scispace - formally typeset
Search or ask a question
Journal ArticleDOI

Risk Management in Engineering and Construction: A Case Study in Design-Build Projects in Vietnam

03 Feb 2020-Engineering, Technology & Applied Science Research (Engineering, Technology & Applied Science Research)-Vol. 10, Iss: 1, pp 5237-5241
TL;DR: In this paper, the authors present the critical risk factors for design-build projects in the construction industry, and identify and manage these risk factors will help projects succeed and will increase the confidence of owners and contractors who seek to use the DB contract form.
Abstract: The constant demand for construction in developing countries like Vietnam causes more and more challenges and difficulties to Project Management Units (PMUs) in carrying projects to completion on schedule, with quality assurance and fewer costs. In order to do this, PMUs need to have better and tighter management tools and forms. However, in order to minimize risks during project implementation, the binding terms in contracts are also becoming stricter with more and more new forms of contracts. One of them is the design-build (DB) contract form. This paper presents the critical risk factors for design-build projects in the construction industry. Good identification and management of these risk factors will help projects succeed and will increase the confidence of owners and contractors who seek to use the design-build form.
Citations
More filters
Journal ArticleDOI
TL;DR: In this article, the authors presented a fuzzy decision-making approach for calculating critical factors that affect the construction price index in Vietnam, which was implemented based on in-depth interviews of experts in the construction industry in Vietnam.
Abstract: Nowadays, many construction engineering and technology enterprises are evolving to find that prosperity is driven and inspired by an open economy with dynamic markets and fierce multifaceted competition. Besides brand and product uniqueness, the ability to quickly provide customers with quotes are matters of concern. Such a requirement for prompt cost estimation of construction investment projects with the use of a construction price index poses a significant challenge to contractors. This is because the nature of the construction industry is shaped by changes in domestic and foreign economic factors, socio-financial issues, and is under the influence of various micro and macro factors. This paper presents a fuzzy decision-making approach for calculating critical factors that affect the construction price index. A qualitative approach was implemented based on in-depth interviews of experts in the construction industry in Vietnam. A synthetic comparison matrix was calculated using Buckley approach. The CoA approach was applied to defuzzified the fuzzy weights of factors that affect the construction price index. The research results show that the top five critical factors affecting the construction price index in Vietnam are (1) consumer price index, (2) gross domestic product, (3) basic interest rate, (4) foreign exchange rate, and (5) total export and import.

15 citations


Cites background from "Risk Management in Engineering and ..."

  • ...These construction price indices reflect the fluctuation of construction costs over time and serve as a basis for the calculation and adjustment of total investment and management of work construction investment cost (Long, Tran, & Nguyen, 2019; Nguyen & Nguyen, 2020)....

    [...]

Journal ArticleDOI
TL;DR: In this article, a study was conducted with investigations, discussions, and evaluation of the factors that lead to cost overruns in the construction projects of international contractors in Vietnam, including factors related to the owners, the foreign contractors, the subcontractors and suppliers, state management, and the project itself.
Abstract: A construction project is a designed product made up of labors, materials, and installations in the project positioned on the ground and may include the underground and ground section, and the section in water or on the water surface. It is a civil, industrial, transport, agricultural and rural development, infrastructure, or some other. A key phase in the life cycle of these construction projects is the implementation when building products are made directly with workers, equipment, materials, and managers. If there is a lack of management experience, information, and problem-solving solutions to tackle the risks faced by contractors, especially foreign ones, will fail in controlling the project’s cost. This study was conducted with investigations, discussions, and evaluation of the factors that lead to cost overruns in the construction projects of international contractors in Vietnam. The principal component analysis (PCA) showed that those factors that influence cost overruns these construction projects fall into five general groups, including factors related to (i) the owners, (ii) the foreign contractors, (iii) the subcontractors and suppliers, (iv) state management, and (v) the project itself. Besides, the study proposes solutions to limit cost overruns in construction projects and improve the profitability of international contractors in Vietnam.

14 citations


Cites background from "Risk Management in Engineering and ..."

  • ...…in large part, because foreign owners almost always rely on reputable and experienced foreign contractors with whom they have a relationship to invest and work abroad because of the overall size of the domestic contracting resources (Ha, Le, & Trung-Kien, 2019; Nguyen, 2020; Nguyen & Ngoc, 2020)....

    [...]

  • ...Nguyen and Nguyen (2020) analyzed 28 risks for design-build projects in Vietnam....

    [...]

  • ...It was designed to support both foreign and domestic contractors and project managers in establishing appropriate solutions to prevent or limit foreseeable cost damages (Phan, Nguyen, & Nguyen, 2020)....

    [...]

  • ...Construction quantity directly affects the construction costs of foreign contractors (Nguyen, Do, & Nguyen, 2020)....

    [...]

Posted Content
TL;DR: In this paper, a fuzzy logic approach was used to rank seven skills shortage in Vietnam's labor market, namely lifelong learning, adaptive capacity, information technology capacity, creativity and innovation capacity, problem-solving capacity, foreign language competency, and organizing and managing competency.
Abstract: Human resources development is one of the main issues in the socio-economic development strategy and the transform of any region in the context of Industry 4.0. However, Vietnamese human resources have been poorly evaluated in the areas of quality, lack of dynamism, and creativity. Therefore, this paper presents a fuzzy logic approach to ranking seven skills shortage in Vietnam’s Labor Market, namely lifelong learning, adaptive capacity, information technology capacity, creativity and innovation capacity, problem-solving capacity, foreign language competency, and organizing and managing competency. The results showed that the problem-solving skill has the largest gap between an enterprise’s requirements and the actual response of employees.

11 citations

Journal ArticleDOI
TL;DR: In this paper, the authors highlight the interactions among these factors and recommending orientations and synchronous solutions in e-learning, and highlight the interaction among technology, education and economy.
Abstract: E-learning has been and is an indispensable tool in the knowledge economy. It is attracting the special attention from many universities and educational institutions toward the goal of "learner-centric" because it is highly interactive, based on multimedia, enables learners to give exchange information more easily, and provides learning content that is appropriate to the capabilities and interests of each person. For more than forty years, e-learning has undergone a striking development that has paralleled technological breakthroughs. It, however, comes into the practice of education only upon integration into educational advances and based on the foundation of economic from three pillars: technology, education and economy, thereby highlighting the interactions among these factors and recommending orientations and synchronous solutions in this paper.

10 citations


Cites background from "Risk Management in Engineering and ..."

  • ...As e-learning has come to life, it has gained wide currency as a medium for companies to train newcomers and senior management (Ha & An, 2015; Ha & Luan, 2018; Kustandi et al., 2020; P. Nguyen & Nguyen, 2020; Ramakrishnan, Shabbir, Kassim, Nguyen, & Mavaluru, 2020)....

    [...]

Journal ArticleDOI
TL;DR: The MPSO algorithm is utilized to achieve an efficient better system quality along with the EPC based claim management system with minimized project cost and time.

8 citations

References
More filters
Journal ArticleDOI
TL;DR: In this paper, the authors compared the performance of design/bid/build and design/build to see if one project delivery method is superior in regards to time and cost, and concluded that design/Build projects were superior in performance in almost every measure, including project duration, project duration per bed, project time growth, cost growth and cost per bed.
Abstract: This study compares the performance of design/bid/build and design/build to see if one project delivery method is superior in regards to time and cost. Similar military buildings were used to identify two samples of projects delivered with each of the two delivery methods. These projects provide a meaningful comparison because they include buildings of the same typology (i.e., U.S. Navy Bachelor Enlisted Quarters) delivered using similar design models. Project duration, project duration per bed, project time growth, cost growth and cost per bed were statistically compared. Upon completion of the analysis, the hypothesis that design/build projects are superior to design/bid/build projects in regards to time and cost was tested. Design/build projects were proven superior in performance in almost every measure. Other findings, including recommendations to practitioners and researchers, will be provided as well.

237 citations


"Risk Management in Engineering and ..." refers methods in this paper

  • ...Normally, the DB approach is often compared to the traditional DBB project implementation method, in which the owner hires two separate units to perform the design and construction activities [9, 10]....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors report on models constructed to predict performance of DB and DBB projects on 11 areas, using project-specific data collected from 87 building projects, including collecting, checking, and validating industry data, and the statistical development of multivariate linear regression models for predicting project performance.
Abstract: Design-build (DB) and design-bid-build (DBB) are two principal project delivery systems used in many countries. This paper reports on models constructed to predict performance of DB and DBB projects on 11 areas, using project-specific data collected from 87 building projects. The study included collecting, checking, and validating industry data, and the statistical development of multivariate linear regression models for predicting project performance. Robust models are developed to predict construction and delivery speeds of DB and DBB projects. Gross floor area of the project is the most significant factor affecting speed. Besides this, for DBB projects, contractors’ design ability, and adequacy of plant and equipment would ensure speedy completion of the projects. For DB projects, if the contract period is allowed to vary during tender evaluation, this would slow down the project. Robust models to predict turnover and system quality of DB projects are also constructed. A DB contractor’s track record is...

225 citations


"Risk Management in Engineering and ..." refers methods in this paper

  • ...Normally, the DB approach is often compared to the traditional DBB project implementation method, in which the owner hires two separate units to perform the design and construction activities [9, 10]....

    [...]

Journal ArticleDOI
TL;DR: In this article, the authors discuss results of research conducted to address owners' attitudes toward one specific alternative contracting method, design-build, and compare private and public owner attitudes toward this particular delivery strategy.
Abstract: Modern owners of constructed facilities are increasingly investigating a variety of alternative procurement methods. These methods include design-build, turnkey, and construction management. To effectively service this market-driven expansion of project delivery strategies in the construction community, a fundamental understanding of owner attitudes is required. This paper discusses results of research conducted to address owners' attitudes toward one specific alternative contracting method, design-build. A tremendous growth in design-build and limited existence of documented research on owner's attitudes toward design-build necessitate a focus on this particular delivery strategy. Primary design-build selection factors identified and analyzed include establishing cost, reducing cost, establishing schedule, shortening duration, reducing claims, large project size/complexity, and constructability/innovation. Additionally, a comparison of private and public owner design-build attitudes is documented.

156 citations

Journal ArticleDOI
TL;DR: In this article, the authors presented a practical insight into 27 financial risks associated with the build-operate-transfer (BOT) projects in their lifecycle, and a categorization of the risks is presented, according to the stage at which they occur and the sources of their origin.
Abstract: The build–operate–transfer (BOT) approach for developing infrastructure projects is a technique that allows fast realization of public works in cases of a shortage of public funds. This process is full of risks, due mainly to the complexity and extend of the disciplines, public agencies and stakeholders involved. The identification, classification and presentation of a comprehensive list of this type of risks will provide BOT project practitioners with a useful tool in the effort of setting up successfully a BOT concession agreement. The approach presented provides a practical insight into 27 financial risks, which are associated with the BOT projects in their lifecycle. This is achieved through proper justification and description of the content of each risk. Furthermore, a categorization of the risks is presented, according to the stage at which they occur and the sources of their origin. The findings of this research would facilitate the risk analysis process that is being conducted by risk managers pr...

128 citations


"Risk Management in Engineering and ..." refers background in this paper

  • ...Unstable interest rates are undesirable for most project participants as they lead to concerns about profitability and return on equity [25]....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors present a literature survey on the issues of risk, risk management/analysis and the design-build contract system, to propose a schedule and cost risk analysis model, and to show the applicability of these models in scheduling and cost estimation of a fixed-price design -build construction project through a case study.

111 citations


"Risk Management in Engineering and ..." refers background in this paper

  • ...Basically, risk factors can be classified into groups including risks related to politics and laws, economics and finance, design, contracts and bidding, construction, and owners and contractors [15]....

    [...]