RISKS ON SCHEDULE OF NUCLEAR POWER PLANT PROJECT IN

VIETNAM

By

Nguyen The Phuong

Abstract

The research focuses on risks that can occur and made Vietnam NPP project delay. The main objectives are following: (1) to study risks which may affect to schedule of NPP project; (2) to study the difference perception of three major parties in project, owner, consultant and contractor; (3) what is most important risks in each stage of project; and on responsibility of major parties in project.

At the beginning stage, all risks that are related to NPP project in Vietnam searched. It is made though breakdown the procedure for NPP project; collect schedule risks of NPP projects in the world; risks from construction project studies and guide, experience from some international experts. The questionnaire is built with 81 risks, divided into 11 groups: risks relate to project decision - making stage; bidding stage; design stage; owner and consultant in construction stage; contractor in construction stage; payment; commissioning and pre-operation; human resource; government management; regulation, approval; and external risk.

The quantitative method is used to assess the risks, include level of likelihood and consequence of the risk. Respondents are consultants, contractors, owners, experts who have experience in NPP and knowledge about Vietnam investment environment. A total of 62 respondents completed the questionnaires. After collecting the data, risks were ranked base on likelihood, consequence and important mean in total the project and in each group, in that delay in approval procedure for site selection is the most important of the project.

There are differences in perception of parties. Owners indicate that most causes of delay are related to contractor and regular – approval; consultants agreed that problems relating to government and some of owner are most important; while, contractors pointed out that important risks are responsibilities of owner and some are of government. In assessing the level of most important risks, mean of important risks is calculated by owner is the lowest, and of contractor is the highest.

The result has indicated that the most important problems of Owner that cause delay in the NPP project are regulation approval; management; human. Most responsibility of contractor came out during the design stage. While, Government has great responsibility related to regular approval problem; finance; and human resource.

Executive summary

Rationale of research

This research has been conducted to study delay risk in Nuclear power plants projects in Vietnam.

Objectives of study

Study risks which may affect to schedule of NPP project and difference in perception of three major parties in project, owner, consultant and contractor.

Rank most important risks at each stage of project; on responsibility of major parties in project.

Methodology  

The literature review of management process is studied to find out the main activities, its tasks and risks in each task was analyzed first. Finding schedule risks in construction, NPP project in the world also on documents and from international experts, the owner, contractor and consultant.

Data collection, information, opinion about the risks had been collected from experts about NPP project.

Findings and conclusion

Based on the world reports about the NPP project practice, delay in construction project in

Vietnam, opinions of experts, partners’ relation to the project, and researcher get 81 risks that can influence to schedule of NPP project in Vietnam. The project was done for a long time. In addition, this is the first time Vietnam builds a NPP project, so there are many new problems arisen in human resource and regulatory. Total risks are divided into 11 groups which include: risks relate to project decision - making stage; bidding stage; design stage; owner and consultant in construction stage; contractor in construction stage; payment; commissioning and pre-operation; human resource; government management; regulation, approval; and external risk.

Responsibility of major parties

• Owner

Result has indicated that the first problem of Owner that cause delay in the NPP project is regulation approval. Many great risks in the area are delay in approval procedure for site selection and delay in licensing procedure in the design process. The second problem of

Owner is management. The risks which are indicated the most are poor management of owner in budgeting and scheduling, ultimate cost of the plant exceeds original budget and funding expectations. Another important problem of Owner is human resource. Owner’s lack of trained personnel and lack of qualified professional in bidding stage are two risks indicated.

• Consultant

Consultant has the responsibility to assist Owner in management the project. So, the responsibility about human resource should also divide to Consultant. Besides, consultant is still warned with communication, coordination between parties, conflict and lack of supervision in a number of jobs problems.

• Contractor

Most responsibility of Contractor came out during the design stage. The most problems occurred are late design completion and all identifiable engineering before construction starts; and design that does not meet the quality and safety standard. In addition, some other problems that can influence to schedule of the project are shortage of experience, skill workers, equipment’s, error in construction of sub-contractor, and machinery breakdown in hot testing and commissioning phase.

• Government

Government has great responsibility related to regular approval problem in the first NPP project. Delay in approval procedure such as licensing procedure and lack of circular, and regulations are most interesting to almost all parties. The second issue is about finance like delay in state budget due to political decision associated to financial conditions and difficulty in arranging foreign loans are ranked at high level. Third is human resource problem that all parties are worried. In this problem, regulation, training, and research agency’s lack of manpower is point out. The last most important risks of Government are related to management problem, in that, typical is lack of regulation and support agency relating to the project.

DO NOT discredit yourself with a fake degree - is this worth it?

http://thestar.com.my/news/story.asp?file=/2012/7/27/nation/11742579&sec=nation

525 sought over degree scam

Police are tracking 525 people who allegedly bought fake degrees and certificates from non-existent international universities.

Selangor police chief Deputy Comm Datuk Tun Hisan Tun Hamzah said police would like to question the 525 people in the course of their investigations.
The syndicate, which has been active since 2003, has sold up to RM5mil worth of fake certificates and degrees, he told a press conference at Selangor police headquarters.
Police have so far arrested a 37-year-old man, believed to be the mastermind, and a woman, 36, following a recent report in a Malay daily exposing the syndicate.

http://thestar.com.my/news/story.asp?file=/2012/7/27/nation/11742579&sec=nation


========================


My suggestions to verify a valid or fraudulent degree:
- check the history of the university
- check the alumni network. who are they? what are they doing? 
- check the physical infrastructure of the university: campus, library, sport facility etc.
- check the publications (journal and research) of the professors.  you can access via "Google Scholar" or SCOPUS.com, and search the faculty members' name.

reported by
Dr BHW Hadikusumo 
Asian Institute of Technology
www.ait.asia

 

 CONSTRUCTABILITY IMPLEMENTATION DURING CONSTRUCTION PHASE OF THE LARGE HIGH-RISE BUILDING PROJECT IN VIETNAM

By

Nguyen Anh Khoa

Abstract

Generally a construction project usually involves a heavy cost. So, time and resources to play a leading role in determining project costs. In general, the construction phase faces with many risks and uncertainties. As a result, the project could be delayed, cost overrun, and poor quality. In many previous researches all over the world, the constructability program was suggested to become the effective tools to help the project team control the project effectively. Although the constructability concept is not new with the developed countries, the constructability application in developing countries is still very limited. The study aims to identify the application of constructability during the construction phase in the large high-rise building projects in Vietnam.

Researcher uses two cases as the research design. The basic factors will be identified by literature review and they would be verified by the experts who have a lot of experience and management knowledge in construction. The data collection will be conducted in Hochiminh city to support for the data analysis activities to provide the understanding about the constructability application in Vietnam.

Executive summary

Rationale of research

This research has been conducted to study constructability to make efficient construction process for high rise building construction in Vietnam.

Objectives of study

To identify the factors affect constructability, to analyze and evaluate the constructability application. Providing recommendations to improve constructability.

Methodology  

In this study, researcher decided to use the qualitative method by using the case analysis as a key to obtain the objectives of the study. In general, there are three main approaches when using the qualitative method. (1) Participant observation (2) In-depth interview (3) Focus group.

The advantages when using the qualitative method is that participants have opportunities to response based on their opinions rather than selecting the fixed responses. Moreover, qualitative method provides the flexibility for the researcher by asking during the interviews. The opportunities to find out the answers for the study will be enhanced by getting the detailed information and data.

Findings and conclusion

Constructability concept is no longer a new concept especially for the countries which have the developed construction industries. In order to improve the constructability, many researchers put their efforts to achieve this purpose. Constructability application will become the powerful and effective tool to help the project teams implement their project successfully by increasing productivity, quality, and safety at construction site. Moreover, the risks and the conflicts between every parties involved in the project could be avoidable.

According to Vietnamese construction industry, constructability has been begun use as a tool to manage the project. Some contractors who have the big scale and reputations such as Coteccons and Hoa Binh Corp realized the benefits of implementing the constructability. As a result, constructability was used as a key tool to help them increase the efficiency and the profits.

Recommendation

• Involving finishing sub-contractors from the beginning:

In some cases, involving finishing sub-contractors from the beginning could bring many benefits such as reduce the reworks and avoid the interruption in finishing activities. However, the possibilities to apply seem incredible because of the long duration for tendering. Moreover, the traditional contract (DBB) is still used very common in Vietnam. As a result, few experts (3/7) agreed that involving finishing sub-contractors from the beginning is possible in reality.

However, the contractor and consultant should provide their finishing engineers in the beginning to join the project team. This action is also the good solution to consider.

• Capture and transfer lesson learned from previous project:

Setting up the lesson learn system (LLS) also enhance the constructability. The project would be managed better. Project team capacity and knowledge could be increased. The problems could be deal by using the learning captured from similar projects.

Action should be considered:

§  Provide seminar to train employees and transfer knowledge.

§  Record database, provide meeting to analyze the previous project and learn the experience.

§  Provide checklist about common mistakes.

§  Provide database of lesson learned for all employees.

• Consider possibilities about using pre-cast concrete
• Pay more attention to the innovative hand-tool and equipment usage.

Construction hand-tools:

§  Use automatic hand-tools

§  Use cordless power hand-tools

§  Use new hand-tools or modification of the available hand-tools

§  Portable hand-tools

• Construction equipment:

§  Use microprocessor control and diagnostics devices.

§  Automatic equipment.

§  Remote, non-destructive sensing and inspection system.

• Using the innovative in temporary facilities:

§  Consider tent cloth to enclosure the structure and workplace

§  Centralized supply network.

§  CCTV to control the site.

• Using the advance computer technology:

§  Building information modeling (BIM)

§  Advance software support for planning and control project or analyzing and simulating the site activities and structures.

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

Asian Institute of Technology

Professional Master Program in Project Management in Construction 

in Ho Chi Minh city (20-24 July)

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

Instructor

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

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

BUSINESS PROCESS MODEL OF THE PROJECT MANAGEMENT

PROCESS: A CASE STUDY OF WATER SUPPLY CONTRACTOR IN VIETNAM

By

Nguyen Thanh Tung

Abstract

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

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

 Executive summary

Rationale of research

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

Objectives of study

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

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

Methodology  

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

Findings and conclusion

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

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

• Inefficiency tasks delivery of contractor in water supply project

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

1. Inefficiency of estimation process.

2. Chose wrong the construction teams, subcontractors.

3. Shortcoming of preliminary processes before executing the project.

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

5. Lack of management and observation of Site management Board

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

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

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

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

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

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

2. Conflicts of responsibilities

3. Lack of qualified staff and labors

4. Inappropriate work planning of subcontractors and construction teams

5. Contractor’s poor site management

6. Inadequate experienced construction teams and subcontractors

7. Problem with subcontractors

8. Lack of implementation equipment and material

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

Recommendation and solution to improve the efficient project management

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

DELAYS  IN HIGH-RISE BUILDING PROJECT IN VIETNAM

By

Tran Phi Long

Abstract

           

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

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

Executive summary

Rationale of research

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

Objectives of study

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

Methodology  

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

Findings and conclusion

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

Causes of delays in high-rise building project in Vietnam

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

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

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

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

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

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

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

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

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

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

Asian Institute of Technology in Vietnam

Project Management in Construction

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

by

Dr. Henrik Linderoth

Associate Professor

School of Technology and Society

University of Skövde

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

Dr. Henrik Linderoth and Dr. BHW Hadikusumo