Infrastructure report Indonesia

Activity in Indonesia's construction industry has returned robustly in the second quarter of 2011, bringing real growth for the sector to 6.36% year-on-year in the first half of 2011, in line with our 2011 full-year forecast of 6.3%. However, the lack of improvement in Indonesia's business environment and the weakening global economy will continue to pose significant risks to Indonesia's infrastructure and construction sector in 2012 despite the vast opportunities on offer. Nevertheless, construction activity, driven by investment into transport and energy infrastructure, as well as industrial construction related to the country's growing mining sector, is expected to be relatively robust between 2012 and 2016, averaging 7.2% per annum. 

Key factors that will facilitate growth include: 

In July 2011, Three state-owned Chinese companies, China Building Civil Constructions, Changjiang Waterway Engineering Bureau, and China Foundation for Desertification Control, had send officials to indicate their serious intent to invest in East Java, signed a memorandum of understanding for several infrastructure projects amounting to around US$3bn. This move once again highlight the robust interest companies from stagnant domestic markets have for Indonesia. 

In August 2011, Malaysian company Markmore Labuan had signed an agreement with Prodexim, a company owned by the South Sumatran provincial government, for the construction of a toll road in South Sumatra, Indonesia. The 137km road, requiring an investment of IDR7.5trn (US$882mn), will connect Kayu Agung in Oki with Betung Banyuasin. This investment highlights foreign interest in the sector which is largely dominated by domestic companies. 

In September 2011, the Jakarta administration had finally announced that it is aborting its US$630mn monorail project, a project that had originally started in 2004. The project, which started in 2004, failed to move forward due largely to the lack of financiers. The capital city has since move towards the development of a separate urban railway system. 

Indonesia’s business environment continues to pose downside risks for investors. Although the Indonesian government is working hard to attract private investors, there is still an underlying threat of corruption and a lack of transparency in the tendering process. The biggest concern is that Indonesia appears to be regressing in its fight against corruption, with a raft of proposals - that if approved - would undermine current anti graft laws. This culminates in a score of just 56.7 out of 100 for infrastructure business environment.


Business Monitor International
Source :http://www.marketresearch.com/Business-Monitor-International-v304/Indonesia-Infrastructure-Q1-6680228/

Source: Department of Statistics Singapore

http://www.singstat.gov.sg

Building Construction Activities in recent Years

Source: Building and Construction Authority via Department of Statistics Singapore

http://www.singstat.gov.sg

SOCIO-ECONOMIC STATISTICS FOR THE FIRST HALF OF 2012  VIETNAM

1. Gross Domestic Products (GDP) Growth GDP in the first six months of 2012 at 1994 constant prices was estimated increasing by 4.38% from the same period in 2011, of which it rose 4.00% in 1st Quarter; and by 4.66% in 2nd Quarter. Of the economy’s general growth, the sector of agriculture, forestry and fishery rose 2.81%, contributed 0.48 point percent; the industry and construction by 3.81%, contributed 1.55 points percent; and the service by 5.57%, contributed 2.35 points percent. The low growth of GDP was due to difficulties met in production, business and consumption of goods by many economic sectors. The industry held great proportion in GDP but its growth was low. However, the economy has changed positively since 2nd Quarter, particularly for the sector of industry and construction: the value added of this sector in 1st Quarter rose only 2.94% from the same period last year, but in 2nd Quarter it rose 4.52%, of which industry rose from 4.03% to 5.40%. 2. Construction As estimated, 6 months’ constructional production value at current prices reached 283.3 trillion dongs, of which the state sector reached 42.5 trillion dongs, accounted for 15%; the non-state sector 232 trillion dongs, accounted for 81.9%; and the FDI sector 8.8 trillion dongs, accounted for 3.1%. As estimated, 6 months’ constructional production value at 1994 comparison prices reduced 0.4% from the same period last year, of which the state sector decreased by 6.8%; the non-state sector increased by 0.8% and the FDI sector by 1.5%. 3. Labor and employment The country’s labor forces aged 15 and above in 2012 were at an estimation of 52.7 million, rose 1.3 million from 2011, of which men accounted for 51.6%; women accounted for 48.4%. Laborers within the labor working age group were 47.1 million, rose 0.6 million, of which men accounted for 53.7%; women accounted for 46.3%.Laborers aged 15 and above working in the economy in 2012 were at an estimation of 51.6 million, rose 1.3 million from 2011, of which laborers working in the sector of agriculture, forestry and fishery accounted for 48.0%; in the sector of industry and construction accounted for 20.9%; and in the service sector accounted for 31.1%. Unemployment rate of laborers within the labor age group in 6 beginning months of 2012 was 2.29%, of which it was 3.62% for urban area and 1.65% for rural area. Under-employment rate of laborers within the labor age group was 3.06%, of which it was 1.92% for urban area and 3.60% for rural area. SOURCE: GENERAL STATISTICS OFFICE

                                                                                                                                                                                    

CEIM Welcome Party for Aug2012 Batch 

with 

Dr. BHW.Hadi Kusumo & Dr. Santoso

THAILAND CONSTRUCTION DATA   

DATA SUMMARY

THE 2012 CONSTRUCTION AREA : Q1/2012

The National Statistical Office has collected data on permitted area both new construction, and addition or alteration since 1966. The data use for calculating the National Account, Real estate Indicators and for policy maker on economics and social development plan.

Data presented are the permitted construction area by municipal areas and Sub–District administrative organization with in building control regulation under the Construction Control Act : B.E. 2522 in 1Q12 of the nation. The main findings are follows as;

1. Number of permitted and construction area 
In 1Q12, the total permitted number of new construction building and addition or alteration were 43,432 persons, composed of 38,611 persons of construction building and 4,821 persons of civil engineering construction.

1.1 Construction building
The permitted of construction building with the floor area of about 15.8 million square meters, most of them (98.0%) were new construction and those of addition or alteration were 2.0%.

Comparing to the 4Q11, the permitted number of new construction increased by 17.0% and floor area increased by 12.8%. If compare to the 1Q11, the permitted number decreased by 6.1% and floor area decreased by 7.0%.

1.2 Civil engineering construction

For the civil engineering construction, the permitted number of about 4,821 persons, most of them (99.4%) were new construction and 0.6% was addition or alteration. In term of floor area such as the Car Park, Sport Ground, Petrol Station, Advertising Board, Swimming Pool, etc., there were totally 367,490 square meters. In term of the length of civil engineering construction such as Water-Drain, Road, Fence/Wall, Bridge, Dam etc., there were totally 445,424 meters.

Compared with 4Q11, the permitted number increased 14.1%. The floor area and the length of the construction decreased by 16.4% and 13.4% respectively.

Compared to the 1Q11 it was found that the permitted number of construction increase about

6.2% and floor area increase 28.0%. But the length of construction decreased by 27.9%

2. Type of construction building

2.1 The construction building

The Residential Buildings floor area of permitted were 10.3 million square meters (65.0%). Followed by Commercial and Office Building were 2.5 million square meters (15.8%).

The Industrial and Factory Building were 1.8 million square meters (11.6%). For Hotel Buildings

about 0.3 million square meters (1.9%). Education and Health Building were 189,698 square meters.

The overall permitted construction floor area (15.8 million square meters) increased of 12.8% from 4Q11, especially the Industrial and Factory Building increased by 133.3 %. The Commercial and Office Building increased of 37.1%. The Construction area for Residential Buildings increased about 12.1%. But the Hotel

Building decreased 74.4%, Education and Health Building decrease about 3.1%. from 4Q11.

Compared to the 1Q11 it was found that the permitted of construction floor area about 17.0

million square meters or decreased by 7.0%.

2.2 The civil engineering construction

For the civil engineering construction, the Water Drain construction was permitted about 253,248 meters (56.9%), there were 106,599 meters (23.9%) of Fence/Wall and about 76,598 meters (17.2%) of Road.

The total length (meters) of civil engineering construction permitted were 445,424 meters, decreased 13.4% from 4Q11, and decreased 27.9 % from 1Q11.

The floor area of civil engineering construction in term of the floor area such as Car Park was permitted 218,766 square meters (59.5%), Petrol Station was 29,420 square meters (8.0%).

Advertising Board was 14,946 square meters (4.1%), And Sport Ground was 17,359 square meters

(4.7%). Compared to the 4Q11, the overall permitted construction floor area was 367,490 square meters, decreased by 16.4% but 28.0% increased from 1Q11. 

Source :. National Statistical Office Thailand 

http://web.nso.go.th/en/survey/construction/data/const12q1_dsum.pdf

 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.