In recent years, Vietnam Rubber Company (VRC) has invested big capital for expanding rubber plantations and upgrading rubber processing facilities both domestic and outside the country. For VRC, the concept and practice of owner’s project life cycle have been used in rubber plantation projects. Nevertheless, VRC has not built a type of project life cycle appropriating with its specific characteristics; therefore, some projects meet with serious difficulties during performance.
According to internal audit and situation report, VRC’s oversea rubber projects show many problems especially in cost and schedule on the project management in construction during 2007-2010 such as:
- Cost overrunning or over budget;
- Projects are prone to delay;
- Project quality uncontrolled;
- Project scope creep.
Also according to this report, VRC recognize the bad results in Cambodia are created by many reasons; however, poor management of the project life cycle is one of the reasons bring about serious consequences including the followings:
- No establishing a framework of project life cycle;
- Project proposals and business cases and project selecting process in the first phase were carried out incautiously have impacted to all remain phases of the project life cycle;
- Some projects do not have a strong project management team;
- Inadequate delegation from VRC’s head quarter and the project organization is not properly;
- Lack of managerial skills and competencies as well as the internal capacities of the owner
VRC considered that poor management of the project life cycle caused negative impact to the projects. They are the critical problems which VRC and other related parties to Cambodia projects need to consider cautiously.
Mr. Do Huu Phuoc made a research to study Vietnam Rubber Company’s project life cycle approach, analyze situation and develop a framework of project life cycle of a rubber plantation project and guideline to possibly ensure the projects deliver on time, on budget and to the level of quality expected.
Conclusion
All projects have certain characteristics in common which only last for some time.
Projects can be managed using a common set of project management processes. In fact, a similar set of project management processes can be utilized regardless of the type of project. All projects should be well-defined and well-planned, and all projects should manage the scope, risk, quality, status, etc. Although every project is unique, the lifecycle model typically is not. The general lifecycle model that an organization use will probably be similar to one that has been used dozens or hundreds of times in other organizations. There is no reason to reinvent everything for a project. It just takes longer and contains more inherent risk. The better approach is to utilize a standard set of lifecycle processes, techniques and templates.
The project life cycle of VRC’s projects may progress through four phases:
- The first phase of a project is the initiation phase.
- The second phase, the project enters the detailed planning phase.
- The third phase involves implementing the plans created during the project planning phase.
- The final phase involves completing the work, closing out the project.
Conclusion for VRC’s project life cycle approach
There is no single best approach in organizing project management throughout a project's life cycle. All organizational approaches have advantages and disadvantages, depending on the knowledge of the owner in project management as well as the type, size and location of the project. It is important for VRC to be aware of the approach which is most appropriate and beneficial for a particular project. In making choices, VRC should be concerned with the life cycle costs of planted rubber trees, constructed facilities rather than simply the initial costs.
Saving small amounts of money during construction may not be worthwhile if the result is much larger than the operating costs; or not meeting satisfactorily the functional requirements for the new facility or the objective is not align with the scope. Thus, generally a project or particularly a rubber plantation project wants to finish successfully it must be very concerned all the phase of the project life cycle.
Recommendations
With so many ongoing projects like situation at present, VRC may encounter difficulty for all projects to get adequate support, or even the attention of top managements. The particular common problems when trying to manage multiple projects concurrently may be:
a.There is no time for summary experience, so the mistakes from a project can repeat to all projects.
b. Delays in one project may drag other projects because of common resource needs or technological dependencies;
c. The inefficient use of corporate resources results in hills and valleys of resource utilization;
d. There are unwholesome competitions between project teams to get support, or the attention of top managements.
VRC should consider a temporary stopping with the current projects to review all the problems happening. The lessons learn from projects should be analyzed, reviewed and documented for future projects and any other projects will be performed by VRC in Cambodia or other countries in the future.
This study had concentrated on owner’s approach in managing project life cycle to an agriculture project. However, there are many aspects relating to the project management. Further studies should be carried out to find out the approach of owner for agriculture project management.
His thesis abstract is copied and posted.
Abstract
Project life cycle is an approach that links the phases, which can lead to significant results required for completing a project. As the owner has the most authority in enforcing the implementation of constructability, the owners' awareness of the benefit of the project life cycle is the most important. Project owners must be aware that the decisions that are made in the stages of projects are difficult and costly to change once construction begins.
Owners should recognize that there is no single best approach in organizing project management throughout a project's life cycle. All organizational approaches have advantages and disadvantages, depending on the knowledge of the owner in project management as well as the type, size and location of the project. It is important for the owner to be aware of the approach which is most appropriate and beneficial for a particular project. In making choices, owners should be concerned with the life cycle costs of constructed facilities rather than simply the initial construction costs. Saving small amounts of money during construction may not be worthwhile if the result is much larger operating costs or not meeting the functional requirements for the new facility satisfactorily.
However, the traditional approach to project life cycle limits their option for involving in the phases of the project. The general lifecycle model that an organization use will probably be similar to one that has been used dozens or hundreds of times at other organizations. There is no reason to reinvent everything for your own project. It just takes longer and contains more inherent risk. The better approach is to utilize a standard set of lifecycle processes, techniques and templates which to be used in the same industry.
Thursday, 24 February 2011
Wednesday, 23 February 2011
Delay in Planning, Design and Construction: A Case Study of Residential Development Project in Ho Chi Minh City
Vietnam’s construction industry is now suffering from many problems regarding design to operation especially in residential and complex building. These problems include:
1. Coordination between Architect and Structural designer
2. Communication difference between architect and owner regarding the structure
3. Lack of government permit
4. The contractor’s method of construction did not comply with local building standard therefore accident happened
5. Project delay due to owner’s return payment to contractor which is not stipulated in the contract
6. Dispute between project construction management group and main contractor or between main-contractor and sub-contractor about claim, variation order, quality, delay of schedule, and coordination with other contractor
7. Difficulty of taking over from contractor to project management group because the standard is not clear or was not met general standard
8. When PCMG handed over the project to client but the client has financial difficulty
9. Rework
10. Resolving complains from client about service quality and the method of managing the project
Mr. Nguyen Hung Cuong made a case study which objectives were to: (1) study delay in planning, design, construction; (2) find out to solve and prevent problems in each stage; and (3) propose project life cycle strategy in how to develop residential complex.
Conclusions
The project life cycle would be successful if in each phase of the construction phase project, the management had clear plan and had coordinated with all contractors to resolve the problems at an early stage.
The project will be completed on time if clients are pleased and satisfied with the quality and safety. In case of project delay, propositions based on theoretical and recommended practices including guidance from the PMI’s PMBOK guide can be presented in order to solve the problem. Besides, some useful tools were considered and suggested to use as the aids for the project managers to improve control management in the project.
However, this case has limited information because some companies in Vietnam can not provide full information to students.
Recommendations
In order to avoid problems on project delay from concept design to operation which was actually happened in The Manor phase II project, the following steps are recommended:
• PCMG have to get Government permit first together with concept design before construction and have to control the plan well. The plan monitoring is very crucial for project management.
• Owner should estimate the project expenditure and should have a board in order to double check the project phase by phase.
• Project Construction Management Group has to undergo an organizational training in order for them to know the use of the process to accomplish the project and to learn the contract condition.
• Documents control for project is very important. All the site instruction should make the process for resolving and return it to contractor soonest, with the process that all the scope of work will be completed on time.
• In case of ISO certified company, Project Manager should give feedback to the company Quality Manager to add in personality test forms together with Job Application Assessment Procedures forms. That will save Project Manager’s time whenever there is new job applicant coming to job site for an interview.
• PCMG have to request contractors to submit the schedule of material delivery in order to double check it. PCMG can also check and give the project schedule to contractor for site instruction.
• The contractors should make a report of human resource to PCMG in order to inform if that manpower is enough to finish the scope of work and if the project can be completed on time.
• Relation division and contractors should always have the plan to solve the method problems.
• The weekly meeting is very important for PCMG and contractor. All problems will be resolved during that meeting and since relation division have limited time to return the request to contractors for information.
• All contractors must provide safety policy to PCMG to reduce accidents on site.
• Delays caused by taking over and claim of payment during construction which is the bigger problem between contractors and the Owner.
His thesis abstract is copied and posted.
Abstract
The planning process in project lifecycle is one case study in the Project Management Institute’s A guide to the Project Management Body of Knowledge. In the case study of Project management is established planning process in project lifecycle is very importance therefore this is really a tough challenge and time-consuming task to any project manager.
The drawing up the plan from concept design to operation project that it suggested management must have large line of vision also experience .The planning process will be evaluated clear that must link everything from the owner, design, contractor. This final project report focuses on construction project as lifecycle project needs who’s have responsibility to design planning process to be clear within knowledge. Though a case study of residential and complex project in Ho Chi Minh City, many problems that we can saw which cause project interruption will be investigate and analyzed. A lot of solutions be proposed which base on the knowledge will be discussed to help project management in order to improve skill in the project.
1. Coordination between Architect and Structural designer
2. Communication difference between architect and owner regarding the structure
3. Lack of government permit
4. The contractor’s method of construction did not comply with local building standard therefore accident happened
5. Project delay due to owner’s return payment to contractor which is not stipulated in the contract
6. Dispute between project construction management group and main contractor or between main-contractor and sub-contractor about claim, variation order, quality, delay of schedule, and coordination with other contractor
7. Difficulty of taking over from contractor to project management group because the standard is not clear or was not met general standard
8. When PCMG handed over the project to client but the client has financial difficulty
9. Rework
10. Resolving complains from client about service quality and the method of managing the project
Mr. Nguyen Hung Cuong made a case study which objectives were to: (1) study delay in planning, design, construction; (2) find out to solve and prevent problems in each stage; and (3) propose project life cycle strategy in how to develop residential complex.
Conclusions
The project life cycle would be successful if in each phase of the construction phase project, the management had clear plan and had coordinated with all contractors to resolve the problems at an early stage.
The project will be completed on time if clients are pleased and satisfied with the quality and safety. In case of project delay, propositions based on theoretical and recommended practices including guidance from the PMI’s PMBOK guide can be presented in order to solve the problem. Besides, some useful tools were considered and suggested to use as the aids for the project managers to improve control management in the project.
However, this case has limited information because some companies in Vietnam can not provide full information to students.
Recommendations
In order to avoid problems on project delay from concept design to operation which was actually happened in The Manor phase II project, the following steps are recommended:
• PCMG have to get Government permit first together with concept design before construction and have to control the plan well. The plan monitoring is very crucial for project management.
• Owner should estimate the project expenditure and should have a board in order to double check the project phase by phase.
• Project Construction Management Group has to undergo an organizational training in order for them to know the use of the process to accomplish the project and to learn the contract condition.
• Documents control for project is very important. All the site instruction should make the process for resolving and return it to contractor soonest, with the process that all the scope of work will be completed on time.
• In case of ISO certified company, Project Manager should give feedback to the company Quality Manager to add in personality test forms together with Job Application Assessment Procedures forms. That will save Project Manager’s time whenever there is new job applicant coming to job site for an interview.
• PCMG have to request contractors to submit the schedule of material delivery in order to double check it. PCMG can also check and give the project schedule to contractor for site instruction.
• The contractors should make a report of human resource to PCMG in order to inform if that manpower is enough to finish the scope of work and if the project can be completed on time.
• Relation division and contractors should always have the plan to solve the method problems.
• The weekly meeting is very important for PCMG and contractor. All problems will be resolved during that meeting and since relation division have limited time to return the request to contractors for information.
• All contractors must provide safety policy to PCMG to reduce accidents on site.
• Delays caused by taking over and claim of payment during construction which is the bigger problem between contractors and the Owner.
His thesis abstract is copied and posted.
Abstract
The planning process in project lifecycle is one case study in the Project Management Institute’s A guide to the Project Management Body of Knowledge. In the case study of Project management is established planning process in project lifecycle is very importance therefore this is really a tough challenge and time-consuming task to any project manager.
The drawing up the plan from concept design to operation project that it suggested management must have large line of vision also experience .The planning process will be evaluated clear that must link everything from the owner, design, contractor. This final project report focuses on construction project as lifecycle project needs who’s have responsibility to design planning process to be clear within knowledge. Though a case study of residential and complex project in Ho Chi Minh City, many problems that we can saw which cause project interruption will be investigate and analyzed. A lot of solutions be proposed which base on the knowledge will be discussed to help project management in order to improve skill in the project.
Tuesday, 22 February 2011
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.
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.
Wednesday, 16 February 2011
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.
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.
Tuesday, 15 February 2011
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.
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.
Monday, 14 February 2011
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
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
Friday, 11 February 2011
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.
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:
AbstractThe 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.
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