A Feasibility Study of Curtain Wall Testing Company in Hanoi

Hanoi, the capital city of Vietnam, has been growing very fast since 1995. The construction in Hanoi booms with a great number of high-rise buildings, which significantly contributes to the new face of the transforming city.

The architectural elevations of those high-rise buildings are almost glass, and curtain walls are typically used. The main features of curtain walls are noise insulation, anti-heat, water proofing, stain resistance, high wind pressure tolerance, easy maintenance and energy saving.

However, what worries developers and contractors the most, is the quality of curtain walls. While there are a large numbers of suppliers – both joint ventures and foreign ones – there is no official standards for curtain walls since Vietnam has just recently exposed to this new technology. As a result, developers and contractors of each individual project apply their own standard, which makes it very difficult to confirm and identify the quality of the products.

Unfortunately, no laboratory can carry out this testing as there lack of equipment, technology and commonly accepted standards. Owners have to take samples to overseas such as from Korea, Hong Kong or Singapore for testing, which is very costly and time consuming.

As no current wall test is being conducted in Vietnam, there is a need for the establishment of a quality testing company.

Some considerations include:
(i) whether such a company is feasible and profitable,
(ii) how to process this kind of testing company technically and economically,
(iii) Whether the demand is high, and what are architecture demands and trends?

Mr. Nguyen Duy Duc Thu made a case study which objectives were to: (1) develop technical and economic feasibility study of Curtain wall testing company; (2) identify demand (volume and market trend) and the needed supply of curtain wall testing company in Vietnam; (3) identify technical requirements of curtain wall testing in Vietnam which includes testing specifications, labs and equipment engineering knowledge competency and quality control; and (4) develop business plans and marketing plans.

Conclusion

The table below summarized the conclusion of this study.


His thesis abstract is copied and posted.

Abstract

Nowadays there are many high rise building had been built in over Vietnam, especially in Hanoi. The building was using for many find of propose such as office building, commercial building, hotels… and others. But they had a common that is using the curtain wall for elevation.

But there’s very difficult in order to testing and qualify this kind of material.

The thesis is focus on feasibility study of curtain wall testing company, under the perspective of technical requirement, business plan and marketing plan.

Project Schedule Delay and Risks in Rural Infrastructure Development Project: A Case Study of Rehabilitation of Calamity Damage in Vietnam

Viet Nam has been visited by more than 10 tropical storms and typhoons every year. In 2005, a tropical storm and typhoon caused damage to many infrastructures especially the sea dike system from Nam Dinh province to Quang Tri province. The Government evaluated the damage of flood brought about by this typhoon and submitted to the Asian Development Bank who agree to finance the Initial Loan 2273-VIE(SF)-Emergency Rehabilitation of Calamity Damage Project.

During the project implementation, problems occurred like rural infrastructure is affected directly by nature, lead to ground features, and geology changes year by year. Besides, problems in designing and constructions leading to project schedule delay. These factors create many risks in progress of the project.

Mr. Bui Duc Luong made a research which objectives were: (1) to know the sources and type of risk; (2) effect of every type of risk on the project; and (3) to set-up strategies to avoid or mitigate effectively the negative impact of major risks.

Conclusions

The risks came from various sources. These can not be eliminated but can be minimized and changed to other forms. There are some methods to overcome these risks such as avoiding these risks, minimizing its negative impacts, and accepting some or all results of these.

The period of the construction project implementation in general as well as the rural infrastructure development project in particular from the first phase to the final phase is so complex. Furthermore, there are so many agencies and other partners that will take part in the construction project, especially for Emergency Rehabilitation of Calamity Damage Project. The related agencies are ADB, CPMU, PPMUs, investors, designers, contractors, subcontractors, consultants, material suppliers, equipment suppliers, authorities, and etc.

Risk will affect schedule, quality, cost estimate and life of public in rural infrastructure development project. To reduce and mitigate risks, establishing a strategy is essential because it is the most effective and efficient response. Thus, author tried to identify major risks and carry out a risk management study for Emergency Rehabilitation of Calamity Damage Project. Besides, the author suggested appropriate strategies to mitigate these major risks.

Identify main risks

Characters of Emergency Rehabilitation of Calamity Damage Project as follow:
• It takes a lot of time to recruit international consultants who will review the documents in relation with the project such as Safeguard, construction design and bidding before ADB approves;

• The Project is financed by ADB, during the progress of the project there are some works that must be approved by ADB as construction design, safeguard, bidding and disbursement;

• Normally, it takes time (between one year and 2 years) to approve the construction design until construction commencement;

• Scope of the project is large; number of staff is not enough in CPMU and PPMUs. Beside most of the position is working both in PPMUs and another place;

• Inflation in 2008 caused increase in price of material and changed basic salary in 2009 and 2010.

These above information show major risks and uncertainties that are occurring in the project. We have to know these risks in order to method to solution such as mitigate or remove.

Based on the data from rural infrastructure in 10 provinces, statistics of Emergency Rehabilitation of Calamity Damage Project (ERCDP) and the same as projects in rural infrastructure, a lot of major risks were discussed, identified and analysed. According to their level of effect and sources of occurrence, author’s purpose is to setup strategies to mitigate them. The table below showed the main risk factors.


Data analyses revealed the top three risks occurred in this project as follow:

• international consultants recruited late;
• typhoon and flood will happen every year
• delay in constructions because of material price increased

His thesis abstract is copied and posted.

Abstract

Risks and uncertainties affect schedule, quality and cost estimate of the project and relation with most of participants involving the project.

Risk management is very important, controlling risk and reduces risk to increase economics effectively. When risk can not removed, will be minimized, transferred or retained

Risk management is implemented step by step including: Risk identification, Risk classification, Risk analysis, Risk response, Risk evaluation, every step must be implemented carefully, when has a problem in one step will affect the project.

When happen risk, the project will be used methods such remove, minimize, transfer and retain suitable for actual situation.

Contractual Risks of SME Contractors: A Case Study of Mechanical and Electrical Contractor

Before starting any construction project, at least two parties or companies have to prepare or design a contract based on the agreement between them. Once they agreed on each clause in the contract, they will officially enter the contract ruled by laws and other relevant construction regulations.

In Vietnam, all parties working in construction shall sign contracts complying with current laws and rules, Government’s decrees, Ministries’ circulars and local authorities’ regulations. For Foreign Direct Investment (FDI), there are many rules and regulations for them to follow.

By studying the case of a specific project in an FDI investment in Ho Chi Minh City, it was found out that many contractual risks had faced by the SME contractor and obviously taken a serious loss of profit at last.

These risks include: site inspection and work measurement; quantity acceptance and payment certificates; project delays; work omissions by the owner; and payments from the owner.
Mr. Vo Quoc Vinh made a research which objectives were to: (1) identify the risks of a construction contract; (2) verify the causation of contractual risks; and (3) propose possible solutions to protect SME Contractors from uncertain contractual risks.

Conclusion

Contractual risks were found in the contract between two parties or more. Lack of contract review before entering into it would be a failure of a party. Project failure means that the project has failed to meet its cost, schedule and technical performance objectives, or it does not fit in the organization’s future (Cleland and Ireland, 2007:365).

In this report and other similar cases, SME contractors have often taken such risks when dealing with the owner or main contractor whose sizes of business are always larger and stronger in many fields.

That result of project failure came from the way people actively take the chance to prepare, design and compose the contract documents. Instead, SME contractors tend to avoid or ignore the opportunities of transferring the risks by the work of contract design. Moreover, the level of professional policy and working manners in SME contractors cannot compare to big companies, especially the knowledge and experience in legal issues.

The report can be a useful tool for SME contractors in dealing with problematic clauses in similar construction projects in some ways, such as the implementation of current laws, rules and other regulation; systematic frameworks from contract literature reviews; international institutes of contract forms like FIDIC or the organizations of AGC, ASA and ASC or The ICE Conditions of Contract.

The report also raised the way which Lessons Learned documents should be organized to review the good and the bad activities in the project and encourage to be used for future projects in terms of reduction of the same problems in construction contracts.

Last but not least, the report also recommended SME contractors to apply the latest version of ISO 9001 in their businesses for a better quality performance in a rapid competitive market. Invest now, take later!

Recommendations

It is recommended that contractors should avoid or reduce the same type of problems in future projects by applying these approaches as follows:

Post-Project Reviews - offer insight into the success or failure of a particular project as well as a composite of lessons learned from a review of all the projects in the organization’s portfolio of capital projects (Cleland and Ireland, 2007:327-328).

Site Inspection - to maintain smooth operations and the quality of site inspection in construction stage and avoid unforced conflicts from this trade; owner should employ qualified, experienced technical staff. Good coordination and cooperation between project teams are needed.

Project Delays - After being awarded the contract, contractor must prepare and submit a proposed construction schedule for the review and approval of the project owner.

Omissions by Owner

Contingency Cost - To protect from financial loss in a project for any non-prevented reasons, it is important to estimate contingency costs and add them into the tender. These costs are usually expressed as percentage of direct costs or as a specific amount of money in the tender. Mullin and Kantor (1994) compared that “contingency allowances are much like insurance”. Along with contingency cost, hidden costs should be recognized and added to the estimation for bidding. Borg and Borg (1994) advised contractors to examine carefully the general conditions of the contract and visit the site, so as to have a full knowledge of all the possible hidden costs.

Concept of “Unexpected” and “Equitable Price Adjustment” - normally, the specifications give the owner the right to make changes in scope, with specific compensation to the contractor (Borg and Borg, 1994:17-35).

In order to avoid any dispute or different interpretations on this matter, the authors suggested establishing “a formula for pricing changed work” in the contract.

Risk Transfer - “The form of the contract plays a significant role in the respondents’ perception of risk” and “Transferring the responsibilities for the construction documents to another party also transfers the risk” Simu (2006).

Payment Delays - payments from the project owners are considered a vital source of any contractors in construction industry. Late payment will definitely damage contractor’s cash flow in the book of account receivables. Once periodic payment certificates are prepared, properly signed, and forwarded to the owner, prompt payment should be made (ASCE Manual, 1988:145).

Application of ISO 9001 in Quality Management - it is very useful for SME contractors to apply the latest version of ISO 9001 (partial or the whole regulations) to manage their businesses as well as the construction projects in a professional, effective method. This kind of quality control system will need time, effort and some budget to apply ISO in construction but contractors will save a lot and reserve their planned budget.

His thesis abstract is copied and posted.

Abstract

This report reviews the theory of contractual risks in terms of project delays with no compensation, delays in payment with no penalty, work changes by the Client, delays in site inspection and acceptance for quantity of work done, omissions by the Client from the signed contract, and so on.

From a detailed literature review, the report explores major risks that SME Contractors often face during the construction stage throughout a case study. The collected information from the case reflects the hypothesis that the Client has used an unfair treatment to the Contractor by the application of the Contract – obviously prepared by the Client.

The report also suggests some recommendations to minimize the risks from the construction contract in the stake of SME Contractors. These suggestions will somehow help them control the benefits from the protection of losses in the implementation of the contracts. On the other hand, the report asks for a fair treatment from the owners of projects in term of win-win negotiation in the contract preparation by using the theory of FIDIC, ICE Conditions of Contract and other useful, reliable sources.

Hopefully, this report will show the contribution to a better environment of risk reduction in the construction contracts from its findings, analysis and recommendations. It is studied especially for the legal support to SME Contractors in construction industry in Vietnam.

Owner’s Project Schedule Management for High - Rise Office Building Projects: A Case Study of

Applying modern project management techniques in schedule planning and control for high-rise office building projects is not easy. The project schedule is crashed by reasons that are investigated in high-rise office building projects such as the following:
- Using the Work Breakdown Structure (WBS) for schedule planning.
- Using the Critical Path Method (CPM) for schedule planning.
- Proposing the methods for crashing scheduling.
- Making reports for work performance.
- Measuring work performance.

It is very important to explore the project schedule management of the owner. Hence, Mr. Le Nam Binh made a study to enhance understanding of schedule management systems, and how it can be utilized effectively in construction projects. The objectives of his research were: (1) investigating the practice of the owner’s project schedule planning and control for managing high-rise office building construction projects in Vietnam; (2) analyzing the foregoing factors to identify the critical affecting issues, the strengths, weaknesses and consequences of schedule management practices, and (3) proposing particular recommendations and effective methods for managing the project schedule from the owner’s point of view for these projects.

Conclusion

The modern project management era started half a century ago, was the young branch arising from the management discipline, and developed stormily on a stable fundamental with broad application in most of the manufacturing and construction industries over the world. The stream of these scientific technicalities has just been imported into Vietnam along with the expert groups serving the implementation of the petrochemical refinery project and the skyscraper projects of new urbans for the latest ten years.

The project schedule management, or project time management, as one of the four core functions of project management, is an important element contributing to accomplish timely completion of the project through six mutual-interacting processes comprising of activity definition, activity sequencing, activity resource estimating, activity duration estimating, schedule development, and schedule control. The schedule management is the most considerable concern of the project manager as well as the project owner, as an investor, cares mostly about the profitability of the invested capital.

This report develops the framework of project schedule management, which is joined with the selected tools and techniques of schedule planning and control to be applied in practical projects. These theoretical utilizations are monitored, investigated, analyzed and compared with the experienced knowledge of on-site engineers, whereby the rules and principles are generalized to form the more perfect theory.

The case study focused on applying the researched framework to the typical high-rise office building project for checking the applicability and usefulness of the theory with a particular construction project. In consequence of the actual situations in the building site and their profound changes towards better, the fact leads to the conclusion that the application of these techniques has made some considerable improvements to the project schedule, helps the project manager to catch up the target schedule in case of project delay, and lightens the pressure of stakeholders’ workload.

Moreover, the theory is applied to the construction project, which is always unique and temporary in nature, therefore it cannot help exposing the shortcomings in several cases. These particular limitations are also studied in order to propose some useful solutions for the project manager as well as other partners of the project to mitigate the potential contingencies in hazard prevention and controllability.

The project schedule management tools and technique, which are verified through practice and adjusted for specific situations, are given in the table below.These techniques should be combined to enhance the effectiveness, whereby each of them can minimize its limitations and complement the others.

Recommendation

After studying the theories and the case study of an actual construction project within the analyses of application range and limitations for the implementation in Vietnam, the concise recommendations for project schedule management of high-rise office building projects from the point of view of the project owner are summarized as follows:

- The construction projects are unique and specific entities, no one is like others, except for the buildings of mass housing dwelling. This can be compared in images with human being in the society. The theory of project schedule management with its generalized rules and regulations should be flexibly applied to the construction projects to make use of its academic strength and mitigate its certain limitations. This way of looking at the concepts will facilitate the project stakeholders in planning and controlling the schedule. The experienced qualification of the project manager is a key factor for determining the important degree of schedule management techniques and tools to be used.

- In the initiation stage of the project, when many things are still ambiguous around the project vision, the project manager should make plans for basic tasks, using WBS and CPM techniques to organize all the initial activities into a miniature work breakdown structure as a componential subproject. The total project schedule planning is set up after the approval of the project fundamental design and general description.

- Towards more effective management of large construction projects with less confusion of master schedule chart scale, the project might be organized into smaller work packets in controllable view as separated schedule management charts, which are described in their own work breakdown structure for various monitoring purposes.

- If the project has parallel paths with similar durations, the project manager can utilize heuristics for identifying the essential activities of a selected critical path and focus on enhancing the activities’ quality instead of determining the best critical path. If project’s resources are spreaded and reallocated across different projects and activities, the prime contractor may be forced to undertake supplying sufficient resources for normal project operation and accelerating project schedule in the remaining stage.

- From the beginning of the project, a total quality management should be promulgated widely to all the project stakeholders. This comprises of paperwork transfer process, performance report forms and variance evaluation criteria to unite the comprehension of schedule management techniques through the project process.

- Skill training is an integral demand of the project, which help staff and engineers with specialized professions for such a multicultural working environment as the construction project. This contributes to its smooth run throughout stages. The project should reserve sufficient budgets for investment of management software.

Because of the limitation of the scope and time fund of the study, this report has just explored general issues in implementation of project schedule management for high-rise office building projects under the project owner’s point of view. It’s recommended that analytical research of great depth on the specific benefits of this theory to prove its great efficiency should be carried out. Besides, the higher rates of huge skyscraper investment projects with progressive schedule management techniques need to be penetrated. And after all, the further studies should make polydimensional analysis to draw the overview painting of the modern project management discipline.

His thesis abstract is copied and posted.

Abstract

Project schedule management, which is described and analyzed in a mind of great depth in A Guide to the Project Management Body of Knowledge by the Project Management Institute, is one of the most important knowledge areas of modern project management and interacts closely with other processes. It is a really tough challenge that most of project managers today are aware of but not all of them have done well.

The final report focuses on construction project schedule management for high-rise office building projects in Vietnam from the viewpoint of the owner’s project managers. By reviewing several researches and factual studies on this field, knowledge as regards owner’s project schedule management will be explored gradually.

Through the case study of a typical office building construction project, PetroVietnam Finance Centre in Danang City, the critical issues that affect owner’s project schedule management would be investigated and analyzed. Some proposed solutions based on the reviewed knowledge above will be discussed in order to help project managers improve their project schedule management professionalism better.

Project Owner’s Quality Management System: A Case Study of Sails Tower Project

In recent years, the construction industry in Vietnam is being been recognized having 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 have been given to quality management because of the poor quality of some construction projects. Because of these reasons, the development of quality management system is most important concern not only for Contractors, Quality Consultants, but as well as for the investors or developers.

Mr. Nguyen Trung Kien made a research 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.

Conclusion

In general, most of the requirements of quality system have been covered and presented in the existing system. However, it was revealed that problems such as missing contract review, improper 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 and caused schedule delay and generating V.O.

In addition, findings showed that there were problems with decision inconsistency relating to quality on job site caused rework and schedule delay. Obviously, besides the reason of work procedures, it would also 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.

The causes and the consequences that generated by these missing processes are summarized in the table below.

The complete QMS would be achieved if the missing requirements as mentioned above should be added in the existing Quality Management System. Aside from that, the quality culture in organization should be set-up so that the Company can reach 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.

Report the findings of a research study, which was undertaken to examine the underlying factors affecting the quality of a building project. It also aims to identify factors that show a strong correlation to good quality performance. The ultimate goal is to provide clients, project managers, supervising consultants and contractors with information that can help them become more efficient with their limited resources and, as a result, achieve better quality outcomes.

AITCV students visit AIT main campus in Thailand

The AITCV Students from Hanoi and Ho Chi Minh City arrived on February 26 for a week-long site visits, lectures and field trips. They will be here in Thailand until March 6, 2011.

In this photo: 1st Row (L-R): Mr. Bui Viet Thi, Mr. Tran Xuan Canh, Mr. Tran Viet Sinh, Mr. Nguyen Nam Cuong, Dr. Theerathon Tharachai, Dr. BHW. Hadikusumo (MPM&CEIM Coordinator), Dr. Nitin Afzulpurkar (SET Dean), Prof. Said Irandoust (AIT President), Prof. Joydeep Dutta (AIT Vice President for Academic Affairs), Mr. Noppadol Jaisue, Dr. Oulawan Kulchartchai, Ms. Kieu Phuong Ly, Ms. Nguyen Thi Thu Nga, Ms. Tran Ngoc Bich Tram, Mr. La Nguyen Bao.

2nd Row (L-R): Mr. Pham Viet Cuong, Mr. Chau Anh Tuan, Mr. Tran Minh Nghia, Mr. Vu Van Tinh, Mr. Bui Thanh Nam, Mr. Nguyen Trong KHoa, Mr. Nguyen Nhat Tai, Mr. Ngo Quoc Thai, Mr. Nguyen Thai Son, Mr. Tu Thien Tu, Ms. Phan Hong Ngoc, Ms. Dang Trinh Thanh Phuong, Miss Junya Phuangphay, Miss Huyen Thanh To, Mr. Vuong Hoang Thang, Mr. Pham Quang Cuong, Mr. Tran Phi Long, Mr. Thanapon Buaklom, Ms. Woranuch Chumchat, Mr. Ngo Hoang Linh

3rd Row (L-R): Mr. Nguyen Duc Huan, Mr. Nguyen Thanh Tung, Mr. Huynh Thanh Quang, Mr. Nguyen Anh Khoa, Mr. Ngo Thanh Duc, Mr. Hoang Manh Chi, Mr. Nguyen Viet Cuong, Mr. San Visal, Mr. Le Quang Son, Mr. Vo Khac Kien, Mr. Nguyen Hong Thanh, Mr. Puoy Puthitha, Mr. Hout Venghong, Mr. Nguyen Thanh Tam, Mr.Senjam Romero Singh

Risks Affecting Construction Cost in Vietnam

In project management, there are four core functions: scope, time, quality and cost. In private or business project, cost considered the most important thing. In fact, it is difficult to find a project which initial and final cost are the same despite of owner’s best effort to control the cost.

In any construction project, there are many risks affecting construction cost including, external (economic, politic, legal problems), internal risk (design, contractual, technical), direct risks (inflation, changing of government regulations) and indirect risks (technical problems, delay, contractor capability). In general, risks affect project costs.

Ms. Le Ngoc Diep made a study on the managing risks affecting construction cost in construction phase including evaluation, analysis and response to help owner control the construction cost within authorized budget. The main objective of his research is to study owner’s management status of risk affecting construction cost in Vietnam construction project and suggest recommendations to improve it. In order to achieve this main objective, sub-objective were needed to accomplish such as follows: (1) study the risks affecting construction cost in construction phase and response applied in specific urban center project; (2) study other common risk affecting construction cost in Vietnam construction projects; and (3) assessment and suggestion in order to help owner manage risk more effectively

Conclusions

Construction project is risky due to huge capital, long time implementation and many stakeholders. The awareness on risk management is not that good in Vietnam construction project. In order to limit the effects of risks and control the cost within authorized budget, the owner should carry out appropriate management risk and involve all systems in this process.

In this report, Le Ngoc Diep wanted to study on the status of risk management, in terms of risk affecting construction cost and response applied of one specific construction project which is Chi Linh urban center project.

Over view of managing of risks affecting construction cost in Chi Linh urban center project

- There is no appropriate risk identification (risk list and risk symptom) in the project, and the risk management is not deeply comprehended.
- Awareness of the top management is limited, which lead to design change in construction phase.
- The cost of topography and geological survey is limited.
- The contract document and personnel management is inadequate.
- Risk monitoring and control is passive.
- Awareness of project manager and project team member is not high.

The risks affecting construction cost in Chi Linh urban center project
- Wrong estimate
- Design changes
- Inflation
- Site condition difference
- Poor capability of PMU
- Unclear contract conditions
- Poor site management

The other most popular risk affecting construction cost overrun according to Construction Magazine Census in 2009
- Poor financial capacity of the owner
- Poor financial capacity of the contractor

Responses applied in the project and recommendations are given below

His thesis abstract is copied and posted.

Abstract

The construction industry is one of the most dynamic, risky and challenging businesses because of implementing time is very long with huge capital and many stakeholders.

Risk is inherent in construction projects and risk management in construction projects has been recognized as a very important management process in order to achieve the objectives in terms of time, cost, quality, safety and environmental sustainability. Let say, we are going on the road with the definitive finish, but on that way many obstacles, difficulties facing. So if we do not manage we cannot reach the finish or waste time and energy to reach it.

In construction there are some objectives, but one of the most important thing is cost of project is in authorized budget. There are many risks affecting cost and profit of project from initial to close out phase. In this study I concentrate on risks affecting construction cost and solutions helping owner manage the cost effectively and efficiently to ensure the cost is in budget of project.