An Evaluation Of Client Roles In Projects Procured Through The Traditional Construction Process In HoChiMinh City, Vietnam

For centuries, the construction industry is one of the biggest industries worldwide. Being such a large industry, it has played a pivotal role in the socio-economic development of all nations. Its role ranges from providing infrastructure support to factors of production for other sectors of the economy. In addition, physical objects generated such as infrastructure facilities, roads, bridges, buildings, houses, etc in the construction industry have effects on other industries as a chain of economic activities.

After the economic crisis happening in Asian countries as well as the open-door policy, construction industry in Vietnam has developed considerably in advantage manner of political and fiscal climates. Since then, the need of establishing infrastructure and changing orientation in construction industry to appeal both foreign investment and domestic investors is a major factor of national economic growth. On the other hand, the development flow of project management technique has push construction industry in emergency activities to keep abreast of the customer’s needs and sustain in construction competition circumstances.

As a developing country, Vietnam has changed it’s centrally plumed economy to a market economy with annual index of GDP growth between 7 – 8% in the period of 2000 to 2005 (statistical office in Hochiminh City, 2006). During this process there are many mutual influences among different industries especially in construction industry, the tight relationship between economy development and construction due to positive reforms of policy, social, and economical trends. In current context the construction industry in Vietnam has been developed so fast. The competition of reward projects happening in various areas where potential construction projects are still the demand of investors.

Obviously, the involvement between the many parties in a construction project such as clients, consultants, contractors, subcontractors, and suppliers (Cherns and Bryant, 1984) has exposed many uncertainties and problems associated with the relationship between these parties. As a result, increasing cost, late completions, poor quality, and high accident rates in project activities are usually seen in construction project. The roles and their project management approach can have significant effects upon the attainment of the project objectives from the viewpoints of all the parties involved in the project (Kometa, Olomolaiye, and Harris, 1995).

Many researchers have written on client’s influences in construction projects. For instance, poor project definition/formulation by the client may result in a successful project irrespective of the other parties’ performance. Also, payment delays by clients cause cash flow problems to consulting firms which in the worse possible case may lead to bankruptcy. At the present, the enormous importance of client’s roles that brings success in project performance and outcome in Vietnam is not yet implemented. For that reason, a comprehensive study on these responsibilities of client is actually essential in the construction industry in Vietnam. If both client and the other parties understand the fundamental roles of construction clients and if clients themselves are prepare to take an active role in the construction process, the chances of producing more successful projects will improve as well as the project management in mutual activities among parties will be more efficient.

Mr. Tran Tan Tin made a study which purpose is to discover the leading roles, particularly in design and construction stage by project client in Vietnamese construction industry. These factors were proven influence directly on project performance management in terms of construction duration, cost, quality and outcome from the viewpoint of three main parties, i.e. stated-owners, contractors, and designers, and present a suitable recommendation to mutual operations among parties.

The client may pose risks to project designers and civil contractors by not adequately performing their responsibilities. Active involvement of the client in projects will impact upon the performance, success of the projects and will reflect on the performance of the construction industry in general. For the purpose of understanding, the following specific objectives need to be accomplished:

- identify common public roles in construction process for the civil construction projects with traditional method in the Vietnamese construction industry,
- Explore and rank the major roles of client that having significant influences on other parties (designer and contractor) by stated-owner, designer, and contractor’s perspective respectively,
- classify critical client’s roles in perception and mutual relationship among parties,
- propose recommendations for improving mutual objectives and operations between stated-owners and contractors, designers.

Conclusions

Ranking and perceptive comparison among involved parties

Three parties, namely stated-owner, designer, and contractor were involved in this study as independent samples with 31, 29, 29 respondents, respectively. The relative importance values were carried out to determine and rank the fifty-two common important roles of the client grouped under ten fundamental categories related to project definition, planning and design, politics-social factors, schedule urgency, schedule duration, finance, legal agreement, contracting, project implementation, and human factors in term of the degree of importance.

The overall perception on the client’s roles in construction process by the stated-owner and the other parties were not the same. There were disagreements on the ranking of the common importance factors in construction process. The different parties’ nature is the main cause of the various perceptions among them. Each party, normally, has a set of objectives and establishes plans in advance as the guideline performing and cooperating with other partners. Additionally, it is often seen that in project character the period of involvement of parties is also different. Stated-owners take part in the project process from the beginning to the end while designers have much interact in design stage and less interfere in construction stage and contractors only participant after bidding progress finished. A quite different perception of the client’s role among parties due to mentioned natures is common in construction business.

Classifying critical roles of the client among construction project parties

The analysis procedure was carried out to identify the critical roles of the client among involved parties divided into two groups in which first group comprised stated-owner and designer and the other was comprised of stated-owner and contractor. By applied the expected frequency and Chi-square test, common deduction process was done to extract inappropriate factors that not have the same agreement between two parties. After that remains were classified into three important categories namely high, moderate, and low importance in which important factors in high importance category are seen as critical important roles of the client in construction process affected directly on interactions and performance between parties. The results obtained from classification for each group is presented as follow:

In first group, the four inappropriate factors in agreement between stated-owner and designer are: (1) Using flexible design philosophies where possible, (2) Beware the impact on full discussion by all parties, (3) Beware exchange rate movements, and (4) Recognizing and demonstrating the importance of effective leadership.

On the other hand, the nine critical factors, which have the same agreement in both parties in term of important roles of the client, are: (1) Project is defined comprehensively, (2) Recognizing the extent to which design and development is completed will affect the accuracy of estimates, (3) Design is tested adequately before final project commitment is made, (4) Ensuring break clauses are adequate, (5) Seeking commitment to make contract work, (6) Giving clear client’s guidance, (7) Ensuring there is one person, or group, in overall charge having strong overall authority, (8) Considering full supervision to quality assurance and auditing, (9) Ensuring communications are effective.

In the second group, the twelve inappropriate factors in agreement between stated-owner and designer are: (1) Internal and external communication clearly, (2) Establishing an adequate project-management team, (3) Warning progressive change, (4) Developing accuracy of estimate to an extent concomitant with uncertainties present, (5) Using flexible design philosophies where possible, (6) Freezing the design once agreed, (7) Noting disruptive effect urgency can have on work sequencing, (8) Avoiding over-gearing with debt, (9) Beware exchange rate movements, (10) Seeking commitment to making contract work, (11) Beware having subcontracts from main contractor, (12) Considering which power style is most appropriate. It is strongly affirmed that the attitude between state-owner and contractor is quite different.

Besides, the nine critical factors, which have the same agreement in both parties in term of important roles of the client, are: (1) Project is defined comprehensively, (2) Recognizing the extent to which design and development is completed will affect the accuracy of estimates, (3) Design is tested adequately before final project commitment is made, (4) Ensuring break clauses are adequate, (5) Giving clear client’s guidance, (6) Ensuring there is one person, or group, in overall charge having strong overall authority, (7) Considering full supervision to quality assurance and auditing, (8) Recognizing and demonstrating the importance of effective leadership, (9) Ensuring communications are effective.

In addition to this part, ranking ten fundamental categories of clients’ roles recognized by all respondents was found that the top three of fundamental categories, namely project implementation and management, human factors, and legal agreements, in all respondents with regard to playing an important role in the construction process. It is conclude that all respondents expect the client to pay much attention the construction stage under legal agreements.

Factor analysis of client’s roles

To deeper comprehend the client’ roles in term of mixing all parties’ samples, factor analysis method was utilized in this study in order to reduce multiple variables to a lesser number of underlying factors that are being measured by the variables and interpret any multivariate relationships among the top twenty highly ranked importance roles of client. These factors were also tested by The Kaiser-Meyer-Olkin measure of sampling adequacy testing whether the partial correlations among variables are small and the Bartlett's test of sphericity testing whether the correlation matrix is an identity matrix, which would indicate that the factor model is inappropriate.

These factors could be grouped into five symbolized factors with the most significance for client‘s roles involved in construction process. They are: (1) experience, (2) management ability, (3) commitment, (4) communication, and (5) authority.

His thesis abstract is copied and posted.

ABSTRACT

The client’s roles throughout the construction project process are crucial to the success of projects in the public sector. The aim of this research is to help bridge the existing gap between the client and other parties involved in construction process by presenting the critical roles of the client in construction process in Vietnam among three parties involved stated-owners, designers, and contractors. A survey of a randomly selected sample of 31 stated-owners, 29 contractors, and 29 designer firms from Hochiminh City of Vietnam with the traditional project approaches was made. The survey includes 52 common factors of responsibilities grouped into 10 major headings, in which the participants were asked to indicate the level of importance of each factor. The level of importance of the factor and the headings were analyzed and ranked by the importance index for stated-owners, contractors, and designers. It was found that all three parties generally agreed on the ranking of the major categories of roles in construction process. Results indicate that the nine critical important roles identified by stated-owners and designers at the same time as nine identified by stated-owners and contractors. In addition to this research, there are the five components as groups of important factors of the client’s characteristics strongly regarded in construction projects in Vietnam, they are: experience, management ability, commitment, communication, and authority. If involved parties understand the vital roles of construction clients and clients themselves are prepared to take an active role in the construction process, the chances of producing more successful projects will be enhanced.