Stephen O. Ogunlana

Construction delays in a fast-growing economy: Comparing Thailand with other economies

Abstract Construction delays impact the time and cost of projects. A survey of the delays experienced in highrise building construction projects in Bangkok, Thailand, was undertaken and the result compared with other studies of delays and overruns around the world to determine whether there are special problems that generate delays for construction in developing economies. Resource supply problems were by far the most acute problems of the Thai construction industry in the boom years. The results of the study support the view that construction industry problems in developing economies can be nested in three layers: (a) problems of shortages or inadequacies in industry infrastructure (mainly supply of resources); (b) problems caused by clients and consultants and (c) problems caused by contractor incompetence/inadequacies. Conclusions recommend the need for focussed effort by economy managers and construction industry associations to provide the infrastructure needed for efficient project management. This study should be of interest to emerging economies in Europe and Indochina.

A study on project success factors in large construction projects in Vietnam

Large construction projects are inherently complex and dynamic. 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. A survey questionnaire was used to collect data from practitioners. Factor analysis was employed to categorize these success factors perceived by 109 respondents from 42 construction‐related organizations. Factor analysis uncovered that these success factors can be grouped under four categories, here titled the four COMs: comfort, competence, commitment, and communication. The result can be used as a guideline to successfully handle construction projects in Vietnam as well as in other countries, especially in the emerging economies in Asia and the rest of the world.

Selection and application of risk management tools and techniques for build‐operate‐transfer projects

Construction projects are risky. However, the characteristics of the risk highly depend on the type of procurement being adopted for managing the project. A build-operate-transfer (BOT) project is recognized as one of the most risky project schemes. There are instances of project failure where a BOT scheme was employed. Ineffective rts are increasingly being managed using various risk management tools and techniques. However, application of those tools depends on the nature of the project, organizations policy, project management strategy, risk attitude of the project team members, and availability of the resources. Understanding of the contents and contexts of BOT projects, together with a thorough understanding of risk management tools and techniques, helps select processes of risk management for effective project implementation in a BOT scheme. This paper studies application of risk management tools and techniques in BOT projects through reviews of relevant literatures and develops a model for selecting risk management process for BOT projects. The application to BOT projects is considered from the viewpoints of the major project participants. Discussion is also made with regard to political risks. This study would contribute to the establishment of a framework for systematic risk management in BOT projects.

Planning for project control through risk analysis: a petroleum pipeline-laying project

Projects that are exposed to uncertain environments can be effectively controlled with the application of risk analysis during the planning stage. The Analytic Hierarchy Process, a multiattribute decision-making technique, can be used to analyse and assess project risks which are objective or subjective in nature. Among other advantages, the process logically integrates the various elements in the planning process. The results from risk analysis and activity analysis are then used to develop a logical contingency allowance for the project through the application of probability theory. The contingency allowance is created in two parts: (a) a technical contingency, and (b) a management contingency. This provides a basis for decision making in a changing project environment. Effective control of the project is made possible by the limitation of the changes within the monetary contingency allowance for the work package concerned, and the utilization of the contingency through proper appropriation. The whole methodology is applied to a pipeline-laying project in India, and its effectiveness in project control is demonstrated.

Testing Herzberg’s two‐factor theory in the Thai construction industry

Herzberg’s two‐factor theory of motivation is widely known in management circles. However, it has been criticized regarding its validity in different work settings. Construction is an industry with unique characteristics which may have special effects on employee motivation. This study tests the two‐factor theory on Thai construction engineers and foremen following Herzberg’s interviewing procedure and compares the results to Herzberg’s. Responsibility, advancement, possibility of growth, and supervision contribute to job satisfaction, while working conditions, job security, safety on site, and relationships with other organizations contribute to job dissatisfaction. Recognition, work itself, company’s policy and administration, interpersonal relations, personal life, and status contribute to both satisfaction and dissatisfaction. Achievement contributes to satisfaction for engineers but contributes to both satisfaction and dissatisfaction for foremen. It is concluded that Herzberg’s theory is not entirely applicable in the Thai construction setting. Some factors should receive attention if construction employees are to be motivated effectively.

The effect of attitudinal differences on interface conflicts in large scale construction projects: a case study

Conflicts encountered in large scale construction projects occur in two categories: internal conflicts and interface conflicts. Internal conflicts are experienced among the project participants, whereas interface conflicts are between the construction project and groups outside the project. Many large scale construction projects often experience interface conflicts in the form of conflicting requirements from different social groups. This paper examines the attitudes of five groups of respondents on the factors leading to the interface conflicts experienced on the Yadana Natural Gas Pipeline Project (YNGPP) in Thailand as a case study. The study was conducted through questionnaire surveys of the five groups: the group affected by the project; the project participants; non-government organizations (NGOs) and interested organizations; academics and experts; and local government officials. The results show that these five groups have differences in attitudes towards the factors leading to the interface conflicts encountered on the project; and it is the differences in attitudes that generated the conflicts. The key variables were grouped into main categories and the degree of importance of each key factor leading to the interface conflicts was identified.

Risk management in oil and gas construction projects in Vietnam

Purpose - The purpose of the paper is to the identify risk factors, which affect oil and gas construction projects in Vietnam and derive risk responses. Design/methodology/approach - Questionnaire survey was conducted with the involvement of project executives of PetroVietnam and statistical analysis was carried out in order to identify the major project risks. Subsequently, mitigating measures were derived using informal interviews with the various levels of management of PetroVietnam. Findings - Bureaucratic government system and long project approval procedures, poor design, incompetence of project team, inadequate tendering practices, and late internal approval processes from the owner were identified as major risks. The executives suggested various strategies to mitigate the identified risks. Reforming the government system, effective partnership with foreign collaborators, training project executives, implementing contractor evaluation using multiple criteria decision-making technique, and enhancing authorities of project people were suggested as viable approaches. Practical implications - The improvement measures as derived in this study would improve chances of project success in the oil and gas industry in Vietnam. Originality/value - There are several risk management studies on managing projects in developing countries. However, as risk factors vary considerably across industry and countries, the study of risk management for successful projects in the oil and gas industry in Vietnam is unique and has tremendous importance for effective project management.

Risk‐based maintenance model for offshore oil and gas pipelines: a case study

Offshore oil and gas pipelines are vulnerable to environment as any leak and burst in pipelines cause oil/gas spill resulting in huge negative Impacts on marine lives. Breakdown maintenance of these pipelines is also cost-intensive and time-consuming resulting in huge tangible and intangible loss to the pipeline operators. Pipelines health monitoring and integrity analysis have been researched a lot for successful pipeline operations and risk-based maintenance model is one of the outcomes of those researches. This study develops a risk-based maintenance model using a combined multiple-criteria decision-making and weight method for offshore oil and gas pipelines in Thailand with the active participation of experienced executives. The models effectiveness has been demonstrated through real life application on oil and gas pipelines in the Gulf of Thailand. Practical implications. Risk-based inspection and maintenance methodology is particularly important for oil pipelines system, as any failure in the system will not only affect productivity negatively but also has tremendous negative environmental impact. The proposed model helps the pipelines operators to analyze the health of pipelines dynamically, to select specific inspection and maintenance method for specific section in line with its probability and severity of failure.

System dynamics modeling of design and build construction projects

Design and build (D/B) construction methods have gained more importance in recent years for their potential advantages in improving project performance. There are, however, a number of problems that are commonplace in D/B procurement, which, when they interact with each other, can lead to project time and cost overrun problems. The most important among them are design changes, together with communication and coordination lapses among concerned parties. Past research has focused only on the characteristics of the traditional construction, or separate sub‐systems such as different phases or human resource input to projects. An attempt is made in this paper to improve D/B project time and cost performance. A generic system dynamics model is developed that incorporates major sub‐systems and their relationships inherent in D/B constructions projects. It is validated and calibrated for a typical large D/B infrastructure project using time and cost overrun problems experienced in Thailand. Extensive simulations with many policies, individually or in various combinations, show that improvement in time or cost can be made with proper policy combinations that reflect strong interactions between the whole design and build system and can be derived only if these interactions are accounted for. To achieve overall improvement in both time and cost, the combination of full overtime schedule, average material ordering, and fast track construction with moderate crashing of design is most appropriate. If cost is the focus, extending the construction schedule, combined with material ordering based on actual need, and design and build with traditional construction method is the best solution.

Assessment of risks in high rise building construction in Jakarta

Risk is inherent in every construction project, especially complex projects like high rise buildings. It is helpful to understand the significant risks in order to anticipate their possible negative effects on projects. This research identifies, ranks and categorizes high potential risks in high rise building projects in Jakarta. Questionnaire surveys and interviews were conducted on engineers from contracting firms in the city. The result shows that risks related to management and design are the most significant in high rise construction projects. It is also shown that client interference should be avoided or reduced in tandem with good communication and teamwork between contractors and consultants to minimize defects. Contractors also need to give attention to the maintenance of equipment in order to sustain high productivity levels.