RISK MANAGEMENT- CONSTRUCTION FIELD

Risk Management- Construction Field

TABLE OF CONTENTS

CHAPTER I3

Aims and Objectives…………………………………………………………………………..3

CHAPTER II3

Literature Review4

CHAPTER III7

Methodology7

CHAPTER III10

Data analysis10

Identification of foremost dangers in oil and gas building projects10

Analysis of the top-ten risks11

CHAPTER IV14

Hypothesis testing14

Strategies for organising foremost risks16

Bureaucratic government scheme and long task acceptance method (R2.4)16

Poor conceive (R7.1)17

Incompetence of task group (R8.5)19

Inadequate tendering (R6.1)21

Late interior acceptance method from the proprietor (R8.9)23

CHAPTER V25

Summary and conclusions25

CHAPTER I

 

Aims and Objectives

The aims of this paper are to identify project success factors in the VCI and to uncover the underlying relationships between these factors. The result is useful not only to participants in the VCI but also to people in other countries, especially in developing countries in Asia and the rest of the world. A comprehensive answer on how to manage such projects successfully is difficult to provide. This paper expounds on the success factors for large construction projects in Vietnam

CHAPTER II

Literature Review

A construction project is commonly acknowledged as successful when it is completed on time, within budget, and in accordance with specifications and to stakeholders' satisfaction. Functionality, profitability to contractors, absence of claims and court proceedings and “fitness for purpose” for occupiers have also been used as measures of project success (Fraser, A.Z., Skitmore, M. (2000) remarked that success on a project means that certain expectations for a given participant are met, whether owner, planner, engineer, contractor, or operator. The following are some other definitions of “project success” in general and in construction:

Ashley et al. (1987 cited in Sanvido et al., 1992) referred to project success as having results much better than expected or normally observed in terms of cost, schedule, quality, safety, and participant satisfaction. de Wit (1988) remarked that a project is considered an overall success if it meets the technical performance specification and/or mission to be performed, and if there is a high level of satisfaction concerning the project's outcome among key people in the parent organization, key people in the project team and key users or clients of the project effort. Regarding construction projects, Sanvido et al. (1992) defined success for a given project participant as the degree to which project goals and expectations are met. They added that these goals and expectations may include technical, financial, educational, social, and professional aspects.

Projects are revealed to both interior risks (financial, conceive, contractual, construction, individual, engaged parties and operational risks) and external risks (economical, communal, political, lawful, public, logistical and ecological risks). All the risks may leverage cost, agenda or value of the task in contradictory modes (Charoenngam and Yeh, 1999). Therefore, risk management should be well identified and managed as an incorporated function of task management. The oil and gas commerce in Vietnam assisted 10 per hundred of the GDP in 2001 (Statistical Publisher, 2001). Today, the commerce extends to augment powerfully implying claims for construction of new oil and gas facilities. Oil and gas construction tasks are often capital intensive. Hence, their thriving implementation is strategically important. However, oil and gas construction tasks are revealed to risks because of large capital buying ...