Owner’s Organization Project Management Maturity: A Case Study of Petrolimex Saigon

Construction owners nowadays are facing two general problems which are the lack of the modern project management knowledge and the lack of a system of procedures and instructions for continuously measuring, evaluating the performance of project and project staff; collecting, storing lesson learned and making convenient access for project staff; and planning and implementing the improvements.

Mr. Le Quang Khanh made a case study which objectives were to: (1) assess the organization project management maturity of an stated owned enterprise on the role of project owner, analyze what it has and what it has not in comparison with the modern project management theory; and (2) propose recommendations for project management improvement.

Conclusion

This study has demonstrated an intensive exploration into the current status of an owner construction project management system. Each management process has been described, assessed, analyzed basing on the definitions, requirements of modern project management processes established by PMI in PMBOK Guide (2008) and OPM3(2003).

The assessment has found that, although the assessed company applied nearly all processes of project management, the maturity level of these processes in the company are still rather low. Company is at the first steps of project management maturity ladders. Reference to OPM3 (PMI, 2003), the Company project management maturity level is at about the standardization stage as shown in the figure below. There are many process need to be standardized, many procedures, guidelines need to be established in order to help the company improve its project management maturity, develop the company competence.
Following are some main problems of the company in project management system:

1. Many processes are not standardized: performed basing only on the experience, practice; there are no standard documented procedures, instructions/guidelines to conduct. Many useful tools and techniques are not applied during project management processes because of the lack of the modern project management knowledge in project staff.

2. The planning processes are not well implemented. There is no specific project management plan, project scope, or project quality plan for each project. The project control and execution activities of project team members are almost unplanned, basing on experience.

3. There are no standards, procedures, no formal performance system to measure, evaluate the degree of success and failure of each process, phase or project, the performance of project team members. Therefore there is no steady foundation to plan for project management performance improvements.

4. There is a formal process for assessing, auditing the existing procedures, instructions and suggesting, implementing improvements (included in ISO9001 quality system). However, because of the limit of the staff knowledge and skill about the modern project management, there are not many effective improvements as expected.

5. There are no procedures or instructions about collecting information of the contractors/suppliers, the project issues, lessons learned…to keep in a convenient place (like project management office) for analyzing and using in future project management. Therefore, there is also no formal historical information and lessons learned knowledge databases system. All the project records, after the project completion, are kept in the store.

Recommendations

1. For the assessed company and other state owned companies in general on the role of owner:

- There should be more training on modern construction project management for the company staff. The training content include (but are not limited to) the knowledge/skills of project management for individual, for organization; the experience in organizing and managing a project management organization, the existing effective systems of construction management procedures and instruction of international project management groups. The staff need to be trained are: the top management for having far more vision, more correct evaluation about the importance and effectiveness of building a standard project management system; the middle management and the project team member to be more effective in managing projects and composing the necessary procedures and instructions;

- Company should pay more attention on the planning processes; make all the management plans before carry out management activities.

- Company should improve the formal system of procedures and instructions to standardize all the project management processes in the company. The guidelines about the applied range of each process are also needed. This help to keep the consistency of quality and increase the effectiveness of management processes.

- Company should improve and increase the effectiveness of ISO9001 assessing and auditing processes by using the competent auditors who are professional in construction project management, training the project staff to be good and innovative self-auditors.

- Company should establish and apply the formal standards, tools, guidelines for measuring, evaluating the success, failure of project goals in order to collect experience and lessons learned for future investments.

- Company should build a small project management office/center where the project management staff can easily access to the historical information and lessons learned of all past projects; refer to the modern project management tools and techniques. And besides, Company should build the procedure, instruction for collecting, storing those data. These works will be very useful for the future project management of the project staff, especially the new comers.

2. For further study

Further study needs to be carried out to have more comprehensive assessment of state owned project management organizations and give more detailed recommendations for competency development of this type of project management organization.

His thesis abstract is copied and posted.

Abstract

Nowadays, the increase of world population, the development of technology and the globalization of competition are day by day giving construction industry the increasingly requirements both for the quantity and the quality of construction projects. Hence, many organizations and the individuals involved in construction industry are paying more concern in studying and applying the modern project management knowledge/skill into project management process.

To be successful in managing projects, not only contractors but also the owners need to be competent in project management.

This case study will assess the degree to which an owner-a state owned company, apply the project management processes and give the recommendations for improvements.

Method & Effectiveness of Feasibility Study in Apartment Project: A Case Study of Carina Plaza Building

In the real estate investment business, decision making is important to influence the success or failure of the project. One of the significant stages is the Feasibility Study (FS) stage.

Based on the characteristics of construction industry having high uncertainty, many risks occur during Project Feasibility Study. Correct decision and assumption will help to make the project a successful one. To those assumption, main construction factors should have been anticipated and calculate it into the feasibility analysis so that risks will not be happened and will be of advantage for the investor.

Mr. Le Mien Thuy made a case study on the method and effectiveness of FS. His research objectives were: (1) Framework of FS in Apartment Project, (2) study the application of the framework in project case; (3) find the problem in FS for Apartment Project; and (4) proposal the solution base on theory.

This issue is more significant to some of the construction investors facing serious problems with budget control, as an effective budget control is critical for investing in large projects. Construction project management, which includes project Cost Estimation, is an area of weakness for those investors who want to expand or invest more in the international construction market.

Conclusions

A successful project is determined by Feasibility Study. This is one of the most important stages of project life cycle. There are some problems occurred in Feasibility Study and how to prevent those in future project are really important. Below are some tips such as:

1. Incorrect assumption: The people conduct with good experience in construction industry.

2. Misunderstand the Demand of Market: To study carefully the market situation base on survey data of professional company.

3. Cost & revenue estimate is not match reality: To study some similar successful project and collect good information from contractor.

4. Time schedule planning is not practice: To get the advice of contractor and expert

5. Forecasting of cash flow is wrong: To break down detail a task base on general schedule and the selling program

6. Mistake in term of FS calculation technical: Competent people should be in charge with the professional software.

7. Lack of information in term of information of land: Good connection to authority.

Based on above study we can understand deeply a significant element which impacts the consequence of the project. Based on the literature review, typical Feasibility study Framework for apartment project comprised of 6 phases: identify conceptual, input data, estimate method application, method of evaluation, identify requirement, and identify benefit. In the initial step of FS framework, the preparation work is the most important. This section conducts entire of data for FS processing to ensure that the result is true .In the processing step of FS framework, the method of estimate and evaluation demonstrate that the project is feasible. There are many tools to measure the benefit of the project and specify the good decision –making in apartment investment.

The important point in theory of FS is the cost estimation method and cost estimation element. These methods are functional unit method, superficial method, element cost plan, approximate quantities techniques, all of them can be implemented in real apartment project efficiently. The cost estimation element describes the detail of some important figure such as: cost of land, cost of legal and professional fee in acquiring the land, construction cost, cost associated with facilities management, and cost of finance. Because cost is the input data for FS processing, thus knowledge to understand it is critical study in this report.

Recommendations

Based on the case study analysis, some problem occurring in feasibility study for apartment project was identified. In other hand, the cause was also revealed based on the comparison between actual and theory.

In order to improve the Feasibility Study of Apartment Project, the existing problems such as increasing cost of land, high inflation, revenue changing, fluctuation of material should be avoided.

The method of cost estimation should be implemented properly and appropriately to ensure it is accurate as much as possible. The knowledge of construction industry is most important factor to implement project result. Cash flow control is should be under-taken by people who have enough experience in construction work.

To get the information is highly important to eliminate the risk in future stage. The revenue of the project to be executed should follow the real market. Beside, the input data and output data for the calculation technique should be carried out carefully and should be checked by many people involved, to make-sure that the decision making is good.

The leader should support the team to carry out the FS by the information from other party side such as: Marketing research, contactor, consultant, designing company and some experts especially that in Viet Nam, the Policy of Government is not stable that is why the good relationship with government is the most important point in feasibility study.

Conclusion, in order to achieve the feasibility study in apartment project, the people who will conduct should have an integrated knowledge competence in terms of construction industry, financing, marketing, politic, and selling.

His thesis abstract is copied and posted.

Abstract

Viet Nam is the developing country which is booming economic and the new medium classification increasing rapidly. The movement of people from rural region to urban region is growing up every year. The population growing is 2% a year that is compressing of Housing Supply for social need. The entire above figure is good reason for real estate business in Viet Nam. However in order to success in property business the Feasibility study stage is most important factor should be consideration.

The subject of this study is analysis the method & effectiveness of feasibility study in Apartment Project. Base on theory and actual project the problem statement occurring in FS will be identified such as: Incorrect assumption , misunderstand the Demand of Market, cost & revenue estimate is not match reality, time schedule planning is not practice, forecasting of cash flow is wrong, mistake in term of FS calculation technical, lack of in formation in term of information of land. According the literature review the object study is summarized as Framework of FS in Apartment Project. To study the application of the framework in project case. To find the problem in FS for Apartment Project .To proposal the solution base on theory.

With the real project Carina Plaza the analyze of the comparison between theory and the actual activity is show up the different and causing of it . The method of cost estimate is concentrate to study according the theory and project case. The revenue estimate is also access careful to ensure the catch flow management always is positive and project is archive.

The final report specify the most important factor to impact the FS and a successful of project in medium apartment. The FS should be conducted by the people who is integrate knowledge such as: construction knowledge, financing , marketing, communication.

Organizational Project Management Structure in a Real Estate Developing Company: A Case Study of Namlong Corporation

Project management structure is a new issue in Vietnam. There are more and more real estate development companies in Vietnam in which many of them process great potential for the project management team. But the concept of project management structure is one thing that not all the companies are aware off. In fact, there is still confusion in choosing the model for organizational project management structure.

Mr. Nguyen Duc Trong made a case study which primary objective was to identify and find out the ideal project management structure for a developing company. In order to achieve this main objective, sub-objectives were needed to accomplish such as: (1) study the literature of Organization Project Management Structure in construction project; and (2) analyze a Case Study in application of Organization Project Management Structure in Viet Nam

Conclusion

Organizational structure can get in the way of, or help support, the overall success of projects. To a certain extent, we can change the organizational structure. In fact, we can change the organization chart frequently, and some companies just did that. Culture, on the other hand, is not easily changed. It can take years for a large organization to develop a culture of excellence (although it doesn't take nearly as long to fall back into mediocrity).

Some organizational structures can definitely impair the ability to deliver projects. First are those organizations whose project teams are doing support work. If the project organization does support as well, it usually means that support issues will pop up and take the focus away from the project. A lot of multitasking and thrashing takes place as we move from support work to project work to support work. It’s usually very difficult to prepare good estimates and meet the scheduling commitments. We may be forced into this structure if our staff is small. Sometimes we have 15 people who work on support, projects, and enhancements. However, we do not have enough people to specialize in either support or project work. This makes it difficult to meet all of our project commitments. Instead, we
have to do a good job of managing expectations.

The organizational structure may also impede the ability to share resources. For instance, if our project team needs a resource with a specific expertise, we may not be able to easily share that person with another functional area. Some of this is also related to our culture. We have to consider whether a different organizational structure would help. If it would, we may have an organization problem. If it wouldn't help, our culture is probably not supportive of resource sharing.

The organizational structure can also help or hinder the success rate. The structure can determine how well we focus on projects and how easy it is to share resources between organizations.

Recommendation

1. Consider the system of Project Management structure. Develop individual assessment form for functional manager, project manager. By involving functional management in project initiation activities-recognizing that functional managers often have the best insight into the skills and limitations of staff members-we made the process of assigning resources to roles more collaborative. We also instituted a formal requisition process for internal resources. Project managers were added to the performance development process training classes and required to provide periodic performance-related information to functional managers. At the same time, functional managers now shared individual goals and objectives with project managers, seeking to align project assignments with objectives

2. Build up the enterprise culture and create the transparent competition among departments. Have good authority system and empowerment so that all the department leaders can have the conditions to give out the right decisions

3. Have clear annual plan and transfer this plan to every department, every individual. Check, monitor and access this plan monthly, quarterly to create fair in bonus sharing

4. Re-define Roles and Responsibilities: establish a policy statement and matrix document that clearly identified the project manager and functional manager roles and responsibilities.

5. Establish a Communications Plan: developed a comprehensive program communications plan identifying who reports what to whom, and when. Acknowledge the information needs of the functional management team by including them in the communications plan. Project websites could be established to facilitate communications.

His thesis abstract is copied and posted

Abstract

A project organization is a structure that facilitates the coordination and implementation of project activities. Its main reason is to create an environment that fosters interactions among the team members with a minimum amount of disruptions, overlaps and conflict. One of the important decisions of project management is the form of organizational structure that will be used for the project. Each project has its unique characteristics and the design of an organizational structure should consider the organizational environment, the project characteristics in which it will operate, and the level of authority the project manager is given. A project structure can take on various forms with each form having its own advantages and disadvantages. One of the main objectives of the structure is to reduce uncertainty and confusion that typically occurs at the project initiation phase. The structure defines the relationships among members of the project management and the relationships with the external environment. The structure defines the authority by means of a graphical illustration called an organization chart.

Integrated Project Management Assessment For Development Property Project At Capital Fund In Viet Nam

Vietnam’s economy has been tremendously grown recently. Due to this economic growth, people from urban places move to major cities to seek employment which leading to huge demand for residential apartments as well as public building such as office and commercial or retail center. Currently, the supply could not match the demand which causes high property price particularly for residential projects with area yet to be built with investors camping in the streets to get a chance to buy off-plan.

Mr. Nguyen Phan Hoa Binh, the author, recognizes that in the planning management process, the link between business strategy plans and the project execution plan are not properly planned, organized, controlled and evaluated because of the critical problems such as:

1. The constraint of matrix organization structure at portfolio Project
2. The constraints of communication, difference communication channel
3. The conflict interest between shareholders

Due to these problems, Mr. Binh made a research which purpose was to analyze the said problems in order to come up with suggestions on how these should be solved. The objectives of his research were to: (1) explore the structure of close end property fund, to explore the linking structure model of portfolio company with the structure of property fund; (2) review the literature of strategic planning, the project strategy; (3) investigate the planning process of property project, to critical analysis and identify what is missing link between business strategy (fund) and project management (portfolio) via two case studies that the study author is working on it; and (4) adopt the project strategy in the project management in the aim to add a new tool to project execution that will contribute to project success and overall business results as initiation plan from property fund.

Conclusion

In the competitive market and globalization, the project strategy is the essential competitive weapon for company organization in the coming years. These are selecting the right strategy at the project initiation, making it compatible to the business strategy, carefully articulating the four components of project strategy will contribute to project success and overall business results.

Mr. Binh investigated the organization of property fund structure aiming to deeply understand the property fund structure that form up the portfolio company. It is the tool that helps to define the end property product, and its explicit competitive advantage. Based on the project case study- Aqua City Development, Mr. Binh has emphasized on how to define project strategy, how to define end project, how to define the project scope and classify project type. Although it has limited constraints to implement the project strategy, however the immediate mitigation plan could be solved out the critical issue in this case.

Argument hypothesis and External condition

As hypothesis statement, the project strategy framework can be used as a tool to start a strategic process. It will be succeeded when it has a clear project definition, project production. It needs to build up a flexible organizational structure that helps facilitate the competitive attribute.

The strategy framework could elaborate in the integrated project management when project cultures obtain the reciprocal relationship between project stakeholders and shareholder, but it is not an easy mission for the project strategy developer.

As a conclusion, the author could argue that the project strategy framework need to be defined and elaborated in interactive and cyclic way with its four element.

Recommendation

The concept of project strategy and integrated project management is still not common, while there are many developer properties provide the similar product. The project manager is required to expand the role that plays in the project development business and add more responsibility, which will contribute to project success. It could be done, when the project manager could be learn how to direct the new path will lead to better project results and better business performance.

His thesis abstract is copied and posted.

Abstract

The purpose of this study report investigate the integrated planning process of portfolio project, which is formed up by property development fund. As working at the property development fund in Viet Nam for four years, the study author recognizes the missing link between business strategies (fund level) and project execution plan (portfolio level) when the project runs in the implementation planning process. It could be argued that the project strategy plan has not been emphasized in this case or it has not been integrated and controlled properly during the day-to-day project execution work that involves both effectiveness and efficiency for project evaluation. In this study report, the author refers the summary literature review that focusing how to move corporate strategy to project strategy. The study report has combined a project case study (Aqua City Project) in the aim to analyze the organization structure/ functional management analysis/ project strategy/ project planning process to explore the missing link of project strategy and project implementation plan in this case.

How to have “a two way influence between strategy and project management” is an finding attempt that the author would like to capture the strategic approach to apply in the integrated project management development activity that serve to get the project runs in the competitive advance of energizing prosperity. It needs to get the project manager to expand the role that steps up in the project development business. It will gain more project succeed when the link between project strategy and project implementation has been integrated in the strategically.


Keywords: Strategic project management, Project strategy framework, Project execution plan

Owner’s Project Control Strategy

Success or failure of a project relies on how it is being controlled. Project control strategy is an activity which compares overall project performance against the planned project. The purpose of project control strategy is to evaluate and analyze the project situation, generation of forecasts, and definition of actions to be implemented in the whole project process.

That is a process that should be continued during the construction period to make certain that the final product meets the quality, completion and budget expectations of the owners. Project control process can be divided into three major areas: the control of cost, time, and quality during the design phases; the control of cost, time, and quality during the tendering phases; and the control of cost, time, and quality during the construction phases of the project.

Mr. Nguyen Le Thuan made a case study which objectives were to: (1) study the framework and identify the problems of owner’s project control process; and (2) study the practical implementation of the framework in terms of effectiveness and obstacles.

Conclusion

There were too many components that caused problems in project control. Despite of the project owner’s effort to solve the problems and arranged all requirements in suitable order, still there were some causes that made the project out of control. In this case study, Mr. Thuan found some problems in project control such as:
1. Poor estimating techniques and/or standards, resulting in unrealistic budgets
2. The technical design is lack of regulatory system or legal appropriation
3. Database is not correct
4. Value engineering is not popular
5. Awareness of standard design is limited
6. Policies and procedures are always changed
7. Communication and coordination among participants are not homogeneous
8. Need correct awareness to lowest bid.
9. The project owner uses nominated contractor method in tender stage
10. Inadequate work breakdown structure
11. No management policy on reporting and control practices
12. Management reduces budgets or bids to be competitive
13. Inadequate formal planning having unnoticed result, or often uncontrolled, thus increases in scope of effort
14. Poor comparison of actual and planned costs
15. Comparison of actual and planned costs at the wrong level of management
16. Unforeseen technical problems and unforeseen financial fluctuation.
17. Schedule delays that require overtime or idle time costing

Conclusion for Owner’s Project Cost Control in Design Stage

The project owner should specify all performance and design standard. The design professional is responsible for producing a set of preliminary drawings as well as written report for approval by the owner. The responsibility of the designer comprises drafting complete specifications for inclusion in project tender documents, approving or initiating all design related deletions, additions and changes to project specifications and accepting ultimate responsibility for the safety and utility of all project design elements.

In this phase, the project owner must approve all design related work performed and must coordinate the overall design integration, safety of the public, compliance with legal and codes.

Conclusion for Owner’s Project Control in Tender Stage

All services must be specifically required in the contract documents and not be in violation of any applicable law. Tender documents should be clear before they are issued. The content includes tender time, date, approximate contract amount, project location, licensing requirements, approximate size, plus tender, payment bond requirements, performance, etc.

Conclusion for Owner’s Project Control in Construction Stage

The fundamental purpose of the conference is to establish acceptable ground rules for all parties concerned, and to assure that each party understands the complete job requirements and coordinates its work to produce a completed job in a minimum amount of time, with maximum economic gains, and in proper coordination with the owner, architect, engineer, prime contractor, and all subcontractors. The pre-construction conference is primarily concerned with management and operational considerations. It is in these areas of contract interpretation and clarification that the greatest value of the construction conference can be achieved.

Progress payment and management of progress payments begins with the contract specifications clearly stating how the contractor’s work progress is to be measured, how payments are determined based on the measured progress, and what documents and reports are required to be submitted by the contractor to justify the payment request. The project owner should authorize payment only when the contractor’s progress payment request is in full compliance with the contract requirements and the progress claimed has been independently verified by supervisor.

Periodically, perhaps monthly, the project owner should compare schedule progress with that shown on the project program. The purpose is to determine whether those various activities were planned.

Recommended framework for owner’s project control:

Based on the literature review, case study and PMBOK (third edition), Mr. Thuan recommended a framework for an owner’s project control as shown in the table below:

Abstract

The report expresses the key issues in Project Control Strategy that known as the important factor for any owner wants to develop and survive in the construction industry.

This study, which refers to the theories have expressed the concept of project control process in design stage, tender and construction stage. What should the owner control in these stages? How can the owner control in these stages? The study has briefed the factors that most effect to them, they consist of cost, quality and schedule. Through a case study, project control problems will be analyzed. Some proposed solutions are recommended in order to help the owner can be improved in project control process.

Project Management Life Cycle and Risk Managerment in a New Residental Development Project in Vietnam

The development of residential projects in urban areas in Dong Nai province is still not uniform just like in other parts of Vietnam. The nature of this project usually involves large capital and needs long time to accomplish due to many elements concerned such as government regulations and policies which are indispensable.

Mr. Tran Thanh Liem wanted to study the project management life cycle in new residental deveplopment project in Vietnam and the most serious proplems arising from every stage of project life cycle.

The objective of his study were to: (1) identify project tasks and activities for accomplishment and find out proplems affecting the project time; (2) propose strategies to effectively eliminate or mitigate major risks; and (3) propose solutions that identify and prevent risks for the sister projects.

Conclusions

The investment in real estate sector in Vietnam is currently out with a difference. Applying the expertise of professional knowledge and ability to finance is unlikely to succeed when investing in Vietnam.

The case study revealed a practical implementation in the early stages of residential development policy of Dong Nai province in particular and Vietnam in general. The author introduced a project with very nice location in the center of Bien Hoa city which is belong to Company D2D (a Vietnamese company which is knowledgeable on laws and policies in Vietnam and capable of performing the procedures quickly) and Joint venture company Berjaya D2D (having capacity on the implementation of procedures, adequate financial capacity, investment experience and professionalism in the field of real estate investment).

This project has all the favorable factors for success. Currently it is also one of the most successful projects of the company D2D, but the schedule shows that the project still face a lot of problems (risks), which mostly concerned to the management and policies of the government.

The report may not offer the most complete risk factors in various stages of project implementation, but clear description of the risk factors affecting the schedule of most projects in Vietnam are well established such as clearance problem and progress delay. In addition, the author proposed appropriate strategies to mitigate these major risks.

Recommendations

The author had clarified the stages in the life cycle of a project and the main works done at each stage. He also determined main risks causing delay in the implementation of D2D residential projects, its secondary project in particular and all investment projects in the field of real estate in Vietnam in general.

This study proposes some recommendations for each delay problem as shown in the tale below:

When implementing real estate projects in Vietnam, anticipate that there are many negative issues in the system of policies and regulations and have to set the elimination risks that causing uncontrollable delays.

To reduce the delay problems for similar projects in the future, this study proposes some guidelines as follows:

1. To find out carefully the system of Vietnam's policies and continuously update the change of policies during the time of project execution in order to timely adjust work flow at various stages of the project life cycle; identity sufficient risk of external and internal environment of the project in accordance with reality.

2. Together with changing policies, the corruption in Vietnam is an ominous issue and investors even consultants can not understand all the issues for investment. However, the costs for Vietnamese consultants is so cheap compared with other countries, sometimes it is necessary to pay more payola for direct consultant from administrative official.

3. To implement the procedures while waiting for the approval of governments.

4. To survey, evaluate and recommend appropriate solutions for compensation and ground clearance in order to ensure the interests of the parties and minimize delays in this stage.

5. To set up land use planning appropriate with the project requirements in each stage and progress of the mobilization of capital investment

6. To research the plan for construction planning in order to ensure compliance with long-term development strategy, to take factors fluctuations in policy and plan for appropriate preventive.

7. To train or mobilize experts with full experience in the concerned fields such as planning, design, construction techniques and finance and to set up competence project team for the best implementation.

8. To conduct activities in order to control and limit the adverse impact of risks to ensure the project in time. Risk control plan should be implemented in conjunction with several measures from the active standby to deal with the risks, actively avoid and share the risk, promptly response when risks occur.

9. To establish early warning systems and handle risk.

10. To develop a plan for mobilizing capital to response the progress of the project.

11. Risk management should be considered as an important part of project management and construction law , urban planning law, housing law or government decrees.

12. To focus on the initiation stages : Investment report, Feasibility Study, Project planning and Detail Design.

His thesis abstract is copied and posted.

Abstract

Vietnam has just been developing in recent years. Together with urban development, real estate and construction market are growing rapidly. The speed of economic development is growing rapidly but substandard managerial capacity has not satisfy the actual requirements, so great urban areas of Vietnam are now facing with complicated issues of urbanization process and urban development such as migration, accommodation, labor, career, traffic jam, flood, environment pollution.

The real estate and construction fields have reputation of the most opportunity, risk, expensiveness and challenge. The implementation of construction also requires long time with huge investment capital and various participating components.
Besides, there are so many unsound problems, for example government policies in real estate market and construction industry are usually amended and overlapped among authorities. Therefore; the implementing process of project will be usually changed, risks would easily arise and we will meet difficulties in estimation, appreciation and control… All these will make project not completed as expected.

Risk Management of Basement Construction Affecting Adjacent Buildings: A Case Study of Construction Project in Ho Chi Minh City, Vietnam

With restricted height in the central of Ho Chi Minh City, basements for building are even more needed. However, recently, a lot of basement construction has encountered incidents affecting adjacent buildings which may be due to difference in geologic conditions and number of basements, and probably use of different execution method.

Mr. Dang Tuan Anh made a research just to present the risks that are related to basements construction by top-down method with diaphragm wall for soil retaining. This is an advanced execution method and usually use for those buildings having more than two basements. However, if risks in this method were not checked carefully, it will seriously affect adjacent buildings.

The table below shows some typical problems and consequences of basements construction in Ho Chi Minh City:
With these problems, developing risk management frame in basements construction is critically important to reduce impacts on adjacent buildings.

Conclusions

At present, most of the buildings in Ho Chi Minh City have basements. Therefore, risk management to reduce impact on adjacent buildings becomes more and more important. Practice shows that quite many projects caused problems during process of basement construction and create serious consequences such as damages, collapse and casualties.

From data analyses, the problems below still need to address:

The above problems are mainly due to subjective factor and lack of experience of the managers. Besides, awareness of Clients in preparing finance for risk management is one of the key issues. If the budget of risk management is not enough, plans for risk management will be limited and not efficient.

Recommendations

It is necessary to have adequate finance package to cover risk management, and based on that finance, planning risk management will be studied carefully and combined from experts. In addition, advanced techniques and equipments can be used to observe, prevent and deal with incidents when they happen.

For those risks that might cause serious incidents (pierced holes on diaphragm wall, deformation of king-post system, etc), there must have strict observation and control. It is necessary to plan urgent risk-solving methods with respect to manpower, equipment and finance. Moreover, establishing good relationship with people who live around the project is also very important to have their cooperation during the process of observing and solving incidents, even temporary moving if necessary. Therefore, professional verifying teams should be combined to observe and propose solutions when problems occur. This will set surrounding people’s mind as well as local government’s mind at rest.
It is suggested to study carefully risk management frameworks whichever is suitable with each specific project to get the most efficient and which will contribute in achieving the project.

His thesis abstract is copied and posted below.

Abstract

This project report studied about risk management of basement construction affecting adjacent buildings. In the field of construction, basement construction in rural areas is one of the most risky and difficult works.

To limit risks in this issue, it is very important to study about risk identification and solving methods when preparing and constructing basements. Although many projects have risk management system, risk still occurs, even causing very serious damages.

Therefore, experience and thoughts in risk identification becomes more and more critical.