PROJECT MANAGEMENT IN HIGH RISK BASEMENT CONSTRUCTION

A CASE STUDY OF CONSTRUCTION PROJECT

IN HA NOI CITY, VIETNAM

By

Tran Xuan Canh

Abstract

In civil and industrial construction, the deep basement construction now contains so many risks and difficult and complicated works.

To minimize the risks can be happened during deep basement construction; we should fully and clearly research the hidden risks for this work as well as give out the suitable solutions and how to apply those solutions during construction and to reduce the disadvantages of those risks to the minimum.

A full and exact research on risks and the method to manage the risks and also the project management during the deep basement construction is very necessary and urgent.

This project report studied about project management in high risk basement construction.

Executive summary

Rationale of research

This research has been conducted to identify risk in basement construction of high rise building.

Objectives of study

To study project planning and control to understand risk in Royal city Project, Hanoi by studying strengths & weaknesses in planning & control practices.

Propose framework for planning & Control in basement construction for high rise.

Methodology                                            

The exploratory research method is used to study risk management in basement construction and the current Vietnam regulations for quality management in construction projects.

Findings and conclusion

To obtain the best efficiency for the project and to minimize the possible damages for the project and the neighboring buildings, we should have a suitable risk management system (RMS) to implement in the project to ensure that the project is operated in the best and safest way to gain full targets of the project: Safety – Quality – Process - Efficiency.

The deep Basement construction needs to be done by the Professional Contractor with a full knowledge about the possible risks and there is a methodical and full control system about this issue.

The implementation of the risk management system (RMS) also requires Client and Contractors to accept the necessary costs to maintain and to operate this system. However, these costs are necessary and proper to ensure the safety for the project.

Recommendations

To achieve the best effect of the risk management in the project, we should take some steps:

For Client

·         Establishing risk management system (RMS) for projects and ensure the system is properly implemented.

·         For collecting data of the contractor, requesting Contractors to submit the risk management system/policy comply with the requirements, conditions of Client for the project in the file bid. Client should collect the contractor that has enough ability to implement the project.

·         While checking RMS of client & contractor there is need of third party throughout implementation to check both.

·         Need to have the insurance contracts for the project and related parties with Insurance Company.

For Contractor

·         Establishing the RMS with the most suitable policies, strategies for the project and to well comply with the requirements of Client and the legal regulations and the policy of the company.

·         There is a serious combination with Client and related parties throughout the project implementation to ensure the best maintenance of the risk management for the project.

·         Establishing and using the suitable tools to manage the risk for the project in order to analyze the reason of the incidents on site and to get the solution to avoid, minimize the damages the most effectively.

·         Using Risk strategies effectively share the risk with third parties as the insurance company or to require Client to be responsible for some risk of the project.

·         Giving out the detail classification for the risks may be occurred for the project, defining the reason to give out the most suitable solution to avoid or minimize the influences of the risks.

·         Establishing the most suitable and effective Risk Organization Chart for each project and establishing the most effective plan.

·         Establish reward and penalty system to reduce the risk in project.

·         Having the most suitable Method Statement for the project to minimize the risks

·         Developing the human control with the suitable management measures to ensure that the staffs are collected and used for the most effectively for the project,

·         Have to have the insurance contracts for workers, equipments of Contractor and third party on site with Insurance Company.

THE DELAY FACTORS DURING CONSTRUCTION PHASE OF

A RESIDENTIAL PROJECT IN BINH DUONG, VIET NAM

CASE STUDY OF AN DIEN URBANIZED RESIDENTIAL COMMERCIAL ZONE

By

Bui Viet Thi

Abstract

             

A project is considered to be perfectly performed when it obtains three basic criteria such as completing on time within the planned budget, ensures the required quality such as winning the customer’s demands and meets labor safety requirements successfully in the performance stage. However, all the residential zones built in Viet Nam have had problems of project management leading to construction delays. Giving solutions for these problems has become project manager’s integral requirements.

  Delays in construction projects are able to be solved. In striving to give solutions for these problems, the significant factors influencing badly construction duration should soon be found out. Therefore, it is very critical to form a systematical approach that should be applied as a device for the investigation.

This report will evaluate and analyze twenty factors which caused delay matters at Residential Zones and were fulfilled at Ben Cat District Binh Duong Province. The qualitative methods will be used, basically based on the principal of evaluating the risk level of factors having a negative influence on the construction schedule of the Residential Zone. It is conducted to realize the objective of the study.

Finally, some solutions to deal with delay problems in the construction duration of projects are given in the text.

Executive summary

Rationale of research

This research has been conducted to identify factors causing delay in construction projects during construction phase.

Objectives of study

To study and analyze delay happening in residential area An Dien Commune, Ben Cat District, Binh Duong province. Recommend strategies for improving project delivery.

Methodology  

Case study approach is considered a major philosophy. In addition, many sources of data will be collected in this study and project reports, documents from local authorities and related agencies, construction standards, and exploratory approach by reviewing available literature to deploy the research of construction delays at Binh Duong and Viet Nam.

Findings and conclusion

By analyzing factors to affect delay in the project, this research showed the problems causing delays in construction stages. This research has identified that delays of the projects were originated from survey stage till construction one. From these result, most delays have generated   from the project owner who is responsible for inexcusable and excusable delays with some compensability and non-compensability.

 In this project, the owner committed some mistakes in blown-off leveling process due to improper planning and slowness decisions given. Then, the owner lacks of qualification and experiences to nominate main contractor, suppliers and Tender Prequalification consultants, to draft Specification resulting in disagreements amongst sub-contractors and fraudulent tender occurring. Also, to deal with uprising problems related to surrounded inhabitants and environmental protection, the owner was not activated and flexible in those eventualities, failed to avoid disputes happening.

In case of the study, the project has 20 factors causing delays in the construction process of An Dien Residential Zone. Delay related to accident of labor safety is so serious, delay related to material delivery is mean effect, and delay related to break-down of machineries and equipments had smallest impacts to the project.

 Suggest for future research

The research has analyzed the factor of delays, reason / severity rate and solution for each cause of delay problem in this construction project. Hence, the similar study can be realized in different type of project such as: Apartment- zone, Resettlement project, etc… in Viet Nam.

                     

Management of Road System Construction under the General Construction Planning by the year 2020 of Cau Giay District, Hanoi City

By

Le Van Thu

Abstract

The district of Cau Giay is one of Hanoi’s districts achieving high-speed urbanization level. Along the district’s urbanization process, many new traffic systems have been constructed and developed, contributing to renovating and modernizing the general urban picture of Hanoi in general and of the district in particular. However, beside the achievements, there remained a lot of weaknesses in the district’s construction and management of urban traffic systems, especially in that of road systems. This study points out the significant problems existing in Cau Giay’s construction and management of road systems. Among those is the development of road systems in the districts are not catching up with Hanoi’s current urbanization process.

In fact, the construction and management of urban landscape along the district’s streets is not efficient. The local technical infrastructures in some areas of the district are not modern and synchronous enough. There remain a lot of problems in the activities of technical infrastructure construction management in accordance with the district’s general construction plan. Based on the facts and figures, the study refers to the theories to describe the roles of road systems in the city’s urbanization process as well as the role of planning road networks in the city’s general urban plan. It also mentions the requirements and legal basis of road system management under the general construction plan.

In the following part, the study use Cau Giay as a case study for this topic, in which solutions to all the existing problems in the district’s road systems management are analyzed so that the road system development is in accordance with the district’s general construction plan by 2020.

To the study’s conclusion, it is essential to build traffic systems synchronized with the district’s other technical infrastructure systems. At the same time, there need to pay more attention in improvement of the local residents’ compliance with the regulations on construction. In addition, the study also emphasizes that importance of building short-term investment plan within the long-term plan for road system construction and attract the other investment sources beside the state budget by encouraging the various investment firms such as BT (Build- Transfer), BOT (Build – Operate – Transfer) and BTO (Build – Transfer – Operate).

  

Executive summary

Rationale of research

This research has been conducted to identify problems in road system of Cau Giay District, Hanoi City.

Objectives of study

To study, analyze and assess road system construction under the general construction planning of Cau Giay District, Hanoi City. propose solution to improve efficiency the general construction planning of Cau Giay District, Hanoi City.

Methodology  

The exploratory research method is used to study road management Cau Giay District, Hanoi City and the current Vietnam regulations for road management.

Findings and conclusion

Management of the road system under the construction planning is a complicated work and relates to a lot of sectors. The road system construction planning management may be assessed comprehensively as follows:

         Attained results: Some new roads have been planned and developed in accordance with the approved planning, forming beautiful, modern and sychronous streets for technical infrastructure and landscape, settling difficulties occured from the urbanization process. Management of construction planning has been regulated and improved suitable to the practice for the first step.

          Shortcomings: Beside the attained results in the road system managementconstruction planning, there are still shortcomings to be settled: construction of many roads is in confusion, not in accordance with the planning; the spontaneous building of works along streets still exists and is not timely prevented. The reality requires strenthening management of construction planning of the road system re-organization of construction administration agency, improvement of inspection and supervision of construction in conformity to the planning, supplementation and completion of regulations on disciplines for violations in road construction.

            Therefore, we have to correctly assess the real situation of the construction and development of the road system subject to the construction planning to give solutions for effective management and construction, contributing to and accelarating the developement of Cau Giay District in coming time.

To conclude, it is very neccessary to manage the construction of road system in Cau Giay District under the general construction planning in order to improve the living standards, conforts and create favorable environment for urban inhabitants.

Therefore, the topic “Management of road system under the general construction planning by 2020 in Cau Giay district, Hanoi city” aiming at proposing measures on management in order to increase the efficiency of road system construction in accordance with the general planning of Cau Giay district. This topic is practical and high feasible in order to speed up the urbanization of Cau Giay district; at the same time, solving inadequate situation caused by the urbanization. In addition, the topic has specialized and completed measures on management of road system construction and local reform, serving practically the economic, cultural and social development of Cau Giay district in accordance with Hanoi Capital planning by 2020.

Recommendations

• In the investment and construction of road system, besides the construction of new urban areas, it must be focused on the investment of infrastructure reform with existing construction area.
•     Routes must be defined the heart and boundary line that have been approved and closely managed, avoiding re-occupying and violating boundary line.
• Positively taking part in the completion of legal document system on management of urban construction planning as well as management of urban roads; proposing difficulties during the execution; simultaneously, increasing the work of construction management as planned.
•   Increasing capacity of management, adding power and responsibilities of ward-level authority in the work of management of road system construction and management of road boundary line.

cost estimation problem in FS and FEED phase of thermal power PROJECTS

A CASE STUDY OF

thai binh 2 thermal power PROJECT

By

Tran Viet Sinh

Abstract

The accurate determination of investment capital and project costs in all projects as well as its stages has strong affect to the project success and efficiency. The required levels of accuracy of project cost estimates vary at different stages of project development, ranging from ball park figures in the early stage to fairly reliable figures for budget control prior to construction. Since design decisions made at the beginning stage of a project life cycle are more tentative than those made at a later stage, the cost estimates made at the earlier stage are expected to be less accurate. Generally, the accuracy of a cost estimate will reflect the information available at the time of estimation.

The project cost estimates may be viewed from different perspectives because of different institutional requirements. In spite of the many types of cost estimates used at different stages of a project, cost estimates can best be classified into three major categories according to their functions. A project cost estimate serves one of the three basic functions: design, bid and control. For establishing the financing of a project, either a design estimate or a bid estimate is used.

1.Design Estimates

For the owner or its designated design professionals, the types of cost estimates encountered run parallel with the planning and design as follows:

-           Screening estimates (or order of magnitude estimates)
-           Preliminary estimates (or conceptual estimates)
 -          Detailed estimates (or definitive estimates)
 -          Engineer’s estimates based on plans and specifications
for each of these different estimates, the amount of design information available typically increases.
2. Bid Estimates

For the contractor, a bid estimate submitted to the owner either for competitive bidding or negotiation consists of direct construction cost including field supervision, plus a markup to cover general overhead and profits. The direct cost of construction for bid estimates is usually derived from a combination of the following approaches.

-           Subcontractor quotations
-           Quantity takeoffs
-           Construction procedures.

3. Control Estimates
For monitoring the project during construction, a control estimate is derived from available information to establish:
-           Budget estimate for financing
-           Budgeted cost after contracting but prior to construction
-           Estimated cost to completion during the progress of construction.

In this study, the author shall focus on the cost estimation methods in the view of the Owner (Design estimate), with reality project case study of Thai Binh 2 Thermal Power Plant Project.

Executive summary

Rationale of research

This research has been conducted to identify problems in cost estimating for EPC contract

Objectives of study

To study different estimating methods from FS to FEED phase, Government regulation which affects estimation.

Discuss strengths and weakness, to propose frame work for accurate estimation for power plant projects.

Methodology                                            

The exploratory research method is used to study problems in cost estimation of thermal power projects in Vietnam and using case to study about frame work for estimating in thermal power plant projects.

Findings and conclusion

As the power plant projects in Vietnam are invested by Government, so total cost from FS to FEED should comply government rules and regulations. The application of the Vietnam government regulation in determining the total investment and total project cost of the thermal power project, also raises some of problem

·         Equipment Cost is usually estimated too low (compared to similar international projects)

·         Policies and cost rates of layout clearance, compensation and resettlement is not close to reality price which leads to almost of the thermal power projects have encountered obstacles to hand over plan and causing project delays.

·         Cost consultants and project managers is low due to excluding the cost of foreign consultants

·         Contingency cost is determined too low.

The method of estimating the total investment and total project cost of thermal power project is combined methods, including some of the following main steps.

·         Breakdown total cost to subdivision of cost areas.

·         Quantity takeoff is determined basing on the basic design for FS phase and the FEED design for FEED Phase. If design drawings are not available, the quantities are calculated with references to similar projects already executed.

·         Detail cost determination.

·         Applying the government rules and regulations into the project to identify sub-divide the areas cost of project.

·         Summarize total project cost estimation.

Recommendations

·         In the thermal power project, the imported equipment and materials cost is a large proportion of the total cost of the project, so the currency in calculation and approval of total project cost is recommended to use two type of money in the spreadsheet which is VND and USD. Amount in USD which is used for the purchase of overseas equipment/material. This reduces the risk causing by variation of exchange rate (always increasing) between VND and USD for investors.

·         Management and consulting Cost of projects need to be supplemented the unit price for the foreign consultant

·         Policies and unit prices application for compensation must be consistent with the actual market price; residential land can be compensated under once with the real market prices. With agricultural land compensation policy of the State should pay for farmer in yearly based on the profits of farm products on the land.

·         Contingency cost applied in FS stage is minimum rate of 20%; For the FEED is 10%, as same with international project cost estimate.

·         Electricity distribution prices to consumers in Vietnam are now too low. PPA (Power Purchase Agreement) between investor (PVN) with EVN should be low. Therefore, the investor has pressure to reduce of total investment and total project cost estimates to meet the economic criteria of the project (IRR, NPV).

·         In the technical engineering design (FEED) and bidding documents, OWNER should define the origin of Equipment. Estimator can determine the equipment cost in a more accurately.

Quality Management System of Project Owner

A Case Study of Bong Do Housing Development Project

By

Pham Viet Cuong

Abstract

Report shows the basic concepts of quality management systems in general and quality management systems in construction industry in particular that is an important factor for an organization to develop and build trust with customers.

In addition, the report also mentions the benefits of application and development quality management system of an orgnization. Based on the basic theories of quality management systems, this report has studied the application of quality management system of An Lac JSC, a company invests in real estate sector. At the same time, the report also analyzes the major problems that arise during the application of QMS and give solutions to solve these problems and the strengths and weaknesses of An Lac’s QMS.

The problems and solutions are given in this report, although limited, will help An Lac JSC understands quality management system which they are applying, from which propose the necessary adjustments to enhance and improve this system.

Executive summary

Rationale of research

This research has been conducted to identify the problems in Quality Management System (QMS) for project owner in housing development project.

Objectives of study

To study Quality Management System (QMS) of Project Owner (An Lac JSC) in Bong Do housing development project from design to construction stage and to analysis the major problems of QMS of An Lac JSC and propose the solutions to solve these problems. 

Methodology

The exploratory research method is used for literature review, to study and analyze QMS, quality policy and measurement, analysis and management.

Findings and conclusion

From the Case Study about the existing Quality Management System of An Lac JSC, it is observed that An Lac JSC has established the QMS that embraces the procedures from Design stage to Construction stage to ensure that work quality of each stage is controlled and managed well.

At Design stage, the procedure is established to the guideline for controlling of the design to ensure that the designs are complied with specifications, law and customer requirements including time schedules. Scope and responsibility of Design Control are also regulated clearly in procedure. A Lac JSC has established the Design Team Management that governed by Chief of Department to control the Designs of the Company.

At Tender Stage, the procedure is established to ensure that the Company has a good contractor who has capacity, ability, performance and good quality control system to support the Company Project. Fully responsibility of this stage is of Economy - Planning - Investment Department (The Planning Team Management) that includes investigation, evaluation, and selection of Contractors for Company Project.

At Construction stage, the procedure is established to ensure that the Company has a good Construction Quality Management process during the execution of the Company Project. This stage is controlled by Project Management Unit (Project Management Team) that governed by a Project Manager who is the representative of Owner on Site and has overall responsibility for the project management. The Project Management Team is responsible that the quality of buildings construction of the project conforms to the client as well as owner requirements and the project is completed on time.   

However, the existing Quality Management System of An Lac JSC still has problems relating work quality from Design stage to Construction stage that impact significantly on quality of project company, including unclear requirements at design stage, change the design, error of Bidding documents at tender stage, or scope of work (missing contract review) at construction stage, lack of process control, lack of quality records, etc.

In additional, besides the reasons of lacking of work procedures, another reason is that heterogeneous perception in quality exists in mind of staffs as well as leaders of An Lac JSC. So, 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 An Lac JSC.

PROJECT DELAYS IN CONSTRUCTION TAXIWAY S1

IN NOI BAI INTERNATIONAL AIRPORT

By

Nguyen Xuan Thang

Abstract

Construction mismanagement results in multiple problems that can cascade throughout the work force chain, affecting the schedule and leading to damages to multiple parties. Although the problem may start with a single subcontractor, it can result in all contractors feeling some impact to their work.

The actual delays causation occur in all kind of activities, but mostly in technical and management mistakes. The most important part comes from information, documentation and staff management. The impact from details engineering and purchasing materials are mainly related from the mismanagement of this process.

The construction schedule updating and forecasting can handle the uncertainty associated with quantifying activity delays and their impacts. The conditions in the schedule, that they are able to react and take the appropriate corrective measures to avoid and minimize delays.

The construction firms and the contractors need to feel in the same rhythm of their project. Especially in large and sophisticate project, our desire to complete the works on time and within budget is hard to fulfill. We can only achieve this goal if we have the experience, competence staff and numerous resources, strong financial aspects, and most of all we use it reasonable.

Executive summary

Rationale of research

This research has been conducted to identify the causes of delay in airport construction projects.

Objectives of study

To identify factors involved in delay in construction of airport projects completed and which are under construction and to develop a frame work for remaining or under construction projects of airports.

Methodology

The exploratory research method is used for literature review, to study and analyze project management of taxiway S1 in Noi Bai international airport in terms of strengths & weakness and to propose recommendations.

Findings and conclusion

The problem of delay time in the project construction of aviation infrastructure in Viet Nam is a serious problem. The results of this study provide a framework for project management can better understand the dynamics of project management and implementation of efforts to reduce incidences of delay time.

It was found that there are some important factors affecting the project time in implementing to build aviation infrastructure project. Completion time of any project is effected by the factors: Namely policy, budget, human source and materials.

Recommendations

In order to consider improving schedule of transport construction project, five policies having the most potential were evaluated. The result showed that delay can be reduced by carrying out several important policies during the construction phase including:

·         Design accuracy

·         Budget

·         Bidding document

·         Fluctuation and scarcity of material

·         Quality contractor (design, construction, consultant).

For future research:

·         Expand the model boundary assumptions to include other project stage, may comprise of design stage, bidder stage and deeper involvement of other parties.

·         Incorporate of deeper related with governmental institutions such as policies of government and inconsistencies in laws and aviation authority regulations.

·         Base on measurement, we can find out the good way to manage and finish the project on time, avoid the mistakes that it is occurring in the construction of transport infrastructure in Viet Nam.

MPM Faculty List 2011-2012

1.Bonaventura H.W. Hadikusumo, PhD

Asian Institute of Technology - Thailand

Specialization: Organizational Management, Project Management, construction Safety Management, construction quality management.

Nationality: Indonesia

2.Chotchai Charoenngam, PhD

Asian Institute of Technology - Thailand

Specialization: Project Scheduling, Project Financing, Project Management.

Nationality: Thailand

3.Stephen O. Ogunlana, PhD

Herriot-Watt University (UK)

Specialization: Project Management, Project Risk Management, Project Contract management

Nationality: Nigeria

4.Burin Kunatippapong, M.Eng, M.M.

Specialization: Negotiation Management, project management, leadership in project organization

Nationality: Thailand

5.Santi Charoenpornpattana, PhD

King Mongkut’s University of Technology, Thailand

Specialization: Project Scheduling, Project Financing, Project Management.

Nationality: Thailand

6.Ng Eng Wan, MBA, CPA

Specialization: Financial Management, accounting, project financial and accounting management

Nationality: Malaysia

8.Veerasak Likhitruangsilp, PhD

Chulalongkorn University, Thailand

Specialization: project risk management, project management, contract management

Nationality: Thailand

9.Roland Amoussou –Guenou, PhD

Specialization: Legal aspect of contract, contract, FIDIC.

Nationality: French

10.Takayuki Minato, PhD

University of Tokyo

Specialization: project management, project cost management, project risk management, project financial management.

Nationality: Japan

11.Wiboon Tachapaisalkul,M.Eng, MBA

Specialization: management process, safety management, Quality Management in ISO

Nationality: Thailand

12.Professor Gary E. Griggs

Stanford University

Specialization: Contract Administration, Public Infratructure, project management

Nationality: U.S.A

13.Theerathorn Tharatchai, PhD

Specialization: Project management, feasibility study, engineering economics, Housing and Real-Estate

Nationality: Thailand

14. Oulawan Kulchartchai, PhD

Specialization: Project management, project communication, project safety management, construction site administration.

Nationality: Thailand