Le, Nguyen Tran Khoi (2019) Identification of risk factors, success practices, and feasibility of the best value approach application to improve construction performance in Vietnam and other developing countries. PhD thesis, Arizona State University, USA.
Abstract
The Vietnam Construction Industry (VCI) has been facing risks that cause delays, budget overrun, and low customer satisfaction that required continuously research efforts to manage them. This research assesses the current conditions of the VCI in terms of performance, common risks, and success factors; and explores the potential of using the Best Value Approach (BVA), an innovative procurement and project management technology, to improve overall VCI performance. VCI risk factors were presented in an analysis of the data collected from a survey that include the 23 common risk factors that cause non-performance in construction projects in developing countries. The factors were consolidated from an extensive literature reviews, and inputs were solicited from 103 construction practitioners in Vietnam. The study reveals the top five risk factors as the bureaucratic administrative system, financial difficulties of owner, slow payment of completed works, poor contractor performance, financial difficulties of contractor. Factor analysis explored the correlations among the risks and yielded four outcomes – Lack of Site and Legal Information, Lack of Capable Managers, Poor Deliverables Quality, and Owner’s Financial Incapability. VCI success factors were revealed from a survey that is adopted from 23 Critical Success Factors (CSFs) related to common construction risks, found through extensive literature reviews, and inputs were solicited from 101 VCI participants. The experts ranked those CSFs with respect to impact to project success. The study reveals the top impactful CSFs such as all project parties clearly understand their responsibilities, more serious consideration during contractor selection stage, test contractors’ experience and competency through successful projects in the past. Factor analysis was conducted to explore the principal success factor groupings and yielded four outcomes – Improving Management Capability, Adequate Pre-Planning, Stakeholders’ Management, and Performance-based Procurement. An analysis from six industry experts determined how current VCI conditions, namely risk and success factors, are related to BVA. Sixteen BVA success principles were identified and ranked based on their perceived impact to project performance by an industry survey with 98 VCI practitioners. The results show high agreement rate with all sixteen BVA principles. The majority of participants agreed that BVA would improve project performance and were interested in learning more about BVA. The results encourage further BVA testing and education in the VCI.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Chong, Oswald W K |
| Uncontrolled Keywords: | best value; education; contractor performance; contractor selection; developing countries; learning; payment; performance-based procurement; project success; owner; Vietnam; factor analysis; stakeholder; critical success factor |
| Index terms: | literature review, survey, success factor, project party, construction practitioner, Vietnam, manager, developing country, critical success factor, performance-based procurement, budget overrun, construction project, practitioner, owner, construction performance, contractor performance, contractor selection, project success, construction industry, testing, project management, best value, customer satisfaction, risk factor, project performance, factor analysis |
| Subjects: | sociology, statistical analysis, industry analysis, project management theory and practice, professional development, service delivery, health monitoring assessment and metrics, financial and cost management, data analysis and analytics, performance assessment, data collection methods, control systems, environmental hazards, tendering, contract management, development economics, Geography, production management, contractual arrangements, professional practice, bidding, practitioner |
| Topics: | Roles and Professions, Stakeholder Management, Research Practice, Information Management, Cost Management, Contract Administration, Site Management, International Construction, Procurement, Sustainability, Geographical Context, Project Management, Engineering Principles, Health and Safety |
| Descriptive scope: | 5 PCTEA |
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