Professional Master Program in Project Management in Construction in Ho Chi Minh city (20-24 July)

Asian Institute of Technology

Professional Master Program in Project Management in Construction 

in Ho Chi Minh city (20-24 July)

CE70.9010 - Applied Project Management in Construction Business and Project Simulation

Instructor

Dr. BHW Hadikusumo, Associate Professor, CEIM/MPM Coordinator, AIT

Students are learning simulation to apply organization and strategy, tendering, project management, human resources, financial and accounting management.

BUSINESS PROCESS MODEL OF THE PROJECT MANAGEMENT

PROCESS: A CASE STUDY OF WATER SUPPLY CONTRACTOR IN VIETNAM

By

Nguyen Thanh Tung

Abstract

In a developing national like Vietnam, the infrastructure system has not completed to support the demand of people in the country. Thus, the government of Vietnam has invested a huge of money to build and upgrade the infrastructure system. However, the infrastructure project are usually delayed and cost overrun, especially water supply system project. Almost those projects are delayed and cost overrun because of lack management, detail planning and schedule. Besides, a lot of water supply projects, those have built recently, got suffer design or construction fails due to lack of appropriate equipment and material, management skills or financial source. All the causes were led by inappropriate project managements and the tasks delivery during whole life of project. However, there is no research to find out the business process model of project management and the tasks delivery during whole life of water supply project.

Concerning the above issues, the research concentrated on three main objectives: (1) To map the business process model of project management in water supply projects; (2) To study efficient tasks delivery and find out the main cause of the inefficient tasks in water supply projects; (3) Suggest the solution and recommendation for making work being more efficiency.

 Executive summary

Rationale of research

This research has been conducted to develop business process model for water supply project contractors.

Objectives of study

To map project management tasks in water supply projects and efficient tasks delivery in water supply projects.

To find the problem in the process providing solution for making efficient process.

Methodology  

The study will start with the problem statement that was defined by study the practical statement of water supply projects in Vietnam. And then, the literature review of project management process during construction and business process management are studied to find out the main activities and its tasks to support the next stages of the research. During Data collection stages, the typical case study is collected from Vietnam.

Findings and conclusion

• The business process model of project management in water supply project of contractor

The business process model of project management in water supply project was mapping to help understand the business process of contractor. In which, the management tasks map illustrated the activity of contractor from bidding process to project handover. Furthermore, the relationship between each tasks and the input and output of each tasks were also found out and described on the map. Besides, the individual group and person who have responsibility for each task also were determined. It helped the researcher could see the mistake and inefficiency of each tasks or progress come from where and who have the responsible for them. To draw the model, a lot of interviews have done with key people of project to get the detail information supporting for the mapping work.

• Inefficiency tasks delivery of contractor in water supply project

According the case study, the project delayed in a lot of work section and cost overrun.In this study, the researcher had determined at least seven inefficient processes as following:

1. Inefficiency of estimation process.

2. Chose wrong the construction teams, subcontractors.

3. Shortcoming of preliminary processes before executing the project.

4. The inefficiency of executing on site of subcontractors and construction teams.

5. Lack of management and observation of Site management Board

6. Inefficiency of observation and inspection from Planning and Economic Dept.

7. Inefficiency of payment management, Inefficiency of doing final document works

In which, the executing on site of subcontractors and construction teams was the most major process that significantly affected time, cost, quality of project. In this process, every mistake and error occurred that led a lot of delay and cost overrun in the project.

• The main Causes of inefficiency in project management of contractor in water supply project

After analyzing project document and discussing with key person, the researcher found out some main causes that led the project got problem during bidding, construction and handover process. It includes:

1. No concrete regulations on contract management among main contractor, subcontractors and construction teams.

2. Conflicts of responsibilities

3. Lack of qualified staff and labors

4. Inappropriate work planning of subcontractors and construction teams

5. Contractor’s poor site management

6. Inadequate experienced construction teams and subcontractors

7. Problem with subcontractors

8. Lack of implementation equipment and material

In which, inappropriate work planning of subcontractors and construction teams were one of the most popular cause in the case study.

Recommendation and solution to improve the efficient project management

To improve the efficient project management, some recommendation and solution were provided to deal with the problem remaining in each process. All recommendation and solution were suggested after not only discussing with experts and key person in the project but also finding from journal and book to get the best solution. The researcher had recommended and proposed the solution for each inefficient process or task to improve the efficient project management of contractor.

DELAYS  IN HIGH-RISE BUILDING PROJECT IN VIETNAM

By

Tran Phi Long

Abstract

           

Normally, completion project within requirements about time, cost and quality is the major targets of every projects. Construction timely can be regarded is one of three critical factors to evaluate the success of construction project. The construction project can not considered successfully if it was not on time and delay. However, almost of construction project in Vietnam have face with this problem. In these current years, Vietnamese construction industry has seen an alarming increase in delay. Especially in high-rise building project, this problem has become one of the most serious problems.

The study is conducted by using quantitative research. The survey of this study was implemented in three big cities in Vietnam – Ho Chi Minh, Can Tho and Hue city. Firstly, the main purpose of this study is identified the important causes lead to the delays in high-rise building project in Vietnam. After that, this study will find the correlation between causes and effects of delay to evaluate the impact of delays causes to project. Moreover, another purpose of this study is finding the successful factor, which can be applied to avoid and minimize delay in high-rise building projects.

Executive summary

Rationale of research

This research has been conducted to study delay issues in High –rise building construction projects in Vietnam.

Objectives of study

To study the causes of delays in building construction project in Vietnam and the effects of delays in high-rise building projects to suggest successful factors that can be applied to avoid and minimize delays in high-rise building project in Vietnam.

Methodology  

The framework of methodology is to investigate activities of project which are designed by questionnaires that are performed by project managements teams of owner, construction and consultant companies in Vietnam. Methods concern the techniques which are available (for data collection, analysis method, etc.) and those which are actually in use in a research project. In general, plan will assure that the process base on features of literature review and the objectives of study.

Findings and conclusion

This time, construction delay is the serious problems for Vietnamese construction industry. Especially in high-rise building projects in Vietnam, they have seen an alarming increase in delay problem. There are many efforts, which are underway to resolve this problem. However, this problem in Vietnam is still serious. It is not only popular but also its effects are high severity. Thus, a study about delays in high-rise building project in Vietnam is necessary. The finding of this study will be summarized below.

Causes of delays in high-rise building project in Vietnam

Firstly, three ranking by three main parties of project was conduct to find out the important causes of delays based on the view of three groups. The results of these ranking were used, According to result, these correlation is strong at 0.01 significant level, that means there are 99% confident that the viewpoint of three main parties about delay causes are highly agreement.

Because of the agreement among three main parties, the ranking based on all respondents, who come from three main parties will be acceptable.

Top ten of delay causes, which have high frequency of occurrence are: (1) Rising price of material, (2) Financial problem of owner, (3) Lack of high technology equipment, (5) Payment problem, (6) Unskilled workers, (7) Financial problem of contractor, (8) Change others by owner, (8) Lack of capability of contractor, (10) Lack of detail and unclear information in drawing and design document.

Ten most severity causes of delay including: (1) Rising price of material, (2) Lack of capability of contractor, (3) poor experience of contractor, (4) Financial problems of owner, (5) Financial problems of contractor, (6) Improper construction method implemented by contractor, (7) Insufficient data collection and survey before design, (8) Unskilled workers, (9) Lack of labor, (10) Delay work caused by subcontractor.

The important causes of delay were identified by important index, which was accounted based on the frequency and severity of each cause in the list of delay causes. According to the result of this study, top ten of important causes of delay in high-rise building in Vietnam are: (1) Rising price of material, (2) Financial problem of owner, (3) Contractor lack of capability, (4) Financial problem of contractor, (5) Delays work caused by subcontractor, (6) Unskilled worker, (7) Contractor poor experience, (8) Delay payment problem, (9) owner change orders, (10) Slowness decision making.

Effects of delays in high-rise building project in Vietnam.

Almost groups of causes have correlation with six effects of delay. All most the relationship between causes and effects of delay are the moderate correlations (the correlation coefficient from 0.3 to 0.7). However, the causes that created by the special character of project are not related with effects of delay. All correlation between this group with effects of delay is weak (correlation coefficient is lower than 0.3). Groups of causes, which created by owner and contractor, are the causes have strongest correlation with effect of delays.

• Time overrun
• Cost overrun Dispute
•  Arbitration
• Litigation
• Total abandonment

Avoid and minimize delays in high-rise building project in Vietnam.

In these current years, Vietnamese construction industry has seen an alarming increase in delays in construction projects. Especially in high-rise building project, this problem is more general and serious. Therefore, finding the way to avoid and minimize delays in high-rise building is a necessary mission, and many efforts are underway to find the solution. In this study, one of major purposes is find out the important factor, which can be applied to avoid and minimize delay According to the results, tops ten important factors can apply to avoid and minimize delays in high-rise building project in Vietnam are: (1) Ensure adequate and available source of finance until project completion, (2) Competent project manager, (3) Selection of a competent and reliable consultant to carry out the work, (4) Comprehensive contract documentation, (5) Perform a preconstruction planning of project tasks and resource needs, (6) Frequent progress meeting, (7) Adopting a new approach to contract award procedure by giving less weight to prices and more weight to the capabilities and past performance of contractors, (8) Contingency plan, (9) Multidisciplinary/competent project team, (10) Ensure timely delivery of materials.

Asian Institute of Technology in Vietnam

Project Management in Construction

BIM – Will it transform the industry,or will it be business as usual?

by

Dr. Henrik Linderoth

Associate Professor

School of Technology and Society

University of Skövde

During the seminar Dr. Henrik explained that the emergence of new technologies has always triggered visionary ideas of changes of the state of art in organizations, industries and society. However, what we know from research is that changes do emerge, but often not as fast as expected and not in the directions predicted in the visionary ideas. In this sense BIM – Building information models – is no exception. The transformational capacity of BIM and its potential benefits has been discussed for two decades, but it is only during the last few years a more encompassing deployment of BIM can be witnessed. However, challenges still exist for management before any deeper impacts on the industry will be achieved. The challenges to solve can be viewed as layers of challenges in at least four categories: technical, legal, organizational and managerial. During the seminar these challenges will be discussed and I will draw parallels with a similar process in the health care sectors that I have studied for ten years. It appears that at the bottom line is the issue: Who are the beneficiaries and who has the power to shape the process?

Dr. Henrik Linderoth and Dr. BHW Hadikusumo

 PRECAST CONCRETE APPLICATION AND LOGISTICS MANAGEMENT OF PRE-CAST CONCRETE CONSTRUCTION IN VIETNAM

By

To Thanh Huyen

Abstract

Precast concrete method is special method that brings a lot of benefit to construction such as lower project cost, better quality control, faster installation on site, and lesser wastes and resource. However, precast concrete method application requires a higher level of building logistics because precast components are high volume components but precast logistics management has been limited application in Vietnam. That is the reason why precast method has not widely applied yet in construction in Vietnam.

This work presents the precast logistics management model developed from the beginning of project until finished construction work in Vietnam. The logistics management is assessed based on the data and information collected from two case studies which are precast building project and on site casted concrete building project. Then, the critical logistics activities, the logistics efficiencies and problems, also strengths and weaknesses are identified. Finally, base on the assessment results, recommendations for improving the logistics performances in precast construction are proposed.

The results of this study found that the precast logistics management chain in construction starts from the feasibility study of project. The investor’s construction method decision in feasibility study affects to the whole precast logistics chain. In order to get the maximum benefits from the precast advantages, the precast application should be considered from the beginning of project, in the feasibility study.

Executive summary

Rationale of research

This research has been conducted to understand issues relating to precast concrete usage and transportation issues.

Objectives of study 

To develop the precast concrete supply logistics management model applicable for Vietnam building project and to assess the precast concrete application and logistics arrangement in precast concrete construction projects. So that strength and weakness can be identified.

To propose recommendation for logistics management model in order to improve logistics performance in precast concrete construction site

Methodology

This research adopts qualitative research method with case study approach that is “in – depth study of one or more examples that represent a particular phenomenon or theme”. The goal of case study is provide an accurate and complete description of the case. The focus of the case – study approach is on individuality and describing the individual as comprehensively as possible

Findings and conclusion

The study focuses on precast concrete application and logistics management issue in precast concrete construction from the beginning of project when precast concrete method should be applied until the precast building is completed. The data is collected from high-rise building project in Hanoi area, the capital of Vietnam.

The first objective of study is to develop the precast concrete supply logistics management model which is applying in Vietnam building project. This model have been found base on theoretical and verification of experts in Hanoi area. In this model, the investor signs the separate contracts with each other party who are designer, contractor and precast supplier.

The second objective of study is to assess the precast application and logistics arrangement in precast/preassembly construction project, so that strength and weakness can be identified. In order to achieve this objective, the collected data from 2 case studies were analyzed. According to result of data analysis, precast application and precast logistics management brings a lot of efficiencies in reduction of project time, cost and improvement of project quality. However, because of the consequences of precast logistics management problems which are coming from most of project phases, the precast logistics management has not really been the function responsible for purchasing the best quality of materials at the lowest price with the necessary service.

REWORK IN RESIDENTIAL CONSTRUCTION IN CAMBODIA

By

San Visal

Abstract

Nowadays, Because of high demand of population, there are many construction projects is constructing in Cambodia. In addition, rework in one of the main unavoidable problem in construction project. Therefore, in order to understand of each impaction of each rework categories and propose recommendation to reduce those rework, this research was conducted. In order to achieve the objective of study this research was conducted by using questionnaire survey from 30 construction project which 12 of high rise concoction and 18 of low rise construction.

The research show that concrete strength under requirement that rarely occurred is high impact on time and cost in high rise construction and medium impact in low rise construction. Defective in rebar cutting, low quality of plastering and incorrect of erection form-work are the 3 rework categorize that is high frequency occurrence in high rise construction. Defective in rebar cutting is the rework categorize that is high frequency occurrence in low rise construction.

Moreover, it was found that both of rework happens in low rise and high rise construction cause by human resource ability is the highest one. It was followed by engineering & review, leadership & communications, material & equipment supply and construction planning & scheduling respectively.

             

Executive summary

Rationale of research

This research has been conducted to asses rework issues in Cambodian residential construction projects.

Objectives of study

The objectives of this study are:

To investigate the rework categories which impact time and cost in residential construction in Cambodia.

To identify the important factors direct caused rework in residential construction in Cambodia.

To propose recommendation to reduce rework in residential construction projects in Cambodia.

Methodology

The research methodology that supported by literature was developed in order to achieve the objectives of study. Methodology describes the method of data collection, data analysis and data interpretation. Finally, conclusions and recommendation were conducted to support this study.

Findings and conclusion

Rework was described as an inevitable event in construction project. Its occurrence has strong impact on project performance in term of time and cost. In addition, rework that was considered low, medium and high impact on time and cost depends on the type of rework and degree of its damage actually. On the other hand, some kind of rework that is low and medium impact could be considered as critical item if it happens quite often in construction project. Normally, change order, damage, error, failure, omission and deviation are the source that could cause rework occurring in construction project.

Moreover, different rework categories that occurred in construction project caused from different reasons that were categorized under 5 main groups human resource capability, engineering & reviews, construction planning & scheduling, material & equipment supply and leadership & communication.

Quantitative research design of 30 construction projects was applied in this research. Among these 30 construction project, there are 12 high rise construction and 18 low rise construction. The study is focusing on characteristic of each rework categories in term of frequency of occurrence, time & cost and direct causes during construction phase. Rework is an unavoidable event that occurred in construction project. In addition, it could be dissatisfied to participant in the project such as owner, sub-contractor and contractors.

In Cambodia, both of low rise and high rise construction, human resource capability is the highest factor that cause rework occurrence. It was follow by engineering & review, leadership & communications, material & equipment and construction planning & scheduling respectively. In addition, insufficient supervision is the main factor under human resource capability that cause rework occurrence in both low rise and high rise construction. Inadequate shop drawing details is the main factor under engineering & review that causes rework occurrence in low rise construction while inadequate shop drawing details and deviation from drawing are the 2 main factors that cause rework occurrence in high rise construction. Lack of communication between site supervisor and worker is main factor under leadership & communication that cause rework occurrence in low rise construction while lack of communication between contractor & inspector is the main factor that cause rework occurrence in high rise construction. Inadequate construction planning is the main factor under construction planning & scheduling that cause rework occurrence in both low rise and high rise construction. Low quality of equipment is main factor under material & equipment supply that cause rework occurrence in low rise construction while poor quality of material is the main factor that cause rework occurrence in high rise construction.

Recommendations

Rework occurrence in Cambodian construction projects is based on five main categories. Engineering and reviews, human resource capability, leadership & communication, material & equipment supply and construction planning & scheduling.

Therefore, the development model was produced in order to reduce rework in construction project.

STRUCTURAL EQUATION MODELS OF SERVICE QUALITY,

CUSTOMER SATISFACTION, AND BEHAVIORAL INTENTION

IN SMALL AND MEDIUM CONSTRUCTION PROJECTS

IN THAILAND

By

Thanawat Phangchunun

Abstract

             

The research focuses on structural equation models of service quality, customer satisfaction, and behavioral intentions in small and medium construction projects in Thailand. The main objective is to recommend service provider (considered as contractor) how to improve service quality in order to achieve higher customer satisfaction and behavioral intentions such a word-of-mouth recommendation, repurchase intention, and willingness to pay more. The design for this research is quantitative approach. At initial stage, the measurement items of service quality in small and medium construction project are developed from SERVQUAL and verified by experts who are familiar in construction business with owner perspective. Twenty-three measurement items were remained in order to assess service quality. The questionnaire was developed based on these items. A total of one hundred and thirty-nine respondents completed the questionnaire. Then, exploratory factor analysis (EFA) used to assess validity and reliability construct. Confirm factor analysis (CFA) is used to explain the relationship between service quality, customer satisfaction, and behavioral intentions. The findings presented that there are four dimensions of service quality construct in small and medium construction projects in Thailand which are Reliability, Responsiveness, Assurance, and Tangibles. Further results indicate that the direct effect of service quality on behavioral intentions is not significant. However, its indirect effect seems to be stronger driver for behavioral intentions as customer satisfaction acting a mediating role. Contractor in small and medium construction projects are recommended to focus on dominant of service quality dimensions in order to improve customer satisfaction and acquire positive behavioral intentions.

Executive summary

Rationale of research

This research has been conducted to provide a Model for contractors to meet customer satisfaction.

Objectives of study

To study Service quality factor in construction business and its measurement, Client satisfaction factor in construction business and its measurement and behavior intentions factor in construction business and their measurement.

To develop Structural Equation Modeling (SEM) model which explain the behavior of factors affecting to those latent variables (service quality, client satisfaction, and behavior intentions).

Recommendation on how to improve service quality. In order to achieve customer satisfaction and behavioral intention in small and medium construction projects in Thailand.

Methodology  

In order to accomplish the objectives of this study, it is considered into three main sections; input, process, and output. This study begins with identifying the criteria for measuring service quality, customer satisfaction, and behavioral intentions.

All of them have been obtained from the literature review. Moreover, the basic concept for structural equation modeling was reviewed as well. All of these processes are considered in input stage for this research.

Findings and conclusion

Customer satisfaction is the one criterion for company success in construction business. It can lead the behavior of customer especially repurchase intention. In this study, post behavior of a customer were focused by word-of-mouth recommendation, repurchase intention, and willingness to pay more. Interestingly, customer satisfaction is significantly in order to gain market advantages and survive in the competitive environment. The level of client satisfaction is quite low according to construction industry seems to be high and increasing conflicts and disputes. Consequently, the researcher attempt to discover the factor affecting customer satisfaction and behavioral intention in construction business. One of criteria in customer satisfaction is service quality. However, it is difficult to measure service quality directly because of its characteristics such as intangibility, heterogeneity, and inseparability. Therefore, it is necessary to study how to provide high level of client satisfaction, and develop positive behavior intention by focusing factor affecting service quality. The purpose of this study was conducted to: study service quality, customer satisfaction, and behavioral intention factor as well as their measurement, develop Structural Equation Modeling (SEM) model which explain the behavior of factors affecting to those latent variables (service quality, client satisfaction, and behavior intention), and recommend how to improve service quality in order to achieve customer satisfaction and behavioral intention. 

In order to achieve the objectives of this study, the researcher conducted exploratory factor analysis (EFA) and confirm factor analysis (CFA). The measurement items for assessing service quality were gathered in literature reviews and interviewed the experts. There are 23 measurement items that will be applied in statistical analysis. The service quality scale was done by reliability test as well as factor analysis. According to the results, there are four dimensions for service quality measurement which are Reliability, Responsiveness, and Assurance. Notably, Empathy dimension fail to demonstrate a dominant role in service quality for small and medium construction project in Thailand. Subsequently, a CFA was implemented to confirm the dimensionality of the first order service quality factors (Model A: Measurement model for service quality). As a result, the objective 1 “To study service quality factors and its measurement” has been achieved. Moreover, the study of measurement in customer satisfaction and behavioral intention was disclosed by literature review and experts’ verification. The statistical test was employed in order to attain reliability and validity of the construct. Therefore, the objective 2 and 3 “To study customer satisfaction and behavioural intention factor and their measurement” have been accomplished. By implemented SEM analysis, all models in this study have achieved in model fit. In structural model (Model C) is presented the relationship among service quality gap, customer satisfaction, and behavioral intention. The results prove our hypothesis that service quality gap has negative effect to customer satisfaction.