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Monday 15 August 2011
Thursday 11 August 2011
Delay & Contract Management in Construction
In order to manage a project successfully, project management is very important because this will determine the quality, time, and expense of the project. The process of project management includes:
- Organizing, choosing, advising, and creating investment projects.
- Managing research and investigating projects;
- Analyzing data and evaluating projects;
- Constructing investment projects and profiles for designing the construction’s total estimates will be sent to authorities for approval.
- Signing economic contracts dealing with survey, design, construction, and installation.
- Supplying materials and equipment
The contract is really important since it is not only the basis of payment but also the basis of solving some legal problems. To get well-completed projects, all sides must have knowledge about the conditions of the contract. Managers are searching for the best ways to manage contracts more effectively. By doing so, the project will be more successful.
Mr. Ho Chi Linh made a on Administration Centre and Postgraduates Trainings at Can Tho University to find out the main factors that cause cost inflation, poor quality and delay at all stages of projects. These factors were analyzed in different ways of parties such as the Laws, Authorities, the Owners, the Contractors, Consultants, Sub-contractors. From that, the factors which are effective to prevent and control delays in the project can be seen.
The objectives of his study were to: (1) study the contract management practice of the case study project; (2) analyze the project management problems (time, cost, quality) in relation to contract administration; (3) identify delay causation in construction projects which were completed up to now or are building; and (4) make recommendation for improvement of the future project with similar characters.
Conclusion
Contract management is an important factor which directly affects projects. The contract management includes managing 3 main factors: quality, price and time. Most projects in Vietnam so far have been strongly influenced by these 3 factors, which leads to the poor quality, costs increases or delays. All these problems are popular and are still going on. However, it is possible for us to prevent even during the time the project is on going. With the total area of 18.990 square meters, 9 floors, the total cost is over 133 billion, the Administration and Post-Graduate Building – Can Tho University project is also affected by these factors.
This project was approved by the Ministry of Education and Training in 2008 and the investment was from the government budget. Although it has got supports and grants from the Government, relevant sectors as well as rector board from Can Tho University, the project was still delayed and the original estimated costs still increased due to objective and subjective reasons.
Objective reasons
Dramatic change in market price which affected workers and materials because the rate of price slipping was not specified in the contract.
There have been many problems in the transportation of materials and equipment because the construction site is located right in the center of the city which is very crowded with many students. The supply of materials was limited because of the fluctuation in the market price which significantly affected the progress and quality of the works.
Subjective reasons
The contract is not really logical, which does not express all the regulated contents that can tie the contractors as well as sub-contractors in materials, human sources and finance to implement the works.
The contractors did not provide with enough machines and modern equipment as regulated in the contracts. This is also due to the fact that the contractors selected were not well-qualified and have poor experience.
The contracts did not state clearly the time for the period of pile pressure and experiments, which does not include the time for implementation. This is the reason why the contractors often blame the experimental institutions for delays.
Solution
- Require the contractors to set up a quality management system suitable to project requirements
- Additional engineers, who have got experience about quality management and check equipment before being put into the work
- Contractor Material Supply who are responsible for the quality of their products
- Request the contractor to focus on human resources, equipment and time
- Providing a clear time for each job. Support the contractor to shorten the time.
- Investor has to set up the slippery of price coefficient.
- Having a strict and frequent monitoring, urge the contractors to solve any unexpected problems if occurred.
- Organizing frequent meetings with the contractors to remind and require them to commit and implement all the articles specified in the contract and follow the project timetable.
- Looking for sufficient extra financial sources to compromise slipping rate so as to assure the contractors to implement well with the rest of the project.
● Although there have been certain limitations, the contractors have successfully implemented some works for the project as well as strictly followed the procedure and legal documents. They did well with the work of environmental protection and guarantee the urban scenery, and especially the assurance of work safety. Therefore, there has been no accident in the construction site so far.
● Upon the completion of the project, it will significantly improve the prestige of Can Tho University in general as well as for the work of post-graduate training, scientific research and technology transfer, which promotes Can Tho University to a higher level in the region and in the whole country. This can help Can Tho University become comparable to other universities in the area as well as in the world. This also creates opportunities for the university managers to get access to and study with new technology thanks to good infrastructure because this is the first and biggest building in Can Tho University.
Recommendations
Due to the time as well as the limited scope of the thesis, not all aspects of the project were examined and analyzed. However, based on what has been achieved and not achieved, as mentioned in the conclusion, the following recommendations are proposed for better management to future projects.
- Contracts need to be more detailed with enough articles and regulations, in which all agreements need to be stated clearly.
- Trained engineers specializing in the fields of quality management and cost management.
- The investor should choose capable contractors with enough modern technical equipment as well as financial sources together with sufficient human resources.
- Bid winning price was not lower than the actual price of the project
- Build price fluctuation factor to deal with changing market prices.
- Utilize all funds to ensure implementation of the project.
- Checking materials, components, construction products through quality certificates where production and results of standard laboratory.
- Checking equipment and technology works before installation through quality certificates where production and results of quality testing of equipment.
- Need unified management of construction cost on a clue to avoid cross situation such as is now
- Complete the system of estimating construction
- Additional norms for construction and installation work is not yet in practice the detailed estimates of current, complete content and methods of synthesis unit set up in construction.
- List building , select a method of calculating overall cost consistent with the actual situation in the country, regional and international levels in each period.
His thesis abstract is copied and posted.
Abstarct
Since Vietnam joined the WTO, global platform for the construction industry were opened, bringing many new opportunities and also many difficulties and challenges. But in recent years, most of of projects are behind schedule, exceeding the estimate is very popular to make the management of the project have many difficulties, specially the management contract. In any investment project construction, the key elements necessary to ensure that the range or scope of the project, the total investment (Money) and the progress Time) of project implementation. Three elements make up a triangle project, including Scope - Money - Time is each edge of the triangle project. When an edge that will make these changes, the other edge changed. A project called good management when the triangle is less than the change triangle is created from investment projects approved construction. In fact the work of our building has been lost on the market at the home of their own, most projects are delayed and exceeded the total original investment to affect performance investment results as well as competitiveness.
The cause of the delayed and costs overcome, there are many such as institutional policy, in the uniform of the other central agencies and localities, these factors impact the world market, the capacity of entities involved in construction activities
This study will also discuss on the advantages and disadvantages of EPC contract from both Contractor and Project Company’s point of view and how to manage the EPC contract in accordance with term and condition clauses stipulated in the signed contract documents; how to resolve problems by understanding the contract clauses. However, the improvement of some major clauses are still needed in order to specify and define clearly the duties and responsibilities as well as obligations of involved parties to minimize the conflicts, interfaces, risks and disputes that can be happened during the project execution phase.
- Organizing, choosing, advising, and creating investment projects.
- Managing research and investigating projects;
- Analyzing data and evaluating projects;
- Constructing investment projects and profiles for designing the construction’s total estimates will be sent to authorities for approval.
- Signing economic contracts dealing with survey, design, construction, and installation.
- Supplying materials and equipment
The contract is really important since it is not only the basis of payment but also the basis of solving some legal problems. To get well-completed projects, all sides must have knowledge about the conditions of the contract. Managers are searching for the best ways to manage contracts more effectively. By doing so, the project will be more successful.
Mr. Ho Chi Linh made a on Administration Centre and Postgraduates Trainings at Can Tho University to find out the main factors that cause cost inflation, poor quality and delay at all stages of projects. These factors were analyzed in different ways of parties such as the Laws, Authorities, the Owners, the Contractors, Consultants, Sub-contractors. From that, the factors which are effective to prevent and control delays in the project can be seen.
The objectives of his study were to: (1) study the contract management practice of the case study project; (2) analyze the project management problems (time, cost, quality) in relation to contract administration; (3) identify delay causation in construction projects which were completed up to now or are building; and (4) make recommendation for improvement of the future project with similar characters.
Conclusion
Contract management is an important factor which directly affects projects. The contract management includes managing 3 main factors: quality, price and time. Most projects in Vietnam so far have been strongly influenced by these 3 factors, which leads to the poor quality, costs increases or delays. All these problems are popular and are still going on. However, it is possible for us to prevent even during the time the project is on going. With the total area of 18.990 square meters, 9 floors, the total cost is over 133 billion, the Administration and Post-Graduate Building – Can Tho University project is also affected by these factors.
This project was approved by the Ministry of Education and Training in 2008 and the investment was from the government budget. Although it has got supports and grants from the Government, relevant sectors as well as rector board from Can Tho University, the project was still delayed and the original estimated costs still increased due to objective and subjective reasons.
Objective reasons
Dramatic change in market price which affected workers and materials because the rate of price slipping was not specified in the contract.
There have been many problems in the transportation of materials and equipment because the construction site is located right in the center of the city which is very crowded with many students. The supply of materials was limited because of the fluctuation in the market price which significantly affected the progress and quality of the works.
Subjective reasons
The contract is not really logical, which does not express all the regulated contents that can tie the contractors as well as sub-contractors in materials, human sources and finance to implement the works.
The contractors did not provide with enough machines and modern equipment as regulated in the contracts. This is also due to the fact that the contractors selected were not well-qualified and have poor experience.
The contracts did not state clearly the time for the period of pile pressure and experiments, which does not include the time for implementation. This is the reason why the contractors often blame the experimental institutions for delays.
Solution
- Require the contractors to set up a quality management system suitable to project requirements
- Additional engineers, who have got experience about quality management and check equipment before being put into the work
- Contractor Material Supply who are responsible for the quality of their products
- Request the contractor to focus on human resources, equipment and time
- Providing a clear time for each job. Support the contractor to shorten the time.
- Investor has to set up the slippery of price coefficient.
- Having a strict and frequent monitoring, urge the contractors to solve any unexpected problems if occurred.
- Organizing frequent meetings with the contractors to remind and require them to commit and implement all the articles specified in the contract and follow the project timetable.
- Looking for sufficient extra financial sources to compromise slipping rate so as to assure the contractors to implement well with the rest of the project.
● Although there have been certain limitations, the contractors have successfully implemented some works for the project as well as strictly followed the procedure and legal documents. They did well with the work of environmental protection and guarantee the urban scenery, and especially the assurance of work safety. Therefore, there has been no accident in the construction site so far.
● Upon the completion of the project, it will significantly improve the prestige of Can Tho University in general as well as for the work of post-graduate training, scientific research and technology transfer, which promotes Can Tho University to a higher level in the region and in the whole country. This can help Can Tho University become comparable to other universities in the area as well as in the world. This also creates opportunities for the university managers to get access to and study with new technology thanks to good infrastructure because this is the first and biggest building in Can Tho University.
Recommendations
Due to the time as well as the limited scope of the thesis, not all aspects of the project were examined and analyzed. However, based on what has been achieved and not achieved, as mentioned in the conclusion, the following recommendations are proposed for better management to future projects.
- Contracts need to be more detailed with enough articles and regulations, in which all agreements need to be stated clearly.
- Trained engineers specializing in the fields of quality management and cost management.
- The investor should choose capable contractors with enough modern technical equipment as well as financial sources together with sufficient human resources.
- Bid winning price was not lower than the actual price of the project
- Build price fluctuation factor to deal with changing market prices.
- Utilize all funds to ensure implementation of the project.
- Checking materials, components, construction products through quality certificates where production and results of standard laboratory.
- Checking equipment and technology works before installation through quality certificates where production and results of quality testing of equipment.
- Need unified management of construction cost on a clue to avoid cross situation such as is now
- Complete the system of estimating construction
- Additional norms for construction and installation work is not yet in practice the detailed estimates of current, complete content and methods of synthesis unit set up in construction.
- List building , select a method of calculating overall cost consistent with the actual situation in the country, regional and international levels in each period.
His thesis abstract is copied and posted.
Abstarct
Since Vietnam joined the WTO, global platform for the construction industry were opened, bringing many new opportunities and also many difficulties and challenges. But in recent years, most of of projects are behind schedule, exceeding the estimate is very popular to make the management of the project have many difficulties, specially the management contract. In any investment project construction, the key elements necessary to ensure that the range or scope of the project, the total investment (Money) and the progress Time) of project implementation. Three elements make up a triangle project, including Scope - Money - Time is each edge of the triangle project. When an edge that will make these changes, the other edge changed. A project called good management when the triangle is less than the change triangle is created from investment projects approved construction. In fact the work of our building has been lost on the market at the home of their own, most projects are delayed and exceeded the total original investment to affect performance investment results as well as competitiveness.
The cause of the delayed and costs overcome, there are many such as institutional policy, in the uniform of the other central agencies and localities, these factors impact the world market, the capacity of entities involved in construction activities
This study will also discuss on the advantages and disadvantages of EPC contract from both Contractor and Project Company’s point of view and how to manage the EPC contract in accordance with term and condition clauses stipulated in the signed contract documents; how to resolve problems by understanding the contract clauses. However, the improvement of some major clauses are still needed in order to specify and define clearly the duties and responsibilities as well as obligations of involved parties to minimize the conflicts, interfaces, risks and disputes that can be happened during the project execution phase.
Tuesday 9 August 2011
Owner’s Project Quality Management
The business competition in today’s market has been increased swiftly. The customers satisfaction in terms of quality becomes the companies’ primary concern in order to survive. The purpose of the quality management is to make high quality products and focus on customers’ satisfaction. Therefore, the quality management such as ISO 9000, total quality management (TQM), etc have been discussed widely especially in the first class businesses.
PVOIL is one of the leading companies in Petroleum trading. With planned target in 2010, the company concentrates on building, expanding & developing the Petrol retail distribution system. However, the company is having some difficulties in the quality management. Besides, the systems were completed & had high quality.
Mr. Doan Thai Duong made a case study on North Pvoil Petrol Station to research the quality management of the company as well as to set out some solutions in order to complete and improve the quality management of the company & solve the existing difficulties.
The objective of his study is to building quality management of PVOil North Company
Conclusion
After defining the purposes, scope and research methodology, the thesis analyzed arguments such as concept of quality management, quality management procedure in construction works.
On the foundation of analyzing the state, the thesis presented advantages and disadvantages of the construction works quality management of Northern PV OIL through past years, stating objective and subjective reasons for shortcomings, thereof it is a ground for their future development and completion of construction works quality management of Northern PVOIL.
On the foundation of analyzing the practical situation of quality management of construction work in Northern PV OIL, the thesis proposed some completed solutions for the construction works quality management.
His thesis abstract is copied and posted.
Abstract
Petrol station projects quality management in Vietnam.
The study gives a thorough description of the Petrol station projects quality management as practised by the supervising consultant in Viet Nam. The documents and records used in these activities are also reviewed. A model for high level Petrol station projects quality management is defined, including supervising consultants and contractors.
The model depicts the quality management responsibilities and the roles in a scheme relating to Petrol station projects, quality assurance, and the interface between them. The study advances the understanding of how quality management is performed and engages participants in special construction area like Petrol station projects development.
It is very important to assure quality as well as safety of Petrol station projects with the objective to improve the quality of construction projects and to enhance the effect and productivity during PS performance.
The research methodology is highlighted as the main philosophy. Besides, different sources of data will be gathered in this research, including particular project documents, reports from Petrol company, newspapers, construction law and standards in Vietnam etc. An exploratory approach will be adopted by reviewing the available literature to develop a quality management framework for PS projects.
Report the findings of a research study, which was undertaken to examine the underlying factors affecting the quality of a PS project. It also aims to identify factors that show a strong correlation to good quality performance. The ultimate goal is to provide project managers, supervising consultants and contractors with information that can help them become more efficient with their limited resources and, as a result, achieve better quality outcomes.
PVOIL is one of the leading companies in Petroleum trading. With planned target in 2010, the company concentrates on building, expanding & developing the Petrol retail distribution system. However, the company is having some difficulties in the quality management. Besides, the systems were completed & had high quality.
Mr. Doan Thai Duong made a case study on North Pvoil Petrol Station to research the quality management of the company as well as to set out some solutions in order to complete and improve the quality management of the company & solve the existing difficulties.
The objective of his study is to building quality management of PVOil North Company
Conclusion
After defining the purposes, scope and research methodology, the thesis analyzed arguments such as concept of quality management, quality management procedure in construction works.
On the foundation of analyzing the state, the thesis presented advantages and disadvantages of the construction works quality management of Northern PV OIL through past years, stating objective and subjective reasons for shortcomings, thereof it is a ground for their future development and completion of construction works quality management of Northern PVOIL.
On the foundation of analyzing the practical situation of quality management of construction work in Northern PV OIL, the thesis proposed some completed solutions for the construction works quality management.
His thesis abstract is copied and posted.
Abstract
Petrol station projects quality management in Vietnam.
The study gives a thorough description of the Petrol station projects quality management as practised by the supervising consultant in Viet Nam. The documents and records used in these activities are also reviewed. A model for high level Petrol station projects quality management is defined, including supervising consultants and contractors.
The model depicts the quality management responsibilities and the roles in a scheme relating to Petrol station projects, quality assurance, and the interface between them. The study advances the understanding of how quality management is performed and engages participants in special construction area like Petrol station projects development.
It is very important to assure quality as well as safety of Petrol station projects with the objective to improve the quality of construction projects and to enhance the effect and productivity during PS performance.
The research methodology is highlighted as the main philosophy. Besides, different sources of data will be gathered in this research, including particular project documents, reports from Petrol company, newspapers, construction law and standards in Vietnam etc. An exploratory approach will be adopted by reviewing the available literature to develop a quality management framework for PS projects.
Report the findings of a research study, which was undertaken to examine the underlying factors affecting the quality of a PS project. It also aims to identify factors that show a strong correlation to good quality performance. The ultimate goal is to provide project managers, supervising consultants and contractors with information that can help them become more efficient with their limited resources and, as a result, achieve better quality outcomes.
Friday 5 August 2011
EPC Commissioning Strategy for Gas Pipeline Project
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.
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.
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
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