview held to summarize the data for analysis from the meaningfulness of the experience from the participants’ perspective. The results from Chapter 5 denote a number of findings. First, the KPIs are acceptable to the majority of TAOs. Second, the applicability perception differences on each of the KPI were obvious among the four regions of TAOs. TAO’s choice of indicator will depend on its strategy which coordinates people living and working in the areas. Finally, results of the research data revealed that the TAOs from the five levels place differences applicability perception on each of the KPI. The KPIs applicability perception is based on three-year rolling budget plans that will enhance the quality of infrastructure and services for the community.
Lastly, in this dissertation, a prototype KPIs was developed and tested to determine the KPI’s utility. Data are collected from 12 TAOs. The prototype KPIs illustrates a quantifiable measure that the TAOs use to communicate development performance for the success. It supports the recommended infrastructure project improvement activities. The focus group, convened ten experts, validated that the prototype KPIs is successfully formed and implemented by the TAOs. The prototype encompasses two sections, one to measure overall success of TAOs, which associates executive view with the scorecard. The second section addresses operational report, which details the KPIs measurement in each perspective of the BSC. This report enables the executive to pinpoint the decision to the most suitable infrastructure projects where the TAO chief can maintain success and improve on the most severe performance degradations. Focus on the KPIs, it is expected that the central government could instantly provides advisory and support for the projects necessary to achieve the performance goals for each Tambon.