Risks and Cost Escalation of Underground Construction Package of High-rise Building

In the construction process, the underground construction package takes a big ratio of project cost. Underground construction package faces a lot of invisible factors which can affect the project cost a lot such as underground water level, existing neighbor projects, soil conditions, underground obstructions, etc. Furthermore, deep excavation of underground construction is also very important. The unreasonable method can affect the project cost such as: method of excavation, soil disposal, shoring system etc.

In recent years, the urbanization in Vietnam develops so fast, which leads to the requirement of basements for almost high-rise buildings as well as for underground parking, subways, tunnels, etc.

In fact, there are no solutions appropriate enough for underground construction. Moreover, it must be recognizable that excavation methods are applied differently in various locations. Some of the construction technologies can depend on the characteristics as follows:

- Geotechnical conditions

- Relief conditions

- Available equipment

- Construction and design experience

- Neighborhood construction

- Drainage conditions

- Waterproof methods and methods of reducing water flow

- Impacts on underground water level

- Load

- Environment

- Expenditures

- Duration

- Risks

Design consultancy and project management play an important role in the success of the project. Construction consultants are responsible for designing and selecting experienced contractors, controlling risks which may badly affect investors and the community.

Mr. Bien Nam Hai made a case study aimed to:

1. study cost estimation in a construction project in Vietnam as a case study.

2. study cost risks and escalation.

3. discuss strengths and weakness of the cost estimation, control and risk management of the case study.

Conclusion

Methods of basement design and methods of basement construction have a close connection, for the design characteristics of the basement protection structure depend on the construction technologies. The basement protection structure is also the one to stand the permanent force. Therefore, the overall construction methods start from basement design. Currently, the construction technologies are so diversified that the design and construction company has to analyze and present the design and construction methods most appropriate to the available conditions.

Economically, the basement construction is the one that may make a big loss without appropriate design and construction methods.

Technologically, the basement construction is complicated because of being performed in such a depth that the construction itself and the associated construction are likely to have problems. Therefore, design, construction and supervision must be paid much attention to.

Recommendations

The arising problems of the basement and underground construction have been the first concerns in Vietnam, especially to construction engineers, owners and managers. Therefore, knowledge enhancement, experience accumulation, technology exchange, human resource and professional improvement play a crucial role. There must be well-qualified human resources first and then well-qualified basements come. High values, low prices and enhanced quality.

The conditions of geography, hydrography, nature and climate in Vietnam are complicated and diversified as well as a lot of weak ground. Vietnam is among the five countries to be greatly affected by the climate changes. Thus, careful study of design, construction, monitoring, management, exploitation and maintenance of the basement construction must be performed professionally and with good career morality. Only professional engineers are able to take charge of signing the drawings, managing, leading and performing the basement construction. Foreign consultancy is also important, but Vietnam must have strategies to develop the human resource for the basement development technology.

Obviously, without achieving such vital requirements, there must be big losses of labor and property from the state and owners. Also, it costs a lot to repair the mistakes of the basement design and construction.

Abstract

This study, which refers to the theories and the standards system, has expressed the concept of cost estimation, cost control, cost risks and escalation of underground construction package of high-rise building

The next part of this report is the case study of Commercial Center, Textile Fabrics, Department Store and Apartment project, study cost estimation and cost escalation of the basement of high-rise building. This is also the objective of this study.

Contract Project Risk Management Strategy in an Unstable Market Situation in Vietnam

Vietnam joined the WTO in 2006 that gave it opportunity and a major challenge to foreign investors who invest directly in Vietnam as well as local investors. Like in any countries, unstable market as a great impact to real estate business and Vietnam could not avoid it especially that construction industry directly affected when the market goes down. The main reason is because some investors unable to project financial performance until completion of the project.

Nguyen Truong Hung made a case study to: (i) study the behaviour of project owners during slow construction market; (ii) study risks of contractor affected by Owner and market; (iii) study risks management (in term of solutions and strategy); (iv) discuss the strengths and weakness of the solutions

Summary

Risk management is an integrate part of project management. Therefore, risk management should be executes immediately at the commencement of the project and must maintained throughout the course of the project implementation process. Risks can occur in any phase of project, a negative effect of risks to project finance, because of project cost overrun. Contractor cannot avoided risks, however, if contractor implementation of strict risk management system, risk can minimize, transferred or retained. There are several ways of risk dealing such as transfers the risk to another party, as well as avoiding the risk, reducing the negative effect of the risk due to carry project, as well as accepting some particular or all of the consequences of a particular risk. The active and early identification of risks, analysis and evaluation them, with control or measures and reduce the impact of risk is urgently needed, to ensure the feasibility and efficiency of the project. The benefit of risk management as well as effectives of project management is save time, avoid cost overrun, ensuring is project complete on schedule as planned, with good quality.

Conclusions

Report listed the behaviours of investors occurred in construction projects in Vietnam when economic and market decline lead to Owner’s economic risks, and unstable market situation in Vietnam.

This report identify the major risks that construction contractors have occurred in the construction projects , many risks occurred in the construction phase , especially in the economic and slow market situation period .But the report only give particularly serious risks occurred for construction sector in Vietnam due to impact of economic difficulties and market decline sharply, and it real affected contractors.

As a result, the report described how contractor analysis as well as manage the risks, and their strategy to overcome the risk.

The report also highlighted strengths and weakness of contractors when they implementation the risk management system, and suggest solutions as well as give recommendations to manage risks.

Abstract

Construction business and Real estate business began to face difficulties since the first Quarter 2010 due to European economic downturn has affected foreign investment FDI in Vietnam to decrease, and interest bank rate is too high , and significant GDP decline has direct impact on the construction on the construction sector and real estate business. Investors face many risks in the project and this has indirectly affected to contractors, suppliers of projects. Therefore, risk management, especially risk management due to difficulties economic and slow market situation as to be appreciated in order to minimize the risks.   

Risks cannot eliminated, however, if contractor implementation of strict risk management system, risk can minimized, transferred or retained, There are several ways of risk dealing such as transfers the risk to another party, avoiding the risk, reducing the negative effect of the risk, as well as accepting some or all of the consequences of a particular risk. The active and early identification, analysis and evaluation, with control measures and reduce the impact of risk is urgently needed to ensure the feasibility and efficiency of the project. The benefit of risk management as well as effectives of project management is save time, avoid cost overrun, ensuring is project complete on schedule as planned, and good quality.

This study listed Owner behaviours often occur in construction projects when they encounter difficulties in the market, and contractors in risks management strategy to overcome the risks due to operating through the construction projects.

PROFESSIONAL MASTER PROGRAM IN PROJECT MANAGEMENT SPECIALIZED IN CONSTRUCTION (MPM) Intake 2013

PROFESSIONAL MASTER PROGRAM IN

PROJECT MANAGEMENT SPECIALIZED IN CONSTRUCTION (MPM) Intake SEPTEMBER 2013

Introduction

 The Project Management in Construction field of study trains professionals to play a leading role in the international construction industry. It molds students to become active leaders in the construction industry and large construction project.  The program prepares for students:

-    To become outstanding managers and decision-makers familiar with the modern techniques  of construction management, engineering management and infrastructure management

-    To more competent and capable to manage international large construction projects

-    To be able to assist the corporation to install and develop project management system in a company

 Main Features of the Program

•       One year professional AIT Master’s degree.

•       Credits can be accumulated over two years

•       Certificate course works

•       International field trip to the large construction sites in the region

•       Study language: English.

Program Structure

 AIT Professional Master Program is designed for those engineers who cannot leave their work while following a master program. The program is conducted in one year. To complete the master program, participants need to complete 11 courses and 1 project report with total 33 credits.

In the first two semesters, students will take basic and advanced courses selected in consultation with an academic/thesis advisor from among the regular courses offered at AIT. During the third semester, students will carry out their project study. Students will conduct international field trips:

-          First trip: Study at AIT

-          Second trip: visit to the large construction sites outside Vietnam, such as Thailand, Singapore, Malaysia, Indonesia, China and Taiwan or do internship in AIT Thailand

-          Third trip: to AIT to attend Graduation ceremony

AIT certificate can be given for those students who would like to register for a course offered of the AIT Professional master program. Credits gained from certificate courses can be transferred to AIT Professional Master Program.

English Entry Requirement

 AIT is an international institute with English as the sole language of instruction. Admission to AIT requires proof of English language proficiency which may be satisfied in any requirement of the following:

·                     IELTS (4.5)

·                     TOEFL (Paper -based: 500; Computer - Based:173; or Internet - based: 61)

·               AITEET. Applicants can apply for English Test offered by AIT at AIT-VN. English Test fee:  420,000 VND.

Entry Requirements

 To be eligible for admission to the AIT Professional master's program, an applicant must:

·              Hold a Bachelor degree (normally from a four-year program), or its equivalent, in an appropriate field of study.

·                     Have undergraduate grades significantly above average.

·                     Have good command of English

·                     At least three year of working experiences

Application form can be downloaded at www.aitvn.asia. Application submission fee:  420,000 VND. This fee is paid to AITCV when applicants submit the application documents.

Teaching Schedule

 The program is conducted during non-working hours (weekends and evenings)

Faculty  

 Faculties are from Construction Engineering and Infrastructure Management (CEIM) program – AIT and professional experts from industry. CEIM is highly experienced in project management education, from short training programs to master programs, doctoral programs and post-doctoral programs. So far, there are more than 300 masters and 12 doctors graduated in Project Management program and more than 500 trainees from short training programs received certificates offered by CEIM. CEIM also have its strong partnership with government’s construction organizations and industrial zones in providing consultancy services and professional researches to enhance the quality of construction projects.

For AIT Faculty’s profile, please refer to www.set.ait.ac.th/ceim

Curriculum

No	Code	Course
Core course:
1	CE70.12	Organizational Management in Construction
2	CE70.21	Integrated Project Planning and Control
3	CE70.11	Project Cost and Financial Management
4	CE70.44	Communication and Negotiation skills for Project Managers
5	CE70.33	Safety and Health Management in Construction
6	CE70.22	Legal and Contractual Risk Management
7	CE70.43	Project Financing
8	CE70.13	Quality Management
Applied Project Management courses
9		Applied PM in Construction Business and Project  Simulation
10		Applied Project Management in Highway Projects
11		Applied PM in High-rise Building Projects
12		Applied Project Management in Housing and Real Estate Projects
13		Applied Project Management in Commercial Projects
14		Applied Project Management in Public Infrastructure Projects
15		Applied Project Management in Petrochemical Project

English Training Program

 AIT-VN  will conduct 8 weeks intensive English Training for those who need to improve their Academic English Skills before joining the program. The English Training Program also guides participants how to conduct AITEET.

Language

The program is conducted in English

Admission Schedule

For Hanoi & HCMC

Intake	August 2013
Deadline for application	31 July 2013
Deadline for Interview & Test AITEIT	Any time
Intensive English Training	23 April 2013
First class	September 2013

 Tuition and Fees

Tuition and fees can be paid as 3 installments and at the beginning of each semester. Total tuition and fees: VND 284,285,625 (VND7,824,375/credit). Break down of tuition and fees is:

1. Registration fee:                      VND 10,432,500

2. Tuition fee for 1st semester:   VND 93,892,500

3. Tuition fee for 2nd semester:  VND 86,068,125

4. 1^st International fieldtrip fee:  VND 15,648,750

(8 days, 7 nights)

5. Tuition fee for 3rd semester:   VND 78,243,750

6. 2^nd and 3^rd Int. fieltrip fee:      VND 32,340,750 ^(*)

* Optional for 2^nd and 3^rd trip. Fee includes: air ticket, transportation, insurance and accommodation.

** R.O.E = 20,865 VND/1 USD. AIT reserves the right to apply the adjust tuition and fees without prior notice.

 Contact:

For morde detailed information please kindly drop at:

www.professionalprojectmanagement.blogspot.com

Asian Institute of Technology in Viet Nam Ha Noi Office		Asian Institute of Technology in Viet Nam HCM Office
Mr. Tran Anh Tuan		Ms. Nguyen Le Tuong
Tel: (84-4) 37669493 (131)		Tel: (84-8) 39107423 (117)
Cell: 01 285 687 168		Cell: 01 285 265 168
Email: anhtuan@aitcv.ac.vn		Email: ngletuong@aitcv.ac.vn

Preparation English Training course for MPM program

An Giang University to sign Memorandum of Agreement with the Asian Institute of Technology

The An Giang University has agreed to sign a Memorandum of Agreement with the Asian Institute of Technology to open an MPM Program at An Giang possibly on January 2014 semester. The prospective students will come from An Giag Province and the surrounding provinces in Mekong Delta.

The meeting between the AIT President and An Giang University Vice-Rector was held on April 12 at the An Giang University Campus.

Mr. Hoang Xuan Quang, Vice rector-An Giang University (left) and Dr. Hadikusumo, MPM Coordinator-AIT (right)

Meeting between AIT and An Giang University representatives

Seminar "Managing Megaproject in Developing Countries"

AIT SEMINAR
Ho Chi Minh city

MANAGING MEGAPROJECT IN DEVELOPING COUNTRIES

Presented by Prof. Christian Brockman, University of Applied Science, Germany 

Last 10 April 2013 in HCMC, MPM successfully organized a seminar about Managing Megaproject in Developing Country with presenter came from University of Applied Science, Bremen, Germany, Prof. Christian Brockman. He has more than 20 years professional experience in Construction Project Management and joined the Megaproject in Qatar in several years. 

The Qatar Integrated Railway project with a volume of 35 billion US dollars serves to explain specific aspects of megaprojects. Qatar is on the one hand one of the richest nations worldwide so that financing is no problem, on the other hand the country has no railway institutions or knowledge. After this introductory example, a discussion and an understanding of the term “complexity” are required to gain access to the problems of megaprojects. One mind frame enables us to build a management model for megaprojects. Such a model allows participating managers to focus attention and to achieve a better outcome. The model contains the required engineering tasks, management functions, meta-functions, basic functions and cultural influences.

Prof. Christian is very happy when sharing his knowledge and experience to participants who had been very interesting of this topic and had many discussions after the presentation. We do hope he will support us to come back Vietnam again for expert seminars in near future.

Presented by Prof. Christian Brockman

Minister of Agriculture and Rural Development Graces MPM Event

To promote the MPM program and get more awareness of the community, the MPM Vietnam organized an event with theme “Effective project culture for international large construction” which was held on March 30 at AIT Center in Vietnam in Hanoi. This event was graced by the Minister of Agriculture and Rural Development, Mr. Nguyen Thanh Binh, and was participated by 22 staff members of various companies such as CONINCO, LILAMA, VINACONEX, Petro-Vietnam Construction, FECON and many others.