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

Authors

  • P. T. Nguyen Department of Project Management, Ho Chi Minh City Open University, Vietnam https://orcid.org/0000-0002-6180-2520
  • P. C. Nguyen Faculty of Civil Engineering, Ho Chi Minh City Open University, Vietnam
Volume: 10 | Issue: 1 | Pages: 5237-5241 | February 2020 | https://doi.org/10.48084/etasr.3286

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.

Keywords:

design-build (DB), risk management, project manager, construction management, Vietnam

Downloads

Download data is not yet available.

References

F. Y. Y. Ling, V. T. P. Hoang, “Political, economic, and legal risks faced in international projects: Case study of Vietnam”, Journal of Professional Issues in Engineering Education and Practice, Vol. 136, No. 3, pp. 156-164, 2009 DOI: https://doi.org/10.1061/(ASCE)EI.1943-5541.0000015

L. H. Pham, H. Hadikusumo, “Schedule delays in engineering, procurement, and construction petrochemical projects in Vietnam: A qualitative research study”, International Journal of Energy Sector Management, Vol. 8, No. 1, pp. 3-26, 2014 DOI: https://doi.org/10.1108/IJESM-06-2013-0009

P. T. Nguyen, V. Likhitruangsilp, M. Onishi, “Prioritizing factors affecting traffic volume of public-private partnership infrastructure projects”, International Journal of Engineering & Technology, Vol. 7, No. 4, pp. 2988-2991, 2018

N. T. Phong, V. Likhitruangsilp, M. Onishi, “Developing a stochastic traffic volume prediction model for public-private partnership projects”, AIP Conference Proceedings, Vol. 1903, No. 1, Article ID 060010, 2017 DOI: https://doi.org/10.1063/1.5011564

T. S. Do, L. Veerasak, O. Masamitsu, T. N. Phong, “Different perceptions of concern factors for strategic investment of the private sector in public-private partnership transportation projects”, ASEAN Engineering Journal Part C, Vol. 5, No. 2, pp. 5-25, 2016

P. T. Nguyen, V. N. V. Harling, L. Lydia, K. Shankar, “Measuring quality of management to predict success of portfolio:A review of factors effect project portfolio success”, Religacion Journal of Social Sciences and Humanities, Vol. 4, No. 19, pp. 407-412, 2019

P. T. Nguyen, K. D. Vo, P. T. Phan, V. D. B. Huynh, T. A. Nguyen, T. M. Cao, Q. L. H. T. T. Nguyen, “Construction project quality management using building information modeling 360 field”, International Journal of Advanced Computer Science and Applications, Vol. 9, No. 10, pp. 228-233, 2018 DOI: https://doi.org/10.14569/IJACSA.2018.091028

V. D. B. Huynh, P. T. Nguyen, T. A. Nguyen, Q. L. H. T. T. Nguyen, T. T. H. Nguyen, “Identifying the key competitiveness indicators for construction contractors”, International Journal of Advanced and Applied Sciences, Vol. 6, No. 4, pp. 59-64, 2019

D. R. Hale, P. P. Shrestha, G. E. Gibson, G. C. Migliaccio, “Empirical comparison of design/build and design/bid/build project delivery methods”, Journal of Construction Engineering and Management, Vol. 135, No. 7, pp. 579-587, 2009 DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0000017

F. Y. Y. Ling, S. L. Chan, E. Chong, L. P. Ee, “Predicting performance of design-build and design-bid-build projects”, Journal of Construction Engineering and Management, Vol. 130, No. 1, pp. 75-83, 2004 DOI: https://doi.org/10.1061/(ASCE)0733-9364(2004)130:1(75)

V. Likhitruangsilp, M. J. S. Malvar, T. N. Handayani, “Implementing BIM uses for managing risk in design-build projects”, 16th International Conference on Computing in Civil and Building Engineering, Osaka, Japan, July 6, 2016

A. D. Songer, K. R. Molenaar, “Selecting design-build: Public and private sector owner attitudes”, Journal of Management in Engineering, Vol. 12, No. 6, pp. 47-53, 1996 DOI: https://doi.org/10.1061/(ASCE)0742-597X(1996)12:6(47)

P. T. Nguyen, L. Lores, L. Lydia, K. Shankar, “Role of project management maturity: Substantial interest to assess and improve development of viable methods”, Religacion Journal of Social Sciences and Humanities, Vol. 4, No. 19, pp. 481-486, 2019

F. A. Soomro, M. J. Memon, A. F. Chandio, S. Sohu, R. Soomro, “Causes of time overrun in construction of building projects in Pakistan”, Engineering Technology & Applied Science Research, Vol. 9, No. 1, pp. 3762-3764, 2019 DOI: https://doi.org/10.48084/etasr.2449

A. Oztas, O. Okmen, “Risk analysis in fixed-price design–build construction projects”, Building and Environment, Vol. 39, No. 2, pp. 229-237, 2004 DOI: https://doi.org/10.1016/j.buildenv.2003.08.018

C. Voelker, A. Permana, T. Sachs, R. Tiong, “Political risk perception in Indonesian power projects”, Journal of Financial Management of Property and Construction, Vol. 13, No. 1, pp. 18-34, 2008 DOI: https://doi.org/10.1108/13664380810882057

P. T. Nguyen, V. Likhitruangsilp, “Identification risk factors affecting concession period length for public-private partnership infrastructure projects”, International Journal of Civil Engineering and Technology, Vol. 8, No. 6, pp. 342-348, 2017

P. T. Nguyen, T. A. Nguyen, N. T. H. Ha, T. N. Nguyen, “Facilities management in high rise buildings using building information modeling”, International Journal of Advanced and Applied Sciences, Vol. 4, No. 2, pp. 1-9, 2017 DOI: https://doi.org/10.21833/ijaas.2017.02.001

V. D. B. Huynh, Q. L. H. T. T. Nguyen, P. V. Nguyen, P. T. Nguyen, “Application partial least square structural equation to develop a job search success measurement model”, Journal of Mechanics of Continua and Mathematical Sciences, Vol. 13, No. 5, pp. 50-59, 2018 DOI: https://doi.org/10.26782/jmcms.2018.12.00005

V. D. B. Huynh, P. V. Nguyen, Q. L. H. T. T. Nguyen, P. T. Nguyen, “Application of fuzzy analytical hierarchy process based on geometric mean method to prioritize social capital network indicators”, International Journal of Advanced Computer Science and Applications, Vol. 9, No. 12, pp. 182-186, 2018 DOI: https://doi.org/10.14569/IJACSA.2018.091227

P. V. Nguyen, P. T. Nguyen, V. D. B. Huynh, Q. L. H. T. T. Nguyen, “Critical factors affecting the happiness: A Vietnamese perspective”, International Journal of Economic Research, Vol. 14, No. 4, pp. 145-152, 2017

R. Ridwan, Sukarman, L. Laxmi, K. Shankar, P. T. Nguyen, “Strategies of successfully managing personal finances for system excellence”, International Journal of Recent Technology and Engineering, Vol. 8, No. 2, pp. 3818-3821, 2019 DOI: https://doi.org/10.35940/ijrte.B1502.0982S1119

V. Likhitruangsilp, P. G. Ioannou, “Economic assessment of site exploration programs using stochastic dynamic programming”, Construction Research Congress, San Diego, United States, April 5-7, 2005 DOI: https://doi.org/10.1061/40754(183)57

S. Sohu, A. H. Abdullah, S. Nagapan, T. A. Rind, A. A. Jhatial, “Controlling measures for cost overrun causes in highway projects of sindh province”, Engineering Technology & Applied Science Research, Vol. 9, No. 3, pp. 4276-4280, 2019 DOI: https://doi.org/10.48084/etasr.2749

Y. Xenidis, D. Angelides, “The financial risks in build-operate-transfer projects”, Construction Management and Economics, Vol. 23, No. 4, pp. 431-441, 2005 DOI: https://doi.org/10.1080/01446190500041552

J. Liu, Q. Xie, B. Xia, A. J. Bridge, “Impact of design risk on the performance of design-build projects”, Journal of Construction Engineering and Management, Vol. 143, No. 6, Article ID 04017010, 2017 DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0001299

V. Likhitruangsilp, P. Harinthajinda, “Assessment of contractors' risk response in tunneling projects”, Eleventh East Asia-Pacific Conference on Structural Engineering and Construction, Taipei, Taiwan, November 19-21, 2008

B. Lines, A. Shalwani, J. Smithwick, “Effectiveness of qualifications-based selection criteria in design-build and construction manager at risk procurements: An empirical analysis”, Construction Research Congress, New Orleans, Louisiana, April 2–4, 2018 DOI: https://doi.org/10.1061/9780784481271.014

S. T. Do, L. Veerasak, T. K. Tran, T. N. Phong, “Risk assessment for international construction joint ventures in Vietnam”, International Journal of Advanced and Applied Sciences, Vol. 4, No. 6, pp. 104-114, 2017 DOI: https://doi.org/10.21833/ijaas.2017.06.015

S. H. Khahro, Z. A. Memon, “Non excusable delays in construction industry: A causal study”, Engineering Technology & Applied Science Research, Vol. 8, No. 6, pp. 3561-3564, 2018 DOI: https://doi.org/10.48084/etasr.2335

N. T. Phong, V. N. Phuc, T. T. H. L. N. Quyen, “Application of fuzzy analytic network process and TOPSIS method for material supplier selection”, Key Engineering Materials, Vol. 728, pp. 411-415, 2017 DOI: https://doi.org/10.4028/www.scientific.net/KEM.728.411

N. T. Phong, N. L. H. T. T. Quyen, “Application fuzzy multi-attribute decision analysis method to prioritize project success criteria”, AIP Conference Proceedings, Vol. 1903, No. 1, Article ID 070011, 2017 DOI: https://doi.org/10.1063/1.5011580

L. D. Long, D. H. Tran, P. T. Nguyen, “Hybrid multiple objective evolutionary algorithms for optimising multi-mode time, cost and risk trade-off problem”, International Journal of Computer Applications in Technology, Vol. 60, No. 3, pp. 203-214, 2019 DOI: https://doi.org/10.1504/IJCAT.2019.10022101

V. N. Nguyen, L. H. Pham, T. A. Nguyen, P. T. Nguyen, Q. L. H. T. T. Nguyen, V. D. B. Huynh, “Applying supply chain management to construction industry: A case study of Vietnam”, 3rd International Conference on Finance and Economics, Ho Chi Minh City, Vietnam, June 15-17, 2016, pp. 723-735, 2016

T. S. Do, L. Veerasak, O. Masamitsu, T. N. Phong, “Impacts of risk factors on the performance of public-private partnership transportation projects in Vietnam”, ASEAN Engineering Journal, Vol. 7, No. 2, pp. 30-52, 2017 DOI: https://doi.org/10.11113/aej.v7.15520

P. T. Nguyen, N. B. Vu, L. V. Nguyen, L. P. Le, K. D. Vo, “The application of fuzzy analytic hierarchy process (F-AHP) in engineering project management”, 5th International Conference on Engineering Technologies and Applied Sciences, Bangkok, Thailand, November 22-23, 2019 DOI: https://doi.org/10.1109/ICETAS.2018.8629217

R. A. Perkins, “Sources of changes in design-build contracts for a governmental owner”, Journal of Construction Engineering and Management, Vol. 135, No. 7, pp. 588-593, 2009 DOI: https://doi.org/10.1061/(ASCE)0733-9364(2009)135:7(588)

D. Cooper, P. Bosnich, S. Grey, G. Purdy, G. Raymond, P. Walker, M. Wood, Project risk management guidelines: Managing risk with ISO 31000 and IEC 62198, John Wiley & Sons, 2014

D. T. H. Giang, L. S. Pheng, “Critical factors affecting the efficient use of public investments in infrastructure in Vietnam”, Journal of Infrastructure Systems, Vol. 21, No. 3, Article ID 05014007, 2014 DOI: https://doi.org/10.1061/(ASCE)IS.1943-555X.0000243

P. T. Nguyen, V. N. Nguyen, L. H. Pham, T. A. Nguyen, Q. L. H. T. T. Nguyen, V. D. B. Huynh, “Application of supply chain management in construction industry”, Advances in Science and Technology Research Journal, Vol. 12, No. 2, pp. 11-19, 2018

D. L. Luong, D. H. Tran, P. T. Nguyen, “Optimizing multi-mode time-cost-quality trade-off of construction project using opposition multiple objective difference evolution”, International Journal of Construction Management, 2018. DOI: https://doi.org/10.1080/15623599.2018.1526630

T. A. Nguyen, P. T. Nguyen, V. Peansupap, “Explaining model for supervisor's behavior on safety action based on their perceptions”, ARPN Journal of Engineering and Applied Sciences, Vol. 10, No. 20, pp. 9562-9572, 2015

P. T. Nguyen, P. V. Nguyen, Q. L. H. T. T. Nguyen, V. D. B. Huynh, “Project success evaluation using TOPSIS algorithm”, Journal of Engineering and Applied Sciences, Vol. 11, No. 8, pp. 1876-1879, 2016

V. Likhitruangsilp, T. N. Handayani, P. G. Ioannou, N. Yabuki, “A BIM-enabled system for evaluating impacts of construction change orders”, Construction Research Congress, New Orleans, USA, April 2–4, 2018 DOI: https://doi.org/10.1061/9780784481264.061

T. N. Handayani, V. Likhitruangsilp, N. Yabuki, “A building information modeling (BIM)-integrated system for evaluating the impact of change orders”, Engineering Journal, Vol. 23, No. 4, pp. 67-90, 2019 DOI: https://doi.org/10.4186/ej.2019.23.4.67

Downloads

How to Cite

[1]
Nguyen, P.T. and Nguyen, P.C. 2020. Risk Management in Engineering and Construction: A Case Study in Design-Build Projects in Vietnam. Engineering, Technology & Applied Science Research. 10, 1 (Feb. 2020), 5237–5241. DOI:https://doi.org/10.48084/etasr.3286.

Metrics

Abstract Views: 3241
PDF Downloads: 1218

Metrics Information

Most read articles by the same author(s)