PROJECT MANAGEMENT IN SUPERMARKET DEVELOPMENT -

A CASE STUDY OF SUPERMARKET PROJECT IN VIETNAM

By

 Tran Minh Nghia

Abstract

           

This report studied the owner’s project management in supermarket development in design, tender and construction phase. The first objective was to analyze the problems of the project management in design, tender and construction phase. The second objective was to suggest the solutions to resolve these problems.

The study found that the owner had some problems in organizational structure, project delivery system, design management, tender management and construction management (including project time management, project cost management and project quality management). Some recommendations were suggested to solve these problems to help the owner manage the project successfully.

Executive summary

Rationale of research                                  

This research has been conducted to identify project management process in supermarket development projects in Vietnam.

Objectives of study

To study the project management in supermarket development in design, tender and construction phase, To analyze the problems of the project management in design, tender and construction phase and suggestion of framework for the project management in supermarket development in design, tender and construction phase.

Methodology  

The exploratory approach was used to understand project management process at different stages through literature review, professional journal articles, and books.

Findings and conclusion

Owner’s construction project management takes an important role in the project development process. It has a major contribution to the project’s success. The study observed the owner’s development of supermarket project in design, tender and construction phases and concluded as follows:

In design phase, the relationship between the owner and the design professional is crucial. The professional services agreement between two parties is the key document in defining this relationship as well as the owner’s goals and objectives for the project. The owner monitors design activities by reviewing and approving contract documents, progress reports and other submittals which provide the opportunity for prompt decision-making.

In tender phase, the owner formulates a selection procedure that emphasizes the evaluation of constructor qualifications. The owner evaluates these qualifications and makes a list of bidders who are most likely to be capable of completing the project successfully. Because the owner has developed a great numbers of supermarket projects, they have a list of qualified contractors to select for bid. Therefore, they can save time for make a list of pre-qualified bidders. The bid consultant assists the owner in the contractor selection process.

In construction phase, the objective is to build the project in accordance with the plans and specifications within budget and on schedule. The owner’s project management focused on time, cost and quality of the project. The project time and cost management of the owner was adequate and suitable to procedures and principles. However, the project quality management of the owner was inadequate. The owner didn’t establish the quality management system which is an important factor impacted the project quality.

Recommendations

• Clearly defined and assigned roles and responsibilities
• Has qualified and experience manpower in construction project management.
• The selection of an appropriate form of project delivery
• Contract documents that clearly define the responsibilities of team members
• Provide adequate funding.

DESIGN MANAGEMENT IN INFRASTRUCTURE PROJECT -

A CASE STUDY OF THE PHU MY 3 PROJECT

By

 Nguyen Nong Truong Thanh

Abstract

           

Infrastructure is the key to creating a dynamic, attractive, and thriving economic climate in communities around the world. It is important to nations’ future development and plays a critical role in creating and enhancing sustainable living conditions. Therefore, the planning, design and construction of full infrastructure system is of vital importance in developed and developing countries and in rural and urban areas, as it supports and connects our communities.

In recent years, the construction market have been swiftly blooming, especially the real-estate market in Vietnam. Thousands of the residential areas have been sprouting in the metropolis. This is one of important reason, why the government and the local authorities are attempting to invest and improve infrastructure system. This reason not only creating the huge market for construction consultancies but also raising these challenges for owners for managing these ones in design. Additionally, the owners have been facing the complexity of these infrastructure projects increasingly.

However, the role, the responsibility and the involvement of owner and consultant in each phase is unclear. Additionally, the design manager is not enough skills to meet the requirement of infrastructure project. As a result, the delay of pre-construction phase and the poor quality of existing buidlings as witnessed by the process of bad design management. The main purpose of this study is to conduct an intensive exploration and into the most problematic design management areas and to seek the invovement of owner and consultant and their skills as design manager in pre-construction phase for complex infrastructure projects in Vietnam, and assist owner and consultant finding appropriate solution and precise recommendations to improve them. Analysis of a case study in Vietnam suggests that owners requires careful planning, innovative managerial approaches, attention to behavioral issues, appropriate communication and information technologies, and mutual understanding of parties' roles and responsibilities.

Executive summary

Rationale of research                                  

This research has been conducted to identify problems in design process in infrastructure projects in Vietnam.

Objectives of study

To study the design management process and problems in the process for recommendations

Methodology  

The exploratory approach was used to understand the overall role of all sides in managing design and background of important design management with which design management problems are identified. Data were employed through direct interviews with the design managers, documentary evidence including all involved companies information on the internet professional journal articles, books.

Findings and conclusion

Design management is the way of how to get things done through the organization of design process is structured appropriately for project’s objectives, requirements, and resources. With developing market in Vietnam, the changes in legal always bring huge risk and therefore research to find out the suitable process for adapting the potential risk necessarily.

This study has successfully demonstrated an intensive exploration into the importance of design management in construction firm in Vietnam. A Concentration has been on analyzing and exploring the most arising issues in design management that significantly impact project performance. The findings resulted from thorough analyses based on the role and responsibility of design manager and the lack of skills for managing design work.

A case study has also been used that reflected major real-life problems found particularly in design management under a large and complex project in Vietnam, and closely related to the findings identified throughout the study.

Recommendations

According to the above results of analysis and assessment, illustrate that the current design management process has many serious issues that need to solve immediately to repeatedly avoid critical problems in future.

A good management process will effectively support for managers. It helps managers having a whole view of project aspects; detect the arising problems in the process rapidly, so that they can make a best decision to prepare errors. There are some following solutions need to apply to reducing minimal for the above process.

·         Firstly, the project manager must monitor ability of key individuals to know they can deal with their works by themselves or not in order to replace them instantly.

·         Secondly, the project manager must organize weekly meeting to monitor the project progress, know the arising problems, and let key members of the project can understand what they have been facing and find out best solution for them.

·         Thirdly, the project manager must avoid interrupting the project’ information. The issues and solutions must timely inform and send to key individuals via their email. If necessary, he needs to arrange an official meeting and ensure that they must participate fully.

·         Finally, the company must appoint a person to keep soft and hard documents by the best method in order to any people who take part in the project can easily find when they need but do not depend on the keeper or set sharing file for them.

Faculty Positions in Military College of Engineering,
National University of Science & Technology,Pakistan


Qualification: Masters, PHD in construction management

For Pakistani  Candidates


Please contact:

Dr Manzoor Hussain
Associate professor
Head of Department Transportation & Geo-technical Engineering
mhussain@mce.nust.edu.pk

 PROJECT OWNER’S CONSTRUCTABILITY MANAGEMENT SYSTEM – A CASE STUDY OF SOUTH RACH CHIEC RESETTLEMENT AND RESIDENTIAL PROJECT

By

 Nguyen Hong Thanh

Abstract

             

This report expresses the main key issues in Constructability Management System that known as an important part for any organization wants to study and develop the constructability practices.

This report, which refers to some theories and the standards system, has expressed the concept of constructability practices in construction. These constructability theories and practices are in organization, in the owner side, requires for the owner’s constructability concept and practices in construction and its benefits. The study and its concept have briefed the main factors that most effect to the specific project studied from public reports and the key points to control project constructability concept and practices from the conceptual planning stage to construction stage. This report has introduced a constructability concept to the developers for the purpose of amendment to the existing constructability management system in order to obtain a complete constructability management system for better managing project.

The case study of this report is the case study on the South Rach Chiec resettlement and residential project that established to run and deliver an international project of the Keppel Land Vietnam. Via this project case study, the findings on the existing constructability concept, constructability practices and the application from the previous part to this existing constructability management system for improvement will be the foundation of constructability management system for toward Keppel Land’ projects.

Executive summary

Rationale of research                                    

This research has been conducted to identify constructability issues in residential building projects in Vietnam.

Objectives of study

To study current approaches to constructability practices in a complex functional project with high-rise building and commercial office, determine the methodology to improve constructability practices during conceptual planning stage, design and procurement stage, construction stage.

To study the problems occurring in constructability practices and provide the solution to adapt constructability practices and recommendations.

Methodology    

Initially five key issues of constructability are considered. They are: developing the project objectives and definition, project conceptual planning stage, project design stage, project procurement stage, project construction stage. Each stage offers a very important pros & cons opportunities for constructability improvements during those phases.

Data collection and gathering information from research theories. To develop comparison and applying those theories to the existing constructability management system, in order to improve it.

Findings and conclusion

Case study mentioned the understanding of constructability concepts applied in reality with limited acknowledgement of personal capacity. However, there are some observations from findings that might need to review to improve the constructability concepts and practices.

The company should improve following matter to enhance constructability in specific project as per discussion:

1. Contract Review

2. Selection of Consultants/Contractors/Suppliers or Procurement

3. Design Review

4. Process Control

5. Coordination and Communication

6. Control of quality records

In order to conduct constructability practices in the project successfully, the company would develop proper training courses to operation level and management level to be able to acknowledge the appropriate concepts of constructability.

Recommendations

• Improve constructability concept and practices in project planning stage
• Improve constructability concept and practices in project design and procurement stage
• Improve constructability concept and practices in project construction stage 

STRATEGIC BEHAVIOUR APPLICATION IN MEDIUM-SIZE CONSTRUCTION: A CASE STUDY OF CAMBODIAN CONTRACTOR

By

Vannaro Kao

Abstract

             

The research aimed to study the strategic behavior application in medium size contractor in term of corporate strategies, business strategies, functional strategies, project operational strategies and strategic performance. Using an applied case study methodology, one road infrastructure construction company interviewing the president, general manager, each functional manager and senior project manager readjusted the strategic behavior theory in Thai contractors applying in Cambodian contractor. Under the case, the research findings of Hastheetham and Hadikusumo could be validated in case of Cambodian contractor. Moreover, the case proposed that the leadership style should be included as another component of project operational strategy. The readjusted framework could serve as a systematical guideline to develop integrated each level of strategic behavior and suggest the way of choosing an appropriate strategy in a specific situation.

Key words:      Strategic behavior, corporate strategies, business strategies, functional strategies, project operational strategies, strategic result performance, contractor.

Executive summary

Rationale of research

This research has been conducted to identify behavioural strategies of medium size contractors from Cambodia.

Objectives of study

The main objective of this research is to analyse strategic behavior application in medium size contractor in term of corporation strategies, business strategies, functional strategies, project operational strategies and strategic performance.

Methodology

The methodology for qualitative study is formed by instrument design, data collection, data analysis, and compiling the finding. Qualitative study methodology (Case study) has its purpose to fulfill the study’s objective which essays to study in medium size contractor of strategic behavior.

Findings and conclusion

The objective is to study strategic behaviour application in medium size contractor in term of corporation strategies, business strategies, functional strategies, project operational strategies and strategic performance. The literature review had been completely conducted to synthesize the key terminology related to strategic management in all level of the firm. The data analysis is purpose to validate the case of Arthasith’s strategic behaviour framework which is applied in Cambodia. To validate the data, the president and general manager of the firm ‘A’ are the key respondents to choose, to recommend, to advise, to adjust the attributes and provide more information the real firm practice.

Research Findings

The research findings under the case of Cambodian contractor are significantly valid the finding of (Hadikusumo & Hastheetham, 2011) in the theoretical framework of strategic behavior in Thai construction.

·         Besides, it is keen that the case in Cambodia proposed a very logical sense that company should know itself about the internal strength and weakness. The case suggested that expanding the horizontal growth whenever it intends to maximize the strength while extending the vertical growth whenever it intends to overcome its weakness.

·         Company could not implement Knowledge management as to manager the project via electronic media because of the limitation of communication infrastructure of Cambodia.

·         Further to another key finding that the case proposed is leadership style should be integrated into the project operational strategy since it is one of the key important success factors in the project.

Strategic behavior application in Cambodian medium size contractor case

Key implication of environment while the attributes finding stated below are the Strategic behavior applied in each level of company’s case from the top level management to the operational level. And it ends up with strategic performance measurement. The information of each level strategy is analyzed in detail and the framework which is applied and already adjusted by the case of Cambodian contractor.  The main factors found are:

·         Implication of environment emphasizing on the internal and external environment

·         Corporation strategy attributes are horizontal and vertical integration growth

·         Business level attributes are mode and scope competition

·         Functional strategy attributes include functional strategy, technology strategy, IT strategy, procurement strategy, HR strategy, and marketing strategy.

·         Interestingly, the project operational level attributes includes the leadership style of the project management and followed by project focus, project structure, project manager authorization, project knowledge management, and project communication.

·         The strategic performance is subjectively and objectively measured.

Construction Engineering and Infrastructure Management (CEIM) - AIT

International Study Visit to Ho Chi Minh city, Vietnam, 1st - 5th August, 2012

Construction Engineering and Infrastructure Management (CEIM) - AIT

CEIM students, AIT, had a successful study visit to HCMC visiting following sites

- North-South Expressway (Ho Chi Minh - Long Thanh - Dau Giay Section)

- Diamond Island project (District 2)

and attended Applied Project Management course in Public Infrastructure Projects taught by Prof. Gary Griggs, who come from Standford University. This course is offered by Professional Master Program in Project Management in Construction (MPM) in Vietnam (HCMC, Ha Noi, and Can Tho)

Meeting at Project Office, Ho Chi Minh - Long Thanh - Dau Giay Expressway Section, presented by Mr. Tatsuya Okamura (Nippon Koei), Project Manager. 

Group photo 

 

  @ Long Thanh - Dau Giay Expressway site

 Group photo at Diamond Island project - BTA Investment Management Ltd.

Presenter, Mr. Chau Anh Tuan, Project Director (left side) and Prof. Gary Griggs

CONTRACTOR’S PRACTICE FOR MANAGING SUBCONTRACTOR: A CASE STUDY OF THE EVER RICH II PROJECT IN HO CHI MINH CITY

By

Vo Khac Kien

Abstract

             

In the recent years, in most construction projects, particularly building projects prefer to hire subcontractors. Consequently main contractor need to develop management system standard in order to manage subcontractor rather than they will undertake construction work by themselves. As a result, main contractor concentrate on management strategies in term of tender process, type of contract, schedule control, quality control, progress and payment, and subcontractor safety.

In order to understand how main contractor’s strategies manage their subcontractors, this report was conducted through contractor documentation. The result shows subcontractor control strategy in a local contractor. Major improvements are needed for the subcontractor control strategy in local contractor in order to improve the subcontractor management performance. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.

Executive summary

Rationale of research

This research has been conducted to identify Main Contractor’s strategy for managing  sub-contractors within a project.

Objectives of study

To study management practices of contractors in contractor’s for managing subcontractor in The Ever Rich II Project, Dao Tri Street, District 7, HCMC. Find out strengths & weakness to propose recommendations.

Methodology  

The exploratory research method is used to study management practices in Vietnam.

Findings and conclusion

In recent years, main contractor have been trending to use subcontractor in specific area accordingly like as specialist subcontractor, skilled-labor subcontractor and expertise provided by subcontractor. Especially building project, it is common for 80 percent to 90 percent of the work to be performed by subcontractors.

However, there are many subcontractors who do not have not enough expertise or skilled resources to undertake work satisfactorily and, as a result, they are not able to bring good services to clients or not reach their requirements. In order to resolve these problems that main contractor needs to develop a strategy that allows contractor to manage subcontractor effectively and efficiently.

According to the rationale stated above, this study to conduct an investigation of main contractor’s strategy for managing the subcontractor on construction project in terms of tender, unit price contract, schedule control, quality control, progress and payment, and safety.

Criteria Contractor’s Strategy

Tender           

o   Experience in subcontractor tendering.

o   Knowledge of material,resourses.

o   focus on long-term relationship subcontractor.

o   Time, quality of performance, and price competitive are the project success measurement.

o   Safety performance plays important role in this project.

Contract        

o   Apply unit price contract in order to save heavy cost of preparing many bills of quantity by the subcontractor.

o   Fair basis for competition between subcontractors

o   Changes in contract documents can be made easily by the contractor compare to lump sum contract.

o   Lower risk for subcontractor compare to lump sum contract.

Scheduling

o   CPM and Microsoft Project was adopted as a toll for monitoring subcontractor’s schedule

o   Using fast track schedule in order to save the time.

o   Weekly meeting and monthly meeting in order to discuss the progress of subcontractor’s work performance.

o   Penalty for subcontractor delay works.

o   No bonus or incentive for subcontractor early finish work.

Quality           

o   Developing quality checklist to inspect subcontractor’s performance of each work.

o   Materials enter in and out site would be inspect and check using material record form.

o   Weekly meeting

o   Need worker qualification standard for special works

o   Requesting subcontractor correct unacceptable works by a warming letter.

o   Progress and Payment 

o   Because of use unit price contract so monthly progress payment based on actual quantity that subcontractor done.

o   Monthly progress payment would be keep 5 percent retention that be paid on final progress payment.

Safety 

o   Apply Environment, Health and Safety requirements.

o   Standard safety policy.

o   Providing PPE is a obligatory condition during work at site.

o   Conducting Job safety analysis.

o   Daily site safety inspection by safety engineer

o   Weekly meeting would discuss safety issue and analysis site safety inspection report.

o   Arrange safety budget for safety program implementation.

Recommendations

·    Need to develop standard for tendering for specialized sub-contractor.

·   Main contractor should arrange international formally contract in order to manage subcontractor in terms of legal procedure.

·    Main contractor should use IT to monitor progress.

·    Main contractor should develop quality management process.

·    Main contractor should record subcontractor database to be able to know subcontractor information. 

·   Main contractor should develop safety management system in order to analysis hazard and minimize risk in subcontractor performance. 

·    Main contractor should develop long-term relationship with subcontractors.