Cover Sheet for Individual Assignments

Name: Thanh Hai Phan Student ID No: 1151961 Subject Name: Applied Project Management 1 Assignment: 3 Due Date: 13/11/2006 Lecturer: Prof. Vernon Ireland KEEP A COPY
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In any case where a student has been involved in plagiarism or collusion, this will be reported to the Dean. It may be reported to Student Administration and recorded on the students academic file. In any case where a student has been involved in plagiarism or collusion in an assessable task the marks awarded for that task will be zero, and no substitution of an alternative task will normally be permitted. In any case in which a student has been involved in plagiarism or collusion the Dean may refer it to the Departmental Assessment Committee under the terms of Statute Chapter XII. Where an allegation is substantiated, penalties may include exclusion from the University or a substantial fine.

DECLARATION
I declare that this submission is my own work and does not involve plagiarism or collusion. I give permission for my assignment to be scanned for electronic checking of plagiarism.

Name: Thanh Hai Phan

Date: 13/11/2006

---------------------------------------------------------------------------------------------------------------OFFICE USE ONLY (Tear off slip) Assignment received. Course: .. Date: Signature: .

Front Page Title

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Table of Contents
1. Introduction of Project.................................................................................3 2. Purpose of the Project..................................................................................4 3. The Objectives.............................................................................................5 3.1 Scope Objective...................................................................................5 3.2 Time Objective.....................................................................................5 3.3 Cost Objective......................................................................................6 3.4 Requirements to be satisfied................................................................6 3.5 The Benefits.........................................................................................8 4. People and Sponsor......................................................................................9 4.1 Roles and Responsibilities of People...................................................9 4.2 Value Proposition of Sponsor............................................................11 5. Strategy Implementation............................................................................11 5.1 Constraints and Assumptions.............................................................11 5.2 The Impact of Project on Stakeholders..............................................12 5.3 Milestones and Activity Schedule......................................................13 5.4 Enterprise Environmental Factors/Organizational Process Assets....13 6. Plans for Managing...................................................................................15 6.1 Project Management Form.................................................................15 6.2 Project Implementation......................................................................15 6.2.1 Period of Investment Preparation............................................16 6.2.2 Period of Investment Execution...............................................17 6.2.3 Period of Investment Completion............................................24 6.3 Project Human Resources Management............................................29 6.4 Project Risk Management..................................................................30 6.4.1 Time Analysis..........................................................................30 6.4.2 Cost Analysis...........................................................................32 7. Lessons Learned........................................................................................34

1. Introduction of Project
Our companys project is a project of investing, designing, constructing and commissioning a building in Vietnam. This building will be invested, designed, constructed, decorated, equipped and commissioned in Ho Chi Minh city, the most developed city in Vietnam. As an investment company working in the construction industry for more than 10 years, with a powerful capital available and experienced staff our Construction Investment Company - Vietnam (CIC - Vietnam) frequently is the owner and sponsor of projects like this one. This building project is administrated by project manager Master Van Hong Nguyen who is also company vice-director and others project team members from architects, engineers to accountants, etc. This project is divided by many phases, namely: Finding the location to construct the building. Submitting the permission to the local government. Clearing the ground and compensating population for the ground clearance. Analyzing the geology and environment (soil, water, etc). Holding a design tender and choosing the most suitable design. Holding execution tenders and choosing suitable contractors to execute the building construction for each part of the building from main structure (foundation, frame, roof, etc), water system, electricity system, to decoration (internal and external), equipment, etc. Choosing an independent inspection organization to inspect the whole building construction execution. Calculating the price of product (in this project is US$/1 meter square) and putting the building to be commissioned. Project stakeholders are individuals and organizations that are actively involved in the project, or whose interests maybe positively or negatively affected as a result of project execution or project completion; they may also exert influence over the project and its results. In this project, they mainly are: Our Construction Investment Company - Vietnam (CIC - Vietnam) as the owner and sponsor of this project. Master Van Hong Nguyen as the project manager and the individual responsible for managing the project. 4

 Project team members such as architects, engineers, accountants, etc. Contractors, subcontractors, design company, inspection organization which directly involve in doing the work of this project. Local government and population who frequently inspect the buildings influences to the environment.

2. Purpose of the Project

With the population of nearly 8.5 million people and a dynamic economics development, Ho Chi Minh city is the most developed city in Vietnam. In recent years, the foreign investment in Vietnam continuously increases leading the rise of services (shopping, entertainment, food and beverage, etc), living standard (spaces, environment, transportation, etc), labor force from others provinces or cities. Thus, the needs of service and living spaces, especially high quality ones, are significantly arising. This project is, therefore, the reasonable and wise investment of our company. This building consists of 2 basements which are mainly used for car parking and technical zones and 15 floors which are leased for shopping, entertainment and services in 1st and 2nd floor, floors from 3rd to 15th for apartments leased or sale which has 8 apartments in each floor and from approximately 80 to 120 m2 per one apartment. This project is invested with the purpose to serve customer who intend to rent a car parking space in the basements, to operate the business in 1st and 2nd floor and to live in apartment from 3rd to 15th floor and. Because of the high standard of this building, prospect customers of this project are mainly from high income groups. Construction technologies are very diversified and remarkable developing in recent years. However, because of the regional characteristics (tropical, hot, sunny, humid) and technical influences from Russia, construction technology mainly and widely utilized in Vietnam is concrete and steel techniques. That means that all main structure parts of this building such as foundation, slabs, beams, columns will be made of concrete and steel whilst walls will be made of bricks. The project implementation is executed in order of task responsibilities that: Project team overall manage the project (plan, monitor and control). Design organization undertakes the building design. Contractors and subcontractors undertake the construction execution (structure parts, water system, electricity system, fire system, etc). 5

 Independent inspection organization undertakes the inspection of construction execution. Project team is responsible to calculate the price of product (US$/m2) and completion the building. Furthermore, this project implementation is supported by many advantages, namely: The stable economics and politics. The generosity of local and government policies. The strong encouragement from the company and government. The powerful capital available and full staff. Good location which positive affects the customers. The wide popularity and utilization of construction technologies. The diversified and cheap labor force.

3. The Objectives
3.1 Scope Objective
This building project is invested with the objectives to provide population with: Car parking spaces in 2 basements. Service spaces for shopping, entertainment, food and beverage, etc in 1st and 2nd floor. High quality apartments for lease or sale in from 3rd to 15th floor which has 8 apartments in each floor from 3rd to 15th and approximately from 80 to 120 m2 per each apartment. Others services such as security, cleaning, fixing, warranty, etc. Therefore, this building project must ensure these essential elements below: Wide space, clear view and convenient circulation for car parking in the basements. Wide space, good view and well equipped for service spaces in 1st and 2nd floor. Apartment quality such as durability, decoration, equipment, view, environment, services, space, etc.

3.2 Time Objective

This project is implemented for 6 years (from 01/2001 to 12/2006) and this period of time is divided by many phases: Planning phase : 06 months 6

 Planning verification phase : 03 months Permission submission phase : 03 months Ground clearance and compensation phase : 12 months Geology survey and analysis phase : 02 months Design phase : 06 months Design verification phase : 02 months Construction execution phase : 30 months Construction execution inspection phase : 33 months Product price calculation phase : 06 months These phases above can be implemented in order and in parallel. The period of them is just estimated. The project manager must ensure that any phases of this project or whole project will be implemented and completed timely.

3.3 Cost Objective

The cost objective of this project is to estimate or calculate the cost of each phase and to monitor and control the cost utilized. Project cost is mainly expensed for 3 period of a project, that is: Period of investment preparation which includes planning, planning inspection, permission submission, ground clearance and compensation, project team operation. Period of investment execution which consists of survey and analysis, design, design inspection, holding tenders, construction execution (structure, water, electricity, etc), decoration, equipment, execution inspection, project insurance, project team operation. Period of investment completion which includes price calculation, marketing, project audit, project team operation. The cost of each period is approximately estimated by percentage of the sum of the project investment, namely: Period of investment preparation : 3.5 % Period of investment execution : 88 % Period of investment completion : 8.5 %

3.4 Requirements to be satisfied

Information is very essential for the project. In this project, information affecting the project successfulness and must be concerned is the market information, labor force, technology development, groups of customers, customers interest and trends, stability of economics and politics, local and government policies. Therefore, information collection must be seriously undertaken. This is easily executed from many sources, that is: 7

 Specific reports, new policies which are periodically published by organizations and government. Collective information from reports, magazines, televisions, internet, newspapers, etc. Customer surveys, market analysis, economics analysis which are performed by organization itself. Conferences, seminars and exhibitions are opportunities where useful information can be collected. Project team is the company representative to manage project. The project successfulness much depends on the working ability and effectiveness of the project team. Thus, project team must satisfy these requirements below in order to manage the project successfully: Lead by a project manager high skill and experience in project and construction industry. Project team members must be from many specific majors of project, from engineers, architects to accountants. Project team has to work in an independent environment with full equipment such as place, furniture, electronic tools, means of transportation, etc. Project manager has to communicate with the manager staff of the company frequently. Besides, others requirements are indispensable to project successfulness, those are: Building location must be convenient for the transportation, not too far from the city centre (less than 15 km radius) and near the population areas. This location also satisfies the requirements of water and electricity availability. Cheap labor force for physical works is preferred especially from country sides or others provinces. Technology suitable, cheap, easy and wide utilized is preferred, high technology utilization is not necessary because of customers unreliability and its high cost. Contractors, subcontractors, design company, inspection organization must have capacity certifications which are certified by authorized organizations. Transaction between parties must be performed through legal contracts which have full and clear terms and conditions. Project must have a strong encouragement from the company (CICVietnam), the owner and sponsor of this project. 8

 Constant finance provision from company in order to assure that the project will not be interruptedly operated.

3.5 The Benefits

All companies definitely have a goal to survive and grow. It is also true to our company. This organizational goal is frequently implemented through organizations strategies. As a company working in the investment and construction industry Construction Investment Company - Vietnam (CICVietnam), construction or investment projects play a key role in the organizations strategy implementation. This building project must be implemented based on advantages and opportunities: The needs of service and living space are remarkably rising. The strong encouragement from the mother company. The experience and strong finance status of the mother company. The generosity of local and government policies. The stable economics and politics. The wide application of construction technologies. The cheap and diversified labor force. In order to implement this project successfully, project team has to propose clear aims or objectives must be achieved in each phase or period of this project. Those namely are: All phases or period must be implemented exactly according to project schedule to ensure the project time completion. Cost of each phase or period must be inspected, monitored and controlled frequently. Furthermore, it must be regularly updated by both project manager and project team members and informed to manager staff of the mother company. Quality of each phase and period must be implemented not only by independent inspection organization but also the project team. That quality must be precisely complied with the designs approved by company and authorized organizations. This project is trying to achieve benefits which occupy 5-10% for the car parking spaces, 10-20% for living spaces and 30-40% for service spaces of the sum investment of each kind of space.

4. People and Sponsor

4.1 Roles and Responsibilities of People
This project is managed by a project team which includes from project manager, engineers, architects to accountants and others people involved in project. In order to implement each phase of project independently and effectively, roles and responsibilities of each individual must be clearly assigned. In this project, a project team must consist of those whose roles and responsibilities are: Project manager playing a key role in a project has responsibility to overall manage the project in all aspects such as scope, time, cost, quality, risk, human resources, communication and procurement. Furthermore, he has duties to integrate all those elements thoroughly because this integration much affects the project successfulness. Architect as a project team member has responsibility to inspect and monitor quality of architecture parts such as dimension standards (height, length, width, space, area, etc), internal and external decoration, furniture equipment and arrangement, design standards, material standards (decoration materials such as paint, tiles, lights, furniture, etc). This task is implemented based on architecture designs or drawings which are approved by company and authorized organizations and in parallel with the tasks undertaken by independent inspection organization and it must be informed to project manager regularly. Structure engineer as a project team member has responsibilities to inspect and monitor quality of structure parts such as foundation, slabs, beams, columns, concrete standards, steel standards and others materials standards. This task is implemented based on structure designs or drawings which are approved by company and authorized organizations and in parallel with the tasks undertaken by independent inspection organization and it must be informed to project manager regularly. Water engineer as a project team member has responsibilities to inspect and monitor quality of water parts such as water supply systems, drainages, fire extinguish systems, water pump systems, waste treatment systems, water tank systems, water back-up systems, water design standards, water materials standards (pipes, water pumps, water equipments, etc). This task is implemented based on water designs or drawings which are approved by company and authorized organizations and in parallel with the tasks undertaken by independent

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inspection organization and it must be informed to project manager regularly. Electricity engineer as a project team member has responsibilities to inspect and monitor quality of electricity parts such as lighting systems, alarm systems, communication systems, thunderbolt resist systems, electricity design standards, electricity materials standards (electrical wires and devices, thunderbolt resist devices, communication devices, etc). This task is implemented based on electricity designs or drawings which are approved by company and authorized organizations and in parallel with the tasks undertaken by independent inspection organization and it must be informed to project manager regularly. Fire engineer as a project team member has responsibilities to inspect and monitor quality of fire parts such as fire alarm systems, fire extinguisher systems, fire design systems, fire device standards. This task is implemented based on fire designs or drawings which are approved by company and authorized organizations and in parallel with the tasks undertaken by independent inspection organization and it must be informed to project manager regularly. Accountant as a project team member has responsibilities to inspect and monitor the cost of project such as project team operation cost, planning phase cost, ground clearance and compensation phase cost, survey and analysis phase cost, design phase cost, execution phase cost, inspection phase cost, commissioning phase cost, insurance cost, back-up cost, etc. Besides, he has a duty to monitor project contracts such as implementation, rate of progress, etc. This task is implemented based on contracts between owner and contractors or subcontractors, periodical finance reports of project and it must be informed to project manager regularly. Besides project team, roles and responsibilities of others people whose interest and activities are involved in this project are: Director of Construction Investment Company Vietnam, which is an owner and sponsor of this project, is the one inspecting, monitoring the results of project through the project manager. He is also the one having duties to provide finance for the project implementation. Directors of design company, contractors, subcontractors, inspection organization having interest and transactions with this project are the ones having responsibilities to provide services for the project implementation through legal contracts. They are also their organizations representative to enter the contracts with CIC-Vietnam.

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4.2 Value Proposition for Sponsor

As the owner and sponsor of this project, Construction Investment Company-Vietnam (CIC-Vietnam) is the one directly earning profit from this project investment. Profit expected from this investment after the completion is estimated by percentage of the sum investment for each kind of service that: Car parking space : 05-10 % Living space : 10-20 % Service space : 30-40 % Meanwhile, the sum investment of the whole project assigned by percentage for each kind of service is below: Car parking space : 05 % Living space : 80 % Service space : 15 % Therefore, profit is estimated by percentage of the sum investment of the whole project for each kind of service is: Car parking space : 0.25-0.5 % Living space : 8.0-16.0 % Service space : 4.5-6.0 % Finally, CIC-Vietnam expects to earn profit from 12.75 % to 22.5 % of the sum investment of the whole project. That profit above is expected for the first year after the project completion. From the 2nd year, after apartments from 3rd to 15th floor are already sold to customers, profit earning is mainly based on the business of car parking space, service space and living space for lease. Consequently, profit from this year is estimated about 8 % to 10 % annually.

5. Strategy Implementation
5.1 Constraints and Assumptions
As mentioned above, this project appearance and implementation is based on advantages and opportunities. On the other hand, there always are constraints existed through the project implementation. With the purpose to implement project successfully, they must be recognized and classified: Project must be completed within 6 years from 01/2001 to 12/2006 in which period of investment preparation must be completed in 2 first years and period of investment execution and period of investment completion must be completed in 3 years remaining.

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 All phase or period execution must strictly comply with contractual terms and conditions. All contracts must be directly signed between the owner and contractors, subcontractors, design organization and inspection organization. The cost of this project must not more than project budget which is pre-defined approximately 160,000,000,000 VND (160 billion VND) or 10,000,000 USD (10 million USD).

5.2 Impact of Project on Stakeholders

As mentioned above, project stakeholders are individuals and organizations that are actively involved in the project, or whose interests maybe positively or negatively affected as a result of project execution or project completion; they may also exert influence over the project and its results. Their corporations and conflicts are indispensable in project. Thus, in order to improve their corporation and resolve conflicts, the impacts of project on stakeholders must be recognized: CIC-Vietnam, as the owner and sponsor, is the organization investing and providing finance for this project. Therefore, the impact of project could much negatively or positively affect CIC-Vietnam. Obviously, the successfulness of this project makes CIC-Vietnam earn profit, have trade name improved; whereas the unsuccessfulness makes CICVietnam lose profit, have trade name decreased. Contractors, subcontractors, design company, inspection organization are organizations directly involving in doing the work of this project. If the time and quality of their service provided by them can satisfy the projects requirements, they will be rewarded completely and timely. On the other hand, the rewarding will be interruptedly undertaken because of unsatisfied time and quality of services. In the construction execution phase, environment impact of this project such as noise, dust, waste water, smell, etc on the population living near the building location is inevitable. This can impede the progress or time completion of the project because of health damage they suffer leading the litigations. This project implementation helps project team members such as project manager, engineers, architects, accountants, etc improve their skills and knowledge in project management. This project successfulness helps local government improve budget relied on tax payment, reduce unemployment because of more jobs creation and mitigate the arising needs of spaces in Ho Chi Minh city.

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5.3 Milestones and Activity Schedule

As mentioned above, project implementation is divided by 3 periods of project for 6 years from 2001 to 2006. Each period of project consists of many phases and their milestones and activity schedule are: Period of investment preparation : 01/2001-12/2002 (24 months) Planning : 01/2001-06/2001 (06 months) Planning verification : 06/2001-09/2001 (03 months) Permission submission : 09/2001-12/2001 (03 months) Ground clearance, compen. : 12/2001-12/2002 (12 months) Period of investment execution : 12/2002-09/2006 (45 months) Geology survey and analysis : 12/2002-02/2003 (02 months) Design : 02/2003-08/2003 (06 months) Design verification : 08/2003-10/2003 (02 months) Holding tenders : 10/2003-12/2003 (02 months) Construction execution : 12/2003-06/2006 (30 months) Execution inspection : 12/2003-09/2006 (33 months) Period of investment completion : 01/2006-12/2006 (12 months) Price calculation : 01/2006-03/2006 (03 months) Marketing : 03/2006-06/2006 (03 months) Project audit : 09/2006-12/2006 (03 months) These milestone and schedule above is just a preliminary plan. A more detailed plan is in Part 6 (Plans for managing).

5.4 Enterprise Environmental Factors/Organizational Process Assets

A project success is affected by many factors and one of them is the enterprise environmental factors. In order to have this project successfully implemented, enterprise environment factors including external environmental factors and internal organizational environmental factors must be recognized: Ability of contractors, subcontractors, design organization, inspection organization, etc much influences the project implementation, or in other words the project success. This ability must be known that it consists of engineers, workers, execution means and machines, etc. Their abilities must be certified by authorized organizations or they must have approved ability profiles which are popularly used to enter the tender in Vietnam. Finance ability of contractors and subcontractors especially in construction execution phase is very important to the project 14

implementation. Indeed, because of construction industry features in Vietnam where contractors and subcontractors must advance their money to execute the construction and then received the payment from the owner or sponsor, their finance ability obviously decides the progress of the project completion or the project success. Project team members such as project manager, engineers, architects, accountants are selected from existing employees of the company CIC-Vietnam, for example Master Van Hong Nguyen is the project manager as well as the company vice-director. Thanks to more than 10 years working in the investment and construction industry, CIC-Vietnam has a pretty good trade name in the business. That trade name can make the project more reliable and attractive to customers. CIC-Vietnam reserves a private workplace for project management team. This workplace is located in the CIC-Vietnam building. This makes a lot of advantages because not only communication between project management team and top mother company manager staff is constantly and conveniently maintained but project management team also takes full advantage of existing infrastructure such as internet, phone line, electricity system, water system, etc. Furthermore, this saves a lot of money of the first project investment leading the project cost reduction. Besides enterprise environmental factors, organizational process assets are frequently used to influence the project success. In this project, they mainly include: As mentioned above, CIC-Vietnam has more than 10 years experience in investment and construction industry. So the lessons learned and available historical information such as estimating data bases, records of past project performance, etc assists project planning process in verifying assumptions and assessing alternatives that are identified as a part of this process. Because project team members are selected from existing employee resources, project personnel policies such as hiring and firing guidelines, employee performance reviews, etc are based on organizational policies. This makes benefits because the organizational policies of personnel administration is completely perfected for more than 10 years and therefore project management team need not to create it at the beginning. Organizational policies of quality management such as process audit, continuous improvement targets, etc and financial controls such as

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time reporting, accounting codes, standard contract provisions, are also applied to project management policies.

6. Plans for Managing

6.1 Project Management Form
This project is implemented with the form that CIC-Vietnam, as the owner and sponsor, directly administrates this project through the project management team. Contracts and transactions are directly performed between CIC-Vietnam with contractors, subcontractors, design organization and inspection organization. CIC-Vietnam

Design organization

Contractors

Inspection organization

Subcontractor

Subcontractor

Subcontractor

6.2 Project Implementation

As mentioned above, this project is implemented through 3 periods of investment: period of investment preparation, period of investment execution and period of investment completion. CIC-Vietnam Building Project

Period of Investment Preparation

Period of Investment Execution

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Period of Investment Completion 6.2.1 Period of Investment Preparation This period of project consists of many phases such as planning, planning inspection, permission submission, ground clearance and compensation. The cost of this period occupies 3.5 % of the sum investment of the whole project, that is: 3.5% x 10,000,000 = 350,000 USD. And percentage of each phase in this period is assigned that: Planning (01/2001-06/2001, 06 months) 7.5% x 350,000 = 26,250 USD Planning verification (06/2001-09/2001, 03 months) 0.3% x 350,000 = 1050 USD Permission submission (09/2001-12/2001, 03 months) 0.3% x 350,000 = 1050 USD Ground clearance and compensation (12/2001-12/2002, 12 months) 78.1% x 350,000 = 273,350 USD Project management (01/2001-12/2002, 24 months) 13.8% x 350,000 = 48,300 USD Task Planning Planning verification Permission submission Ground clearance and compensation Start 01/2001 Period of investment preparation 12/2001 Period of investment preparation 06/2001 06/2001 09/2001 Start 01/2001 06/2001 09/2001 12/2001 End 06/2001 09/2006 12/2001 12/2002 Duration (months) 06 03 03 12 Cost (USD) 26,250 1050 1050 273,350 Doer CIC-Vietnam Authorized organization Local government CIC-Vietnam

Planning 12/2002

Planning verification 09/2001 12/2001

Ground clearance and compensation

Permission submission

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Finish 6.2.2 Period of Investment Execution Period of investment execution is implemented through these phases below: 12/2002 Period of investment execution 12/2002 Geology survey and analysis 02/2003 08/2003 Design 08/2003 10/2003 02/2003 09/2006

Design verification

10/2003 Holding tenders Construction execution

12/2003

12/2003

06/2006

12/2003

Execution inspection

09/2006

Some of those phases above are uniquely implemented whilst others must be implemented through sub-phases such as design phase and construction execution phase. Design phase is implemented through these sub-phases below: Architecture design including plan design, section design, vertical surface design, perspective design. Structure design including foundation and basement design, frame design (column, beam, slab), cover design (roof, wall), rigid core design (lift, staircase). Water design including water supply system design, drainage design, waste treatment system design and fire extinguish system design. Electricity design including lighting system design, communication system design, thunderbolt resist system design, alarm system design. 18

 Fire design including fire alarm system design, fire extinguisher system design.

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Design Work Breakdown Structure

Design

Architecture Plan design Section design Vertical surface design Perspective design

Structure Foundation & base. design Frame design Cover design Rigid core design

Water Supply system design Drainage design Waste treatment system design Fire water system design

Electricity Lighting system design Communication system design Thunderbolt resist. system design Alarm system design

Fire Alarm system design Fire extinguisher system design

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05/2003

08/2003 Structure design

Design Gantt Charts

05/2003 Water design

08/2003

02/2003 Geology survey and analysis 02/2003 Design

05/2003 08/2003 Design design verification 05/2003 08/2003 Electricity design Finish Last examination Design

Architecture

Start

Examination Project management team (engineers, architects,) 05/2003

08/2003 Fire design

Project management team (engineers, architects,)

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The construction execution phase is implemented through tender packages. Holding tenders is to choose capable contractors and subcontractors to execution these packages. These tender packages in the construction execution phase are: Tender package 1 2 3 4 5 6 Task Foundation and basement execution Frame and completion execution Lift system supply and installation Cable installation Infrastructure execution Fire alarm system installation Start Finish Duration (months) 04 29 13 07 03 02

12/2003 04/2004 05/2004 08/2004 03/2005 09/2005 10/2005 06/2006 09/2005 10/2005 12/2005 12/2005

Furthermore, in order to manage, monitor and control the quality of the building in a part or the project in a whole, execution inspection tasks are implemented in parallel with all tender packages in the construction execution phase and it will be implemented 3 months longer after the completion of the construction execution phase, from 12/2003 to 09/2006. Besides the execution inspection organization, the quality management of the project, especially the construction execution phase, is also undertaken by design organizations responsible to inspect the copyright of their designs and project management team members such as engineers, architects responsible to examine whether the execution is complied with the designs and the inspection organization is completely on duty.

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Construction Execution Work Breakdown Structure

Construction Execution

Foundation & basement Piling execution Foundation execution Basement execution

Frame & completion Column execution Beam execution Slab execution Completion execution

Lift system

Cable system

Infrastructure

Fire alarm system Fire alarm system installation

Lift installation Lift cable installation Lift control panel installation

Telephone cable Television cable Internet cable execution

Water system execution Electricity system execution Thunderbolt resist system

Walling

Mortaring

Painting

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Design organization

Design Gantt Charts

12/2003 Inspection 12/2003 Project management Construction execution Start Lift system Examination Inspection CIC-Vietnam 09/2005

Inspection 04/2004 05/2004 06/2006

Foundation & Basement

Frame & completion

06/2006 Construction execution Finish

08/2004

09/2005

03/2005

10/2005

Cable system

12/2005 Infrastructure Inspection

10/2005

12/2005

Fire alarm system

Inspection organization

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As mentioned above, the cost of this period of investment execution occupies 88% of the sum project investment, that is 88% x 10,000,000 = 8,800,000 USD. And the percentage of each phase is assigned: No 1 2 3 4 5 6 7 Task Geology survey and analysis Design Design verification Holding tenders Construction execution Execution inspection Project management Sum % 0.26 2.30 0.03 0.01 89.6 6.5 1.3 100 Cost ($) Doer 22,880 Survey or. 202,400 Design company 2,640 Authorized or. 880 CIC-Vietnam 7,884,800 Contractors 572,000 Inspection or. 114,400 CIC-Vietnam 8,800,000

The cost of sub-phase of design phase is: No 2.1 2.2 2.3 2.4 2.5 Design task Architecture design Structure design Water design Electricity design Fire design Sum % 30 30 15 15 10 100 Cost ($) 60,720 60,720 30,360 30,360 20,240 202,400 Doer Design company Design company Design company Design company Design company

The cost of sub-phase of construction execution phase is: No 5.1 5.2 5.3 5.4 5.5 5.6 Execution task Foundation and basement Frame and completion Lift system Cable system Infrastructure Fire alarm system Sum or. : organization % 27 63 4.2 3.2 1.4 1.2 100 Cost ($) 2,128,896 4,967,424 331,162 252,314 110,387 94,617 7,884,800 Doer Contractor Contractor Contractor Contractor Contractor Contractor

Note:

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6.2.3 Period of Investment Completion The period of investment completion is implemented through these phases: 01/2006 01/2006 02/2006 Period of investment completion 01/2006 03/2006 12/2006 03/2006

01/2006

Finished work profile accomplishment 02/2006 03/2006 Project audit 03/2006 04/2006 Product price calculation

Testing operation 03/2006 04/2006

Building manager hiring 03/2006 04/2006 Employee recruitment

Sanitary execution

04/2006

12/2006

Marketing

Procurement After the completion of the building construction, the business such as service space for lease in 1st and 2nd floor, apartments for lease from 3rd to 15th floor and car parking space for lease is administrated by a building manager hired out-of-company because CIC-Vietnam is not capable to administrate building. Furthermore, new employees such as security, cleaner, accountant, etc are recruited for the building operation. Marketing aims to bring the end product to the market or population with the price of each service. This price is precisely calculated for each service brought to the market such as service space for lease in each floor, apartment space for lease or sale in each floor, etc.

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As mentioned above, the cost of this period of investment completion occupies 8.5% of the sum investment of the whole project, that is 8.5% x 10,000,000 = 850,000 USD. The cost of each phase in this period is assigned below: No Task Finished work profile 1 accomplishment 2 Project audit 3 Product price calculation 4 Testing operation 5 Sanitary execution 6 Building manager hiring 7 Employees recruitment 8 Marketing 9 Building insurance 10 Back-up budget 11 Project management Sum % 0.40 0.30 0.30 7.20 0.40 0.80 8.50 7.30 2.00 72.0 0.80 100 Cost ($) 3,400 2,550 2,550 61,200 3,400 6,800 72,250 62,050 17,000 612,000 6,800 850,000 Doer Contractors CIC-Vietnam CIC-Vietnam CIC-Vietnam CIC-Vietnam CIC-Vietnam CIC-Vietnam CIC-Vietnam Insurance Co. CIC-Vietnam CIC-Vietnam

Price Calculation Work Breakdown Structure Price calculation

Car parking for lease Basement 1 Basement 2

Service space for lease 1st floor 2nd floor

Apartment for lease 3rd floor 4th floor . 15th floor

Apartment for sale 3rd floor 4th floor . 15th floor

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The product price is calculated with these following assumptions: The sum investment : 10,000,000 USD The living investment : 8,000,000 USD (80% x 10,000,000) The service investment : 1,500,000 USD (15% x 10,000,000) The parking investment : 500,000 USD (5% x 10,000,000) The sum living area : 6,949.8 m2 (534.6 m2/floor x 13 floors) The sum service are : 934.4 (467.2 m2/floor x 2 floors) The sum parking are : 454.4 m2 ( 227.2 m2/base. x 2 base.s) The price of the apartment for sale is calculated below: Price before tax: P.B.T = = = 1,151.11 USD/m2 Price after tax: P.A.T = P.B.T + 10% x P.B.T = 1,151.11 + 10% x 1,151.11 = 1,266.22 USD/m2 Company interest: C.I = P.A.T x 10% = 1,266.23 x 10% = 126.62 USD/m2 Apartment sale price : A.S.P = P.A.T + C.I = 1,266.23 + 126.62 = 1,392.85 USD/m2 Final sale price in each floor: F.S.P = A.S.P x K (K: floor factor) Floor 3 4 5 6 7 8 9 10 11 12 13 14 15 Sale price (USD/m2) 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 1,392.85 K 1.090 1.075 1.060 1.045 1.030 1.015 1.000 0.985 0.970 0.955 0.940 0.925 0.910 Final price (USD/m2) 1,518.20 1,497.31 1,476.42 1,455.52 1,434.63 1,413.74 1,392.85 1,371.95 1,351.06 1,330.17 1,309.28 1,288.38 1,267.49

The price of the apartment for lease is calculated below: Apartment sale price : A.S.P = P.A.T + C.I = 1,266.23 + 126.62 = 1,392.85 USD/m2 Interest rate: i = 10% 28

 Period of capital refund: n = 10 years Lease price per year to refund capital L.P.Y = A.S.P * = 1,392.58* = 226.68 USD/m2/year Lease price per month to refund capital L.P.M = L.P.Y/12 = 226.68/12 = 18.89 USD/m2/month Final lease price in each floor: F.L.P = L.P.M x K (K: floor factor) Floor Lease price (USD/m2/month) 3 18.89 4 18.89 5 18.89 6 18.89 7 18.89 8 18.89 9 18.89 10 18.89 11 18.89 12 18.89 13 18.89 14 18.89 15 18.89 K 1.090 1.075 1.060 1.045 1.030 1.015 1.000 0.985 0.970 0.955 0.940 0.925 0.910 Final price (USD/m2/month) 20.59 20.31 20.02 19.74 19.46 19.17 18.89 18.61 18.32 18.04 17.76 17.47 17.19

The price of the service space for lease is calculated below: Price before tax: P.B.T = = = 1,605.31 USD/m2 Price after tax: P.A.T = P.B.T + 10% x P.B.T = 1,605.31 + 10% x 1,605.31 = 1,765.84 USD/m2 Company interest: C.I = P.A.T x 10% = 1,765.84 x 10% = 176.58 USD/m2 Service space sale price: S.S.P = P.A.T + C.I = 1,765.84 + 176.58 = 1,942.42 USD/m2 Interest rate: i = 10% Period of capital refund: n = 10 years Lease price per year to refund capital: L.P.Y = S.S.P * = 1,942.42* = 316.12 USD/m2/year Lease price per month to refund capital: L.P.M = L.P.Y/12 = 316.12/12 = 26.34 USD/m2/month

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 Final lease price in each floor: F.L.P = L.P.M x K (K: floor factor) Floor Lease price (USD/m2/month) K 1 26.34 1.120 2 26.34 1.105 Final price (USD/m2/month) 29.50 29.11

The price of the parking space for lease is calculated below: Price before tax: P.B.T = = = 1,100.35 USD/m2 Price after tax: P.A.T = P.B.T + 10% x P.B.T = 1,100.35 + 10% x 1,100.35 = 1,210.39 USD/m2 Company interest: C.I = P.A.T x 10% = 1,210.39 x 10% = 121.04 USD/m2 Parking space sale price: P.S.P = P.A.T + C.I = 1,210.39 + 121.04 = 1,331.43 USD/m2 Interest rate: i = 10% Period of capital refund: n = 10 years Lease price per year to refund capital: L.P.Y = P.S.P * = 1,331.43* = 216.68 USD/m2/year Lease price per month to refund capital: L.P.M = L.P.Y/12 = 216.68/12 = 18.06 USD/m2/month Final lease price per car per: F.L.P = L.P.M*1.85*4.8 = 18.06*1.85*4.8 = 160.35 USD/month

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6.3 Project Human Resources Management

CIC-Vietnam Project manager

Architect Period of investment preparation Period of investment execution

Structure engineer Planning Design inspection Tender selection Execution inspection F.W profile inspection Operation inspection

Water engineer Planning Design inspection Tender selection Execution inspection F.W profile inspection Operation inspection

Electricity engineer Planning Design inspection Tender selection Execution inspection F.W profile inspection Operation inspection

Fire engineer Planning Design inspection Tender selection Execution inspection

Accountant

Planning Design inspection Tender selection Execution inspection

Cost inspection Cost inspection Contract preparation Contract monitoring Cost inspection Project audit

Period of investment completion

F.W profile inspection Operation inspection

F.W profile inspection Operation inspection

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6.4 Project Risk Management

6.4.1 Time Analysis Project time risk is analyzed by Crystal Ball software. And the results are below:

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According to statistical information, the project completion time could be finished for 1,887 days, later than it is expected 121 days (1,766 days). Therefore, all phases of the project must be inspected regularly and meticulously in order to make sure the completion time meet the expectation.

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6.4.2 Cost Analysis Project cost risk is analyzed by Crystal Ball software. And the results are below with the cost of each year:
Year 2001 Cost ($) 28,350 2002 321,650 2003 259,306.7 2004 3,860,145.4 2005 3,508,183.1 2006 2,022,364.8

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As the information shown above, the cost of this project could be totally expensed $10,665,075, much more than the expectation $665,075. Thus, the project cost management must be implemented thoroughly. Besides, the back-up capital is always prepared for the worst cases.

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7. Lessons Learned
Through this course, I have learned a lot of very useful knowledge. In the first place, that is the knowledge and understanding of the basic content of the discipline of project management. That is the concept of project, project management, stakeholder, leadership, process, phase and so on. With the useful knowledge, I have known and collected the essential information to plan a project such as reason of project essence, market influence, technology influence, business environment, market needs, finance analysis, etc. Secondly, I have mastered the knowledge and understanding of the techniques of the discipline of project management. This is very important because nobody can implement the project successfully without the project management techniques. The very useful and wide spread technique must be acknowledged is the application of PMBOK model. This project management model includes and covers all aspects of a project which are scope, time, cost, quality, risk, procurement, human resources and communication. Furthermore, some other techniques should be concerned are PRINCE2 model application, project evaluation techniques such as NPV, IRR, DCF, Six Sigma method, etc. Finally, through assignments including set questions and final project, I have acknowledged why to implement a project and how to plan and perform it successfully.

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