Effectiveness of Feasibility Study Analysis in Apartment Building Project

In the context of declining global economy, Vietnam’s real estate/market and construction potential is one the reasons why foreign investors remain attracted in the country. The construction projects present a unique situation where each project is different with different situation and parties. One  of  the  important  stages  involve  in  a construction  project  is  the  preparation  of  the  feasibility  study. Feasibility Study is being conducted during the formulation phase of Project Cycle. It verifies whether the proposed project is well founded, and is likely to meet the needs of its intended target groups/ beneficiaries. The study should design the project in full operational detail, taking account of all policy, and technical, economic, financial, institutional, management, environmental, socio-cultural, and gender-related aspects.

According to the characteristics of construction industry, it has high uncertainty, so many risks will occur during Project Feasibility Study. This problem might influence to the decision making of the project and to its profit. To those assumption, the main construction factors should have been anticipated and calculate it into the feasibility analysis so that avoiding risks will become additional advantage for the investor.

TRUONG NGOC DUNG made a case study which objectives were to:

1. conduct an exploratory study on the factors and process used in financial feasibility study

2. develop a framework for an effective financial feasibility for Apartment Building Project

3. conduct a case study to validate the effectiveness of the framework

This issue is more significant to some of the construction investors facing serious problems with budget control, as an effective budget control is critical for investing in large projects.

Conclusions

The case in this report described a practical implementation in the Feasibility Study stages of Apartment Building Project of Vietnam in general and Ho Chi Minh City in particular which obviously revealed the factors which can seriously affect the success of the project. Actually, Vietnam at present has enormous efforts to overcome policy and reduce the cumbersome procedures in investment, but investors still face a lot of problems (Financial Feasibility Study) which occurs in term of project implementation.

So based on this study, how to implement the effective feasibility study such as the factors and processes used in this stage were understood. There are expenses, sources of fund and revenues; and methods of estimation. Moreover NPV method, B/C ratio method and IRR method were the methods of evaluation used, in addition, to establish a useful framework for Apartment Building Project.

In conclusion, the report may not only offer the effective method to make Feasibility Study in the first stages of project implementation, but also clear description of the major factors that may affect the efficiency budget that most projects in Vietnam are all experiencing. The problem of cost overrun, bankrupt and project costs incurred were up compared to initial estimates.

Recommendations for further study

This research has concentrated on finance in estimated cost, revenue and how to analyze the project financial. However, other influence factors such as local politics, public relationship and strategy of the owners did not mention.

Feasibility Study should be done not only once, but it must always check at different stages such as design stage, construction stage and after operation and transfer stage for the main purpose of improving the later project.

In addition, Sensitivity Analysis to recognize the priority factors after calculating the financial factors for the Apartment Building project should also be considered, so that these factors can be managed.

Abstract

The Real Estate investment is one of the most dynamic, risky and challenging businesses because of their implementing time is very long with huge investment capital and various participating components. Furthermore, this field has poor skills for making Feasibility Study, with many major projects failing to finish on time and cost targets.

Feasibility Study of construction project used to get the alternatives of optimal land use that give the highest profits. Feasibility study analysis also gives information about value of investment and the benefits that investors will get. Define return of investment can be seen from feasibility study. Commonly, Net Present Value (NPV), Internal Rate of Return (IRR) and Benefit/Cost (B/C) are the values that used by investor to consider this project is feasible or not.

The purpose of this study to identify effectiveness methods, main major estimated factors that will be occurs in this stage. To effectively making the financial feasibility study in construction project, it is necessary for oriented path to identify important factors, then provide a suitable tool to measure their effects in each stage of Financial Feasibility Study life cycle and suggest the effective solution methods as minimized/maximized, shared, or accepted.

AIT Seminar: Strategic Infrastructure Development of South East Asia

Seminar
STRATEGIC INFRASTRUCTURE DEVELOPMENT OF SOUTH EAST ASIA

On 11 Dec 2013, MPM program organized the seminar " Strategic Infrastructure Development of South East Asia", presented by Dr. Chotchai Charoenngam, Associate Professor, Construction Engineering and Infrastructure Management, School of Engineering and Technology, Asian Institute of Technology, Thailand.

South East Asian is considered of one of the fastest growing region in the world. The demand of infrastructure development has been rising much faster than the supply, especially entering AEC in 2015. Strategic infrastructure needs to be developed to capture economic growth. Types of strategic infrastructure and its contribution to national socio-economic development were presented during the seminar. 

Environmental Impacts Assessment in Nam Ly Bridge – Ho Chi Minh City, Viet Nam

The people’s demands have been increasing rapidly while the resources are limited. To satisfy the increasing demands, people search for every opportunity to develop the economy. Because of that, investing in infrastructure construction is a need to develop economic regions, which is a progress in the development of the society.

When human brings in financial to change the patterns of use of land, water and other natural resources, they will receive back profit from economic development, but will also change the other elements of the environment. The question is how to reduce these changes, but still aiming for economic growth.

TRINH THI THU HA made a research which objectives were to:

1. study environmental impacts assessment methods

2. compare of the Vietnam’s policies and ADB’s policies in EIA

3. study environmental impacts assessment of construction project in Vietnam

Conclusion

EIA is one of a number of policy tools that are used to evaluate project proposals. It is also a relatively recent development when compared to use of economic appraisal methods in Vietnam.

For most construction projects in Vietnam that will invest funds from many different capitals, they are required to comply with laws and regulations to implement the project. EIA must be researched in Preparation stage and presented in the Appraisal stage.

The contents of the EIA is usually consists of nine parts: Introduction; Description of the Project; Description of the Environment; Alternatives; Anticipated Environmental Impacts and Mitigation Measures; Economic Assessment; Environmental Management Plan; Public Involvement and Disclosure; and Conclusions.

The EMP described how the mitigation and other measures enhance the benefits of environmental protection that will be implemented. It explains how the measures will be managed, who will implement them, and when and where they will be implemented. During project implementation, the clients must implement properly the approved content of the EIA, to ensure that negative impacts on have been mitigated and environment, community has been protected for the sustainable development objectives.

There are differences between Vietnamese policies and the sponsors’ policies for EIA in Vietnam such as ODA projects, World Bank and Asian Development Bank which also have regulations and guidelines that established EIA applies to projects funded. Possible policies and activities required of them in different way, but the process is relatively the same for the building and approving the EIA. In Vietnam, in addition to the applicable policies of the sponsors for the project, the EIA also have to establish compliance with current policies of the government of Vietnam.

However, if there are differences between the policies of Vietnam and the donor's policies, they must apply the policies of the donors, which is required in the loan terms.

Recommendation

1. Adjustment or harmonization of policies and laws in the implementation of EIA, without gaps to the policies of the donors (ADB, World Bank, etc.).
2. The Government should establish training programs for students of the EIA and raise awareness and capacity about the protection and management for environmental leaders, department managers and community.
3. Establish public databases and share the parameters of environmental quality for other projects in Vietnam.
4. There should be public participation during the implementation of EIA. The project must be publicly reviewed and evaluated by the public.
5. Full finance for the EIA study.

Abstract

The demand of people increase rapidly while the resources are limited. To satisfy the increasing demands, people search for every opportunity to develop the economy. Because of that, investing for construction of infrastructure is a need to develop economic regions, is a progress in the development of the society.

When human bring in financial to change the patterns of use of land, water and other natural resources, they will receive back profit from economy development, but will also change the other elements of the environment like natural condition and social.

Reducing the burden of environmental impacts is necessary if development is to become sustainable. Environment Impact Assessment (EIA) has become of ever increasing importance as a tool for development decision-making.

Environmental impact assessment, as a national instrument, shall be undertaken for proposed activities that are likely to have a significant adverse impact on the environment and are subject to a decision of a competent national authority.

In practice, EIA is applied primarily to prevent or minimize the adverse effects of major development proposals.

Organizational Project Management Structure in a Real Estate Developing Company

Project management structure is a new issue in Vietnam. There are more and more real estate development companies in Vietnam in which many of them process great potential for the project management team. But the concept of project management structure is one thing that not all companies are aware off. In fact, there are still confusions in choosing the model for organizational project management structure such as:

1. Unclear tasks

2. Communication, teamwork, leadership…

3. Objectives not properly defined or agreed

4. Insufficient planning and coordination of resources

Nguyen Duc Trong made a case study to identify and find out the ideal project management structure for a developing company. In order to accomplish this, the objectives of his research were to:

1. study the literature of Organization Project Management Structure in construction project

2. analyze a Case Study in application of Organization Project Management Structure in Viet Nam

Conclusion

Organizational structure can get in the way of, or help support, the overall success of projects. To a certain extent, we can change the organizational structure. In fact, we can change the organization chart frequently, and some companies do just like that. Culture, on the other hand, cannot easily change. It can take years for a large organization to develop a culture of excellence (although it doesn't take nearly as long to fall back into mediocrity).

Some organizational structures can definitely impair the ability to deliver projects. First are those organizations whose project teams are doing support work. If the project organization does support as well, it usually means that support issues will pop up and take the focus away from the project. A lot of multitasking and thrashing takes place as we move from support work to project work to support work. It is usually very difficult to prepare good estimates and meet the scheduling commitments. We may be forced into this structure if our staff is small. Sometimes, we have 15 people who work on support, projects, and enhancements. However, we do not have enough people to specialize in either support or project work. This makes it difficult to meet all of our project commitments. Instead, we have to do a good job of managing expectations.

The organizational structure may also impede the ability to share resources. For instance, if our project team needs a resource with a specific expertise, we may not be able to easily share that person with another functional area. Some of this is also related to our culture. We have to consider whether a different organizational structure would help. If it would, we may have an organization problem. If it wouldn't help, our culture is probably not supportive of resource sharing.

The organizational structure can also help or hinder the success rate. The structure can determine how well we focus on projects and how easy it is to share resources between organizations.

Recommendation

1. Consider the system of Project Management structure. Develop individual assessment form for functional manager, project manager. By involving functional management in project initiation activities-recognizing that functional managers often have the best insight into the skills and limitations of staff members-we made the process of assigning resources to roles more collaboratively. We also instituted a formal requisition process for internal resources. Project managers were added to the performance development process training classes and required to provide periodic performance-related information to functional managers. At the same time, functional managers now shared individual goals and objectives with project managers, seeking to align project assignments with objectives.

2. Build up the enterprise culture and create the transparent competition among departments. Have good authority system and empowerment so that all the department leaders can have the conditions to give out the right decisions.

3. Have clear annual plan and transfer this plan to every department, and every individual. Check, monitor and access this plan monthly or quarterly to create fair in bonus sharing.

4. Re-define Roles and Responsibilities: establish a policy statement and matrix document that clearly identified the project manager and functional manager roles and responsibilities.

5. Establish a Communications Plan: developed a comprehensive program communications plan identifying who reports what to whom, and when. Acknowledge the information needs of the functional management team by including them in the communications plan. Project websites could be established to facilitate communications.

Abstract

A project organization is a structure that facilitates the coordination and implementation of project activities. Its main reason is to create an environment that fosters interactions among the team members with a minimum amount of disruptions, overlaps and conflict. One of the important decisions of project management is the form of organizational structure that will be used for the project. Each project has its unique characteristics and the design of an organizational structure should consider the organizational environment, the project characteristics in which it will operate, and the level of authority the project manager is given. A project structure can take on various forms with each form having its own advantages and disadvantages. One of the main objectives of the structure is to reduce uncertainty and confusion that typically occurs at the project initiation phase. The structure defines the relationships among members of the project management and the relationships with the external environment. The structure defines the authority by means of a graphical illustration called an organization chart. 

Risk Factors in Vietnam Power Plant Projects

In the past, risk management has been an important tool to control safety-related risks. However, we see the shift away from the traditional compliance and insurance-motivated risk management to one that is closely linked to business performance and long-term society commitment.

In order to minimize the interfaces and risks between the separated contractor and the project company during executing an oil and gas project, the oil and gas companies normally prefer to award and sign an EPC contract with the EPC contractor. However, this project delivery method will take a lot of time to make clarification, explanation and get the mutually agreement on the contract clauses between the contractor and the project company. The following problems are normally involved with the EPC contract clauses:

1. Take time to make the clarification and finalization before contract signing;

2. Wrong understanding and interpreting of stipulated clauses in the contract;

3. Conflict between contractor and the project company during project execution

An EPC contract is generally applied for developing the oil and gas project, in case of problems or disputes happen during the project execution, then these problems and disputes shall be resolved in accordance with stipulated clauses in the signed contract, therefore, Nguyen Duc Thanh made a case study which aimed to focus on the following issues related to EPC contract:

1. To study the contract of EPC project and contractual risks

2. To study contractual problems occurring in a project.

3. To propose a recommendation for improvement

Conclusion

The research study summary and concern the risks we often meet when executing EPC oil and gas project in Vietnam. It also mentions and suggests effective solutions that can be performed to avoid or overcome the obstacles in contractor management.

The literature review sections introduce and cover the form, phases and activities for general EPC project. It is also listed advantages or disadvantages and challenges when we apply EPC model to manage project, especially managing Vietnam EPC project. The advantages under investor’s point of view of EPC contract model in respect of following:

1. Reduction in project management works for an investment owner;

2. Reduction in risks of difference between design and construction;

3. Costs for an EPC package are easier to estimate and control because it is lump sum contract.

This chapter has also raised reason which case EPC should be applied in Vietnam:

1, Project with multiple options of construction methods;

2. Projects in which whose design and equipment production cannot be separated

3. And in case a project has urgent progression.

In two case studies mentioned in previous chapter, through collecting related document and attending as one of duty to solve these problems, risk in Vietnam appeared in oil and gas projects normally come from what parties haven’t defined or stipulated in contracts. Moreover, maybe some contractor want to expand profit as well as possible, they change some conditions they can, except some case is compulsory for pushing project schedule.

According to studies and data statistic, client needs to play as interface when many contractors participate in project. It requests a professional team to monitor, assess and can hold point whole activity of contractors. Schedule is always updated and mobilization plan of employee and equipments must comply with master schedule.

Through the review of literature on EPC model and risk in EPC contract, it’s proposed that solutions of effective EPC risk management needed such as “the problems often appear in execution stage of project and we meet difficulty in avoiding them. However, we can ignore or minimize problem through understanding and clarify term, scope of work in contract. In additional, these problems that can be predict or determine happen in the next phases but can’t solve at this time, we need to stipulate them in contract about solutions to control, monitor or solve”.

In conclusion, for each of EPC project, risks accompany by them are not the same. The risks depend on whole EPC project such as: scope of work, material specifications, equipment style and requirements of client. Therefore, risks management application for the kinds of EPC projects will be different little or more. So, application should be considered via EPC project style.

Suggestion of further researchers

In order to fully understand the EPC risk management in Oil and Gas project, which can be applied in some kinds of project, especially international oil and gas project, further researchers can be suggested on the following fields:

1. Develop risk research in another phase of projects: design, construction, commissioning

2. Based on result of research, proposing solution to risk management.

Abstract

Oil and gas projects are established intensely to satisfy the energy demand on the world. In an EPC contracts help provide ‘turnkey ‘systems for companies. This is where a single point of contract is given which includes the design work, engineering procurement, installation works, commissioning, start up, supply chain materials, testing activities. Due to this single point of responsibility, almost all the risk is transferred from the owner to the contractor. In this contract, there are guaranteed completion dates, performance, clear division of obligations and liabilities. EPC projects which are also known as turnkey project service face many challenges to stay in the competitive within the industry business environment despite of the efforts made towards compressing activities by phase overlapping, in order to reduce time scale and to obtain better EPC projects. These project challenges lead to cost overrun and schedule delay. Understanding the function of EPC Project Risk Management is important to protect interest of both parties and to engage tools and techniques to allocate risks between the owners and contractors.

Most projects are bound to be affected risks such as construction risks, operational risks, financial and economic risks, legal risks etc. All these risks are interrelated and have a chain effect in overall start-up and commissioning. Common delays and cost overruns can have severe effects and causes as a primary effect on construction risks. Therefore it is important in a project when structuring EPC contract. EPC contract comes many new risks that are often severe due to the complex nature and high cost frequently associated with this type of project involved

By finding out and analyzing the problems happening in Nhon Trach power Project  and Ca Mau Project, through collecting data and assessing status of project in each phase, the research study aim to identify and analyze problems that often occurring as well as resolutions and try to suggest solutions which are effective to solve the problems.

Solutions to manage Risk in EPC project was developed as a result of the research case study which is helpful for Vietnam oil and gas projects wishing to overcome obstacles by avoiding or minimizing these risk. 

Delay in Planning, Design and Construction

In Vietnam the construction industry especially residential and complex building is now suffering many problems from design to operation. Some normal problems are:

1. Coordinate between Architect and Structural have many difference because they maybe    are another country but the project to be built at other country.

2. Difference communication from Architect and structure by the owner, maybe the condition of contract to be limited.

3. In during construction have many problems from project as lack permit of government of other board.

4. The method of construction from contractor is uncorrected with local building therefore accident will be happen. Example: When the designer provide method for excavation work but they study little big about geology, the result happen underground water to damage the diaphragm wall so the neighbor house to be subsidence.

5. The project be delay which reason the owner return payment to contractor is not on time following contract condition.

6. Disputation between project construction management group with main contractor or main-contractor with sub-contractor about claim, variation order, quality, delay of schedule, and coordinate with other contractor.

7. Taking over have a lot of difficult from contractor to project management group because the standard not clear or unable enter general standard.

8. When PCMG hand over the project to client but client have difficult about finance, on the other hand the client does not receive because some reason from the owner as service following the contract.

9. Problems during operation as warranty manager. Example when the owner pay all the claim but it included percent of warranty and then the project have problem they request contractor to come rework but contractor do not want to come in order to rework.

10. Resolve complain from client about service quality, the method manage project.

It is very important to understand the normal problems and to find the ways to solve all of them in order to be able to develop an effective planning management process, and also to take experience manager in project construction management.

Nguyen Hung Cuong made a case study aimed to:

1.  study delay in planning, design, construction.

2.  find out to solve at prevent problems in each stage.

3.  propose project life cycle strategy in how to develop residential complex.

Conclusions

The project life cycle will be successful in each phase if the project management must have a clear plan and resolve the problems earlier during construction phase in coordination with all the contractors. The project will be completed on time and it satisfies quality, safety and more pleasing to clients.

In order to solve the problems, proposed solutions based on theoretical and recommended practices including guidance from the PMI’s PMBOK guide, one of the world’s most prestigious guides to the project management, were presented. Besides, some useful tools were considered and suggested to use as the aids for the project managers to improve control management in the project.

However, this case has limited information, due to some companies’ confidentiality. Thus, the data gathered were from their staff, from the internet and during the actual construction.

The project delay usually involves the contractor, the owner, and the client. So, the PCMG have to resolve the cause of delay and control the taking over process to accomplish the project on time which brings profit to company.

       

Recommendations

In order to avoid project delay problems from concept design to project operation, The Manor phase II project made the following recommendations:

1. PCMG have to prepare permission together with concept design before constructing the project, and control the plan in such a good way. The plan monitoring is very important for project management. In this project case, the owner committed a mistake when they started the project without Government permission yet resulting to 1.5 years delay. The reason why the reason why the contractor and client lost a lot of profit.

2. With regard to the Owner, to estimate the project expenditure, the owner should have board that will double check it phase by phase. In this case, the owner did not estimate the cost of project.

3. The Project Construction Management Group should organize training in order for them to know how to use the process to accomplish project and contract condition.

4. Document controls for project is very important, all the site instruction should make the process for resolved and return it to contractor soon, with the process that all the scope of work will be completed on time.

5. In case of ISO certified company, Project Manager should give feedback to the company’s Quality Manager to add in personality test forms together with Job Application Assessment Procedures forms. That will save Project Manager’s time whenever there is new job applicant coming to job site for interviewing.

6. With contractors, PCMG have to request them to submit the schedule of delivery material to PCMG in order to double check it. Also schedule of project, PCMG can check and give the site instruction to contractor if they detect problems.

7. The contractors always make report of human resource to PCMG in order to inform that the manpower is enough for scope of work. They make sure that with this manpower project can be completed on time.

8. Relation division always have the plan to solve problems with the method soon to contractors, also project will be base on the site condition to work in order to complete the project on time.

9. The weekly meeting is very important for PCMG and also to the contractor. All problems have to be resolved in that meeting, and relation division have limited time to return the request for information to contractors.

10. Some reasons relating to project delay and about safety work on site, all contractor must provide policy of safety to PCMG, the safety policy monitoring everyday will reduce accidents. The project having zero accident mean safety policy is successful.

11. Finally, the taking over and claim of payment during construction are bigger problem between contractors and the Owner. Some project delays are sometimes due to this reason.

Abstract

The planning process in project life cycle is one case study in the Project Management Institute’s A guide to the Project Management Body of Knowledge. In the case study of Project management is established planning process in project lifecycle is very importance therefore this is really a tough challenge and time-consuming task to any project manager.

The drawing up the plan from concept design to operation project that it suggested management must have large line of vision also experience .The planning process will be evaluated clear that must link everything from the owner, design, contractor. This final project report focuses on construction project as lifecycle project needs who’s have responsibility to design planning process to be clear within knowledge. Though a case study of residential and complex project in Ho Chi Minh City, many problems that we can saw which cause project interruption will be investigate and analyzed. A lot of solutions be proposed which base on the knowledge will be discussed to help project management in order to improve skill in the project.

Owner’s Organization Project Management Maturity

The general problems that the construction owners are facing nowadays are:

1. The lack of the modern project management knowledge: what they have about construction project management almost is just the fragmentary knowledge collected from the requirements, instructions in government legal documents, from the short training cost, from working experience. Hence, the use of that knowledge is usually not effective.

2. The use of a project management system which just built on the concept just to meet the Government requirements: for many owners, especially the state owned organizations, their main consideration is just how to meet Government requirements. They have not paid enough attention of how to use the investment money in most effective and efficient ways.

3. The lack of a system of procedures and instructions for continuously measuring, evaluating the performance of project, project staff; collecting, storing lesson learned and making convenient access for project staff; and planning and implementing the improvements.

 

Le Quang Khanh made a case study aimed to:

1. assess the organization project management maturity of an stated owned enterprise on the role of project owner, analyze what it has and what it has not in comparison with the modern project management theory.

2. propose recommendations for project management improvement.

Conclusion

This study has demonstrated an intensive exploration into the current status of an owner construction project management system. Each management process has been described, assessed, analyzed basing on the definitions, requirements of modern project management processes established by PMI in PMBOK Guide (2008) and OPM3(2003).

The assessment has found that: although the assessed company applied nearly all processes of project management, the maturity level of these processes in the company are still rather low. Company is at the first steps of project management maturity ladders. Reference to OPM3 (PMI, 2003), the Company project management maturity level is at about the standardization stage. There are many process need to be standardized; many procedures, guidelines need to be established in order to help the company improve its project management maturity, develop the company competence.   

Following are some main problems of the company in project management system:

1. Many processes are not standardized: performed basing only on the experience, practice; there are no standard documented procedures, instructions/guidelines to conduct. Many useful tools and techniques are not applied during project management processes because of the lack of the modern project management knowledge in project staff.

2. The planning processes are not well implemented. There is no specific project management plan, project scope, or project quality plan for each project. The project control and execution activities of project team members are almost unplanned, basing on experience. 

3. There are no standards, procedures, no formal performance system to measure, evaluate the degree of success and failure of each process, phase or project, the performance of project team members. Therefore there is no steady foundation to plan for project management performance improvements.

4. There is a formal process for assessing, auditing the existing procedures, instructions and suggesting, implementing improvements (included in ISO9001 quality system). However, because of the limit of the staff knowledge and skill about the modern project management, there are not many effective improvements as expected.

5. There are no procedures or instructions about collecting information of the contractors/suppliers, the project issues, lessons learned…to keep in a convenient place (like project management office) for analyzing and using in future project management. Therefore, there is also no formal historical information and lessons learned knowledge databases system. All the project records, after the project completion, are kept in the store.

Recommendations for the assessed company and other state owned companies, in general, on the role of owner

 

There should be more training on modern construction project management for the company staff. The training content include (but are not limited to) the knowledge/skills of project management for individual, for organization; the experience in organizing and managing a project management organization, the existing effective systems of construction management procedures and instruction of international project management groups. The staff need to be trained are: the top management for having far more vision, more correct evaluation about the importance and effectiveness of building a standard project management system; the  middle management and the project  team member to be more effective in managing projects and composing the necessary procedures and instructions:

1. Company should pay more attention on the planning processes; make all the management plans before carry out management activities.

2. Company should improve the formal system of procedures and instructions to standardize all the project management processes in the company. The guidelines about the applied range of each process are also needed.  This help to keep the consistency of quality and increase the effectiveness of management processes;

3. Company should improve and increase the effectiveness of ISO9001 assessing and auditing processes by using the competent auditors who are professional in construction project management, training the project staff to be good and innovative self-auditors;

4. Company should establish and apply the formal standards, tools, guidelines for measuring, evaluating the success, failure of project goals in order to collect experience and lessons learned for future investments;

5. Company should build a small project management office/center where the project management staff can easily access to the historical information and lessons learned of all past projects; refer to the modern project management tools and techniques. And besides, Company should build the procedure, instruction for collecting, storing those data. These works will be very useful for the future project management of the project staff, especially the new comers.

 

Recommendations for further study

Further study needs to be carried out to have more comprehensive assessment of state owned project management organizations and give more detailed recommendations for competency development of this type of project management organization.

Abstract

Vietnam is the developing country which is booming economic and the new medium classification increasing rapidly. The movement of people from rural region to urban region is growing up every year. The population growing is 2% a year that is compressing of Housing Supply for social need. The entire above figure is good reason for real estate business in Vietnam. However in order to success in property business the Feasibility study stage is most important factor should be consideration.

The subject of this study is analysis the method & effectiveness of feasibility study in Apartment Project. Base on theory and actual project the problem statement occurring in FS will be identified such as: Incorrect assumption , misunderstand the Demand of Market, cost & revenue estimate is not match reality, time schedule planning is not practice, forecasting of cash flow is wrong, mistake in term of FS calculation technical, lack of information in term of information of land. According the literature review the object study is summarized as Framework of FS in Apartment Project. To study the application of the framework in project case. To find the problem in FS for Apartment Project. To proposal the solution base on theory.

With the real project Carina Plaza the analyze of the comparison between theory and the actual activity is show up the different and causing of it. The method of cost estimate is concentrate to study according the theory and project case. The revenue estimate is also access careful to ensure the catch flow management always is positive and project is archive.

The final report specifies the most important factor to impact the FS and a successful of project in medium apartment. The FS should be conducted by the people who are integrate knowledge such as: construction knowledge, financing, marketing, communication.