Many studies revealed that construction industry has the highest risks compared with other industries, risks that sometimes lead to death.
Each construction companies have their own safety measures implementation. But how to lessen if not totally eliminate this kind of accidents is everybody’s concern especially those who are working in the construction sites.
Dr. Oulawan Kulchartchai made a research to find the answer to the following questions:
• How can worker engagement in safety program implementation be assessed?
- What process should be used to develop Worker Engagement Measurement Tool (WEMT)?
- What are the components/elements of worker engagement?
• What are the factors that affect worker engagement in safety program implementation?
• What are the critical factors contributing to the success of worker engagement in safety program implementation?
The general objective of her research is to develop an assessment tool to measure worker engagement in the safety program implementation. This assessment should allow managers to assess the real status of their workers from the workers’ views, and then provide adequate actions to improve worker engagement. To accomplish these, the specific objectives of the study are set out and identified as the following:
• To develop a reliable assessment tool in order to measure worker engagement in safety program implementation in construction projects.
• To identify critical factors of successful worker engagement (WE) in safety program implementation
Conclusion on Answers to the Questions
In assessing the worker engagement in safety program implementation, two questions must be addressed: first; what are the components/elements of worker engagement? And second; what is that the process that should be used to develop worker engagement measurement tool?
On assessing worker engagement in safety program implementation:
a. What process should be used to develop Worker Engagement Measurement Tool (WEMT)?
The literature reviewed revealed that there is a lack of empirical data on many of the measures of an engagement in construction area, particularly for the workers. The development of a worker engagement measurement tool, which is perceived to be valid, should clearly reflect the emerging research perspectives on engagement. The tool should look at the total context (cognitive, affective, and psychomotor domain) and not focus on a singular dimension (the degree of freedom for workers to make their own decisions regarding health and safety issues).
Ground theory analysis was adopted to define the concept ‘worker engagement’ and associated descriptive elements.
Lawshe's (1975) quantitative content validity technique was used to determine the perception of safety experts based on the model or framework on worker engagement and its descriptive elements. The results derived from the content validity technique showed that fifty-three (53) out of the seventy-eight (78) descriptive elements were included in the validity assessment questionnaire of a worker engagement). The element consisted of cognitive domain (21 items), affective domain (26 items), and psychomotor domain (6 items), and content validity index as perceived by safety experts which are 0.72, 0.60, and 0.43 respectively. It can be concluded that the theoretical construct of the worker engagement model and descriptive elements were verified and thus acceptable for use in the development of a worker engagement measurement tool.
b. What are the components/elements of worker engagement?
To determine the components/elements of worker engagement, a process was needed to initially develop a worker engagement measurement tool. By using triangulation techniques, models including the scale development process were developed. This process was also used by Du Plessis (2004), and was based from DeVellis’s work (1991) as supported by the latter study from Clark and Watson’s (1995). The theoretical model construct was derived from the related literature study. To get the descriptive elements of worker engagement, Grounded Theory’s techniques were applied. The data was verified by safety experts using Lawshe’s techniques. The verified items were subjected to item analysis and exploratory factor analysis techniques using SPSS (Statistical Package for the Social Sciences) software. The reliability test in SPSS was adopted through the Independent sample, t-test.
In conclusion, the questions above could be positively answered from the literature reviewed and qualitative study. These answers provided the background to the empirical part of the study and supported the inputs to the primary objective.
The secondary objective of this study is ‘to identify critical factors of successful worker engagement (WE) in safety program implementation’. To accomplish this objective, two steps were considered: (1) the common factors affecting worker engagement in safety program implementation; and (2) the critical factors contributing to the success of worker engagement in safety program implementation.
Based on a learning theoretical model, factors affecting worker engagement in safety program implementation can be grouped into situation related factors and individual related factor. Although many psychological and management literatures have studied engagement factors, little work in current literature attempted to explore the factors contributing to worker engagement in safety programs implementation at construction projects. Therefore, the qualitative and quantitative studies were carried out.
In order to identify the affecting factors, a qualitative study was done using the Grounded Theory’s technique. Subsequently, the factors were verified using Lawshe’s techniques. The results indicated that affecting factor consists of situation-related factor (31 items) and individual related factors (12 items) and the content validity index as perceived by safety experts are 0.56 and 0.59 respectively. It can be concluded that the affecting factors which were perceived by experts were valid.
Conclusion and Answer to the Primary Objective Worker Engagement Measurement Tool (WEMT)
A worker engagement measurement tool (WEMT) was developed. This tool has a six-factor scale and a total of 39 items. This was derived from applying the research process which included Grounded Theory’s techniques, Lawshe’s techniques, the development of a scale instrument by using DeVellis’s (1991) process, and a reliability test of the developed worker engagement measurement tool by using Independent sample, t-test
The statistical techniques such as item analysis and exploratory factor analysis in SPSS was applied on the initial 78 variables under the three construct theoretical model developed from a learning theory and Kahn’s initial theoretical model, then worker engagement concept and associated descriptive elements were identified by utilizing Grounded theory and then verified by safety experts.
The final conclusion that can be made to answer the primary research objective is that the worker engagement measurement tool (WEMT) developed through this research is holistic in nature and measures a total worker engagement construct by means of the six factors; is reliable (statistically proven); can be used as a diagnostic tool because it can significantly distinguish between projects; and is perceived to have a valid construct.
Conclusion and Answer to the Secondary Objective Factor Affecting Worker Engagement
The factors affecting worker engagement consisted of six factors and had 29 items in total. This data was the output from series of analysis. After numerous literature researches, the theory was found relevant to this study.
The final conclusion answers “what are the critical factors contributing to the success of worker engagement in safety program implementation?” Safety policy, supportive management and supervisor behavior factor, and individual related factors were considered as the critical factors affecting to worker engagement in safety program implementation, whereas, workplace climate, communication and feedback, and reward and recognition were perceived by the respondents as the factors that need considerable attention in order to improve worker engagement in safety programs implementation.
Her thesis abstract is copied and posted.
ABSTRACT
The construction industry is considered to have the highest rate of fatal occupational injuries in many countries. In Thailand, the accident rate in the construction industry is reportedly the highest compared to other industries. Fatal injuries to workers occur more often in construction industry. Previous research emphases often analyze the effective safety programs rather than those that are geared towards creating safe working environments. Workers are expected to play and act as the “key driver” in safety program implementation. Due to this, worker engagement is now considered to be one of the most important approaches in reducing work-related injuries and diseases. Without this worker engagement, safety programs will be difficult to achieve. It is hypothesized that worker engagement can substantially reduce accidents and improve safety performance continuously.
The primary objective of this study was ‘to develop a reliable assessment tool to measure worker engagement in safety program implementation in construction projects” and ‘to identify critical factors of successful worker engagement (WE) in safety program implementation’. The findings therefore will enable construction firms to identify gaps in worker engagement within the safety program implementation, and facilitate improvements.
This study used triangulation techniques including; theoretical model construct by a thorough literature study, components of worker engagement indicated by Grounded Theory’s techniques, verification of the theoretical model using Lawshe’s techniques, the development of a scale instrument by using DeVellis’s (1991) process supported by Clark and Watson’s (1995) and used by Du Plessis (2004), a reliability test of the developed worker engagement measurement tool by using Independent sample, t-test.
In developing the WEMT, several consultation and tests were conducted with national safety experts. Results showed that worker engagement (WE) consisted of 3 domains; cognitive (21 items), affective (26 items), and psychomotor (6 items). The content validity index of the domains according to safety experts are 0.72, 0.60, and 0.43 respectively. Additionally, the situation-related factor (31 items) and individually related factors (12 items) with respect to the content validity index were 0.56 and 0.59 respectively. A questionnaire with 53 variables in three dimensions of worker engagement and 43 variables in affecting factor was distributed to the sample group of construction workers and personnel basis either by electronic-mail or hand carried to the representative sample group of 494. Approximately fifty two percent (258/494) responded anonymously. A scale instrument was developed through the item analysis and exploratory factor analysis function of the Statistical Package for the Social Sciences (SPSS).
A worker engagement measurement tool (WEMT) comprised of 39 items in a six-factor instrument was developed. It was found that the items in these factors were highly acceptable, receiving a Cronbach alpha coefficient above 0.8.
The developed WEMT was tested in two distinct construction projects in Oil&Gas and Building projects. These test confirmed that WEMT was a reliable diagnostic tool that can discriminate worker engagement level among different projects, particularly in the Thai construction firm context.
This research also determined factors that affect worker engagement within the safety program implementation. These factors are important when guided contractors to increase worker engagement level. This study showed that suitable safety policies, a supportive management team, and individually related factors were critical and directly affects the worker engagement in safety program implementation. Workplace climate, communication and feedback, and reward and recognition were perceived by the respondents as the factors that need considerable attention to improve worker engagement.
This research is relevant because it was able to identify a reliable worker engagement measurement tool that enables projects to identify the overall level of worker engagement in safety program implementation. This tool will serve to facilitate strategic actions to improve the working situations, thereby optimizing safety program implementation for continuous safety movements. The implementation of such strategies will be a forward move towards beginning and sustaining safety program implementation for further safety performance improvement within industries, particularly in Thailand.
Key words:
Worker engagement measurement tools, worker engagement, construction project, grounded theory, scale development, affecting factors.
Thursday 23 September 2010
Monday 20 September 2010
Project Owner’s Quality Management System – A case study of Estella Residential Development Building Construction Project
In recent years, generally, in construction industry, it is recognized that the construction sector has made a great contribution to national development as investment has been intensified in many fields such as infrastructure development, industry and public projects. However, more attention should be given to quality management because of the poor quality of some construction projects.
To enhance the quality control of construction projects, the Ministry of Construction (MOC) held a seminar on April 28, 2009 which the main concern to ensure the quality of construction projects, especially for large-scale national projects. While most projects have operated on a safe and cost-effective basis, there remain shortcomings in terms of quality at different levels due to international and external causes. Because of these reasons, the development of quality management system is most important not only for Contractors, Quality Consultants, but for the investors or developers as well.
Mr. Tran Hong Quan made a study which primary objective was to study the application of Quality Management System (QMS) of Project Owner in a construction project from design to construction phase.
Conclusions
In general, most of the requirements of quality system have been covered and presented in the existing system. However, the discovered problems that related in missing contract review, improper developed coordination and communication, lack of the process control, control of quality records and the inspection status monitoring during the course of work are the reasons that caused major problems to owner such as schedule delay and generating V.O.
In addition, it was found out that there was inconsistency in decision relating to quality on job site caused rework and schedule delay.
Obviously, besides the reason of work procedures, it would be the reasons of different quality level and quality perception. Therefore, it is necessary to conduct the internal quality audit and provide training at different position in order to gain the same level of quality perception in the project team.
Through the discussion and findings of this study, the causes and the consequences that generated by these missing processes can be summarized in the table below:
To summarize, refer to the study, in order to obtain a complete QMS, the missing requirements as previous mentioned should be added in the existing Quality Management System for fulfillment. More than that, the quality culture in organization should be formed up so that the Company can reach to the Total Quality Management.
His thesis abstract is copied and posted.
Abstract
The report expresses the key issues in Quality Management System (QMS) that known as the critical factor for any organization wants to develop and survive in the free trade market.
This study, which refers to the theories and the standards system, has expressed the concept of quality in construction, the QMS in organization, system requirements for owner’s QMS in construction and its benefits. The study has briefed the factors that most effect to project quality studied from public reports and the key points to control project quality from the design to construction stage. The report has introduced a QMS to the property developer for the purpose of amendment to the existing QMS in order to obtain a complete QMS for better managing project quality.
The next part of this report is the case study on the Estella J.V organization that established to run and deliver the Estella Residential Development project, an international project of the Keppel Land Co. Ltd. Through this case study, the findings on the existing QMS and the application from the previous part to this existing QMS for improvement will be the foundation QMS for toward Keppel Land’ projects. This is also the objective of this study.
To enhance the quality control of construction projects, the Ministry of Construction (MOC) held a seminar on April 28, 2009 which the main concern to ensure the quality of construction projects, especially for large-scale national projects. While most projects have operated on a safe and cost-effective basis, there remain shortcomings in terms of quality at different levels due to international and external causes. Because of these reasons, the development of quality management system is most important not only for Contractors, Quality Consultants, but for the investors or developers as well.
Mr. Tran Hong Quan made a study which primary objective was to study the application of Quality Management System (QMS) of Project Owner in a construction project from design to construction phase.
Conclusions
In general, most of the requirements of quality system have been covered and presented in the existing system. However, the discovered problems that related in missing contract review, improper developed coordination and communication, lack of the process control, control of quality records and the inspection status monitoring during the course of work are the reasons that caused major problems to owner such as schedule delay and generating V.O.
In addition, it was found out that there was inconsistency in decision relating to quality on job site caused rework and schedule delay.
Obviously, besides the reason of work procedures, it would be the reasons of different quality level and quality perception. Therefore, it is necessary to conduct the internal quality audit and provide training at different position in order to gain the same level of quality perception in the project team.
Through the discussion and findings of this study, the causes and the consequences that generated by these missing processes can be summarized in the table below:
To summarize, refer to the study, in order to obtain a complete QMS, the missing requirements as previous mentioned should be added in the existing Quality Management System for fulfillment. More than that, the quality culture in organization should be formed up so that the Company can reach to the Total Quality Management.
His thesis abstract is copied and posted.
Abstract
The report expresses the key issues in Quality Management System (QMS) that known as the critical factor for any organization wants to develop and survive in the free trade market.
This study, which refers to the theories and the standards system, has expressed the concept of quality in construction, the QMS in organization, system requirements for owner’s QMS in construction and its benefits. The study has briefed the factors that most effect to project quality studied from public reports and the key points to control project quality from the design to construction stage. The report has introduced a QMS to the property developer for the purpose of amendment to the existing QMS in order to obtain a complete QMS for better managing project quality.
The next part of this report is the case study on the Estella J.V organization that established to run and deliver the Estella Residential Development project, an international project of the Keppel Land Co. Ltd. Through this case study, the findings on the existing QMS and the application from the previous part to this existing QMS for improvement will be the foundation QMS for toward Keppel Land’ projects. This is also the objective of this study.
Thursday 16 September 2010
AIT Thailand August 2010 Intake for CEIM and MPM fields of Study
The AIT in Thailand accepted 49 students for August 2010 semester. The distribution of students enrolled in the Doctoral, Master and Professional Master Programs are 3, 9 and 37 respectively.
Below are names of the current students:
No. Name Degree
1. Mr.Grit Ngowtanasuwan, CAS
2. Mr.Wilson Udo Udofia, Doctor
3. MissSarsinatt Kriwaphun, Doctor
4. Mr.San Visal, Master
5. Mr.Ranjeet Sandeep Pundlik, Master
6. Mr.Senjam Romero Singh, Master
7. Mr.Krisana Juanwanpen, Master
8. Mr.Thanawat Phangchunun, Master
9. Miss Junya Phuangphay, Master
10. Mr.Pham Quang Cuong, Master
11. MissHuyen Thanh To, Master
12. Mr.Tran Phi Long, Master
13. Mr. Nguyen Duc Huan, MPM
14. Ms. Nguyen Thi Minh Ha, MPM
15. Mr. Nguyen Nhat Tai, MPM
16. Mr. Ngo Quoc Thai, MPM
17. Mr. Le Van Tuan, MPM
18. Mr. Nguyen Huu Ky, MPM
19. Mr. Vo Thanh Phong, MPM
20. Mr. Nguyen Ngoc Thi, MPM
21. Mr. Bui Duy Khanh, MPM
22. Mr. Nguyen Thai Son, MPM
23. Mr. Tran Minh Nghia, MPM
24. Mr. Le Anh Thai, MPM
25. Ms. Dang Trinh Thanh Phuong, MPM
26. Ms. Nguyen Tran Tuong Ly, MPM
27. Mr. Le Do, MPM
28. Mr. Nguyen Chanh Trung, MPM
29. Mr. Nguyen Nong Truong Thanh, MPM
30. Mr. Vo Khac Kien, MPM
31. Mr. La Nguyen Bao, MPM
32. Mr. Tu Thien Tu, MPM
33. Mr. Hoang Manh Chi, MPM
34. Mr. Chau Anh Tuan, MPM
35. Nguyen Thi Thu Nga, MPM
36. Mr. Ngo Thanh Duc, MPM
37. Nguyen Trong Hung, MPM
38. Mr. Bui Viet Thi, MPM
39. Mr. Nguyen Anh Tuan, MPM
40. Mr. Vu Van Tinh, MPM
41. Mr. Bui Thanh Nam, MPM
42. Mr. Huynh Thanh Quang, MPM
43. Mr. Do Danh Chi, MPM
44. Phan Hong Ngoc, MPM
45. Vu Kim Dien, MPM
46. Tran Cao Hy, MPM
47. Nguyen Trong Khoa, MPM
48. Nguyen Hong Thanh, MPM
49. Mr. Ha Chi Nghia, MPM
Wednesday 15 September 2010
Communication Management within a Construction Project Team: A Case Study of Condominium Project in Ho Chi Minh City
The construction industry in Viet Nam especially commercial building sector, is now suffering from many problems in communication management. Some common problems are:
1. Usually skipping communication management or just approaching it shallowly due to lack of knowledge in this area.
2. Problems related to interpersonal communication (such as face-to-face meetings), intra-group communication (such as interactions between team members) or inter-group communication (such as interactions between main contractors and sub-contractors) occur very frequently at many projects. Consequently, projects communication often breaks down and projects are likely to be failed.
3. Unable to determine project stakeholders’ needs for information, unable to determine communication channels in projects, insufficient interaction between project management and team members or between main contractor and sub-contractors or within team members, inappropriate communication media, etc.
4. Timing of distributing information, correct information to correct stake holders, wasting a large amount of time and resources for unnecessary meetings, etc.
5. Unable to combine verbal communication and non-verbal communication in order to achieve targets.
6. Abusive using of bad emotional methods during interaction between project management and team members such as fear and threats, aversive stimulation, etc.
It is important to understand the nature of the problems and to find ways to solve them in order to be able to develop an effective communication management system in construction projects. Mr. Nguyen Canh Toan made a study which objectives were to: (1) investigate the communication interactions within construction project team so that communication problems causing project interruption can be identified; and (2) propose recommendations on how to improve communication management within construction project team.
Conclusions
The important role of communication management within construction project team was clarified. During construction phase, interactions within the main contractor’s team members and between the main contractor and subcontractors were analyzed. Communication problems were classified into three categories, i.e. coordination, information distribution and interpersonal communication. The problems relating to coordination category occurred most in the project which caused project delay. In order to solve these 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 aids for the project managers to improve communication management in the project.
However, there are some limitations in this study. First, the relationships between communication problems and types of information in action have not been graded in order to figure out which one is the biggest factor that causes communication interruption; or the applicability of the proposed solutions for those problems.
Recommendations
In order to avoid similar communication problems, recommendations are given below:
1. Project Manager shall prepare project management plan including communication plan in the beginning of the project.
2. Strictly following the communication plan. Incentives shall be provided to encourage everybody to carry it out properly, and also treatments or even punishments for bad behaviours.
3. Document controller position must be stable as much as possible in order to ensure that the information distribution process is in order.
4. 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.
5. Using new information-conveying methods such as: web-based data distribution, e-meeting, etc. in order for easy document control and timing of document distribution.
6. Organizing trainings for the team members in order for them to know how to use both verbal and non-verbal communication effectively.
7. Outside activities such as playing football, parties, etc. are recommended to improve relationships among team members and between the main contractor and subcontractors.
His thesis abstract is copied and posted.
Abstract
Communication management is one of the nine knowledge areas that can be found in the Project Management Institute’s A guide to the Project Management Body of Knowledge. This is a really tough challenge and time-consuming task to any project manager. Despite the fact that ineffective communication management will result in project interruption or even failure, there are not many project managers or site managers in Vietnamese contractors being aware of its importance. This final project report focuses on construction project communication management between the main contractor and subcontractors as inter-group communication and within the main contractor team members as intra-group communication. By reviewing many researches and studies of many authors on this field, knowledge as regards communication management within team and with external party such as will be explored step by step. Through a case study of condominium project in Ho Chi Minh City, communication problems which cause project interruption will be investigated and analyzed. Some proposed solutions which are based on the reviewed knowledge will be discussed in order to help project managers improve communication in the project.
1. Usually skipping communication management or just approaching it shallowly due to lack of knowledge in this area.
2. Problems related to interpersonal communication (such as face-to-face meetings), intra-group communication (such as interactions between team members) or inter-group communication (such as interactions between main contractors and sub-contractors) occur very frequently at many projects. Consequently, projects communication often breaks down and projects are likely to be failed.
3. Unable to determine project stakeholders’ needs for information, unable to determine communication channels in projects, insufficient interaction between project management and team members or between main contractor and sub-contractors or within team members, inappropriate communication media, etc.
4. Timing of distributing information, correct information to correct stake holders, wasting a large amount of time and resources for unnecessary meetings, etc.
5. Unable to combine verbal communication and non-verbal communication in order to achieve targets.
6. Abusive using of bad emotional methods during interaction between project management and team members such as fear and threats, aversive stimulation, etc.
It is important to understand the nature of the problems and to find ways to solve them in order to be able to develop an effective communication management system in construction projects. Mr. Nguyen Canh Toan made a study which objectives were to: (1) investigate the communication interactions within construction project team so that communication problems causing project interruption can be identified; and (2) propose recommendations on how to improve communication management within construction project team.
Conclusions
The important role of communication management within construction project team was clarified. During construction phase, interactions within the main contractor’s team members and between the main contractor and subcontractors were analyzed. Communication problems were classified into three categories, i.e. coordination, information distribution and interpersonal communication. The problems relating to coordination category occurred most in the project which caused project delay. In order to solve these 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 aids for the project managers to improve communication management in the project.
However, there are some limitations in this study. First, the relationships between communication problems and types of information in action have not been graded in order to figure out which one is the biggest factor that causes communication interruption; or the applicability of the proposed solutions for those problems.
Recommendations
In order to avoid similar communication problems, recommendations are given below:
1. Project Manager shall prepare project management plan including communication plan in the beginning of the project.
2. Strictly following the communication plan. Incentives shall be provided to encourage everybody to carry it out properly, and also treatments or even punishments for bad behaviours.
3. Document controller position must be stable as much as possible in order to ensure that the information distribution process is in order.
4. 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.
5. Using new information-conveying methods such as: web-based data distribution, e-meeting, etc. in order for easy document control and timing of document distribution.
6. Organizing trainings for the team members in order for them to know how to use both verbal and non-verbal communication effectively.
7. Outside activities such as playing football, parties, etc. are recommended to improve relationships among team members and between the main contractor and subcontractors.
His thesis abstract is copied and posted.
Abstract
Communication management is one of the nine knowledge areas that can be found in the Project Management Institute’s A guide to the Project Management Body of Knowledge. This is a really tough challenge and time-consuming task to any project manager. Despite the fact that ineffective communication management will result in project interruption or even failure, there are not many project managers or site managers in Vietnamese contractors being aware of its importance. This final project report focuses on construction project communication management between the main contractor and subcontractors as inter-group communication and within the main contractor team members as intra-group communication. By reviewing many researches and studies of many authors on this field, knowledge as regards communication management within team and with external party such as will be explored step by step. Through a case study of condominium project in Ho Chi Minh City, communication problems which cause project interruption will be investigated and analyzed. Some proposed solutions which are based on the reviewed knowledge will be discussed in order to help project managers improve communication in the project.
Monday 13 September 2010
Delays in Construction Projects in Vietnam: A Case Study of Last Section of National Highway No. 51
In recent years, Vietnam’s economy has been grown rapidly and becoming one of the countries with highest growth rate in the world. As a consequence, construction industry grew rapidly while project management could not meet requirement of construction industry.
There is a fact in Vietnam that delay happens in almost all construction projects; especially in projects that are state-funded and contractors are domestic. Projects which were carried out by international contractors are less likely to suffer delay. Responsibility for delay was not clearly defined. Therefore, whenever delay happens, no one was blamed. Because of this, the owner often give contractors extended time to finish the project without any penalty. In very few cases, contractors were given more time but had to pay a penalty.
However, in general, delay and cost overrun are the biggest problems in bombing construction field in Vietnam. Mr. Truong Quang Dien made a study which focused on the factors affecting the construction stage construction projects in Vietnam. The objectives of his study were: (1) recognizing frequency causes of delay; (2) defining effects of delay in progress of projects; and (3) solutions to delay problem and how to deal with delay when it happens
Conclusion
The delay in construction projects in Vietnam which was discussed in this paper was focused on frequency, severity and importance of the causes of delay, effects of delay and how the delay was solved.
The frequency and severity causes of delay were identified through previous research, present issues, and widespread contributions of construction field in Vietnam. The construction participants accorded inexact time, slow site clearance, slow government’s permits, poor site management and supervision, financial difficulties, incompetence subcontractor, and unforeseen factors.
Slow acquisition was frequent cause of delay in almost construction projects in Vietnam, which affected the whole schedule of the project. In the Owner’s point of view, the causes of delay were related to the responsibilities of both contractor and subcontractor.
This paper showed that owners and consultants realized that contract awarding to the lowest bidder was frequent causes of delay, meanwhile contractors considered severe causes of delay were related to owners and consultants like unclear responsibilities, slow-making decision from owners about some changed works during construction. One common cause of delay was Change Order initiated by owner during construction. Besides there were many causes between two parties, such as progress payment delay from Owner, ineffective scheduling, poor site management and supervision, shortage of labors and difficulties in financing from contractor.
However, all parties agreed that the following causes rarely occurred and were less important: changes in government regulations, restrictions at site, effect of social and cultural factors.
In general, there were certain interrelationships among the problems. The top-ranked problems including occurrence were grouped under some major factors: site related issues, incompetent designers and contractors, poor estimation, poor site management and supervision, poor contract management, price fluctuations, and improper techniques. It was noted that the findings confirmed previous studies that most of problems in construction projects were related to human behavior and management problems, and not technical in nature.
In order to mitigate delays in construction industry in Vietnam, all required training for engineer for their competency in term of technical, and safety was required. Therefore, there were no more gaps in planning, managing and organizing and safety. Project feasibility study must receive a serious attention and must be done carefully especially on government funded projects. In addition, contract management work should be the focused. Although Vietnamese government has regulated many decrees or circulars ruled on this work and published contract template, it always needs experienced parties to do contract work and suit template to real project conditions.
From above causes, the effects of delay were cost overrun and party’s damages. Third parties were people who would get profit from operating or using the project.
Recommendations
To reduce delays, all parties should consider following important factors:
1. Separate site clearance (acquisition) work from construction work and it must be finished before estimating cost and schedule for construction phrase and bidding work.
2. Make clear responsibilities among parties in the contract document and use CPM (Critical Path Management) to manage schedule during construction.
3. Make Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
Besides the three most above mentioned causes, the following points can be recommended by all parties in order to minimize and control delays in construction projects.
• For the Owners
1. Progress payment should be made on time otherwise it impairs the contractor’s ability to finance the work.
2. Change orders should be minimized as much as practical during construction to avoid delays.
3. Avoid delay in reviewing and approving of design documents than the anticipated.
4. Check for all resources and capabilities, before awarding the contract to the lowest bidder.
• For the Contractors
1. Shortage and low productivity of labor: enough number of labors should be assigned and be motivated to improve productivity.
2. Financial and cash flow problems: contractor should manage his financial resources, plan cash flow by utilizing progress payment and ensure financial during construction.
3. Site management and supervision: administrative and technical state should be assigned as soon as project is awarded to make arrangements to achieve completion within specified time with the required quality and estimated cost.
4. Subcontractors and suppliers: selecting subcontractors and suppliers with competence and experience, and also with enough financial resources. Contractors should not select subcontractors and suppliers with low bidding price.
5. Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
• For the Consultants
Reviewing and approving design documents: any delay caused by the consultant engineer in checking, reviewing and approving the design submittals prior to construction phase could delay the progress of the work.
Inflexibility: Consultants should be flexible in evaluating contractor works. Compromising between the cost and high quality should be considered.
His thesis abstract is copied and posted.
Abstract
In construction project management, delay means the finish date of the project is beyond the date stated in contract. When delay happens, cost often increases because of inflation or other factors. Most construction projects in developing countries, including Vietnam, are suffering two problems: delay and cost overrun.
For the owner, delay means cost more for capital and loss of income from operating the outcome of the project. For constructors, delay means cost more for construction work because spending on materials, labors and vehicles will increase.
Completing project on time and within in-plan cost is an indicator of efficiency in project management. However, construction progress is often changed and affected by unforeseen factors such as: contractor-related problems: Poor site management and supervision, Financial difficulties, Incompetence subcontractors; owner-related problems, design-related and slow site clearance, etc.
This report will try to find out which reasons are main reasons for delay in Vietnam based on previous researches and personal experience of author. Also, solutions for this problem will be mentioned in chapter IV as a suggestion of author.
There is a fact in Vietnam that delay happens in almost all construction projects; especially in projects that are state-funded and contractors are domestic. Projects which were carried out by international contractors are less likely to suffer delay. Responsibility for delay was not clearly defined. Therefore, whenever delay happens, no one was blamed. Because of this, the owner often give contractors extended time to finish the project without any penalty. In very few cases, contractors were given more time but had to pay a penalty.
However, in general, delay and cost overrun are the biggest problems in bombing construction field in Vietnam. Mr. Truong Quang Dien made a study which focused on the factors affecting the construction stage construction projects in Vietnam. The objectives of his study were: (1) recognizing frequency causes of delay; (2) defining effects of delay in progress of projects; and (3) solutions to delay problem and how to deal with delay when it happens
Conclusion
The delay in construction projects in Vietnam which was discussed in this paper was focused on frequency, severity and importance of the causes of delay, effects of delay and how the delay was solved.
The frequency and severity causes of delay were identified through previous research, present issues, and widespread contributions of construction field in Vietnam. The construction participants accorded inexact time, slow site clearance, slow government’s permits, poor site management and supervision, financial difficulties, incompetence subcontractor, and unforeseen factors.
Slow acquisition was frequent cause of delay in almost construction projects in Vietnam, which affected the whole schedule of the project. In the Owner’s point of view, the causes of delay were related to the responsibilities of both contractor and subcontractor.
This paper showed that owners and consultants realized that contract awarding to the lowest bidder was frequent causes of delay, meanwhile contractors considered severe causes of delay were related to owners and consultants like unclear responsibilities, slow-making decision from owners about some changed works during construction. One common cause of delay was Change Order initiated by owner during construction. Besides there were many causes between two parties, such as progress payment delay from Owner, ineffective scheduling, poor site management and supervision, shortage of labors and difficulties in financing from contractor.
However, all parties agreed that the following causes rarely occurred and were less important: changes in government regulations, restrictions at site, effect of social and cultural factors.
In general, there were certain interrelationships among the problems. The top-ranked problems including occurrence were grouped under some major factors: site related issues, incompetent designers and contractors, poor estimation, poor site management and supervision, poor contract management, price fluctuations, and improper techniques. It was noted that the findings confirmed previous studies that most of problems in construction projects were related to human behavior and management problems, and not technical in nature.
In order to mitigate delays in construction industry in Vietnam, all required training for engineer for their competency in term of technical, and safety was required. Therefore, there were no more gaps in planning, managing and organizing and safety. Project feasibility study must receive a serious attention and must be done carefully especially on government funded projects. In addition, contract management work should be the focused. Although Vietnamese government has regulated many decrees or circulars ruled on this work and published contract template, it always needs experienced parties to do contract work and suit template to real project conditions.
From above causes, the effects of delay were cost overrun and party’s damages. Third parties were people who would get profit from operating or using the project.
Recommendations
To reduce delays, all parties should consider following important factors:
1. Separate site clearance (acquisition) work from construction work and it must be finished before estimating cost and schedule for construction phrase and bidding work.
2. Make clear responsibilities among parties in the contract document and use CPM (Critical Path Management) to manage schedule during construction.
3. Make Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
Besides the three most above mentioned causes, the following points can be recommended by all parties in order to minimize and control delays in construction projects.
• For the Owners
1. Progress payment should be made on time otherwise it impairs the contractor’s ability to finance the work.
2. Change orders should be minimized as much as practical during construction to avoid delays.
3. Avoid delay in reviewing and approving of design documents than the anticipated.
4. Check for all resources and capabilities, before awarding the contract to the lowest bidder.
• For the Contractors
1. Shortage and low productivity of labor: enough number of labors should be assigned and be motivated to improve productivity.
2. Financial and cash flow problems: contractor should manage his financial resources, plan cash flow by utilizing progress payment and ensure financial during construction.
3. Site management and supervision: administrative and technical state should be assigned as soon as project is awarded to make arrangements to achieve completion within specified time with the required quality and estimated cost.
4. Subcontractors and suppliers: selecting subcontractors and suppliers with competence and experience, and also with enough financial resources. Contractors should not select subcontractors and suppliers with low bidding price.
5. Planning and scheduling: they are continuing processes during construction and match with the resources and time to develop the work to avoid cost overrun and disputes.
• For the Consultants
Reviewing and approving design documents: any delay caused by the consultant engineer in checking, reviewing and approving the design submittals prior to construction phase could delay the progress of the work.
Inflexibility: Consultants should be flexible in evaluating contractor works. Compromising between the cost and high quality should be considered.
His thesis abstract is copied and posted.
Abstract
In construction project management, delay means the finish date of the project is beyond the date stated in contract. When delay happens, cost often increases because of inflation or other factors. Most construction projects in developing countries, including Vietnam, are suffering two problems: delay and cost overrun.
For the owner, delay means cost more for capital and loss of income from operating the outcome of the project. For constructors, delay means cost more for construction work because spending on materials, labors and vehicles will increase.
Completing project on time and within in-plan cost is an indicator of efficiency in project management. However, construction progress is often changed and affected by unforeseen factors such as: contractor-related problems: Poor site management and supervision, Financial difficulties, Incompetence subcontractors; owner-related problems, design-related and slow site clearance, etc.
This report will try to find out which reasons are main reasons for delay in Vietnam based on previous researches and personal experience of author. Also, solutions for this problem will be mentioned in chapter IV as a suggestion of author.
Friday 10 September 2010
Quality Management in Soil Improvement Projects: A Case Study of a Power Plant Project in Vietnam
In Vietnam, the concept and quality management in construction have been used in recent years. Nevertheless, many problems have been exposed because of the lack of managerial skills and competencies as well as the internal capacities of construction organization for satisfying the rapid increase of construction project. Projects delay happened normally in the majority of development projects due to poor communication, resource mobilization or other factors. Poor quality management process has significance on the Client and Contractor as well as to Consultant Client and Sub-contractor. If the performance of the projects is not managed successfully, the parties are likely to fail to meet its goals that they had for the project, associated with the quality management. Such failures may include the delay in schedule, cost overruns, quality, and safety and so on.
Mr. Tran Tuan Binh made a study which focused on soil improvement, construction industry and oil & gas industry; and the advantages and disadvantages of quality management in construction applicable in oil & gas projects in Vietnam. His study focused on several specific objectives as follows:
- To identify the quality management in construction
- To conduct quality management for project construction
The purpose of his research is to study quality management for construction project.
- To study implementation of PVMPC quality management in construction
- To state problems that occurred in the execution of quality project.
- To give out some recommendations to treating principle soil improvement
- To learn lessons from PVMPC project.
Conclusion
Based on the findings, the quality management in construction project is very important and necessary in soil improvement project. Quality management considered in this study is appropriate and applicable in soil improvement of power plant project in Vietnam.
The purpose of project quality management in construction is to manage the quality in order to achieve the objective of the project such as time, cost, quality, safety and environment. In particular, quality management helps people involved as project manager.
Quality management in construction is setting priorities, allocating resources and implementing actions and process to evaluate the risk of project and reduce the cost.
Quality management utilizes knowledge and experienced people to analysis for the better decision making. It supplies the better decision for the whole stage of project such as Project conceptual, Project planning, Project execution, Project termination prevention or risk avoidance.
Management in construction is a very important part of project management process. It is a fundamental to achieve good product.
Recommendation
Considering the quality management application in soil improvement of Power Plan project, below are the recommendations for the most effective quality management in construction:
In Viet Nam, the project managers completely have awareness of the importance of quality management in soil improvement and its efficiency for project success. However, they find difficulties to conform factor: cost, time, quality with Client’s requirements.
Based on the author’s opinion, there are some existing main reasons which the company has to change and improve well if they would like to have good project management:
1. Lack of Communication
2. Responsibilities are not assigned clearly enough to all members: client, design consultancy, project manager, construction.
3. Cost estimate in national norm is not appropriate with actual case.
4. Complex Legal procedures.
In conclusion, a good soil improvement quality management for every stages: engineering, procurement, construction, installation, hook up, pre-commissioning and commissioning in hand is very important, however how to manage and control efficiently and effectively the performance of QMS can lead the success or failure of any projects especially the complicated and big projects in oil & gas governed by soil improvement quality management.
His thesis abstract is copied and posted.
Abstract
In construction project, quality management is a very important sector using particular method to achieve the best practices in the project of company. Quality management is a systematic approach to managing unexpected issues circumstances related to a threat through a sequence of human activities including: Quality identification, Quality classification, and Quality control and Quality improvement
In the organization, there are some ways of quality management such as quality management in construction, quality management in operation and quality management in business.
The purpose of Quality management is to reduce risks. It may refer to numerous types of threats caused by environment, technology, human, and organization and politic. On the other hand it involves all means available for human, or in particularly, for a quality management entity.
Mr. Tran Tuan Binh made a study which focused on soil improvement, construction industry and oil & gas industry; and the advantages and disadvantages of quality management in construction applicable in oil & gas projects in Vietnam. His study focused on several specific objectives as follows:
- To identify the quality management in construction
- To conduct quality management for project construction
The purpose of his research is to study quality management for construction project.
- To study implementation of PVMPC quality management in construction
- To state problems that occurred in the execution of quality project.
- To give out some recommendations to treating principle soil improvement
- To learn lessons from PVMPC project.
Conclusion
Based on the findings, the quality management in construction project is very important and necessary in soil improvement project. Quality management considered in this study is appropriate and applicable in soil improvement of power plant project in Vietnam.
The purpose of project quality management in construction is to manage the quality in order to achieve the objective of the project such as time, cost, quality, safety and environment. In particular, quality management helps people involved as project manager.
Quality management in construction is setting priorities, allocating resources and implementing actions and process to evaluate the risk of project and reduce the cost.
Quality management utilizes knowledge and experienced people to analysis for the better decision making. It supplies the better decision for the whole stage of project such as Project conceptual, Project planning, Project execution, Project termination prevention or risk avoidance.
Management in construction is a very important part of project management process. It is a fundamental to achieve good product.
Recommendation
Considering the quality management application in soil improvement of Power Plan project, below are the recommendations for the most effective quality management in construction:
In Viet Nam, the project managers completely have awareness of the importance of quality management in soil improvement and its efficiency for project success. However, they find difficulties to conform factor: cost, time, quality with Client’s requirements.
Based on the author’s opinion, there are some existing main reasons which the company has to change and improve well if they would like to have good project management:
1. Lack of Communication
2. Responsibilities are not assigned clearly enough to all members: client, design consultancy, project manager, construction.
3. Cost estimate in national norm is not appropriate with actual case.
4. Complex Legal procedures.
In conclusion, a good soil improvement quality management for every stages: engineering, procurement, construction, installation, hook up, pre-commissioning and commissioning in hand is very important, however how to manage and control efficiently and effectively the performance of QMS can lead the success or failure of any projects especially the complicated and big projects in oil & gas governed by soil improvement quality management.
His thesis abstract is copied and posted.
Abstract
In construction project, quality management is a very important sector using particular method to achieve the best practices in the project of company. Quality management is a systematic approach to managing unexpected issues circumstances related to a threat through a sequence of human activities including: Quality identification, Quality classification, and Quality control and Quality improvement
In the organization, there are some ways of quality management such as quality management in construction, quality management in operation and quality management in business.
The purpose of Quality management is to reduce risks. It may refer to numerous types of threats caused by environment, technology, human, and organization and politic. On the other hand it involves all means available for human, or in particularly, for a quality management entity.
Thursday 9 September 2010
Sub-Contractor Management in Gas Projects: A Case Study of PVGas Gas Distribution Centre Project
The development of petroleum industry during the past years has created bigger demand and bigger market on both size and scale. The international integration has also created opportunities for service companies of Petrovietnam to access the newest technologies and more investment in the Oil and Gas industry. The improvement of project management shall be applied to create opportunities for project management boards in order to perform project on schedule, on budget, good quality and safety.
In recent year, in order to maintain and increase the oil and gas exploitation output, Petrovietnam has cooperated with national and international petroleum companies to speed up the plan of developing and building new fields or expanding the field’s exploiting scale.
In order to invest more facilities for development purpose, more Contractors are involved in PetroVietnam Project. Through previous experience, the sub-contractor management has lack of experience such as uncontrolled schedule, uncontrolled scope of work, incorrect materials, and poor quality of construction.
According to contract type, contractor for Projects managed by PMC-PV Gas is divided into three types such as:
1. General contractor for Engineering, procurement and construction.
2. General contractor for engineering and construction and sub-contractor for supplying equipments and commissioning.
3. General contractor for construction, sub-contractor for engineering, supplying equipments and commissioning.
Therefore, sub-contractor management in projects is the challenge for project management board regarding on-scheduling, on-quality, and safety and in budget.
If the management board is not paying attention with sub-contractor management, it will have caused the chain of effects in delaying schedule, poor quality and cost impact for the whole project. One research said that the cost of rework and re-chose sub-contractor is 12 times higher of previous cost. Therefore, pre-qualification and monitoring performance of sub-contractor is the most importance in the success of General Contractor and Projects.
Mrs. Phan Thi Hai Giang made a study which main purpose was to quantify the importance of sub-contractor management in construction management especially in EPC contract and the effectiveness of sub-contractor with general contractor in schedule, quality and cost. Her research focused from bidding stage and performing project of sub-contractor in pipeline projects.
The objectives of her study were to: (1) evaluate the relationship between the subcontractor and general contractor in scheduling management, quality control and cost control in EPC Contract; (2) identify some problems in subcontractor management that can be improved by the general contractor; and (3) investigate the effect of implementation subcontractor management in early stage of construction management.
Conclusion
This project is successful in the manner of subcontractor's management. Based on the result, it can be concluded that subcontractor control management in terms of procurement and cost from local contractor has been aligned and organized, but, in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the subcontractor control strategy in order to improve the subcontractor management performance. In contrast, it can be concluded that subcontractor control strategy has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.
They project’s key factor shall be identified in the beginning of the project and general contractor/sub-contractor must follow and try to achieve these goals. In this case study, the key factor of Project is schedule. The success of project is the good co-ordination with general contractor/Owner such as follows:
1. For quality management:
a. All agreement between general contractor and sub-contract will be submitted and approved by Owner because Subcontracts should be made to conform with the prime contract between the contractor and the project owner, and must be revised in accordance with the changes made to the prime contract throughout the course of the project.
b. Tight and clear specification.
c. Dedicated QA/QC Manager.
d. On-site Vendor Inspection.
e. Continuous improvement quality management system.
f. Rigid control change order in design stage and in Site
2. For the cost management:
a. General Contractors prefer to structure subcontracts so that the contractor pays the subcontractor only if the contractor receives payment from the owner, arguing that they should not be stuck with paying bills that the owner doesn’t pay them for.
b. Accurate cost tracking, analysis and forecast.
c. QA/QC to prevent and detect defects earlier.
3. For schedule management:
a. The good planner and updated schedule for all Site work and procurement work that will affected with on-time schedule of Project.
b. Tight project control system and dedicated project controller.
c. Given appropriated solution for long-lead item.
4. For safety management:
a. Good safety procedures with appointed safety manager will be monitored all construction works at Site.
b. Risk response plan, emergency response plan and risk assessment applied for safety management of Project.
Benefit of project sub-contractor management
Almost in all projects, general contractor can't perform their construction works with their own force; they tried to share responsibilities and risks with their sub-contractor/Vendor.
From the above case-study, the good communication between general contractor and sub-contractor will be contributed to the success of Project. It shall be described in the beginning of the contract. The content of the service which sub-contractor is to provide for the general contractor must be described; and it also articulates the general contractor's procedure of awarding the subcontractor.
The general contractor assumes their role and contracts out the construction work, some detail design works to various specialty subcontractors in order to control risk and transfer construction risks. Through sub-contracting, the general contractor can minimize its capital investment and reduce the size of permanent staff.
The general contractor didn't understand clearly about local regulation, work permission with existing gas facilities. So they use local sub-contractor to transfer their risks.
With good management of sub-contractors, the general contractors will have a success project in manner of quality, safety, schedule and cost. And local sub-contractor can became more professional through tight control from general manager.
Recommendation for sub-contractor management improvement
After studying how main contractors managed their subcontractors together with the strength and weaknesses of each strategy, the recommendation for improvement can be proposed as follows:
1) It is important to have formal procurement standard for subcontractors. It helps main contractors to make decision easier and faster whether the subcontractors are qualified with the main contractor’s commitment.
2) Always have two-way lead times built into subcontract agreements. Two-way means that the main contractor and subcontractors agree on an appropriate time for the main contractor to notify the subcontractor when to begin work and an appropriate amount of time for the subcontractors to inform the main contractor of any conflict. Main contractor should monitor subcontractor’s schedule by developing a system or adopting advanced technology software that allows main contractor to track causes of schedule variance.
3) Top management should take a lead role in commitment toward quality. There should be quality policy and activities performed in an effort to implement the quality policy. Subcontractor should understand the quality policy and follow it as a work quality standard. The problems related with low quality can be prevented.
4) By establishing a subcontractor database, main contractors are able to know the information about subcontractors. It helps main contractors to have better understanding subcontractors’ performance.
5) Main contractor should develop comprehensive project safety policy and safety programs which make provisions for subcontractor safety. Subcontractor has to obey the main contractor’s safety policy and follow the main contractor’s safety programs by the inclusion of specific language to that effect in their contracts.
6) Main contractor may consider employing subcontract coordinator in order to improve coordination and communication with subcontractors.
Her thesis abstract is copied and posted.
Abstract
Because of the increased project complexity and the highly competitive nature of the construction industry, a construction project often is executed by several subcontractors. Hence, effectively managing the numerous subcontractors involved in a construction project becomes a crucial challenge for the general contractor in ensuring timely project completion with acceptable quality.
Managing subcontractors does not simply involve asking them to allocate resources (labor, material, and machinery/equipment) into the jobsite whenever an activity is scheduled, and then pushing them to speed up the work without a clear consciousness of schedule risk. Factors (or uncertainties) such as weather, labor, site conditions, material delivery, and equipment breakdown can influence the time performance of subcontractors, affecting total project duration.
But almost General Contractor is lack of management sub-contractor and it caused many difficulties and conflicts during performance, management of projects.
The most difficulty of sub-contractor management is deviation scope of work between sub-contractors, controlling schedule and interfacing between subcontractors.
In managing project subcontractors, a general contractor must determine the items of work to be subcontracted, select subcontractors, set subcontract agreements, and control the subcontractors during construction.
In recent year, in order to maintain and increase the oil and gas exploitation output, Petrovietnam has cooperated with national and international petroleum companies to speed up the plan of developing and building new fields or expanding the field’s exploiting scale.
In order to invest more facilities for development purpose, more Contractors are involved in PetroVietnam Project. Through previous experience, the sub-contractor management has lack of experience such as uncontrolled schedule, uncontrolled scope of work, incorrect materials, and poor quality of construction.
According to contract type, contractor for Projects managed by PMC-PV Gas is divided into three types such as:
1. General contractor for Engineering, procurement and construction.
2. General contractor for engineering and construction and sub-contractor for supplying equipments and commissioning.
3. General contractor for construction, sub-contractor for engineering, supplying equipments and commissioning.
Therefore, sub-contractor management in projects is the challenge for project management board regarding on-scheduling, on-quality, and safety and in budget.
If the management board is not paying attention with sub-contractor management, it will have caused the chain of effects in delaying schedule, poor quality and cost impact for the whole project. One research said that the cost of rework and re-chose sub-contractor is 12 times higher of previous cost. Therefore, pre-qualification and monitoring performance of sub-contractor is the most importance in the success of General Contractor and Projects.
Mrs. Phan Thi Hai Giang made a study which main purpose was to quantify the importance of sub-contractor management in construction management especially in EPC contract and the effectiveness of sub-contractor with general contractor in schedule, quality and cost. Her research focused from bidding stage and performing project of sub-contractor in pipeline projects.
The objectives of her study were to: (1) evaluate the relationship between the subcontractor and general contractor in scheduling management, quality control and cost control in EPC Contract; (2) identify some problems in subcontractor management that can be improved by the general contractor; and (3) investigate the effect of implementation subcontractor management in early stage of construction management.
Conclusion
This project is successful in the manner of subcontractor's management. Based on the result, it can be concluded that subcontractor control management in terms of procurement and cost from local contractor has been aligned and organized, but, in terms of schedule, quality and safety aspects, it has been yet organized. Major improvements are needed for the subcontractor control strategy in order to improve the subcontractor management performance. In contrast, it can be concluded that subcontractor control strategy has been aligned and organized in all aspects. However, there are some major points, which need to be improved in order to strengthen and continually improve the strategy performance.
They project’s key factor shall be identified in the beginning of the project and general contractor/sub-contractor must follow and try to achieve these goals. In this case study, the key factor of Project is schedule. The success of project is the good co-ordination with general contractor/Owner such as follows:
1. For quality management:
a. All agreement between general contractor and sub-contract will be submitted and approved by Owner because Subcontracts should be made to conform with the prime contract between the contractor and the project owner, and must be revised in accordance with the changes made to the prime contract throughout the course of the project.
b. Tight and clear specification.
c. Dedicated QA/QC Manager.
d. On-site Vendor Inspection.
e. Continuous improvement quality management system.
f. Rigid control change order in design stage and in Site
2. For the cost management:
a. General Contractors prefer to structure subcontracts so that the contractor pays the subcontractor only if the contractor receives payment from the owner, arguing that they should not be stuck with paying bills that the owner doesn’t pay them for.
b. Accurate cost tracking, analysis and forecast.
c. QA/QC to prevent and detect defects earlier.
3. For schedule management:
a. The good planner and updated schedule for all Site work and procurement work that will affected with on-time schedule of Project.
b. Tight project control system and dedicated project controller.
c. Given appropriated solution for long-lead item.
4. For safety management:
a. Good safety procedures with appointed safety manager will be monitored all construction works at Site.
b. Risk response plan, emergency response plan and risk assessment applied for safety management of Project.
Benefit of project sub-contractor management
Almost in all projects, general contractor can't perform their construction works with their own force; they tried to share responsibilities and risks with their sub-contractor/Vendor.
From the above case-study, the good communication between general contractor and sub-contractor will be contributed to the success of Project. It shall be described in the beginning of the contract. The content of the service which sub-contractor is to provide for the general contractor must be described; and it also articulates the general contractor's procedure of awarding the subcontractor.
The general contractor assumes their role and contracts out the construction work, some detail design works to various specialty subcontractors in order to control risk and transfer construction risks. Through sub-contracting, the general contractor can minimize its capital investment and reduce the size of permanent staff.
The general contractor didn't understand clearly about local regulation, work permission with existing gas facilities. So they use local sub-contractor to transfer their risks.
With good management of sub-contractors, the general contractors will have a success project in manner of quality, safety, schedule and cost. And local sub-contractor can became more professional through tight control from general manager.
Recommendation for sub-contractor management improvement
After studying how main contractors managed their subcontractors together with the strength and weaknesses of each strategy, the recommendation for improvement can be proposed as follows:
1) It is important to have formal procurement standard for subcontractors. It helps main contractors to make decision easier and faster whether the subcontractors are qualified with the main contractor’s commitment.
2) Always have two-way lead times built into subcontract agreements. Two-way means that the main contractor and subcontractors agree on an appropriate time for the main contractor to notify the subcontractor when to begin work and an appropriate amount of time for the subcontractors to inform the main contractor of any conflict. Main contractor should monitor subcontractor’s schedule by developing a system or adopting advanced technology software that allows main contractor to track causes of schedule variance.
3) Top management should take a lead role in commitment toward quality. There should be quality policy and activities performed in an effort to implement the quality policy. Subcontractor should understand the quality policy and follow it as a work quality standard. The problems related with low quality can be prevented.
4) By establishing a subcontractor database, main contractors are able to know the information about subcontractors. It helps main contractors to have better understanding subcontractors’ performance.
5) Main contractor should develop comprehensive project safety policy and safety programs which make provisions for subcontractor safety. Subcontractor has to obey the main contractor’s safety policy and follow the main contractor’s safety programs by the inclusion of specific language to that effect in their contracts.
6) Main contractor may consider employing subcontract coordinator in order to improve coordination and communication with subcontractors.
Her thesis abstract is copied and posted.
Abstract
Because of the increased project complexity and the highly competitive nature of the construction industry, a construction project often is executed by several subcontractors. Hence, effectively managing the numerous subcontractors involved in a construction project becomes a crucial challenge for the general contractor in ensuring timely project completion with acceptable quality.
Managing subcontractors does not simply involve asking them to allocate resources (labor, material, and machinery/equipment) into the jobsite whenever an activity is scheduled, and then pushing them to speed up the work without a clear consciousness of schedule risk. Factors (or uncertainties) such as weather, labor, site conditions, material delivery, and equipment breakdown can influence the time performance of subcontractors, affecting total project duration.
But almost General Contractor is lack of management sub-contractor and it caused many difficulties and conflicts during performance, management of projects.
The most difficulty of sub-contractor management is deviation scope of work between sub-contractors, controlling schedule and interfacing between subcontractors.
In managing project subcontractors, a general contractor must determine the items of work to be subcontracted, select subcontractors, set subcontract agreements, and control the subcontractors during construction.
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