The transportation of natural gas from fields (offshore) to the distribution station onshore is normally conducted by using pipeline and many types of equipment at each station for gas processing before transferring to end users. In distribution station, Contractor assumes quite complex constructions of pipelines. However, most of Vietnamese Contractors are inexperienced and have no enough resources to perform an entire big gas pipeline project, therefore commissioning activities containing many problems that may cause impact on quality, schedule, cooperation and cost are usually sub–contracted.
Mr. Le Quang Son made a case on Block B - O Mon Gas Pipeline Project which focused on offering co-operation, communication methodology, especially for commissioning phase of entire Natural Gas Pipeline Project and also interface between field owner and main end user. The objectives of his study were to: (1) discuss the existing EPC commissioning phase; (2) identify risk factors in commissioning process; and (3) conduct EPC Commissioning strategy Process for Block B- O Mon Pipeline Project
Conclusion
Generally, in sequence, the project performs from the start of the project until the project is put into operation and handover is preceded. The commissioning process is the last and important stage. This stage will show how well the construction phase was done. How the project quality is met with project technical requirement. Commissioning Process for Gas Pipeline Project is not the exception.
The result of case study showed that “the commissioning process should be considered from engineering stage, cost, plan for resource …etc. and contract between Client/Contractor will concern the above ones”. The risk factor may happen if it is properly identified.
Application to general Gas pipeline project and real Block B – O Mon Gas pipeline project, also, this process stipulates the minimum requirements for the flooding, cleaning, gauging, hydrostatic testing, dewatering, drying and commissioning of station control system and pipeline (offshore/onshore). To make sure that the pipeline has been installed successful. Many factors will be affected to commissioning implementation such as: safety requirement for sea conditions along the pipeline routes to be taken into consideration, there is a long distance from pipeline terminal to the gas-field so, coordination is very difficult between contractor/sub-contractor and vendor/supplier. The mobilization/demobilization of resourses is vast amount. In addition, height safety requirement for petroleum project, the project has negative impact on the environmental of bulky areas along pipeline. Hence, the strict coordination procedure/contact point with local authorities is very important during commissioning implementation.
However, commissioning activities are not easy to control due to the specification commissioning strategy for pipelines project.
Recommendation
The report shows the status of existing gas pipelines in Vietnam and Block B- O Mon pipeline project which is under development, the advantage/disadvantage of EPC contract in general and how to apply in Block B- O Mon pipeline project. The commissioning is a process that should be considered as contraction phase if the project is targeted to run efficiently. Based on the general project commissioning process, the report concerning the real status of project and propose the commissioning project strategy for Bloc B- O Mon pipeline project as well.
The recommendations for management of commissioning process are as follows:
o It is important to have a good plan not only for commissioning work but also for the whole construction phase which reduce the too many interfaces. In this case, the Client signed a contract to hire telecommunication service with Vietnam Telecom International (VTI) who will take interface between offshore topside and onshore control system and license of telecom equipment also.
o The cost for commissioning phase will be concerned during engineering cost estimating stage.
o The detail plan mobilization/demobilization necessary equipment for work must be arranged probably. Review the quality document and certificates completed with conformance, inspection of materials and equipments are also necessary.
o It is essential to have detailed internal/external cooperation procedure of commissioning requirement. The organization chart/contact point with internal and external must also clear.
His thesis abstract is copied and posted.
Abstract
Oil and Gas projects have been continuously building to get the oil/gas from offshore fields to shore for energy industrial. The transportation of gas from fields (offshore) to the shore is normally by using the pipeline. The Gas Pipelines constructions are quite difficult perform so the commissioning activities for gas pipeline project are difficult more than, that cause of low quality, delay and over cost of project. In some case, the risk occurrence leads to delay the whole project complex. The negative impacts to project (cost and schedule) at CLIENT and CONTRACTORS, or even serious disputes between the involved parties could be raised if no precautions are undertaken.
Commissioning phase is an important part of the decision-making cooperation procedure of all partners who will involve responsible to project. Quality of project don’t met quality requirement of premise target set up and uncertainty can potentially have damaging consequences for some construction projects. Risk can affect productivity, performance, quality, and the budget of a project. Risk cannot be eliminated, but it can be minimized, transferred or retained (Burchett, 1999).
In this report, a EPC commissioning strategy phase of gas pipeline project is presenting.
Friday, 5 August 2011
Thursday, 4 August 2011
Owner’s Contract Management Strategy for Housing Project
In recent years, lots of housing projects have been establishing in Can Tho area. However, the majority of project is delayed and has poor quality due to major reasons such as land acquisition, contractor capacity, inflations etc. Morever, the current capital for land acquisition is higher than previous estimates because of the compensation policy and resettlement supporting policy changed.
Because of the characteristics of the construction industry, project management and contract management in Vietnam still face many difficulties because there are no legal regulations which are strict and sync. In addition, the engaged parties who have not being trained entirely are lack on the basic knowledge about the importance of the management and implementation of contracts in construction when they participate in construction activities.
The contract is very important. It is documentation not only for payment, but also for solving problems. Thus, in order to completely implement the project, all parties should understand the full knowledge and conditions of the contract. Transparency becomes essential requirement and third-party system need to be set up (including investors, contractors and consulting engineers) and all works are done based on contract. Management structure in order to publicize the project implementation process must be established, which clearly stated.
Mr. Le Minh Nhut made a case study on the residential project in Can Tho City which objectives were to: (1) study existing contract strategy in terms of contract packages, contract conditions, risks and contract management; (2) discuss the existing contract management strengths and weaknesss in Viet Nam; and (3) propose recommendations for improvement in contract management.
Conclusion
Management in construction contract still has shortcomings due to the unclear roles of each party in the contract, and unspecific regulations. The application of policies and procedures in the contract management are not sync. The parties in the contract are not thoroughly trained to manage the contract effectively.
Recommendation
The following are the recommendation for improvement in term of contract management:
Abstract
Nowadays, there are more and more construction project in Vietnam. However, the successful projects are not much because of weakness in management. Project management is a complex process. Only good management can bring the succeed to project. In this report, I would like to discuss more about problems and solution of contract management in a real project.
Contract management is the most important. If project has strong contract management, it would be easy to get the effectiveness. It is depending on the whole parties involved which are responsible to the project such as government, owner and contractor. All of them have to work together for running project smoothly and efficiently. In addition, it is necessary for the government to establish the policies, procedures and regulations in order to lead the owner and contractor do the right way with the right thing. Moreover, both parties in the contract also have to comply strictly the law and do the contract works in full compliance with the contract agreement.
To manage the contract effective and efficiency, the parties concern involve in the contract need to be trained thoroughly and working transparently in term of time, cost and quality of the project. Besides, it is need continue to improve the institutional and contractual payment in the construction sectors based on the principle of equality and respect between each party. Resolving the disputes under the arbitration with the consistent law of Vietnam and international practices.
Because of the characteristics of the construction industry, project management and contract management in Vietnam still face many difficulties because there are no legal regulations which are strict and sync. In addition, the engaged parties who have not being trained entirely are lack on the basic knowledge about the importance of the management and implementation of contracts in construction when they participate in construction activities.
The contract is very important. It is documentation not only for payment, but also for solving problems. Thus, in order to completely implement the project, all parties should understand the full knowledge and conditions of the contract. Transparency becomes essential requirement and third-party system need to be set up (including investors, contractors and consulting engineers) and all works are done based on contract. Management structure in order to publicize the project implementation process must be established, which clearly stated.
Mr. Le Minh Nhut made a case study on the residential project in Can Tho City which objectives were to: (1) study existing contract strategy in terms of contract packages, contract conditions, risks and contract management; (2) discuss the existing contract management strengths and weaknesss in Viet Nam; and (3) propose recommendations for improvement in contract management.
Conclusion
Management in construction contract still has shortcomings due to the unclear roles of each party in the contract, and unspecific regulations. The application of policies and procedures in the contract management are not sync. The parties in the contract are not thoroughly trained to manage the contract effectively.
Recommendation
The following are the recommendation for improvement in term of contract management:
Abstract
Nowadays, there are more and more construction project in Vietnam. However, the successful projects are not much because of weakness in management. Project management is a complex process. Only good management can bring the succeed to project. In this report, I would like to discuss more about problems and solution of contract management in a real project.
Contract management is the most important. If project has strong contract management, it would be easy to get the effectiveness. It is depending on the whole parties involved which are responsible to the project such as government, owner and contractor. All of them have to work together for running project smoothly and efficiently. In addition, it is necessary for the government to establish the policies, procedures and regulations in order to lead the owner and contractor do the right way with the right thing. Moreover, both parties in the contract also have to comply strictly the law and do the contract works in full compliance with the contract agreement.
To manage the contract effective and efficiency, the parties concern involve in the contract need to be trained thoroughly and working transparently in term of time, cost and quality of the project. Besides, it is need continue to improve the institutional and contractual payment in the construction sectors based on the principle of equality and respect between each party. Resolving the disputes under the arbitration with the consistent law of Vietnam and international practices.
Tuesday, 2 August 2011
Public Private Partnership In Urban Development
PPP models have been applied in many countries around the world and some infrastructure sectors are more conductive to PPP than others. In which, the power sector and transport sector have received most PPP model. There are ranges of reasons including better potential for cost recovery, higher political commitment due to the sector’s importance for country economic growth etc. Nevertheless, this does not mean that PPP in other sectors is without prospects. With appropriate modalities, support for capacity development, and political commitment to sector reform, PPP is feasible in others sectors as well.
Urban development plays important role in country development; the possible good of urbanization can solve many problems such as housing, environment, infrastructure systems etc. As infrastructure development project, a huge budget needed to urbanize. Mr. Nguyen Thanh Trong made case study to carry out the way to apply PPP model in urban development project, especially in Mekong delta in Vietnam base on real project which has been implemented in Soc Trang province in Vietnam.
The main objectives of his study were to: (1) study existing regulations and law affecting PPP project in Vietnam; (2) study theories and standard guideline and its applications of PPP in urban development projects; (3) analyze PPP Soc Trang province project in terms of structure, risk, law compliance and financing structure and compare to the theory and the standard guideline in order to find out the successful and problems in the project; and (4) propose recommendation for improvement
Conclusion
It is estimated that urban area of Vietnam account for 70% of economic growth and contain around 30% of the population, it is believed that urban development will occur quickly to meet the social demand. The private sector is encouraged to be more involved in urban development by providing resources. In order to have more private sector participation, government supports and clear understanding among the stakeholders, especially in term of risk perceptions, such as potential risks, possible sources of risks as well as risk management strategy are very important.
This project case study had analyzed the success of the project in terms of land acquisition and resettlement, approval from Government Agencies, participation of private sector and also social benefits.
Land acquisition: The success of land acquisition based on proposed compensation land price by the government is equal to actual market land price. In addition, the land owner will receive 10% residential land area in the resettlement sub-project in the line with total land area affected by project.
Approval from Government Agencies: It takes short time for getting approval from Government Agencies due to the procedures to carry out the project strictly with Law on housing and the necessary to implementation project.
Participant of private sector: The most successful of participation of private sector in this project are:
Government offices have a little knowledge about private –public partnership and recognize the important role of private sector in supporting economic growing of the province.
Private sector’s constant skepticism toward the government will be gradually reduced.
Social benefits: The project has maximized the land resource for economic development, changing the value of agriculture land with low productivity by residential land with high value.
Local government orient, regulate and control initiative to stabilize the real estate market in order to overcome the spontaneous development, not follow the urban master planning of the city.
On the other hand, this project case study has identified what kind of government problems including the sources of problem in order to help determine the most strategy solution base on Good Project Governance (GPG) concept and the guideline of WB.
The main problem related to government responsibility in this project is no contract between Public agency and private sector. Without contract, many problems can be encountered in this project, such as:
- The fairness was not achieved.
- Government supporting was not achieved.
- Clear mechanism was not achieved.
- Risks identification was not achieved.
The second problem in this project is no financial modeling, so all key drivers underpinning, and variables likely to impact upon the financial performance of project are not identified. There are no financial feasibility assessment models which can become valuable management tools in all anticipated operating circumstances.
Base on this case study, the lesson that can be drawn is that urban development projects which carried out through PPP approach will be successful when achieving two conditions:
- Urban master plan must be suitable with short term and long term purpose and satisfy with varying demands;
- Advisers must be hired in order to design adaptation mechanisms to new or unforeseen circumstance.
Recommendation for further research
Urban development project always has short term as well as long term purposes and its life cycle is very long, so during its life cycle there are many policies, decisions of local government will impact directly in the efficiency of the project.
For instance, in this project, the local government is implementing an investment concentrated administrative building project adjacent to this project, therefore, in the near future; the value of residential land in this project will be increased. So it is very necessary to research the impact of local government‘s policies on the efficiency of project in order to identify the way of sharing risks and benefits between public sector and private sector in PPP project.
His thesis abstract is copied and posted.
Abstract
For procuring public works projects, Public Private Partnership is a well established methodology in Vietnam for recent years, especially in infrastructure projects. Due to supplying the private sector’s expertise, efficiency, innovation, risk sharing, financing etc. into public project, the quality of public facilities and services can be uplifted.
Public Private Partnership models have been applied in many countries around the world and some infrastructure sectors are more conductive than others, especially it is hardly to find urban development project carried out base on Public Private Partnership approach.
In order to compare with other procurement method, it is important to understand the local situation by an analysis of the project conducted to date. Lessons learn can be applied to other projects or to derived in to legal framework. This project case study will carry out the way to apply Public Private Partnership model in urban development project.
The aim and objectives of this study were achieved via a understanding literature review, deep case study analysis in term of successful and problems encountered and recommendation for improvement.
Urban development plays important role in country development; the possible good of urbanization can solve many problems such as housing, environment, infrastructure systems etc. As infrastructure development project, a huge budget needed to urbanize. Mr. Nguyen Thanh Trong made case study to carry out the way to apply PPP model in urban development project, especially in Mekong delta in Vietnam base on real project which has been implemented in Soc Trang province in Vietnam.
The main objectives of his study were to: (1) study existing regulations and law affecting PPP project in Vietnam; (2) study theories and standard guideline and its applications of PPP in urban development projects; (3) analyze PPP Soc Trang province project in terms of structure, risk, law compliance and financing structure and compare to the theory and the standard guideline in order to find out the successful and problems in the project; and (4) propose recommendation for improvement
Conclusion
It is estimated that urban area of Vietnam account for 70% of economic growth and contain around 30% of the population, it is believed that urban development will occur quickly to meet the social demand. The private sector is encouraged to be more involved in urban development by providing resources. In order to have more private sector participation, government supports and clear understanding among the stakeholders, especially in term of risk perceptions, such as potential risks, possible sources of risks as well as risk management strategy are very important.
This project case study had analyzed the success of the project in terms of land acquisition and resettlement, approval from Government Agencies, participation of private sector and also social benefits.
Land acquisition: The success of land acquisition based on proposed compensation land price by the government is equal to actual market land price. In addition, the land owner will receive 10% residential land area in the resettlement sub-project in the line with total land area affected by project.
Approval from Government Agencies: It takes short time for getting approval from Government Agencies due to the procedures to carry out the project strictly with Law on housing and the necessary to implementation project.
Participant of private sector: The most successful of participation of private sector in this project are:
Government offices have a little knowledge about private –public partnership and recognize the important role of private sector in supporting economic growing of the province.
Private sector’s constant skepticism toward the government will be gradually reduced.
Social benefits: The project has maximized the land resource for economic development, changing the value of agriculture land with low productivity by residential land with high value.
Local government orient, regulate and control initiative to stabilize the real estate market in order to overcome the spontaneous development, not follow the urban master planning of the city.
On the other hand, this project case study has identified what kind of government problems including the sources of problem in order to help determine the most strategy solution base on Good Project Governance (GPG) concept and the guideline of WB.
The main problem related to government responsibility in this project is no contract between Public agency and private sector. Without contract, many problems can be encountered in this project, such as:
- The fairness was not achieved.
- Government supporting was not achieved.
- Clear mechanism was not achieved.
- Risks identification was not achieved.
The second problem in this project is no financial modeling, so all key drivers underpinning, and variables likely to impact upon the financial performance of project are not identified. There are no financial feasibility assessment models which can become valuable management tools in all anticipated operating circumstances.
Base on this case study, the lesson that can be drawn is that urban development projects which carried out through PPP approach will be successful when achieving two conditions:
- Urban master plan must be suitable with short term and long term purpose and satisfy with varying demands;
- Advisers must be hired in order to design adaptation mechanisms to new or unforeseen circumstance.
Recommendation for further research
Urban development project always has short term as well as long term purposes and its life cycle is very long, so during its life cycle there are many policies, decisions of local government will impact directly in the efficiency of the project.
For instance, in this project, the local government is implementing an investment concentrated administrative building project adjacent to this project, therefore, in the near future; the value of residential land in this project will be increased. So it is very necessary to research the impact of local government‘s policies on the efficiency of project in order to identify the way of sharing risks and benefits between public sector and private sector in PPP project.
His thesis abstract is copied and posted.
Abstract
For procuring public works projects, Public Private Partnership is a well established methodology in Vietnam for recent years, especially in infrastructure projects. Due to supplying the private sector’s expertise, efficiency, innovation, risk sharing, financing etc. into public project, the quality of public facilities and services can be uplifted.
Public Private Partnership models have been applied in many countries around the world and some infrastructure sectors are more conductive than others, especially it is hardly to find urban development project carried out base on Public Private Partnership approach.
In order to compare with other procurement method, it is important to understand the local situation by an analysis of the project conducted to date. Lessons learn can be applied to other projects or to derived in to legal framework. This project case study will carry out the way to apply Public Private Partnership model in urban development project.
The aim and objectives of this study were achieved via a understanding literature review, deep case study analysis in term of successful and problems encountered and recommendation for improvement.
Wednesday, 27 July 2011
Tuesday, 26 July 2011
Resources Allocation Strategy for Construction Safety at Hydropower Project
Huge scale project such as hydropower projects takes a very long time to fully finish. The construction process is extremely complicated with so many risks involved. Therefore, it is necessary to carry out research to identify, evaluate as well as the monitor the risk sources; to strengthen the control of the potential accidents, to prevent and respond to the severe accidents and to allocate the resources effectively for the construction safety programs during the process of the construction of hydroelectric projects.
Mr. Pye Phyo Maung made a case on Shwegyin Hydropower Project in Myanmar which objectives were: (1) to identify and evaluate hazardous level of the accidents that may occur at the various works of the Hydropower Projects, based on the risk factors which may cause the accidents; incorporated with the former history of accidents cases and experts’ experiences by using LEC method, and then to evaluate the rating of each type of works with respect to the resources allocation strategy at the Hydropower Projects by using the resulted accident hazardous levels from LEC method; and (2) by applying AHP method, to analyze and calculate prioritization of the most effective safety programs with the resources allocation strategies through the specification of the relevant weight of each safety program for the construction safety at Hydropower Projects
Conclusion
For objective number 1.
Based on the analysis results from LEC method indicated that the resulted hazardous levels of accident types were different for each construction work such as follows:
For scaffolding work, the resulted hazardous level (resulted D; it was calculated by averaging all hazardous levels of related risk factors) for each accident type is:
a. “Falling from height place” is level 1 which means “extremely hazardous”.
b. “collapse” and “object hitting”, the resulted hazardous level is also level 1.
c. “fire” and “electric shock”, the hazardous level is level 2 which means very hazardous”
d. “others”, the hazardous level is level 3 which means “quite hazardous”.
For concrete work, the resulted hazardous level of:
a. “electric shock”, “uncontrollable contact between men and materials such as cranes, various types of vehicles” and “others” is level 1.
b. “fire” and “impact from equipment and materials handling”, the resulted hazardous level is level 2.
c. “objects hitting”, the resulted hazardous level is level 3.
For excavation work, the resulted hazardous level of:
a. “earth collapsing”, “mining hazards such as the use of explosives”, “uncontrollable contact between men and materials such as cranes, excavator etc”, “inherent engineering hazards such as the presence of injurious gases, toxic dusts” is level 1.
b. “electric shock” and “others”, the resulted hazardous level is level 2.
For embankment work, the resulted hazardous level of:
a. “embankment collapsing”, “uncontrollable contact between men and materials such as vehicles, cranes etc”, “falling from high places”, and “electric shock” is the level 1.
b. “impact from equipment and materials handling”, the resulted hazardous level is level 2.
c. “others”, the resulted level 3.
For plant installation work, the resulted hazardous level of:
a. “hazards associated with erection the heavy materials such as turbines, boiler plant etc” and “electric shock” is level 1.
b. “uncontrollable contact between men and materials such as vehicles, cranes etc”, “impact from equipment and materials handling” and “Fire”, the resulted hazardous level is level 2.
c. “Others”, the resulted hazardous level is level 3.
According to the data analysis results, the rating of Excavation Work is “1” which means that the overall hazardous level of all types of accident at Excavation Work is the highest. In other words, it means that Excavation Work is the first priority with respect to the resource allocation for construction safety. For Embankment Work, the rating is “2”. For Scaffolding Work and Concrete Work, the rating is “3”. For Plant Installation Work, the rating is “4”, and it is the lowest. These rating of construction works can also be applied for the pair-wise comparisons of those works in the second level of AHP hierarchy.
For the objective number 2.
The data analysis results from AHP method showed the scores of Safety Programs for Prioritization of resource allocation. These scores are the effectiveness of each safety program on all types of construction work at Hydropower Project. Safe Practices and Procedures, Health and Safety Rules and Responsibilities are equal, and they have the highest scores for priority.
Moreover, Joint Health and Safety Committee, Workplace Hazardous Materials Information System, Training, Worker Orientation and Emergency Procedures are nearly equal and have middle scores for priority. Furthermore, First Aid and Medical Services, Inspections and Hazard Assessments, Reporting and Investigating Accidents, Health and Safety Promotion are also nearly equal and have the lowest scores for priority.
By applying these resulted scores, the decision makers can easily decide how to allocate resources on each type of the effective safety programs in the cases of implementing, monitoring, evaluating, adjusting those programs for the Hydropower Projects. In conclusion, there are many evidences that AHP method has been used in many areas such as strategic planning, resource allocation, source selection, business/public policy, program selection and many more. In this thesis, it is obvious that Analytical Hierarchy Process method can also be used in the case of resources allocation for construction safety at Hydropower Projects.
His thesis abstract is copied ang posted.
Abstract
For most of Hydropower Projects, the scale is very huge, rather long time is required in order to finish the projects, and the construction process is also very complicated, involved with very high risks. For the successful promoting health and safety, planning, organization, leadership, control, evaluation, inspecting, investigating, recording, analyzing and reporting are in the important role. An effective safety program includes all these parts. It is needed to be designed to make the most of available time and resources in preventing accidents and occupational disease. Therefore, it is urgent to make a research on how to allocate resources effectively for the construction safety at Hydropower Projects. This study is especially dedicated for identifying and evaluating hazardous level of the accidents that may occur at the various works of the Hydropower Projects, by using LEC method, based on the risk factors which may cause the accidents and then evaluating the rate of each type of works with respect to the resources allocation strategy at the Hydropower Projects by using the resulted accident hazardous levels. Then, it is dedicated to analyze and calculate prioritization of the most effective safety programs with the resources allocation strategies through the specification of the relevant weight of each safety program resulted from AHP method. To cope with those objectives, AHP method and LEC method are major tools in this Thesis. The result reveals that Safe Practices and Procedures, Health and Safety Rules and Responsibilities are equal, and they have the highest scores for priority. Moreover, Joint Health and Safety Committee, Workplace Hazardous Materials Information System, Training, Worker Orientation and Emergency Procedures are nearly equal and have middle scores for priority. Furthermore, First Aid and Medical Services, Inspections and Hazard Assessments, Reporting and Investigating Accidents, Health and Safety Promotion are also nearly equal and have the lowest scores for priority. These results are in the meaning of the effectiveness of the safety programs on the overall works at Hydropower Projects. By applying these resulted scores, the decision makers can easily decide how to allocate resources on each type of the effective safety programs in the cases of implementing, monitoring, evaluating, adjusting those programs for the Hydropower Projects.
Mr. Pye Phyo Maung made a case on Shwegyin Hydropower Project in Myanmar which objectives were: (1) to identify and evaluate hazardous level of the accidents that may occur at the various works of the Hydropower Projects, based on the risk factors which may cause the accidents; incorporated with the former history of accidents cases and experts’ experiences by using LEC method, and then to evaluate the rating of each type of works with respect to the resources allocation strategy at the Hydropower Projects by using the resulted accident hazardous levels from LEC method; and (2) by applying AHP method, to analyze and calculate prioritization of the most effective safety programs with the resources allocation strategies through the specification of the relevant weight of each safety program for the construction safety at Hydropower Projects
Conclusion
For objective number 1.
Based on the analysis results from LEC method indicated that the resulted hazardous levels of accident types were different for each construction work such as follows:
For scaffolding work, the resulted hazardous level (resulted D; it was calculated by averaging all hazardous levels of related risk factors) for each accident type is:
a. “Falling from height place” is level 1 which means “extremely hazardous”.
b. “collapse” and “object hitting”, the resulted hazardous level is also level 1.
c. “fire” and “electric shock”, the hazardous level is level 2 which means very hazardous”
d. “others”, the hazardous level is level 3 which means “quite hazardous”.
For concrete work, the resulted hazardous level of:
a. “electric shock”, “uncontrollable contact between men and materials such as cranes, various types of vehicles” and “others” is level 1.
b. “fire” and “impact from equipment and materials handling”, the resulted hazardous level is level 2.
c. “objects hitting”, the resulted hazardous level is level 3.
For excavation work, the resulted hazardous level of:
a. “earth collapsing”, “mining hazards such as the use of explosives”, “uncontrollable contact between men and materials such as cranes, excavator etc”, “inherent engineering hazards such as the presence of injurious gases, toxic dusts” is level 1.
b. “electric shock” and “others”, the resulted hazardous level is level 2.
For embankment work, the resulted hazardous level of:
a. “embankment collapsing”, “uncontrollable contact between men and materials such as vehicles, cranes etc”, “falling from high places”, and “electric shock” is the level 1.
b. “impact from equipment and materials handling”, the resulted hazardous level is level 2.
c. “others”, the resulted level 3.
For plant installation work, the resulted hazardous level of:
a. “hazards associated with erection the heavy materials such as turbines, boiler plant etc” and “electric shock” is level 1.
b. “uncontrollable contact between men and materials such as vehicles, cranes etc”, “impact from equipment and materials handling” and “Fire”, the resulted hazardous level is level 2.
c. “Others”, the resulted hazardous level is level 3.
According to the data analysis results, the rating of Excavation Work is “1” which means that the overall hazardous level of all types of accident at Excavation Work is the highest. In other words, it means that Excavation Work is the first priority with respect to the resource allocation for construction safety. For Embankment Work, the rating is “2”. For Scaffolding Work and Concrete Work, the rating is “3”. For Plant Installation Work, the rating is “4”, and it is the lowest. These rating of construction works can also be applied for the pair-wise comparisons of those works in the second level of AHP hierarchy.
For the objective number 2.
The data analysis results from AHP method showed the scores of Safety Programs for Prioritization of resource allocation. These scores are the effectiveness of each safety program on all types of construction work at Hydropower Project. Safe Practices and Procedures, Health and Safety Rules and Responsibilities are equal, and they have the highest scores for priority.
Moreover, Joint Health and Safety Committee, Workplace Hazardous Materials Information System, Training, Worker Orientation and Emergency Procedures are nearly equal and have middle scores for priority. Furthermore, First Aid and Medical Services, Inspections and Hazard Assessments, Reporting and Investigating Accidents, Health and Safety Promotion are also nearly equal and have the lowest scores for priority.
By applying these resulted scores, the decision makers can easily decide how to allocate resources on each type of the effective safety programs in the cases of implementing, monitoring, evaluating, adjusting those programs for the Hydropower Projects. In conclusion, there are many evidences that AHP method has been used in many areas such as strategic planning, resource allocation, source selection, business/public policy, program selection and many more. In this thesis, it is obvious that Analytical Hierarchy Process method can also be used in the case of resources allocation for construction safety at Hydropower Projects.
His thesis abstract is copied ang posted.
Abstract
For most of Hydropower Projects, the scale is very huge, rather long time is required in order to finish the projects, and the construction process is also very complicated, involved with very high risks. For the successful promoting health and safety, planning, organization, leadership, control, evaluation, inspecting, investigating, recording, analyzing and reporting are in the important role. An effective safety program includes all these parts. It is needed to be designed to make the most of available time and resources in preventing accidents and occupational disease. Therefore, it is urgent to make a research on how to allocate resources effectively for the construction safety at Hydropower Projects. This study is especially dedicated for identifying and evaluating hazardous level of the accidents that may occur at the various works of the Hydropower Projects, by using LEC method, based on the risk factors which may cause the accidents and then evaluating the rate of each type of works with respect to the resources allocation strategy at the Hydropower Projects by using the resulted accident hazardous levels. Then, it is dedicated to analyze and calculate prioritization of the most effective safety programs with the resources allocation strategies through the specification of the relevant weight of each safety program resulted from AHP method. To cope with those objectives, AHP method and LEC method are major tools in this Thesis. The result reveals that Safe Practices and Procedures, Health and Safety Rules and Responsibilities are equal, and they have the highest scores for priority. Moreover, Joint Health and Safety Committee, Workplace Hazardous Materials Information System, Training, Worker Orientation and Emergency Procedures are nearly equal and have middle scores for priority. Furthermore, First Aid and Medical Services, Inspections and Hazard Assessments, Reporting and Investigating Accidents, Health and Safety Promotion are also nearly equal and have the lowest scores for priority. These results are in the meaning of the effectiveness of the safety programs on the overall works at Hydropower Projects. By applying these resulted scores, the decision makers can easily decide how to allocate resources on each type of the effective safety programs in the cases of implementing, monitoring, evaluating, adjusting those programs for the Hydropower Projects.
Monday, 25 July 2011
Red Book FIDIC Contract Management and Problems
Why FIDIC red book is very essential for contract management especially for ADA funded projects in Vietnam? Mr. Pham Thanh Trung made a case study in the Project of Wastewater Disposal in Provincial Towns, Programme South, Can Tho which 2 primary objectives were to: (1) study FIDIC Red Book contract structure and contract management related; and (2) analyze the problems occurring in the application of FIDIC Red Book contract to this project, with perception looking from Vietnam law system, Engineer and Contractor and finally to propose recommendations.
Conclusions
The fundamental problems occurred during the application of FIDIC Red Book in this case study project include: choosing the wrong contract form, rejecting the main contents in FIDIC Red Book such as measurement and variations, contract price adjustment, and contract volume. In addition, the specific requirement in particular conditions did not clearly defined about responsibilities, procedures, manners and processes.
The study also helped the Employer to understand about their roles in the project’s delivery; involvement in preparing a management team with knowledge and experience, controlling the work of contractor as well as the Engineer, defining conflict between FIDIC Red Book and Vietnam Law system and provide solutions to resolve them.
Recommendation to improve the effectiveness in application of FIDIC Red Book
To apply FIDIC Red Book Conditions effectively in ODA projects in Vietnam, from this case study, the author come-up with the following conclusions:
1. FIDIC Red Book strongly recommends that the complete design shall be prepared by independent and impartial Engineers whom have enough experiences and skills.
2. The General Conditions for every project should be followed strictly from FIDIC Red Book, especially with some important clauses as Clause 12 Measurement and evaluation, Clause 13 Variations and adjustments and Clause 14 Contract price and payment.
3. The Particular Conditions should be included any changes or additional clauses which the parties have decided to include for adaptation of the local and project requirements. The Particular Conditions must ensure clear responsibilities, procedures, manners and processes for all requirements.
4. When any problems occur, all members of construction project should be closely followed to regular basis procedures, such as Sub-Clause 3.5 Determinations, Sub-Clause 2.5 Employer’s claims, Sub-Clause 20.1 Contractor’s claims etc. Besides, they should be considered to all events, circumstances and factors affecting to the problems. For this purpose, the documentation work is very important to timely record, collect and store every information as well as evidences of events.
His thesis abstract is copied and pasted below:
Abstract
In recent years, ODA has become an important resource to help the Vietnamese government develop infrastructure, education and environmental improvements. Many important projects using ODA funds have been completed and operate effectively, contributing to the economic and social development.
Besides the positive aspects of this project model, there are so many limitations and shortcomings during the implementation process which led to ineffective projects. Limitations, shortcomings are source from site clearance, lack of management experience to run the project. Besides, these project models are requiring complying with the Conditions of the sponsors, and these regulations are direct to protect the interest of sponsors.
One of the document are usually apply by sponsors is FIDIC red book contract. In original, this document is an appropriate regulation for every construction contract follow international regular. However, during the applied, the sponsors and their consultant usually adjust and add more sub clause in particular Conditions for their advantage.
Within this writing, I would be analyzed the problems occurred during the project implementing which follow the FIDIC contract. Includes attitude and solutions of the sponsor, the consulting units, the client and the contractor, and the direct effects due to these problems cause. From the standpoint of a project manager, combine with existing management rules, I would like to suggest solutions to process problems to ensure harmony and efficiency of the project.
Conclusions
The fundamental problems occurred during the application of FIDIC Red Book in this case study project include: choosing the wrong contract form, rejecting the main contents in FIDIC Red Book such as measurement and variations, contract price adjustment, and contract volume. In addition, the specific requirement in particular conditions did not clearly defined about responsibilities, procedures, manners and processes.
The study also helped the Employer to understand about their roles in the project’s delivery; involvement in preparing a management team with knowledge and experience, controlling the work of contractor as well as the Engineer, defining conflict between FIDIC Red Book and Vietnam Law system and provide solutions to resolve them.
Recommendation to improve the effectiveness in application of FIDIC Red Book
To apply FIDIC Red Book Conditions effectively in ODA projects in Vietnam, from this case study, the author come-up with the following conclusions:
1. FIDIC Red Book strongly recommends that the complete design shall be prepared by independent and impartial Engineers whom have enough experiences and skills.
2. The General Conditions for every project should be followed strictly from FIDIC Red Book, especially with some important clauses as Clause 12 Measurement and evaluation, Clause 13 Variations and adjustments and Clause 14 Contract price and payment.
3. The Particular Conditions should be included any changes or additional clauses which the parties have decided to include for adaptation of the local and project requirements. The Particular Conditions must ensure clear responsibilities, procedures, manners and processes for all requirements.
4. When any problems occur, all members of construction project should be closely followed to regular basis procedures, such as Sub-Clause 3.5 Determinations, Sub-Clause 2.5 Employer’s claims, Sub-Clause 20.1 Contractor’s claims etc. Besides, they should be considered to all events, circumstances and factors affecting to the problems. For this purpose, the documentation work is very important to timely record, collect and store every information as well as evidences of events.
His thesis abstract is copied and pasted below:
Abstract
In recent years, ODA has become an important resource to help the Vietnamese government develop infrastructure, education and environmental improvements. Many important projects using ODA funds have been completed and operate effectively, contributing to the economic and social development.
Besides the positive aspects of this project model, there are so many limitations and shortcomings during the implementation process which led to ineffective projects. Limitations, shortcomings are source from site clearance, lack of management experience to run the project. Besides, these project models are requiring complying with the Conditions of the sponsors, and these regulations are direct to protect the interest of sponsors.
One of the document are usually apply by sponsors is FIDIC red book contract. In original, this document is an appropriate regulation for every construction contract follow international regular. However, during the applied, the sponsors and their consultant usually adjust and add more sub clause in particular Conditions for their advantage.
Within this writing, I would be analyzed the problems occurred during the project implementing which follow the FIDIC contract. Includes attitude and solutions of the sponsor, the consulting units, the client and the contractor, and the direct effects due to these problems cause. From the standpoint of a project manager, combine with existing management rules, I would like to suggest solutions to process problems to ensure harmony and efficiency of the project.
Thursday, 21 July 2011
Project Management in New Urban Project
Can Tho City is one of the five central cities, a center of economics, politics, culture, education - training of the Mekong River delta. It is a young city in the process of urbanization to become a powerful modern industrial city in 2020. As reported by Can Tho Department of Construction new urban projects are being invested and constructed with a total area of 1700 ha.
Although the urbanization in Can Tho City is very important and developing quite quickly, the process of implementation of its new urban projects raises some serious problems to be taken into consideration. According to the recent report of Can Tho Department of Construction, new urban projects in Can Tho city are encountering problems such as:
1. Most projects were small in scope; the planning was not consistent and modern. There were many limitations in managing planning and projects.
2. There was not sufficient care and attention to quality control and costs management. The work of examination and inspection was not done strictly.
3. The investment for new urban areas faced many problems and risks such as: changes in policies from the government, shortage in financial resources, the ups and downs of the real-estate market, changes in material prices.
4. The safety management in construction was limited, which was not frequently checked to assure safety at work.
5. The progress of most new urban residential areas was especially all late in comparison to the original plan. Usually, each project was from 3 to 5 years longer than the plan.
Mr. Huynh Thanh Su made a case study Hung Phu New Urban Area Project in Can Tho City which objectives were to: (1) study the project management theories applicable in urban project development; (2) study the existing project management process of new urban development; and (3) analysis the effectiveness of the existing project management process in terms of project management functions, process and outcomes (i.e. cost, quality and schedule)
Conclusion
Industrialization has taken place very fast and strongly all over the world in general and in Vietnam in particular, and it will continue to happen even faster in the future. Constructions works, projects for urban development and new urban areas expand every day. These projects have played major role in improving people’s living environment. However, there has been inadequate attention on researching and applying theories and process of project management in new urban areas for each particular place at a specific time. Therefore, this research paper aims at studying theories in project management in developing cities and the process of managing new urban areas in Vietnam. From the analysis of the quality of project management (managing time, costs, quality and risks) in this case study; the following conclusions were drawn:
Objective 1: Studying theories on project management with the application on new urban projects.
This is done mainly through the study of all documents to accumulate knowledge and methods of project management that were studied previously. From this, main functions of project management and the process of project management in different stages are identified. From all of these, strengths, weaknesses and specific suggestions for real project management tasks are proposed.
Objective 2: Studying the management process for new urban areas in Vietnam.
New urban areas are developing very fast in big cities in Vietnam. The study on current legal documents, mechanism, local policies, the procedure and process of new urban management which have been applied into a specific project can help us find out strengths, weaknesses of the managing process for the management of new urban.
From this, it can be concluded that projects for new urban area development in Vietnam are rather complicated with regards to their investment procedure and process. Although project managing procedures in recent years have become clearer and stricter, in reality, however, its application seems to show many limitations that need to be improved.
3. Objective 3: Analyzing the effectiveness of project management process.
Through the analysis of some major tasks in project management e.g. time, costs, quality and risks, in Hung Phu new urban area, the following conclusions were drawn:
a) In terms of time management:
The whole time for the project was 8 years, which was much slower than the time set in the FS (3 years). Almost all items in the project were slower than in the planned timeframe. The main reason was identified, which was the delay in land clearance (about 7 years after the project initiated) and the uncertainty in financial resources for the implementation of the project. All of these show that there were many limitations in the work of planning and setting the timeframe for the project that needs to be improved.
b) In terms of costs management:
Although the investor implemented the costs management following the current regulations, the estimated costs for the whole project were not accurate due to the delay and the extension of time for the project (the total capital and costs). Therefore, there was a shortage of capital for construction and payment in the stage of execution.
c) In terms of quality management:
In general, project quality management has been implemented in accordance with all the current regulations. However, due to the fact that the examination for all conditions for starting the project (the land clearance must be finished before the project started) was not done well, as well as the poor work of checking the contractors’ ability, the duration of the whole project was much longer, which increased the costs of the whole project and also the product price and affected the quality of the whole project.
d) Risks management:
Although risks have been identified, analyzed, evaluated and plans to deal with them have been developed, the work of risks management for the whole project was not professional and effective.
However, in general, the whole project has gained certain success in financial aspects including: turnover, profit which increased many times in comparing with the expected amount in the FS and all other financial criteria were all positive. The project has successfully developed a new urban area that can meet the demands for housing and urban sustainable development in Can Tho City (social effects). To gain this success, the project management plays a very important role.
His thesis abstract is copied and posted.
Abstract
This thesis paper aims at studying theories in project management that have been studied previously with their application first of all in the management of new urban areas in Vietnam in general and in the case study, Hung Phu New urban area project in Can Tho City.
The thesis analyses the tasks of project management in Hung Phu Project with a focus on the management of time, costs, quality and risks in comparison with theories in project management, from which suggestions for better management tasks for new urban projects are proposed.
From the case study of Hung Phu project, it can be seen that the task of time management was not done properly and effectively due to the problems in land clearance. This, in turn, affected the costs, products prices and the general quality of the whole project.
The thesis proposes that a profound understanding of all legal documents related to the task of project management and to the specific project is of great importance. In addition, the management of time for the project can be seen as the key factor that brings effectiveness to the management of costs, quality and risks of each project. This requires that the work of land clearance should be paid more attention to as this is considered as the number one cause for any delays and lateness of a project.
Although the urbanization in Can Tho City is very important and developing quite quickly, the process of implementation of its new urban projects raises some serious problems to be taken into consideration. According to the recent report of Can Tho Department of Construction, new urban projects in Can Tho city are encountering problems such as:
1. Most projects were small in scope; the planning was not consistent and modern. There were many limitations in managing planning and projects.
2. There was not sufficient care and attention to quality control and costs management. The work of examination and inspection was not done strictly.
3. The investment for new urban areas faced many problems and risks such as: changes in policies from the government, shortage in financial resources, the ups and downs of the real-estate market, changes in material prices.
4. The safety management in construction was limited, which was not frequently checked to assure safety at work.
5. The progress of most new urban residential areas was especially all late in comparison to the original plan. Usually, each project was from 3 to 5 years longer than the plan.
Mr. Huynh Thanh Su made a case study Hung Phu New Urban Area Project in Can Tho City which objectives were to: (1) study the project management theories applicable in urban project development; (2) study the existing project management process of new urban development; and (3) analysis the effectiveness of the existing project management process in terms of project management functions, process and outcomes (i.e. cost, quality and schedule)
Conclusion
Industrialization has taken place very fast and strongly all over the world in general and in Vietnam in particular, and it will continue to happen even faster in the future. Constructions works, projects for urban development and new urban areas expand every day. These projects have played major role in improving people’s living environment. However, there has been inadequate attention on researching and applying theories and process of project management in new urban areas for each particular place at a specific time. Therefore, this research paper aims at studying theories in project management in developing cities and the process of managing new urban areas in Vietnam. From the analysis of the quality of project management (managing time, costs, quality and risks) in this case study; the following conclusions were drawn:
Objective 1: Studying theories on project management with the application on new urban projects.
This is done mainly through the study of all documents to accumulate knowledge and methods of project management that were studied previously. From this, main functions of project management and the process of project management in different stages are identified. From all of these, strengths, weaknesses and specific suggestions for real project management tasks are proposed.
Objective 2: Studying the management process for new urban areas in Vietnam.
New urban areas are developing very fast in big cities in Vietnam. The study on current legal documents, mechanism, local policies, the procedure and process of new urban management which have been applied into a specific project can help us find out strengths, weaknesses of the managing process for the management of new urban.
From this, it can be concluded that projects for new urban area development in Vietnam are rather complicated with regards to their investment procedure and process. Although project managing procedures in recent years have become clearer and stricter, in reality, however, its application seems to show many limitations that need to be improved.
3. Objective 3: Analyzing the effectiveness of project management process.
Through the analysis of some major tasks in project management e.g. time, costs, quality and risks, in Hung Phu new urban area, the following conclusions were drawn:
a) In terms of time management:
The whole time for the project was 8 years, which was much slower than the time set in the FS (3 years). Almost all items in the project were slower than in the planned timeframe. The main reason was identified, which was the delay in land clearance (about 7 years after the project initiated) and the uncertainty in financial resources for the implementation of the project. All of these show that there were many limitations in the work of planning and setting the timeframe for the project that needs to be improved.
b) In terms of costs management:
Although the investor implemented the costs management following the current regulations, the estimated costs for the whole project were not accurate due to the delay and the extension of time for the project (the total capital and costs). Therefore, there was a shortage of capital for construction and payment in the stage of execution.
c) In terms of quality management:
In general, project quality management has been implemented in accordance with all the current regulations. However, due to the fact that the examination for all conditions for starting the project (the land clearance must be finished before the project started) was not done well, as well as the poor work of checking the contractors’ ability, the duration of the whole project was much longer, which increased the costs of the whole project and also the product price and affected the quality of the whole project.
d) Risks management:
Although risks have been identified, analyzed, evaluated and plans to deal with them have been developed, the work of risks management for the whole project was not professional and effective.
However, in general, the whole project has gained certain success in financial aspects including: turnover, profit which increased many times in comparing with the expected amount in the FS and all other financial criteria were all positive. The project has successfully developed a new urban area that can meet the demands for housing and urban sustainable development in Can Tho City (social effects). To gain this success, the project management plays a very important role.
His thesis abstract is copied and posted.
Abstract
This thesis paper aims at studying theories in project management that have been studied previously with their application first of all in the management of new urban areas in Vietnam in general and in the case study, Hung Phu New urban area project in Can Tho City.
The thesis analyses the tasks of project management in Hung Phu Project with a focus on the management of time, costs, quality and risks in comparison with theories in project management, from which suggestions for better management tasks for new urban projects are proposed.
From the case study of Hung Phu project, it can be seen that the task of time management was not done properly and effectively due to the problems in land clearance. This, in turn, affected the costs, products prices and the general quality of the whole project.
The thesis proposes that a profound understanding of all legal documents related to the task of project management and to the specific project is of great importance. In addition, the management of time for the project can be seen as the key factor that brings effectiveness to the management of costs, quality and risks of each project. This requires that the work of land clearance should be paid more attention to as this is considered as the number one cause for any delays and lateness of a project.
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