However, in the period 2016-2021, there are still thousands of construction projects using state funds which are managed by specialized/ regional construction investment project manageme
Trang 1MINISTRY OF EDUCATION AND TRAINING
HANOI UNIVERSITY OF CIVIL ENGINEERING
Nguyen Thi Thu Hang
TOTAL PROJECT MANAGEMENT OF SPECIALIZED/REGIONAL CONSTRUCTION INVESTMENT PROJECT MANAGEMENT UNITS
Trang 2The thesis was completed at: Hanoi University of Civil Engineering
Academic advisor 1: Prof Dr Nguyen Huy Thanh Academic advisor 2: Dr Nguyen Minh Duc
Reviewer 1: Assoc Prof Dr Bui Trong Cau Reviewer 2: Assoc Prof Dr Bui Manh Hung Reviewer 3: Dr Le Van Cu
The thesis will be defended before the University-level Thesis Evaluation Council at Hanoi University of Civil Engineering On " hour day May 2024
For further information, please visit Hanoi University of Civil Engineering Library and the Viet Nam National Library
Trang 3PREAMBLE 1 The necessity of the research
In Vietnam, investment capital for construction always accounts for a large proportion of social total investment [100] In particular, the implementation of construction projects using state funds has achieved many significant achievements, promoting the achievement of socio-economic development goals and ensuring national defense and security, social welfare, carring out political tasks, contribute to leading and creating motivation for the growth of the non-state economic sector However, in the period 2016-2021, there are still thousands of construction projects using state funds which are managed by specialized/ regional construction investment project management units (BQLDACV) with the role of investor are behind schedule; thousands of projects had to adjust investment decisions and projects many times; a lot of projects ended investment and put into operation with technical problems [66]
According to theory and reality, a construction investment project is a complex system which is undertaken to fulfill objectives those are both unified and contradictory This system includes a lot of construction entities with different functional requirements, many phases, contents, stakeholders and it is influenced by a lot of factors from external environment Therefore, construction project management guidelines and standards tend to enhance project management according to individual goals, phrases, issues, and contents to ensure each of them is fully covered However, focusing emphasis on these individual goal/phrase/content leads to the fact that the total project management is not due for consideration Total project management (TPM) aims to comprehensively review, connect, and coordinate project contents, work packages, tasks, project stakeholders in related relationships, constraints, interactions to achieve project priority objectives Each of the above elements is affected by environments inside and outside the project, leading to changes in that element itself, then secondary interactions to other elements of the project Therefore, the nature of TPM is also considered in interaction with the internal and external environment of the project
From this scientific and practical basics, two general research hypotheses are: (i) the comprehensiveness in construction project management using state funds in Vietnam has not been given due attention, this is an important reason leading to problems arising in current projects, (ii) It is necessary to propose TPM solutions for construction projects using state funds in Vietnam to ensure the success of these projects
Therefore, the thesis topic "Total project management of specialized/
Trang 4regional construction investment project management units in Vietnam" has practical and urgent significance to helps the BQLDACV effectively manage their projects
2 Purpose and objectives of the dissertation 2.1 Purpose
- The study aims to propose solutions for total project management of
construction investment projects using state funds managed by BQLDACV
2.2 Objectives
- Overview of studies concern the management of BQLDACV in construction investment projects using state funds, detecting gaps in those studies
- Systematize, clarify and supplement the theoretical basis for TPM of construction projects using state funds of BQLDACV in Vietnam
- Analyze the general stituation of construction investment projects using state funds, the current organizational structure and project implementation results at some BQLDACV Identify TPM factors then do survey and evaluate the influence of these factors on project success Analyze the causes leading to project issues at a number of BQLDACV to point out shortcomings in total project management
- Propose TPM solutions to the BQLDACV to ensure success for construction projects using state funds in Vietnam
3 Research objects and scope of research 3.1 Research objects
This thesis focuses on researching the TPM of the BQLDACV with the role of investor in construction investment projects using state funds
3.2 Scope of research
Subject: Total project management of the BQLDACV as the investor in construction investment projects using state funds at stages: project implementation stage and construction completion to put the project’s work into exploitation and use stage
Type: Project management works of construction investment projects using state funds in Vietnam
Time: Data for research is in the period from 2016-2023 The thesis's proposals are expected to be applied in the next 10 years
4 Scientific basis of the thesis
This research is based on the following scientific foundations: - Theory basis of construction investment projects, construction investment projects using state funds
- Theory basis of project management, construction project management
Trang 5using state funds - Theory basis of integrated project management, project management principles of total quality management, project management according to system principles
5 Approach and sequence of research steps of the thesis
This thesis uses an approach from clarifing concept of TPM of construction investment projects then proposes contents, solutions and tools to enhance TPM for projects using State funds in BQLDACV In detail, the implementation approach takes 4 steps as follows:
2.1 Clarify theoretical basis for construction investment project using State funds (indicate the holistic natute of construction investment project)
2.2 Clarify theoretical basis for management of construction projects using State funds of specialized/regional
construction investment PMUs
2.3 Clarify theoretical basis for the PMU s total
construction investment projects using state budget
Step 2: Clarify the theoretical basis for total project management of construction projects
3.1 Current situation of construction investment projects using state budget in the period 2016-2021
3.2 Identification of total project management factors to survey and evaluate the impact of these factors on the success of construction investment projects using state budget
Step 3: Clarify the general stituation of total project management of specialized/regional construction investment PMUs for construction investment projects using state funds
3.3 Current situation of TPM and project implementation results at some specialized/regional construction investment project management units
Step 4: Propose total project management solutions to specialized/regional construction investment PMUs for construction projects using state funds in Vietnam.
1.1 Survey main topics related to total project management of specialized/regional construction project management units
1.2 Identify research gaps and research tasks of the thesis
Step 1: Overview of research related to thesis topic
3.4 Shortcomings that need to be overcome in TPM at specialized/regional construction investment PMUs 1.1 Research database
searching related studies
Figure 0.1 Approach and steps to implement the thesis (Source: Author)
6 Research methodology and methods 6.1 Research methodology
This thesis applies the methodology of dialectical materialism and historical materialism throughout the process of researching the toppic raised in the thesis In addition, the thesis applies systems thinking and systems analysis methods to solve research problems
6.2 Methods The combined methods beetwen qualitative research methods and
Trang 6quantitative research ones are using to solve the research problems The specific research methods used to achieve each research objectives are presented in section 5.2 of the preamble
7 New contributions of the thesis The thesis has made the following new contributions:
- Supplemented and enriched the theoretical basis of TPM for construction investment project: clarified the concept and nature, content and requirements of TPMof the BQLDACV for state-funded construction investment projects in Vietnam;
- Clarified the influence of TPM factors on the success of construction investment projects using state funds;
- Identified main causes leading to shortcomings in project management of the BQLDACV is lacking of professionalism in terms of functions, techniques, tools of TPM;
- Proposed six groups of solutions to implement TPM of BQLDACV for state-funded construction investment projects
8 Scientific significance and practical significance of the thesis
- Scientific significance: The research results have contributed a new perspective to the theory of project management of the BQLDAC for state-funded construction investment projects, which has important significance in planning, organizing, implement and adjust at strategic level to achieve the goals of projects The research also has value in adding knowledge and reference source of construction project management
- Practical significance: The analysis, evaluation and proposed solutions are useful for BQLDACV to manage state-funded construction investment projects to improve their project management efficiency
9 Structure of the thesis
This thesis consists of: Introduction, Conclusion and four chapters (chapter 1: 24 pages, chapter 2: 44 pages, chapter 3: 29 pages, chapter 4: 37 pages); Total thesis is included 147 pages, 18 tables and 18 figures
CHAPTER 1 OVERVIEW OF RESEARCH RELATED TO THESIS
TOPIC 1.1 Main topics related to total project management of specialized/regional construction project management units
-The contents of project management for state-funded construction investement project, according to State regulations (construction quality; implementation schedule; construction investment cost; )
- Improving project management efficiency of the BQLDACV (includes
Trang 7their organizational structure, operating procedures, capacity of officers…) - TPM of construction investment projects
1.1.1 Research on the contents of construction project management using state funds in Vietnam
An overview of studies on the content of Vietnam state-funded construction project management shows that there is not yet international research on this topic Domestic researches mainly delve into a number of specific statutory project management contents Some studies have integrated the contents of cost, schedule, and quality management but only within the construction phase There has been not yet in-depth research on integrated management of project management contents; comprehend and coordinate management functions and project work packages throughout the construction and post-construciton phases; change management, making trade-off decisions with the holistic perspective
1.1.2 Research on improving project management efficiency at specialized/regional construction investment project management units
The proposed solutions of those studies have many similarities, such as improving the organizational structure, staff capacity, enhance some operational areas of the BQLDACV These solutions are proposed to be applied at specific BQLDACV There has been not yet research approaching from a systemic perspective to build a total project management system that can ensure the project's objectives, functions and tasks Those solutions for improving project management capacity and efficiency still lack of explication of coordinating and integrating project management contents and making decisions from a holistic perspective to achieve project priority objectives
1.2.3 Domestic research and international research on total project management of construction projects
There are few domestic studies on TPM, specially for construction projects using state funds International studies on TPM are abundant but different in scope, content, methodologies, tools… depending on the level of economic, social, cultural, technological development, environment and legal situation in countries under consideration TPM is often investigated for project management consultant or investor Studies agree on the systemic and integrated nature of total project management There have been not yet international study on TPM for construction
investment projects in Vietnam 1.2 Research gaps and research tasks of the thesis 1.2.1 Research gaps
Through the survey, these following research gaps on TPM are founded: (1) The theoretical basis for TPM is not unified There are not yet direct
Trang 8studies on TPM of BQLDACV for construction investment projects in Vietnam (2) There is not yet research proposing the content of TPM of BQLDACV for construction investment projects using state funds in Vietnam TPM aims to coordinated and synchronized project management contents, work packages, tasks, project stakeholders in related relationships, constraints, interactions throughout the project implementation stage It focuses on change management, making trade-off decisions from a holistic perspective in case of significant change The relationship between TPM and statutory project management contents in construction investment projects using state funds has not been clarified
(3) There is not yet research to identify the factors of TPM in construction investment projects using state fund and assess the influence of these factors on the success of these projects
(4) There is not yet research to determine the current situation of TPM of BQLDACV for state-funded construction investment projects and the reasons led to the results of these projects
(5) There is not yet effective solutions for BQLDACV to implement TPM the state -funded construction investment projects
1.2.2 The thesis tasks
First, clarify the theoretical basis of the construction investment projects using state funds and the totally nature of these projects Clarify the scientific basis of BQLDACV’s project management for the construction investment project using state funds
Second, systematize the theoretical basis of TPM from different approaches and developt the concept of TPM for construction investment project using state funds Clarify the requirements of TPM for the construction investment project using state funds, the techniques and tools that can be used
Third, identify TPM factors then do survey and evaluate the influence of these groups of factors on success of construction investment project using state funds Analyze the current situation of TPM of BQLDACV for state-funded construction investment projects and these project success Point out the causes affecting project success according to TPM factor groups
Fourth, propose TPM solutions to the BQLDACV to ensure success for construction projects using state funds in Vietnam
CHAPTER 2 THEORETICAL BASIS OF TOTAL PROJECT MANAGEMENT OF SPECIALIZED/REGIONAL CONSTRUCTION
CONSTRUCTION INVESTMENT PROJECTS USING STATE FUNDS
2.1 Theoretical basis of construction investment project using State
Trang 9funds 2.1.1 Concept and classification of construction investment project
The thesis uses the concept of "construction investment project" defined in the Construction Law (2014)
In Vietnam, construction investment projects are classified according to the following criteria: according to the funding sources used and the form of investment; according to the utility and specialized nature of the constrution
works; according to sizes, purposes,importance of construction works 2.1.2 Construction investment project using State funds
The term construction investment project using state funds is used in this thesis includes: Projects using public capital (not under the PPP form of investment); Projects using state funds without of public captital; Projects using mixed sources of state funds (not included public investment) and other capital in which state funds accounts for more than 30% or has a value greater than 500 billion in the total investment capital
2.1.3 Objectives of the construction investment project using state capital
The objectives of the project considered in the thesis aim to cost savings, ensuring progress, quality, labor safety and legal compliance during the construction investment process
2.1.4 Procedures of construction investment projects using state funds in Vietnam and project implementation methods according to the forms of bidding package division
The order of construction investment involves three stages, including project preparation, project implementation and construction completion to put the project’s work into exploitation and use [11],[14]
Project implementation methods according to the forms of bidding package division are specified in the investment decision and the bidding plan The Bidding Law also provides for individual bidding packages and mixed bidding packages The mixed bidding packages have a higher level of integration of work than the individual bidding packages
2.1.5 The holistic natute of construction investment project using state funds
Construction investment projects using state funds have many characteristics that need to be studied, of which the holistic nature is an important characteristic The holistic nature is shown as following:
Trang 10Goals are interrelated and need to be
integrated
Need coordination and combination of many construction works and
many specialization
The holistic natute of construction investment project
Benefits of multiple stakeholders that interact with each other.Many work
packages are closely related
Goals, work packages, stakeholders, and detail works are interrelated, interact with
each other, and are affected by the environment inside and outside the project
Figure 2.1 Holistic nature of a construction investment project using state funds
(Source: author) The management of construction investment projects using the state funds often encounters a common problem: investment capital and assets are owned by the entire people and the state is just the representative This can lead to the fact that project management agencies may not do their best to generate the most benefits for the project in performing tasks In addition, when the TPM mechanism must be applied for construction investment projects, it will minimize the harmful effects of waste and loss of state assets and capital in the project
2.2 Theoretical basis for management of construction investment projects using state funds
2.2.1 Concepts of management and management of construction investment projects using state funds
The thesis approaches the concept of management mainly through processes By this approach, management is a continuous process of planning, organizing, leading, controlling and adjusting tasks and resources to effectively achieve goals of an organization
Based on the management perspective as well as widely accepted and applied perspectives on project management, it can be understood that project management is the process of planning, organizing, leading and controlling the tasks and development process of a project through applying knowledge, skills, tools, and techniques to project activities to create project products that meet established regulations and requirements Project management is realized through the appropriate and comprehensive application of project management processes
The above concept of project management is applied to construction investment projects using the state funds However, such projects need to be considered by stages of the construction investment and activities in the construction sector prescribed by law
Trang 112.2.2 Goals of management of construction investment projects using state funds
2.2.2.1 Overall goals of construction investment project management
Synthesizing and analyzing studies on project objectives and project management objectives, it is found that although the project management has expanded to other aspects, objectives of costs, schedule, quality, and labor safety are still the top goals of project management
2.2.2.2 Goals of project management for construction investment projects using state funds
Based on the scientific basis of domestic and international research, and practical and legal basis for construction investment projects using the state funds, the thesis determines that the main goal of construction investment project management is to ensure projects completion meet the requirements of cost, schedule, quality, labor safety and legal compliance
2.2.2.3 Management of changes and trade-off of goals for construction investment projects using state funds
Change management is to review all proposed requests for change, evaluate and approve changes, and update changes in tasks and outputs in documents, plans, and with relevant functional departments In total project management, events and issues that need to be handled and adjusted are often identified at the initial evaluation of project implementation, or at the review during the monthly planning of project management progress, through construction supervision and production dispatch on a weekly and daily basis, and through determination of adjustments at the mid-term inspection and evaluation (usually on a quarter basis or at the end of each project implementation phase)
Construction investment projects are multi-goal in nature Therefore, throughout the project stages, we must always consider determining priority goals and balancing goals in the overall issue These goals have an interrelated relationship When it is necessary to increase one target, you must often reduce the level of another The term “trade-off of goals” in the scope of the thesis is interpreted to be due to the overall binding relationship of the project Hence, when there is a major fluctuation that affects an important goal, the level of achievement of other target criteria to secure the harmony, overall effectiveness, or priority goals of the project must be adjusted
2.2.3 Functions, obligations, rights, organizational structure of specialized/regional construction investment project management units
2.2.3.1 Functions, obligations, rights of specialized/regional construction investment project management units
- To realize the functions, obligations and rights of the investor
Trang 12- To implement project management tasks The Project management units can play both roles as investor and project management board However, they must clearly define the rights and responsibilities of each role in accordance with the provisions of the Law on Construction and other relevant legal regulations
2.2.3.2 Organizational structure and personnel of specialized/regional construction investment Project management units
The applicable BQLDACV’s organizational structure includes organizational structure by function, matrix, or others where appropriate to manage a construction investment project To choose an appropriate project organizational structure, the BQLDACV must consider the availability of resources and project characteristics
2.2.3.3 Decentralization of decision making and management in the management of construction investment projects using state funds
- Construction investment policy-appraising agencies/ Construction investment policy deciders
- Construction investment project-appraising agencies/ Construction investment deciders
- Director of the project management unit - Project manager
- Directors of functional departments of project management unit 2.3 Theoretical basis for the project management unit’s total management of construction investment projects using state funds 2.3.1 Rationale for total management of construction investment projects using state funds
The construction investment project itself is very overarching as stated in
section 2.1.5 Accordingly, project management activities also need to ensure the comprehensive, sufficient and strict management of individual tasks by phases, contents and goals to be achieved from the perspective of each stakeholder, and the project management unit must ensure its integrated management in line with the criteria and targets set for the entire project Research and practices in foreign countries pay great attention to the total project management In Vietnam, with construction investment projects using the state funds, project managers also understand and try to manage the project in the most comprehensive manner possible However, due to the strict order of implementation of construction investment projects using the state funds, if there is no clear scientific and legal basis for project management, project managers will have very little motivation to implement TPM procedure
2.3.2 Theoretical and practical approaches in total project management
Trang 13of construction investment projects
- Approach to system theory in the TPM of construction investment projects
- Approach to the total quality management model - Approach on an integrated project management platform of project management knowledge areas guided by Project Management Institute
- Access to legal regulations in construction investment project management in line with the TPM direction
From the above approaches to TPM, the researcher recognizes some common points about TPM as the following:
- TPM must be systematic in nature, managing all areas of the project, ensuring reasonable coordination throughout the entire project TPM is an intentional process of developing a governance structure that makes project management more systematic
- TPM is management at an integrated level, combining results in different components of the project and offering a comprehensive view of the project
- TPM takes a process-based approach, applying comprehensive quality management principles
- TPM requires close cooperation, information exchange, and connection between project participants Information exchange and collaboration must be developed as the norm within the organization For Project management units, human resources, processes and technologies are the main driving forces in project management
Within the thesis, the above approaches are considered and applied appropriately to implement the TPM of construction investment projects using the state funds
2.3.3 Concepts and some requirements of total management of construction investment projects using the state funds
2.3.3.1 The concept of total management of construction investment projects using the state funds
“TMP is a concept in project management On the one hand, it is implemented in parallel with other components in accordance with the state regulations, to establish and manage connections and synchronously coordinate the other components On the other hand, it thoroughly grasps management throughout all stages by management functions (planning, organization, operation, and control) to closely coordinate and harmonize workflows, balance project benefits and resources, and the interests of stakeholders to achieve overall goals with binding requirements on schedule,
Trang 14cost, quality, and ensure the labor safety and compliance with legal regulations on the project”
2.3.3.2 Some requirements in total management of construction investment projects for specialized/regional construction investment Project management units
- Firstly, TPM requires project managers to truly and deeply understand the investment purpose, nature, characteristics, investment resources, implementation methods, and other related requirements of the project in a comprehensive and integrated manner
- Secondly, the TPM plan is a dynamic plan, comprehensively synthesized and articulated from component plans
- Third, the TPM of a construction investment project within obligations of BQLDACV requires the establishment of an organizational structure of specialized departments, an assignment and decentralization system customized to utility, purpose and size of the project that needs to be managed Recruited personnel need to meet the professional requirements of each field - Fourthly, the TPM of construction investment projects requires the development of a system of processes and regulations to perform project management tasks in a complete and efficient manner
- Fifthly, change management and trade-off assessment is an important content and task in the total management of construction investment projects - Sixthly, TPM requires the establishment of an information system and application of science and technology to control the project, support management operations, and carry out daily professional tasks of the PMU from the beginning until the end of construction investment, and then the stage of utilization, operation and maintenance
2.3.3.3 Functions of total management of construction investment projects using state funds
- The planning function includes developing a TPM plan, outlining the roadmap that the organization must follow to achieve the overall goal
- The organization function is to determine tasks in line with contents of the TPM plan that need to be realized to achieve the common goal, group these activities into each department, and assign the person in charge and tasks of each department, empower them to perform tasks, establish a mechanism to coordinate activities, authorities and information between departments of the project management structure
- The management function is to support the coordination of TPM personnel at all levels (from low to high)
- The control function is the process of measuring, evaluating, and