Success Factors for Project Risk Management in Construction Projects: A Vietnam Case Study

Abstract

Despite being one of the oldest industries in human history, the modern construction industry is still suffering from delays, cost overruns, and low satisfaction levels. As construction activities greatly contribute to economic growth for any nation, the study of how to achieve success in construction projects should be continuously developing and attracting scholars’ attention. The Vietnam Construction Industry (VCI) is no exception. The economy in Vietnam has been growing fast and steady with significant contributions from construction activities. The VCI also faces unique risks pertaining to the conditions of developing countries that require a separate study on project risk management strategies. This paper focuses on a survey that is adopted from 23 Critical Success Factors (CSFs) pertaining to common construction risks in the VCI. Factors were found through extensive literature reviews, and inputs were solicited from 101 VCI participants. The participants ranked those CSFs with respect to impact to project success. The study reveals the top five 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, project team members need to be well matched to particular projects, and promote pre-qualification of tenders and selective bidding. Spearman’s rank-order correlation tests determined no significant differences between the participating groups. 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. The findings lay the foundation to understand project management in developing countries and assist project managers in planning and forming strategies to ensure high performance in their projects.

Modelling the Implications of Delayed Payments on Contractors’ Cashflows on Infrastructure Projects

“…Based on questionnaire responses and semi-structured interviews with project managers, the following political risks were identified: bureaucracy, corruption, and the possibility of project suspension. Intriguingly, these findings were also consistent with those of Le (2020) [24], who examined political risks in Vietnam. When asked if a project has ever been suspended owing to political concerns, A1 said that project B1 was completed and ready for handover but had been stalled for over three years because newly elected administrators refused to support the project due to its ties to the opposition.…”

“…Previous studies in construction revealed that the unstable cash flow is the most significant factor that leads to a project's delay followed by late payment [18][19][20][21][22][23]. One of the crucial project success criteria in the construction industry can be considered to be efficient and effective payments as per the related work [24][25][26]. Unlike other industries, timely completion of the construction projects is significantly affected by the delayed payments [27][28][29].…”

Success and Risks Related to Housing Projects in Pakistan: A Moderating Role of Project Management Risk Management

“…If the project is within the defined tolerance levels of these three factor, then the project is of high quality (Wu et al, 2018). Le et al (2020) indicated risk significantly negatively affects PI, SS, and time. Risks affect a project's performance; risks must be effectively controlled, monitored, and addressed to guarantee successful completion.…”

Construction Contracts Quality Assessment from the Point of View of Contractor and Customer

“…Cash flow volatility has therefore been shown to reduce contractor profitability and lead to cost overruns in all aspects of the contractor's operations [65]. Timely payment for work completed in accordance with the associated works can be considered as one of the key criteria for a successful construction project [66]. If the contractor does not receive payment for the work carried out, they are unable to pay material suppliers, thus the supply of materials to the construction project is disrupted [67].…”