Any project has to deal with problems/issues that can affect its objectives. These issues are sometimes predictable, but in some cases it is impossible to predict. Once it is predicted, the project team shall have proactive counter-measures, and thus limit the possible impact of risks. Risk management is the process of pre-defining risks that may occur in the project, analyzing, and finding appropriate measures for the purpose of increasing the opportunity of success and minimizing damage to the project. Regardless of the size and nature of the project, risk management should be implemented in accordance with the ordering process with the appropriate tools and effective solution.
It is essential to reinforce the capability of identifying risks and contract management in construction projects closely. The control and adjustment of risks are to carry out risk dealing with plans in reality in order to reduce and minimize risks of the project. Moreover, strict management of contract is the only way to prevent disputes and litigations of the project. It is wise that the parties should seek negotiation, discussion or conciliation once disputes occur. Using an amicable settlement approach is simple, effective and inexpensive while adopting claim and arbitration approach is more complicated, costly and time consuming.
Mr. Dang Thai Son made a case study on can tho bridge construction project to: (1) study issues on project risk management: implicit risks, the tenor and process of project risk management; (2) study issues on project contract management: signing and implementing the project contract, amending, canceling or terminating the contract; and (3) find approaches to mitigate risks as well as to prevent and resolve disputes, litigations in project contract.
Conclusion
Risks are unavoidable in construction projects, yet it is still possible to prevent them before and during a project. With such a length (15.85 km), Cantho Bridge was a typical example for risk management. The project has received full financial support from the Japanese government which is Twenty Four Billion Eight Hundred Forty Seven Million Japanese Yen (¥24,847,000,000). However, there was still delay in land requisition. Although only two local households did not agree on their compensation, they affected the progress of the project. In addition, shipping equipment and complex custom procedures also hindered the progress.
On the good side, the Contractor has implemented good management for best results. To start with, the Contractor designed a hierarchy of management with well-targeted goals as well as backup plans. This helped the project progress even in case of force majeure. Second, good management on quality and quantity also contributed to the success of this work. Various aspects of working requirements such as materials, equipment, construction methods and skilled labors were focused and well-prepared. Thirdly, the Contractor showed that environment was taken with extreme care so that almost no effects on the local landscape and ecosystem were done by pollution from the construction. This was done thanks to a third-party specializing in the field of environmental protection. Finally, the Contractor always followed the most important motto: "Safety first." The disastrous accident in foundation settlement showed the nature of risk on the one hand; but on the other hand, it showed that the Contractor prepared and implemented practical and helpful steps in preventing diseases and treating injuries to workmen. As a result, construction workers felt better and secure to continue their work and the project could be completed in due time.
After Cantho Bridge was completed, it has provided the researcher with practical experience in terms of capital, specific infrastructure conditions, hi-tech quality of the contractor and compensation negotiation. This study showed us that reality is always unexpected but with well-planned risk management, we can still handle and heal the uninvited damage to project effectively and in time so as to fulfill the project as pre-planned.
In conclusion, throughout the analysis, we see that Can Tho Bridge Construction Project achieved more successful factors than its constrained ones. This project obtained good delivery system from setting to closing out phase thanks to have good environments such as stable society economy and politics, favorably legal environment especially the great support from the project stakeholders: Financier (JIBIC), Owner, Consultant, Contractors, Suppliers and others (Local Authorities and so on).
Among the three Contract Packages, Package -1 and Package-2 achieved good target. Especially Package-2 completed all the works of the project on schedule without complaints even exceeding the progress compared to that set by the Ministry of Transport. Although Package-2 was a major item of the bridge and very complicated for construction, with all endeavors and efforts of the whole expatriates, engineers, staff and workers of the Main Contractor: Taisei-Kajima-Nippon Steel Joint Operation and his sub-contractors, finally they made good delivery system for the project.
However, the project suffered big delay from Package-3, the Contractor of this Package received many complaints from the Owner because he could not manage his work schedule, while the works of the other two Packages were successfully completed.
Once again, apart from the strengths achieved as analyzed in Chapter 3, there are many weaknesses that the project stakeholders should pay much attention to and should take them as valuable recommendations for future projects:
- Before carrying out the construction of any project, the Project Owner together with Local Authorities shall ensure land requisition to be well-executed and give right of access and site possession to the Contractor at appropriate time without any delay and obstruction from local residents.
- When making the estimation for a project, besides calculating an official capital source for the main items of the project, the project planner should carefully calculate an extra money fund for nearby existing land compensation including the crops. Therefore, the Project Owner will be able to get sufficient land area and provide further access to the Contractor for construction. Because the construction activities of the Contractor definitely affect to the neighboring structures of the inhabitants.
- The Project Owner should thoroughly consider selecting competent, qualified contractors who are healthy in finance and capable of high technology. Not to give the award to the bidder of the lowest price, and poor equipment and poor technology transfer.
It was time for Vietnamese Government and its subordinating Ministries consider carefully when deciding to select the bidder especially for foreign ones. Before inviting them for bidding, a well pre-qualified selection of experienced, prestigious and competent bidder list should be made and elimination of unqualified bidders from the list should be done. If doing so, the Government saves a lot of time and money for unreasonable loss and damage from rectification of defects and re-works.
His thesis abstract is copied and pasted.
Abstract
Risk management is an indispensable job because it will help the project reduce and minimize the extraordinary impacts occur which affect to the general objective of the project.
In this study, we should learn about the concept of risk with its two specific characteristics: probability of occurrence and degree of impact. In addition, the classification of risk is also a meaningful deed; each kind of risk is different, therefore, risk management issue is also totally different. To manage risk, a process of six steps can be applied. First, making risk management plan for general orientation of work and scope of performance to manage the risks. Then, carrying out risk determination, it means to list out the risks might occur in the project. Since then analyzing probability of occurrence and the degree of impact of the risks, Control and adjustment of risks are to implement the plan for dealing with actual risks.
Contract management is extremely important in the project management. Referring to the contract, the project manager will treat and adjust the relationship as well as contradiction between interests and liability of the parties concerned in the project. Therefore, being a project manager, he or she needs to master the sequence of steps of signing and implementing the project contract, the arising issues and conditions of alteration, omission or termination of project contract as well as the approaches to resolve and settle disputes in the contract. Once dispute arises, it is wise that the parties should seek for negotiation, discussion or conciliation. This approach is simple, effective and little cost while claim and arbitration approach is more complicated, costly and waste of time.
“Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser – in fee, expenses and waste of time.”
Abraham Lincoln
Wednesday, 13 July 2011
Tuesday, 12 July 2011
Sustainable Construction: A Study of Drivers, Barriers and Design Practices in Building Projects in Thailand
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Monday, 11 July 2011
Project Organization and Responsibilities Management in Construction Project
The management of any project is also a series of difficult tasks and challenges because of the variation in the implementation process as well as in determining the final output.
On the basis of knowledge on "Organizational management in construction project", combined with the actual work being applied to the formulation of the organizational chart of project management and regulations functions, duties and powers of the divisions, departments on the gas pipeline project of Lot B-Omon (EPC contract-onshore part), Mr. Nguyen Viet Hien made a case to: (1) study the theories and practice of project organization structure and responsibilities; (2) study the existing practice of PVC in project structure and responsibilities; (3) discuss the effective of the structure and responsibilities in terms of communication, coordination, work performance, job satisfaction and productivity; and (4) propose recommendation for improvement.
Conclusions
With the knowledge learned from AIT and through research, the management and administration of construction gas pipeline project Block B-O Mon see the nature and importance of the stage of organization and assignments for various departments, and parts, individual, which is extremely large. It is crucial to the successful implementation and management of projects with high efficiency.
It is also found out that the managers face risk and volatility in process implementation, in managing any project which also set difficult tasks and challenges.
Although, currently the process technology and process for project management advanced models have been deployed and applied by the managers, the fact also showed that even when the detailed plan was map out, and using the method of operations are very professional, but can still the elements and issues adversely affect the success of the project.
Some key issues in the company's project management system are summarized such as follows:
1. Practice of project organization structure and responsibilities: In the organization chart, there are no parts forecasting, evaluation and control risks and remediation projects.
2. The theories of project organization structure and responsibilities: The organization charts applied the horizontal structures, so it’s lack of coordination/communication between the Site office with the Head office and between departments, sections of the Site office.
Below are some solutions for the effective structure and responsibilities in terms of communication, coordination, work performance, job satisfaction and productivity:
1. To set up or hire professionals perform forecasting, evaluation and control risks and remediation projects.
2. Increase manpower to form a coordination group; strengthen the communications.
3. Many non-standardized process: Implementation is based on practical experience, lack of standard documentation procedures, instructions, guides of implementation. Many useful tools and techniques are not applied in the process of project management. Project management officers are not trained and not equipped with modern management knowledge.
4. The establishment of planning and implementation process is not good. There is no specific planning for the management of projects. Work scope, or quality plan for each project work are also unclear. Control activities and implementation project of the project team members almost exclusively based on experience.
5. There are no standards and procedures, no formal system operations to measure and assess the level of success and failure of each stage, processes, projects and the implementation of project team members. So there is no firm foundation to plan for performance improvement of project managers.
6. There was a formal process to evaluate and audit procedures, guidelines and recommendations, implement improvements (in quality management system ISO 9001). However, due to limited knowledge and skills of staff in modern project management, it may not have much performance improvement as expected.
7. No procedures or guidelines for collecting information of subcontractors or suppliers on the project issues, the lessons learned to store in a convenient place for use in analyzing and managing projects in the future. So, there is also no official information about the history and lessons learned knowledge database system. All project documents, after completion of the project, needed to be kept in the library.
8. The specific issues such as lack of leadership skills and professional skills; lack of human resources; the corporate culture has no adequate attention; lack of equipment, instrument with new technology in construction; implement management and operating under the ISO was not good; missing parts management information and communication technology and project management software; lack of coordination between the site office with the Head office and departments, sections of the site office, have no best policies yet and the conditions for employees to work long- term attachment to the company; there are not parts forecasting, evaluation and control risks and remediation projects; and bonus issue may be addressed to encourage.
Recommendations
To manage and operate projects with high economic efficiency of the company should focus on improving a number of areas
1. Need to further strengthen the training of managers of modern construction projects for the company staff. The training includes knowledge and skills in project management for individuals, for organizations, and the experience in the administration and project management. It is needed that the introduction of management systems procedures and guidelines to the construction project management teams by international professional staff. The staffs need training and orientation on the management to further their vision, to appreciate better the importance and effectiveness of the project. Building management systems and common standards and procedures is necessary to guide the project team members to be more effective in managing the project.
2. The company should pay more attention on the process of planning the project to ensure that all work will be started and completed under his control.
3. The company needs to improve the system of formal procedures and guidelines to standardize all project management processes within the company. Guidance on the scope of each process is also needed. This helps to keep the consistency of quality and improve the effectiveness of management processes.
4. The company needs to improve and enhance the effectiveness of ISO9001 assessment and audit procedures used by auditor’s competent professionals, in construction project management, and training of project’s good and creative self-auditor.
5. The company must establish and apply the official standards, tools, guidance on measurement and evaluation of the success, failure of the project aim to gather experiences and lessons learned for the management projects in the future.
6. The company should develop a project management office or a center, where the project management staff can easily access the historical information and learned all the projects lessons, reference tools of modern project management and engineering. And besides, the company should develop procedures and guidelines for collecting, and storing the data. These works will be helpful for the management of future projects especially newcomers.
7. The specific issues such as: Training or hiring new people with sufficient skills to meet the work of construction projects to work in the project; Dealing with partners vulgar, may utilize and enlist the help up to the job of Investors and other stakeholders; Rent Contractors outside the work required to use new technology (HDD); Strengthening human resources and Establishment of ISO and IT management team in charge; Increase manpower to form a group: set up and manage and coordinate the process; Increase salary, Enhance cultural life, recreation... information to employees; Making the reward process, timely laborers on construction sites...
His thesis abstract is copied and posted.
Abstract
We know that with any country the development is also based on the platforms: There are firm infrastructures; there are perfect superstructures. Construction industry in the world in general and Vietnam in particular, in recent years had an integration process and booming. It is increasingly contributing to make the infrastructure more and more sustainable. It will set the stage for the construction and development of the country stronger in the future.
The operation and effective management of construction projects have special meaning for large construction enterprises: its highly profitable enterprise, for the country, it reduces the costs of the project, it saves time to perform construction projects, it ensures the quality, engineering, art, durableness and safety of the works ... Get to know the great significance that, and increasingly for the purpose of improving knowledge of general and personal knowledge of the executive management of construction projects under way to reach economic efficiency and the highest profit; How to implement the most advanced project, the best.
So I found myself out and register for the course of AIT MPM. With the knowledge learned through research and apply the "Project organization and responsibilities in construction project management - A case study of the gas pipeline project block B-Omon", I have prepared this thesis. It partly reflects the process of implementing the construction organization for the project. It is a solid foundation to establish the best prerequisites for the next stage of the project implementation process.
On the basis of knowledge on "Organizational management in construction project", combined with the actual work being applied to the formulation of the organizational chart of project management and regulations functions, duties and powers of the divisions, departments on the gas pipeline project of Lot B-Omon (EPC contract-onshore part), Mr. Nguyen Viet Hien made a case to: (1) study the theories and practice of project organization structure and responsibilities; (2) study the existing practice of PVC in project structure and responsibilities; (3) discuss the effective of the structure and responsibilities in terms of communication, coordination, work performance, job satisfaction and productivity; and (4) propose recommendation for improvement.
Conclusions
With the knowledge learned from AIT and through research, the management and administration of construction gas pipeline project Block B-O Mon see the nature and importance of the stage of organization and assignments for various departments, and parts, individual, which is extremely large. It is crucial to the successful implementation and management of projects with high efficiency.
It is also found out that the managers face risk and volatility in process implementation, in managing any project which also set difficult tasks and challenges.
Although, currently the process technology and process for project management advanced models have been deployed and applied by the managers, the fact also showed that even when the detailed plan was map out, and using the method of operations are very professional, but can still the elements and issues adversely affect the success of the project.
Some key issues in the company's project management system are summarized such as follows:
1. Practice of project organization structure and responsibilities: In the organization chart, there are no parts forecasting, evaluation and control risks and remediation projects.
2. The theories of project organization structure and responsibilities: The organization charts applied the horizontal structures, so it’s lack of coordination/communication between the Site office with the Head office and between departments, sections of the Site office.
Below are some solutions for the effective structure and responsibilities in terms of communication, coordination, work performance, job satisfaction and productivity:
1. To set up or hire professionals perform forecasting, evaluation and control risks and remediation projects.
2. Increase manpower to form a coordination group; strengthen the communications.
3. Many non-standardized process: Implementation is based on practical experience, lack of standard documentation procedures, instructions, guides of implementation. Many useful tools and techniques are not applied in the process of project management. Project management officers are not trained and not equipped with modern management knowledge.
4. The establishment of planning and implementation process is not good. There is no specific planning for the management of projects. Work scope, or quality plan for each project work are also unclear. Control activities and implementation project of the project team members almost exclusively based on experience.
5. There are no standards and procedures, no formal system operations to measure and assess the level of success and failure of each stage, processes, projects and the implementation of project team members. So there is no firm foundation to plan for performance improvement of project managers.
6. There was a formal process to evaluate and audit procedures, guidelines and recommendations, implement improvements (in quality management system ISO 9001). However, due to limited knowledge and skills of staff in modern project management, it may not have much performance improvement as expected.
7. No procedures or guidelines for collecting information of subcontractors or suppliers on the project issues, the lessons learned to store in a convenient place for use in analyzing and managing projects in the future. So, there is also no official information about the history and lessons learned knowledge database system. All project documents, after completion of the project, needed to be kept in the library.
8. The specific issues such as lack of leadership skills and professional skills; lack of human resources; the corporate culture has no adequate attention; lack of equipment, instrument with new technology in construction; implement management and operating under the ISO was not good; missing parts management information and communication technology and project management software; lack of coordination between the site office with the Head office and departments, sections of the site office, have no best policies yet and the conditions for employees to work long- term attachment to the company; there are not parts forecasting, evaluation and control risks and remediation projects; and bonus issue may be addressed to encourage.
Recommendations
To manage and operate projects with high economic efficiency of the company should focus on improving a number of areas
1. Need to further strengthen the training of managers of modern construction projects for the company staff. The training includes knowledge and skills in project management for individuals, for organizations, and the experience in the administration and project management. It is needed that the introduction of management systems procedures and guidelines to the construction project management teams by international professional staff. The staffs need training and orientation on the management to further their vision, to appreciate better the importance and effectiveness of the project. Building management systems and common standards and procedures is necessary to guide the project team members to be more effective in managing the project.
2. The company should pay more attention on the process of planning the project to ensure that all work will be started and completed under his control.
3. The company needs to improve the system of formal procedures and guidelines to standardize all project management processes within the company. Guidance on the scope of each process is also needed. This helps to keep the consistency of quality and improve the effectiveness of management processes.
4. The company needs to improve and enhance the effectiveness of ISO9001 assessment and audit procedures used by auditor’s competent professionals, in construction project management, and training of project’s good and creative self-auditor.
5. The company must establish and apply the official standards, tools, guidance on measurement and evaluation of the success, failure of the project aim to gather experiences and lessons learned for the management projects in the future.
6. The company should develop a project management office or a center, where the project management staff can easily access the historical information and learned all the projects lessons, reference tools of modern project management and engineering. And besides, the company should develop procedures and guidelines for collecting, and storing the data. These works will be helpful for the management of future projects especially newcomers.
7. The specific issues such as: Training or hiring new people with sufficient skills to meet the work of construction projects to work in the project; Dealing with partners vulgar, may utilize and enlist the help up to the job of Investors and other stakeholders; Rent Contractors outside the work required to use new technology (HDD); Strengthening human resources and Establishment of ISO and IT management team in charge; Increase manpower to form a group: set up and manage and coordinate the process; Increase salary, Enhance cultural life, recreation... information to employees; Making the reward process, timely laborers on construction sites...
His thesis abstract is copied and posted.
Abstract
We know that with any country the development is also based on the platforms: There are firm infrastructures; there are perfect superstructures. Construction industry in the world in general and Vietnam in particular, in recent years had an integration process and booming. It is increasingly contributing to make the infrastructure more and more sustainable. It will set the stage for the construction and development of the country stronger in the future.
The operation and effective management of construction projects have special meaning for large construction enterprises: its highly profitable enterprise, for the country, it reduces the costs of the project, it saves time to perform construction projects, it ensures the quality, engineering, art, durableness and safety of the works ... Get to know the great significance that, and increasingly for the purpose of improving knowledge of general and personal knowledge of the executive management of construction projects under way to reach economic efficiency and the highest profit; How to implement the most advanced project, the best.
So I found myself out and register for the course of AIT MPM. With the knowledge learned through research and apply the "Project organization and responsibilities in construction project management - A case study of the gas pipeline project block B-Omon", I have prepared this thesis. It partly reflects the process of implementing the construction organization for the project. It is a solid foundation to establish the best prerequisites for the next stage of the project implementation process.
Thursday, 7 July 2011
Improvement of Organizational Structure for Power Plant Project Management of PetroVietnam
PVN has invested & built the first power plant since 2005 with only one Management Board (MB). The objectives of the MBs change very fast but the organization structure for all MBs is still same from the beginning. Therefore, PVN’s management for power projects has still some outstanding issues which are the weakness in organizational structure for project management.
Mr. Le Anh Thong made a case study which objectives were to: (1) deeply understand the existing organizational structure of PVN power plant project, to analyse the strength and weakness, advantages & disadvantages of the existing system; and (2) propose recommendation for improvement.
Conclusion
The objectives of PetroVietnam Power Plant Projects (PVN’s PPP) are usually changed very fast, but PVN has still kept the type of organizational structure which is “Functional Structure” since 2004. Although this structure has some advantages, but this structure is not suitable with growth of PVN’s PPP which has caused some weakness and disadvantages in its management so far. With four individual Management Boards, they have not achieved perfect result in time. It is very difficult to control the scope, contingency funds, overall project value; and also it is very difficult to monitor or audit the project’s progress, stakeholder’s commitment, results achieved and the leading indicators of failure, and so on.
Recommendation
Therefore, with the study and analyses of this case study, the proposed improvement is given in which the essential issue of this proposed improvement is the recommendation to apply the Matrix Structure for One General Management Board instead of the Functional Structure for Four existing Individual PVN’s project management organizational board. Consequently, the advantages of the Proposed PVN’s project management organization will be almost same the advantages from the Matrix Structure.
The most important advantage of the Proposed Improvement is efficient use of resources of the whole Proposed General Management Board where specialized individuals can be shared and transferred from one Branch to another or in any PVN’s projects. Therefore, the project management cost is minimized; the total quantity management staff shall be decreased, but the professional grade is easily increased. These are the most useful & efficiency of this proposal.
With the detailed analyses and proposal, the strength & advantages of the proposed improvement are very clear and prevailed to compare with its disadvantages. Besides, there has the proposed solution to solve for these disadvantages. Therefore, it should be considered as preliminary study to apply in the PVN’s thermal power project management with the additional study needed.
However, the proposed improvements will not be enough to improve everything for PVN’s project management. It is necessary with best effort to apply some other solutions in order to gain actual significant improvement and overcome other outstanding weakness of PVN’s project management.
His thesis abstract is copied and pasted.
Abstract
Electric Power is an essential energy for people’s daily life and one of the major factors in labor productivity growth. It helps to develop the economy of the countries in the world, especially for the developing countries like Vietnam. Consequently, it’s very important to know how to manage power plant projects effectively and successfully.
PetroVietnam (PVN) who is the biggest Economic Group of Vietnamese State-Owned Groups has been assigned by Government to invest & build some power plants. So it is necessary for PVN to improve their power plant project management. With the scope of my report, I will mention about the improvement for organizational structure of PVN’s thermal power plant project management and my Management Board.
The Objecctive of my Report is the Proposal to improve ORGANIZATIONAL STRUCTURE of PVN’s PPP to manage PETROVIETNAM POWER PLANT PROJECTS (PVN’s PPP), and solve their weakness/disadvantages & gain better effectiveness and success.
The reason to find the above Ojective are the objectives of PVN’s PPP are usually changed very fast, but PVN still has kept the beginning type of organizational structure from 2004 up to now, and some weakness/disadvantages were found in PVN’s PPP management so far.
Therefore, the case chosen for my report which is the organizational structure of PVN’s PPP.
By the analyses based on theory of organizational structure for project management colland my experience during a long time work in PVN’s PPP, my recommendation of the Proposal in my Report is the application of the Matrix Structure for One General Management Board instead of the Functional Structure used by many PVN’s individual Management Boards that expected to gain the above Objective to PVN’s PPP management.
Mr. Le Anh Thong made a case study which objectives were to: (1) deeply understand the existing organizational structure of PVN power plant project, to analyse the strength and weakness, advantages & disadvantages of the existing system; and (2) propose recommendation for improvement.
Conclusion
The objectives of PetroVietnam Power Plant Projects (PVN’s PPP) are usually changed very fast, but PVN has still kept the type of organizational structure which is “Functional Structure” since 2004. Although this structure has some advantages, but this structure is not suitable with growth of PVN’s PPP which has caused some weakness and disadvantages in its management so far. With four individual Management Boards, they have not achieved perfect result in time. It is very difficult to control the scope, contingency funds, overall project value; and also it is very difficult to monitor or audit the project’s progress, stakeholder’s commitment, results achieved and the leading indicators of failure, and so on.
Recommendation
Therefore, with the study and analyses of this case study, the proposed improvement is given in which the essential issue of this proposed improvement is the recommendation to apply the Matrix Structure for One General Management Board instead of the Functional Structure for Four existing Individual PVN’s project management organizational board. Consequently, the advantages of the Proposed PVN’s project management organization will be almost same the advantages from the Matrix Structure.
The most important advantage of the Proposed Improvement is efficient use of resources of the whole Proposed General Management Board where specialized individuals can be shared and transferred from one Branch to another or in any PVN’s projects. Therefore, the project management cost is minimized; the total quantity management staff shall be decreased, but the professional grade is easily increased. These are the most useful & efficiency of this proposal.
With the detailed analyses and proposal, the strength & advantages of the proposed improvement are very clear and prevailed to compare with its disadvantages. Besides, there has the proposed solution to solve for these disadvantages. Therefore, it should be considered as preliminary study to apply in the PVN’s thermal power project management with the additional study needed.
However, the proposed improvements will not be enough to improve everything for PVN’s project management. It is necessary with best effort to apply some other solutions in order to gain actual significant improvement and overcome other outstanding weakness of PVN’s project management.
His thesis abstract is copied and pasted.
Abstract
Electric Power is an essential energy for people’s daily life and one of the major factors in labor productivity growth. It helps to develop the economy of the countries in the world, especially for the developing countries like Vietnam. Consequently, it’s very important to know how to manage power plant projects effectively and successfully.
PetroVietnam (PVN) who is the biggest Economic Group of Vietnamese State-Owned Groups has been assigned by Government to invest & build some power plants. So it is necessary for PVN to improve their power plant project management. With the scope of my report, I will mention about the improvement for organizational structure of PVN’s thermal power plant project management and my Management Board.
The Objecctive of my Report is the Proposal to improve ORGANIZATIONAL STRUCTURE of PVN’s PPP to manage PETROVIETNAM POWER PLANT PROJECTS (PVN’s PPP), and solve their weakness/disadvantages & gain better effectiveness and success.
The reason to find the above Ojective are the objectives of PVN’s PPP are usually changed very fast, but PVN still has kept the beginning type of organizational structure from 2004 up to now, and some weakness/disadvantages were found in PVN’s PPP management so far.
Therefore, the case chosen for my report which is the organizational structure of PVN’s PPP.
By the analyses based on theory of organizational structure for project management colland my experience during a long time work in PVN’s PPP, my recommendation of the Proposal in my Report is the application of the Matrix Structure for One General Management Board instead of the Functional Structure used by many PVN’s individual Management Boards that expected to gain the above Objective to PVN’s PPP management.
Tuesday, 5 July 2011
Risk Management on New Residential Development Project
In recent years, many real estate companies in Vietnam have been establishing and many New Residential Zone Projects were established. In Binh Duong City many of new residential zone Infrastructure development projects have been delayed and these projects suffer cost over run due to many reasons such as land compensation issues, lack of social agreement, insufficient capital for buying the land, late permitted from authority especially in master plan and architectural city design, poor in design and construction, water treat and environment issue and so on. In those projects managers could not deal with the risks and uncertainties which they met in project implementation process.
Mr. Bui Hai Nam made a case on Vo Minh Duc Project, Binh Duong Province to find risk management means that are associated with the project network structure. The objectives of his study were to: (1) find out risk factors in construction and analyzing the relationship of these factors and thereby enhance understanding of construction risks ; (2) propose strategies to effectively eliminate or mitigate major risks, and (3) propose solutions that identify and prevent risks in similar projects
Conclusions
In general, risks from various sources in construction is unavoidable, but it can be minimized. There are several ways to handle risks such as the risk of their transfer to other subjects, reducing the negative impact of the risks, and accepting some or all of the consequences of a specific risk.
The determination of activities and investments, analysis and evaluation, with measures to control and reduce the impact of risks is urgently needed to ensure the feasibility and effectiveness of the project. Risk management should be evaluated and implemented from the first steps of the project and continue in all project implementation cycle. The process involved a construction project in general, as well as developing infrastructure for new residential projects, must be carefully prepared from the initial stages until the end, handing over the project for investors. Moreover, there are several organizations and partners participated in a construction project, especially in new urban projects in infrastructure development. The organization is concerned with land owners, customers, designers, contractors, subcontractors, consultants, suppliers, materials, electricity, water supply, customers, agencies and public facilities, and government. Thus, the establishment of a relationship, and this all opinion really are necessary.
In the project of new urban development, there are many risks affecting the progress of the project implementation, project quality, project financing and timing of delivery and government customers. To cope with risk, it is necessary to establish a strategy that can be effective and efficient in response. Risks and uncertainties from various sources can not be eliminated, but can be reduced, transferred or retained.
There are several ways to handle risks such as transfer risk to another party, avoiding risk, reducing the negative impact of the risks, and accepting some or all of the consequences of a particular risk.
In large projects, limiting the risk is extremely important. Effective implementation of the limited risk will save a lot of time and money to the owner and main contractor for the project.
To deal with risks, it is necessary to establish an effective strategic and effective response. Thus, this research project attempted to identify risk and implement a risk management study for the new urban projects.
Identify major risks
- There are many consulting organization specialized in designing technical infrastructure to participate in the design.
- There are many different contractors from specialized technology, building on the same site on the surface and underground at the same time.
- Running time the project lasts.
- After building the technical infrastructure is completed, the developer must transfer to the agency offices, government management.
- Based on the level of impact and likelihood, we can draw the main risk factors affecting the project schedule. The results are summarized in Table below.
His thesis abstract is copied and pasted.
Abstract
A lot of the risky management researches are targeted to the construction projects. Number of studies are stressing the importance and superiority of the co-operation and less formal risk management means, but concrete methods are not introduced. In addition, the use of already developed risk management methods is modest at construction sites.
Projects Urban VO MINH DUC of ThanhNguyen Real Estate Investment & Constructions Corporation has been building between 2008 to 2012. But so far, the project has achieved only about 20% workload on its completion. The progress delay has been caused by so many factors and different causes. Risks appear frequently causes damage to the efficiency of investment projects. The question for us to research, resolve and identify and evaluate the impact of risks, control them to ensure effective pre-defined investment project.
The major risk factors in this project:
- Political environment, nature, infrastructure;
- Economic environment, currency markets;
- Technical factors within the project;
- Non-technical factors within the project;
- Implementation of construction factor.
Research was conducted in 10 / 2010, when five full interview is done in construction projects urban Vo Minh Duc. Interviews were targeted to the representatives of the designers, builders and customers. Apart from the documents obtained from the interviews, subjects also use data sources of other projects and the investors are from The Highlands Company
Theory and practice in managing risk in projects Vo Minh Duc urban poor. In this project, the limitations of risk management is lack of organization, lack of required conditions such as time, resources and cost, managers are not familiar with risky management. In addition, policy factors from the State is also cause to delay for this project.
Mr. Bui Hai Nam made a case on Vo Minh Duc Project, Binh Duong Province to find risk management means that are associated with the project network structure. The objectives of his study were to: (1) find out risk factors in construction and analyzing the relationship of these factors and thereby enhance understanding of construction risks ; (2) propose strategies to effectively eliminate or mitigate major risks, and (3) propose solutions that identify and prevent risks in similar projects
Conclusions
In general, risks from various sources in construction is unavoidable, but it can be minimized. There are several ways to handle risks such as the risk of their transfer to other subjects, reducing the negative impact of the risks, and accepting some or all of the consequences of a specific risk.
The determination of activities and investments, analysis and evaluation, with measures to control and reduce the impact of risks is urgently needed to ensure the feasibility and effectiveness of the project. Risk management should be evaluated and implemented from the first steps of the project and continue in all project implementation cycle. The process involved a construction project in general, as well as developing infrastructure for new residential projects, must be carefully prepared from the initial stages until the end, handing over the project for investors. Moreover, there are several organizations and partners participated in a construction project, especially in new urban projects in infrastructure development. The organization is concerned with land owners, customers, designers, contractors, subcontractors, consultants, suppliers, materials, electricity, water supply, customers, agencies and public facilities, and government. Thus, the establishment of a relationship, and this all opinion really are necessary.
In the project of new urban development, there are many risks affecting the progress of the project implementation, project quality, project financing and timing of delivery and government customers. To cope with risk, it is necessary to establish a strategy that can be effective and efficient in response. Risks and uncertainties from various sources can not be eliminated, but can be reduced, transferred or retained.
There are several ways to handle risks such as transfer risk to another party, avoiding risk, reducing the negative impact of the risks, and accepting some or all of the consequences of a particular risk.
In large projects, limiting the risk is extremely important. Effective implementation of the limited risk will save a lot of time and money to the owner and main contractor for the project.
To deal with risks, it is necessary to establish an effective strategic and effective response. Thus, this research project attempted to identify risk and implement a risk management study for the new urban projects.
Identify major risks
- There are many consulting organization specialized in designing technical infrastructure to participate in the design.
- There are many different contractors from specialized technology, building on the same site on the surface and underground at the same time.
- Running time the project lasts.
- After building the technical infrastructure is completed, the developer must transfer to the agency offices, government management.
- Based on the level of impact and likelihood, we can draw the main risk factors affecting the project schedule. The results are summarized in Table below.
His thesis abstract is copied and pasted.Abstract
A lot of the risky management researches are targeted to the construction projects. Number of studies are stressing the importance and superiority of the co-operation and less formal risk management means, but concrete methods are not introduced. In addition, the use of already developed risk management methods is modest at construction sites.
Projects Urban VO MINH DUC of ThanhNguyen Real Estate Investment & Constructions Corporation has been building between 2008 to 2012. But so far, the project has achieved only about 20% workload on its completion. The progress delay has been caused by so many factors and different causes. Risks appear frequently causes damage to the efficiency of investment projects. The question for us to research, resolve and identify and evaluate the impact of risks, control them to ensure effective pre-defined investment project.
The major risk factors in this project:
- Political environment, nature, infrastructure;
- Economic environment, currency markets;
- Technical factors within the project;
- Non-technical factors within the project;
- Implementation of construction factor.
Research was conducted in 10 / 2010, when five full interview is done in construction projects urban Vo Minh Duc. Interviews were targeted to the representatives of the designers, builders and customers. Apart from the documents obtained from the interviews, subjects also use data sources of other projects and the investors are from The Highlands Company
Theory and practice in managing risk in projects Vo Minh Duc urban poor. In this project, the limitations of risk management is lack of organization, lack of required conditions such as time, resources and cost, managers are not familiar with risky management. In addition, policy factors from the State is also cause to delay for this project.
Friday, 1 July 2011
CEIM open applications for August 2011 intake
We open the application for August 2011 intake for AIT Thailand campus. Limited numbers of scholarships are available for talented applicants. Some of the scholarships are Royal Thai Government scholarship, The King of Thailand scholarship, The Queen of Thailand Scholarship, Asian Development Bank scholarship etc.
What is CEIM? CEIM master and doctoral programs aim to prepare engineers to manage large construction projects starting from planning, design, tendering, construction and commissioning.
What will you learn? you will learn important knowledge and skills in project management in construction such as project planning/scheduling, project cost and financial management, organizational management, project contract, project risk, project quality management, project performance management and project financing.
Where will you work after graduation? You can work in strategic industries that highly need project management such as:
- Contractors (highway, building, oil/gas and energy)
- Consultants
- Property and real estate developers
- Bank and Invesment companies
- Public Private Partnership Consortium
- Financial and Banking institutions that lend fundings for construction projects
- hotel and apartment development
- oil and gas construction
What else will you learn during your study with us in AIT?
AIT is a very multicultural insitute. Our students and faculty members come from different parts of the world such as Thailand, Vietnam, Bangladesh, India, Taiwan, Pakistan, Indonesia, China, Korea, European Union. Aside from studying knowledge, you will also learn different cultures and different ways of thinking from your friends; and develop your global international networking.
Please contact CEIM Secretary (Ms. Woranuch, phone 025246060 or email woranuch@ait.ac.th) for further information.
Visit CEIM: http://www.set.ait.ac.th/ceim
How to apply? http://www.ait.ac.th/AIT/admissions/admissions
Regards
Dr. BHW Hadikusumo
Associate Professor
CEIM Coordinator
MPM Coordinator
Contractor Prequalification Criteria, Tendering Criteria, and Tendering Procedure in Cambodia Building and Housing Construction Projects
The construction industry can be considered as one of the largest industries that can contribute significant fraction of national product in Cambodia. However, people in this business face many problems such as prequalification, tendering and selecting a contractor.
Mr. Puoy Puthitha made a research to give the suitable selection criteria whether it will be effective in building construction projects in Cambodia. The process of contractor selection can be achieved, unless the prequalification, tendering criteria and tendering process will be linked to project performance in term of time, cost, quality, and customer satisfaction. It means that different project types and objectives should have different proportion on each selection criteria.
The purpose of his research is to define contractor prequalification criteria, tendering criteria, and tendering procedure in Cambodia building and housing construction projects and then how the contractor prequalification, tendering criteria and tendering procedure affect the project performance. The specific objectives of his research were to: (1) study effective contractor prequalification criteria; (2) study effective contractor tendering criteria; (3) study effective contractor tendering procedure; and (4) how contractor prequalification criteria, tendering criteria, and tendering procedure affect project performance.
Conclusion
There are four main findings in this study such as follows:
1. The effectiveness of contractor prequalification criteria in building construction projects.
2. The effectiveness of contractor tendering criteria in building construction projects.
3. The effectiveness of contractor tendering procedure in building construction projects.
4. Contractor prequalification criteria, tendering criteria, and tendering procedure have different affected on project performance.
In order to get the effective or significant factors and sub-factors from contractor prequalification criteria, tendering criteria and tendering procedure, the results were combined the ranking by mean with the correlation analysis results.
Contractor Prequalification Criteria
1. Financial Consideration: financial stability, financial status, Bank arrangement and bonding capacity.
2. Past Performance: failure to have completed projects, schedule overruns, cost overruns, past failures, owner/contractor relationship
3. Technical Ability: technical expertise, possessed plant and equipment, experience
4. Management Capability: past performance and quality, project management organization, experience of technical personnel
Contractor Tendering Criteria
1. Price: fixed capital cost, variable tender costs during the contract period, maintenance costs
2. Technical Skills: design quality, technical expertise
3. Methodology: program of works, division of works into sub-contracts, key performance indicators, reporting and recoding systems
4. Relevant Experience: project cost
5. Past Performance: quality standards, target performance level; tender price, variations and final cost.
Contractor Tendering Procedure
1. Tender Evaluation: tender quality (technical evaluation); tender price (financial evaluation); determine lowest bid; responsiveness, and responsibility
2. Tender Submission: sealing and marking of the tenderers, tender forms and tender specification document; tender terms and condition for bid preparation; post offer negotiation
3. Prequalification and Registration: prequalification requirement
The following description in details about the conclusion of this research study will support the conformation of each objective. All the results are computerized by SPSS software in order to get the data analysis results.
Project Performance in Building Construction Projects
Most of consultant companies in Cambodia had carefully focused on the process of selecting the qualified contractors in order to get the project successfully. In addition, the project owners were spent enough time in selecting the qualified contractors, particularly running projects and the quality control. As a result, the projects were finished within the budget, the quality of construction projects was good, and the contractors could be able to satisfy to the customer’s requirements.
The Effectiveness of Contractor Prequalification Criteria
Financial consideration found to be the main key factor for contractor prequalification criteria in Cambodia building and housing construction project, this result is related each other, which mean in order to be successful in performing the effective contractor prequalification process, the project owners have an important role in making the right decision for selecting the main contractors for construction works based upon the financial information of the contractors.
The Effectiveness of Contractor Tendering Criteria
The Price found to be the important factor for contractor tendering criteria in Cambodia building and housing construction project. Most of the tenderers still rely on tender price which has been proven its competency to acquire the contracts. The other contractor tendering criteria also are quite significant stimulated in contractor selection?
The Tender evaluation found to be the important selection process for contractor tendering procedure in Cambodia building and housing construction project.
This process is to financially and technically evaluate the tenderers’ performance in order to acquire the projects. The other contractor tendering procedures also are quite significant stimulated in performing the construction tendering practice.
The Correlation between Contractor Prequalification Criteria and Project Performance
The result shows that past performance, technical ability, and management capability are perceived to be the dominant contractor prequalification criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, financial consideration was perceived to affect only time, quality, and customer’s satisfaction. But Contractor’s organization and Past experience did not show any correlation with project performance. It can be concluded that most of the project owners focused on these two factors as somewhat important on how to acquire the qualified contractors by regarding to the perceived impact of the other decision factors on contractor prequalification decision making; the projects were still cost overrun and overtime. That’s why the customer did not satisfy in their performance. This is due to external factors such as lack of accurate data from the contractors, imprecise information, subjective information, and subjective judgment. Furthermore, they were also suffered from the rising of construction costs because of the materials fluctuation, lack of updating their technical performance, and lack of government regulation. Particularly, the projects were stopped due to heavy rain and flooding. Therefore, the external factors need a lot of information for assessing their impacts in order to achieve the project successfully in construction industry,
The Correlation between Contractor Tendering Criteria and Project
Performance
The result indicates that Price and Methodology are perceived to be the dominant contractor tendering criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, Technical skills, Relevant experience, and Past performance were perceived to affect only cost, time, and quality. But Resources and Management skills and systems did not show any correlation with project performance.
However Resources, Management skills and systems can be considered as somewhat important. The contractor tendering criteria had the moderate mean for resources, management skills and systems, the projects were not success. This is because the project owners did not much focused on the information of resources, and management skills and systems. Even these two criteria were somewhat important in selecting the qualified tenderers, the projects were still cost overruns, over time, unqualified quality, and the client didn’t satisfy. It might be affected by other external factors which were concerned with project performance.
The Correlation between Contractor Tendering Procedure and Project
Performance
The result indicates that Tender evaluation and Tender submission are perceived to be the dominant contractor tendering procedure affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, prequalification and registration were perceived to affect only cost, time, and quality. But Contract award/execution, Tender opening, and Invitation to tender did not show any correlation with project performance. However, the Contract award/execution, Invitation to tender, and Tender opening can be concluded as somewhat important. Even the project owners had depicted clearly their requirements in construction contracts during their contract award/execution, invitation to tender, and tender opening; the tenderers were not successful yet to receive the owner’s requirement. Furthermore, the tenderers had been considered as some part of important in these stages, but the project owners and consultants were still not accepted their performance yet as well. The reason is that it might be affected by other external factors which were concerned with project performance.
His thesis abstract is copied and posted.
Abstract
The construction industry today is a highly competitive industry with an enormous amount of risk, particularly many conflicts, problems, adversity, and uncertainty. The construction projects are usually confronted with many conflicts, problems, and uncertainty due to a result of failure in selecting a competent contractor. To perform the project success, the owner’s team has an important role to figure out these many conflicts and problems such as schedule delays, cost overrun, low productivity, and contract disputes by being able to evaluate the contractor’s performance in the proper way. This study is based on quantitative research through questionnaires and carries on to first identify the contractor performance criteria in terms of prequalification criteria, tendering criteria, and tendering procedure and to help the project owners to assess the tenderer’s performance. Second, this study aims at describing how the contractor prequalification criteria, tendering criteria, and tendering procedure affect project performance.
This study was conducted in Cambodia building consultant and construction companies to study effective contractor prequalification criteria, tendering criteria, and tendering procedure for being able to select the competent contractors. In each case, the criteria have been ranged the scores in order to facility the project owners are able to evaluate with flexibility. The result found that first financial consideration, past performance, and technical ability in contractor prequalification criteria; second price, technical skills, and methodology in contractor tendering criteria; third tender evaluation, tender submission, and contract award/execution in contractor tendering procedure respectively are important and should be applied when performing contractor prequalification and tendering systems in practice. They all are the main concern in order to achieve the successful projects.
Based on the correlation analysis result, it shows that different contractor prequalification criteria, tendering criteria, and tendering procedure are significantly positively and differently affected on project performance. That means different contractor prequalification criteria, tendering criteria, and tendering procedure have different affects on project performance. Furthermore, the results from the correlation analysis show that Past performance, Technical ability, Management capability, Price, Methodology, Tender evaluation, and Tender submission are perceived to be the dominant contractor prequalification criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, Financial consideration were perceived to affect only time, quality, and customer’s satisfaction. At the same analysis, Technical skills, Relevant experience, Past performance in construction tendering, and Prequalification and Registration were perceived to affect only cost, time, and quality. But Contractor’s organization, Past experience, Resources, Management skills and systems, Contract award/execution, Tender opening, and Invitation to Tender did not show any correlation with project performance. Practically, the two case studies above showed the correlated study between quantitative and qualitative study. The result indicated that the factors among the construction tendering practices above were tended to the project successfully.
Mr. Puoy Puthitha made a research to give the suitable selection criteria whether it will be effective in building construction projects in Cambodia. The process of contractor selection can be achieved, unless the prequalification, tendering criteria and tendering process will be linked to project performance in term of time, cost, quality, and customer satisfaction. It means that different project types and objectives should have different proportion on each selection criteria.
The purpose of his research is to define contractor prequalification criteria, tendering criteria, and tendering procedure in Cambodia building and housing construction projects and then how the contractor prequalification, tendering criteria and tendering procedure affect the project performance. The specific objectives of his research were to: (1) study effective contractor prequalification criteria; (2) study effective contractor tendering criteria; (3) study effective contractor tendering procedure; and (4) how contractor prequalification criteria, tendering criteria, and tendering procedure affect project performance.
Conclusion
There are four main findings in this study such as follows:
1. The effectiveness of contractor prequalification criteria in building construction projects.
2. The effectiveness of contractor tendering criteria in building construction projects.
3. The effectiveness of contractor tendering procedure in building construction projects.
4. Contractor prequalification criteria, tendering criteria, and tendering procedure have different affected on project performance.
In order to get the effective or significant factors and sub-factors from contractor prequalification criteria, tendering criteria and tendering procedure, the results were combined the ranking by mean with the correlation analysis results.
Contractor Prequalification Criteria
1. Financial Consideration: financial stability, financial status, Bank arrangement and bonding capacity.
2. Past Performance: failure to have completed projects, schedule overruns, cost overruns, past failures, owner/contractor relationship
3. Technical Ability: technical expertise, possessed plant and equipment, experience
4. Management Capability: past performance and quality, project management organization, experience of technical personnel
Contractor Tendering Criteria
1. Price: fixed capital cost, variable tender costs during the contract period, maintenance costs
2. Technical Skills: design quality, technical expertise
3. Methodology: program of works, division of works into sub-contracts, key performance indicators, reporting and recoding systems
4. Relevant Experience: project cost
5. Past Performance: quality standards, target performance level; tender price, variations and final cost.
Contractor Tendering Procedure
1. Tender Evaluation: tender quality (technical evaluation); tender price (financial evaluation); determine lowest bid; responsiveness, and responsibility
2. Tender Submission: sealing and marking of the tenderers, tender forms and tender specification document; tender terms and condition for bid preparation; post offer negotiation
3. Prequalification and Registration: prequalification requirement
The following description in details about the conclusion of this research study will support the conformation of each objective. All the results are computerized by SPSS software in order to get the data analysis results.
Project Performance in Building Construction Projects
Most of consultant companies in Cambodia had carefully focused on the process of selecting the qualified contractors in order to get the project successfully. In addition, the project owners were spent enough time in selecting the qualified contractors, particularly running projects and the quality control. As a result, the projects were finished within the budget, the quality of construction projects was good, and the contractors could be able to satisfy to the customer’s requirements.
The Effectiveness of Contractor Prequalification Criteria
Financial consideration found to be the main key factor for contractor prequalification criteria in Cambodia building and housing construction project, this result is related each other, which mean in order to be successful in performing the effective contractor prequalification process, the project owners have an important role in making the right decision for selecting the main contractors for construction works based upon the financial information of the contractors.
The Effectiveness of Contractor Tendering Criteria
The Price found to be the important factor for contractor tendering criteria in Cambodia building and housing construction project. Most of the tenderers still rely on tender price which has been proven its competency to acquire the contracts. The other contractor tendering criteria also are quite significant stimulated in contractor selection?
The Tender evaluation found to be the important selection process for contractor tendering procedure in Cambodia building and housing construction project.
This process is to financially and technically evaluate the tenderers’ performance in order to acquire the projects. The other contractor tendering procedures also are quite significant stimulated in performing the construction tendering practice.
The Correlation between Contractor Prequalification Criteria and Project Performance
The result shows that past performance, technical ability, and management capability are perceived to be the dominant contractor prequalification criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, financial consideration was perceived to affect only time, quality, and customer’s satisfaction. But Contractor’s organization and Past experience did not show any correlation with project performance. It can be concluded that most of the project owners focused on these two factors as somewhat important on how to acquire the qualified contractors by regarding to the perceived impact of the other decision factors on contractor prequalification decision making; the projects were still cost overrun and overtime. That’s why the customer did not satisfy in their performance. This is due to external factors such as lack of accurate data from the contractors, imprecise information, subjective information, and subjective judgment. Furthermore, they were also suffered from the rising of construction costs because of the materials fluctuation, lack of updating their technical performance, and lack of government regulation. Particularly, the projects were stopped due to heavy rain and flooding. Therefore, the external factors need a lot of information for assessing their impacts in order to achieve the project successfully in construction industry,
The Correlation between Contractor Tendering Criteria and Project
Performance
The result indicates that Price and Methodology are perceived to be the dominant contractor tendering criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, Technical skills, Relevant experience, and Past performance were perceived to affect only cost, time, and quality. But Resources and Management skills and systems did not show any correlation with project performance.
However Resources, Management skills and systems can be considered as somewhat important. The contractor tendering criteria had the moderate mean for resources, management skills and systems, the projects were not success. This is because the project owners did not much focused on the information of resources, and management skills and systems. Even these two criteria were somewhat important in selecting the qualified tenderers, the projects were still cost overruns, over time, unqualified quality, and the client didn’t satisfy. It might be affected by other external factors which were concerned with project performance.
The Correlation between Contractor Tendering Procedure and Project
Performance
The result indicates that Tender evaluation and Tender submission are perceived to be the dominant contractor tendering procedure affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, prequalification and registration were perceived to affect only cost, time, and quality. But Contract award/execution, Tender opening, and Invitation to tender did not show any correlation with project performance. However, the Contract award/execution, Invitation to tender, and Tender opening can be concluded as somewhat important. Even the project owners had depicted clearly their requirements in construction contracts during their contract award/execution, invitation to tender, and tender opening; the tenderers were not successful yet to receive the owner’s requirement. Furthermore, the tenderers had been considered as some part of important in these stages, but the project owners and consultants were still not accepted their performance yet as well. The reason is that it might be affected by other external factors which were concerned with project performance.
His thesis abstract is copied and posted.
Abstract
The construction industry today is a highly competitive industry with an enormous amount of risk, particularly many conflicts, problems, adversity, and uncertainty. The construction projects are usually confronted with many conflicts, problems, and uncertainty due to a result of failure in selecting a competent contractor. To perform the project success, the owner’s team has an important role to figure out these many conflicts and problems such as schedule delays, cost overrun, low productivity, and contract disputes by being able to evaluate the contractor’s performance in the proper way. This study is based on quantitative research through questionnaires and carries on to first identify the contractor performance criteria in terms of prequalification criteria, tendering criteria, and tendering procedure and to help the project owners to assess the tenderer’s performance. Second, this study aims at describing how the contractor prequalification criteria, tendering criteria, and tendering procedure affect project performance.
This study was conducted in Cambodia building consultant and construction companies to study effective contractor prequalification criteria, tendering criteria, and tendering procedure for being able to select the competent contractors. In each case, the criteria have been ranged the scores in order to facility the project owners are able to evaluate with flexibility. The result found that first financial consideration, past performance, and technical ability in contractor prequalification criteria; second price, technical skills, and methodology in contractor tendering criteria; third tender evaluation, tender submission, and contract award/execution in contractor tendering procedure respectively are important and should be applied when performing contractor prequalification and tendering systems in practice. They all are the main concern in order to achieve the successful projects.
Based on the correlation analysis result, it shows that different contractor prequalification criteria, tendering criteria, and tendering procedure are significantly positively and differently affected on project performance. That means different contractor prequalification criteria, tendering criteria, and tendering procedure have different affects on project performance. Furthermore, the results from the correlation analysis show that Past performance, Technical ability, Management capability, Price, Methodology, Tender evaluation, and Tender submission are perceived to be the dominant contractor prequalification criteria affecting all project performance in terms of cost, time, quality, and customer’s satisfaction. While, Financial consideration were perceived to affect only time, quality, and customer’s satisfaction. At the same analysis, Technical skills, Relevant experience, Past performance in construction tendering, and Prequalification and Registration were perceived to affect only cost, time, and quality. But Contractor’s organization, Past experience, Resources, Management skills and systems, Contract award/execution, Tender opening, and Invitation to Tender did not show any correlation with project performance. Practically, the two case studies above showed the correlated study between quantitative and qualitative study. The result indicated that the factors among the construction tendering practices above were tended to the project successfully.
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