PRE-CONSTRUCTION DELAY IN
BUILDING PROJECT DEVELOPMENT
A CASE STUDY OF “INVESTCO BABYLON” PROJECT
IN HO CHI MINH CITY
By
Nguyen Tran
Toung Ly
Abstract
During construction, a project is considered
successful when it meets three basic conditions: completed on time within the
approved budget with quality to meet customer requirements and current
standards quality. As well as in the investment Real Estate projects, the above
three important elements are in close contact with each other. The Real Estate
needs turnaround quickly, so that the new Real Estate market can be
developed. Furthermore, according to
HOUSING LAW, the owner can only sell the product after having completed the
foundation works. This means that to have budget to continue to have completed
projects, the owner have to accelerate the pre-construction work. However, most
current construction projects in Vietnam are delayed, especially in
pre-construction phase. This shows that the project manager has not done their
job well. Therefore, the investigation the causes to delayed in
pre-construction phase and find solutions to reduce this problem is necessary
to have better job in management of projects in Vietnam, and help to solve the
puzzle of the Real Estate industry.
To solve this problem, first, determine the
cause and extent of impact, and then the important factors that need to resolve
will be recognized. Therefore, this report will identify, evaluate and analyze
the factors that cause delayed in pre-construction phase in Vietnam. Based on
the method of assessing the impact of each factor and then suggest prevention
solutions, in order to eliminate similar mistakes in the future.
Case study is used for researches and discussions
are: INVESTCO BABYLON - The High-Rise Apartment Commercial Office Building
Project.
Executive summary
Rationale of research
This research has been conducted to identify factors involved in
pre-construction delay in building project development.
Objectives of study
To
identify the delay and causes of delay in pre-construction stage, investigate
the impact of delay on overall project, and propose recommendations for improvement.
Methodology
The exploratory method is used to review the literature and to
study, analyze the pre-construction
delay in high rise commercial project.
Findings and conclusion
Delay has always been an unsolved problem to the construction industry
worldwide since then. However in developing countries, delay is more serious
because in addition to those caused by human, the weather, the Government
Policies are still inadequate.
“In fact, the administrative procedures in
construction investment are still complex and time consuming, especially for
the new urban projects, housing projects, the technical infrastructure of
industrial parks. Ministry of Construction have already in cooperation with the
People's Committee of Hanoi, Ho Chi Minh City and some of enterprises started
to review the administrative procedures of a some of projects in the area of
Hanoi City Ho Chi Minh and Ha Tay Province and the results showed that the
number of project’s procedures are still many (about 33 procedures / 1 project),
preparation time was long (average 3 years / 1 project). There are still some
procedures issued by local authorities or request the investor to proceed
without the provisions of the Government’s permissions, and some procedures in
the legal documents are insufficient need to be reviewed to consider
improvements to match the fact.”
This led to delay in pre-construction stage is
the most significant and take longest time. Therefore, the identification of
factors that cause serious delay and then to propose to restrict, prevent or
remove are sorely needed.
Recommendation
For Project Manager
·
Each
individual responsibilities and rights must be clearly defined.
·
Set up
the clear project Development Process Flowchart.
·
The
working conditions should be improved gradually aiming at building proper
working atmosphere.
·
Project
Manager should give feedback to the company Quality Manager to add in
personality test forms together with Job Application Assessment Procedures
forms base on ISO.
·
Relation
divisions always have the plan to solve problems with the method soon.
·
The
weekly meeting is very important , all problems will be resolve on that meeting
and relation division have limited time to return the request for information
to Designer or for Agreement from Government.
·
The
payment during project implementation, for example: land using fee, are a big
problem. Project will be delay have some reason relate to this problems. So the
Project must be actively capital.
For Project Employee
·
Trying
to self-improvement skills.
·
Set the interests of work to the highest.
·
Recognize
delay problems which will lead to large losses as well as benefits of the
project completion on time.
·
Monitor
the Design Consultant’s works of every period, if any changes happen, Design
Consultant must be accelerate in next period for catch up schedule.
·
Exchange
information dissemination and unified design concept from the start to avoid
the disagreement.
For Human Resource Department
·
Organization
training the Project Construction Management Group in order for them to know
how to use the process to accomplish project and contract condition.
·
Build an
ideology for all employees so that they can recognize delay problems which will
lead to large losses as well as benefits of the project completion on time.
Simultaneously, top management should establish a fair reward and punishment
policy which has to be strictly applied.
·
Wage
policy should meet the minimum standard of living. This will reduce the
pressure of economic and help managers focus on their work fully and
integrally.
·
It is
necessary to build up the relationship between benefits from the project
completed on schedule and the benefits of project manager and participants.
·
The project management training should be
paid more attention in the future. It should be the main goal in Construction University. It is not
only reduces delay problem but also enhances the success probability of
construction project. Not only project manager must be educated professionally,
but also their capacity has to comply with the assigned duty.
·
Employees of Government could make
difficulties for process. This intricate question not only happens in Vietnam
but also in developing countries. To restrict this problem to a minimum, the
wage policy should satisfy actual living standard and establish a strictly
reward or punishment
·
The procedures of legal regulation in
imports and some other areas have remained very limited and inadequate. To be the
member of WTO is a challenge which forces Vietnam to improve this legal
procedure. This legal process not only in import-export but also in the other
fields must be clear and transparent. This will help project planners to have
the basis to plan for their projects accurately. If this procedure is not
improved soon, Viet Nam will be left behind, compared to other countries in the
region and we, will be faced with great damages.
