Tuesday 26 April 2011

Internationalization Process of Pakistani Contractor

The fourth paper “Internationalization Process of Pakistani Contractor” which was presented during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011 is authored by Mr. Hassan Fazliani.

His full paper presentation is posted below.

Thursday 21 April 2011

Construction Claim Negotiation In International Projects

Mr. Ahsen Maqsoom is the third student who presented his paper entitled “Construction Claim Negotiation In International Projects” during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011.

The topic of his doctoral research is “Factors affecting the internationalization of multinational construction firms”. Below is his full poster presentation.

Wednesday 20 April 2011

Building Trust in Contractor - Owner Relationships: Case Study in Vietnam

Mr. Nguyen Thanh Tam is one of the Doctoral students who presented his paper during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011. The title of his presentation was “Building Trust in Contractor - Owner Relationships: Case Study in Vietnam”.

His poster presented is posted below.

Tuesday 19 April 2011

Theoretical Framework of Strategic behaviors in Thai contractors: an empirical case study

Four students from the Construction, Engineering and Infrastructure Management field of study presented their paper during the International Design and Construction Management Forum in Hilton Millennium Hotel, Bangkok on March 13-15, 2011.

One of the presenters, Colonel Arthasith Hastheetham presented his paper on “Theoretical Framework of Strategic behaviors in Thai contractors: an empirical case study”. This study is also published in Engineering, Construction and Architectural Management, 2011, Vol.18 issue 2.

CEIM open applications for August 2011 Intake.

We open the application for August 2011 intake for AIT Thailand campus. Limited numbers of scholarships are available for talented applicants. Some of the scholarships are Royal Thai Government scholarship, The King of Thailand scholarship, The Queen of Thailand Scholarship, Asian Development Bank scholarship etc.

What is CEIM? CEIM master and doctoral programs aim to prepare engineers to manage large construction projects starting from planning, design, tendering, construction and commissioning.

What will you learn? you will learn important knowledge and skills in project management in construction such as project planning/scheduling, project cost and financial management, organizational management, project contract, project risk, project quality management, project performance management and project financing.

Where will you work after graduation? You can work in strategic industries that highly need project management such as:
- Contractors (highway, building, oil/gas and energy)
- Consultants
- Property and real estate developers
- Bank and Invesment companies
- Public Private Partnership Consortium
- Financial and Banking institutions that lend fundings for construction projects
- hotel and apartment development
- oil and gas construction

What else will you learn during your study with us in AIT?
AIT is a very multicultural insitute. Our students and faculty members come from different parts of the world such as Thailand, Vietnam, Bangladesh, India, Taiwan, Pakistan, Indonesia, China, Korea, European Union. Aside from studying knowledge, you will also learn different cultures and different ways of thinking from your friends; and develop your global international networking.


Please contact CEIM Secretary (Ms. Woranuch, phone 025246060 or email woranuch@ait.ac.th) for further information.

Visit CEIM: http://www.set.ait.ac.th/ceim
How to apply? http://www.ait.ac.th/AIT/admissions/admissions


Regards
Dr. BHW Hadikusumo
Associate Professor
CEIM Coordinator
MPM Coordinator

Thursday 31 March 2011

Communication ManagementiIn Construction

One of the traits and probably the most important factor in all successful construction projects is communication both internal and external. So, how the communication would be helpful for construction targets? What effective measures and medium should be used in modern construction now? What is the adverse way/manner in construction communication that should be avoided and eliminated for ensuring smooth and as good as practice performance/activities in construction?

There are a lot of possible problems of communication in construction. Each of those also can negatively affect to the goal and success of construction project. The most common problems related to communication in construction are the following:
- Miscommunication or misaddressing
- Misunderstanding due to misinterpretation or misconception
- Unclear/ambiguous understanding
- Lack of link or interruption of connection of communication
- Cultural barriers and/or language differences
- Complexity of the unique construction or very high technology
- Too extensive of scope
- Inadequate information, time constraint, insufficient control
- Conflict and/or poorly informed participants

Mr. Du Thien Duc made a case study on the Tallest Tower in HCMC project. Due to limited time and resources, his report only focused on the following objectives:

i. Identify what and how an appropriate/effective communication should be useful in a construction project.

ii. Study the application of communication in a case of construction of the tallest tower now in Hochiminh city: THE 68-story BITEXCO FINANCIAL TOWER.

Conclusion

Communication is always an indispensable necessity and demand of individual, collectivity, community, and organization. In construction and for construction projects, especially for big project or trans-countries project, such regard becomes more and more important. It plays a vital role for the link of all resources to create a collective and common force for the well-performance of the project, hence bring benefits to every involved individual and team/group, company, community and society.

Building an effective and powerful communication system for a construction project is not a simple/easy work at all. It demands good background, expertise platform, life experienced and a brain-storming as well as an open soul and inspiration; and – of course – subject to the specificity, particularity and size of the desired construction project.

All manners and measures are settled for the ultimate goal: the success of the project - meant benefits brought to the clients, contractors, supplier, all parties involved, community and society.

The success of construction project also mean success in every phase of the project. Therefore the communication plan or method applied to the project should be deployed and mobilized effectively and productively through every stage of the construction project such as:

Planning stage:
- Quite understand the intention of the client; the purposes and functions of the project.
- Deeply discuss and consult with the client for common understanding
- Collect experience from expert on each specific and particular disciplines of the constructed project, to learn the best estimation on technique, technology, cost and schedule.
- Anticipate and evaluate the pros and cons for the project; and then exchange, dialogue with the client and project team.
- Create a harmonious team which will result in perfect teamwork consists of project management, conceptual architects, quantity surveyors and the authorized representatives of the client.

Design stage:
- Clearly classify and discriminate sets of drawings: architectural, structural, mechanical, electrical, plumbing, façade, curtain wall, interior, setting-out, schematics, plan and section layout
- Collect and then select a qualified list of designers with the approval from the client.
- Timely and validly update for revised set of drawings or bulletin so that any update of drawings is always recorded, documented and controlled.

Construction stage:
- All contractors, subcontractors, suppliers, installer, and others must conform to and comply with a very clear, strong and powerful project procedure.
- A very effective and valid method and means of communication is media. This will not be interrupted and limited as much as expected on the variant, deformation or distortion of the information transmitted to the destination.
- Have an effective mechanism of sending, receiving and feed-back of information.
- A very clear, transparent, friendly and open-minded mechanism for inter-communicating between the client, project management and contractors, suppliers.
- Instruction or notices should be prompt, timely, and accurate.

Close-out stage:
- Clear instruction and schedule for contractors to hand-over.
- Close coordination with the client for taking-over
- Thorough checking for the compliance of local and international codes.
- Documentation of all paper works for hand-over and take-over process.
External relations and communication:
- To court, to win the popularity, especially for the supports from local
authorities and press, public opinion.
- To strictly keep the security of adjacent community and environment.
- Keep informing and communicating positively with press and media.
- To create opportunity and influence for any possible chance.

Always consider the very important role of external communication, public and media, and especially the support from local authorities and community.

Important role of ICT and advanced technology:

Role of ICT – information & communication technology plays important and efficient factors in project communication. Telecom and Communication equipment/devices in a construction project should be sufficient, redundant, back-up and standby and as advanced as possible. Computers, servers and routers used in construction site, document control as well as project management should be powerful and durable; sufficient to handle a lot of information coming at the same time. And also be ready for a satellite leased lines for contingency.

For a very big project or trans-country/trans-border construction project, an intermediate server and/or share-point; share-archive is recommended for convenience and help for inter-communication.

Recommendations

The communication system for construction project must satisfy the following requirements:
- Only one common language (English) to be used in the project.
- Simple & precise.
- Prompt & instant
- Clear & accurate
- Internal & external
- Suitable & proper for any circumstance
- Effective and productive
- Timely and synchronous
- Friendly and appropriate

Communication in construction project is the art of control, monitoring, verification, recording and documentation. Obviously, a lot of factors affect to the process; positively and negatively as well. This requires the project management to be smart to filter and identify what are the helpful and active things that bring the advantages and conveniences to the project implementation.

His thesis abstract is copied and posted.

Abstract

Everyone is aware on the legend of “Tower of Babel”. According to the biblical account, a united humanity of the generations following the Great Flood, speaking a single language and migrating from the east, came to the land of Shinar, where they resolved to build a city with a tower "with its top in the heavens...lest we be scattered abroad upon the face of the Earth". God came down to see what they did and said: "They are one peoples and have one language, and nothing will be withheld from them which they purpose to do." So God said, "Come, let us go down and confound their speech." And so God scattered them upon the face of the Earth, and confused their languages, and they left off building the city, which was called Babel "because God there confounded the language of all the Earth." (Genesis 11:5-8).

The legend “Tower of Babel” has often been associated and implied with the impossibility, the delay in completion of a program, a schedule, a target because of weak or deficiency of communication in the process; particularly in construction process .

That is the story in the old days; how about of the similar case in nowadays? Let see a piece of news of BRE (Building Research Establishment, Scotland – enquiries@bre.co.uk _ www.bre.co.uk):

Poor Communication Costing UK Construction Industry
PRESS RELEASE
It is estimated that defects in the UK construction industry, many of which are the result of the inefficient use and communication of information, cost at least £20 billion to correct every year.

In Vietnam, yet a comprehensive report on losses and damages caused by unsound communication in construction but through over many poor-quality construction project completed; it is affirmable that poor, bad, insufficient, ineffective, improper, and so on related to communication are involved.

• What is project communication? Project communication is a link which connects the major goals of a project: time schedule – quality expected – cost estimated and safety requirement.
• Why project communication is important? Because depending on the thoroughness, comprehensiveness and effectiveness of the communication; the goals of the project would be perfect and as expected or not.

From this viewpoint, the objective of this report is to study on various factors impact to communication in construction projects and how to improve the communication in construction so that it can help and support the construction management team to get the planned targets effectively and conveniently.

Wednesday 30 March 2011

Application Of FIDIC Contract In Bridge Project

FIDIC is a document that has been used worldwide and is constantly updated with new versions. The application of this provision was to raise the efficiency of project management in Vietnam and help the Government to improve the basis of their legal system on the Project Management. However, in practice, there are still some contents which are inappropriate and not feasible when applied to projects in Vietnam.

In order to improve the efficiency of the application of FIDIC in Vietnam, Mr. Nguyen Thu Trang made a case study on Can Tho Bridge Construction Project. The objective of his study were to: (1) analyze the advantages and disadvantages of using FIDIC as a standard contract; and (2) propose recommendations for improvements.

Conclusion

The applications of FIDIC conditions of contracts for projects using ODA in Vietnam are:
- as a basis for the competent agencies of Vietnam's research, and
- update current regulations to gradually access the international practices, as well as to complete the domestic policies to make them applicable in a feasible way.

Although there are some disadvantages, in overall, FIDIC conditions of contract are clear and it demonstrates fairness to both parties, especially for contractors compared with provisions of current contract in Vietnam.

Recommendations

For improvements of FIDIC
The process of negotiating and signing contracts for ODA projects in Vietnam today is shown in the figure below.

The proposed procedure of negotiating and signing contracts is shown in the figure below.

The following contents must be specified during the contract negotiation through the Particular Conditions of Contract:

- Two parties must identify the time(s) for inspecting the overall progress. If the Contractor does not meet the required progress at such specified inspection times, then countermeasures must be taken.

- If the Engineer opined that such countermeasures submitted by contractor are not satisfactory, or the violation of progress of Contractor after being fined the maximum rate specified in the contract, the Engineer has the right to request the Employer to transfer a part of the contract or the whole contract to another contractor. If the cost transferred to the new contractor is higher than that in the contract of the contractor to be replaced, the replaced contractor has to bear such cost.

- In order to ensure strict management of quantities in the contract, construction diaries must be accurate, specific and confirmed by the Engineer, so that, when disputes arise, their solution will be based on such diaries.

The Employer need to provide sufficient basis to convince the Sponsor to agree when reviewing the contract
For improvements of Vietnamese Regulation of Contract

Currently, the Decree No. 48/2010/NĐ-CP dated 07 May 2010 issued by the Prime Minister applied in all projects under Government’s Budget. Comparison of some Clauses between FIDIC and Decree 48 showed in the table below.

Some recommendations to improve the implementation contract under this Decree:
- Responsibility of Employer: need to specify in detail and perform strictly during contract implementation.

- Variation Procedure: The Executing Agency (Ministry) needs to expand the authorization to IA and Engineer on this issue to shorten the process.

His thesis abstract is copied and posted.

Abstract

Official Development Assistance fund (ODA) has brought a major change for transportation infrastructure system in Vietnam, starting in the early '90s. Rural transport systems, provincial roads and national highways, expressways, major bridges has really brought a new face for the transportation system, connecting and promoting the economic development of many regions nationwide.

The management and effective use of these funds are the issues that the Government always attaches importance because it not only brings economic and social efficiency, but also to create credibility with donors as ODA loans to low interest rates with aimed at "Development Assistance".