Causative factors leading to cost overrun in EPC processing projects : a case study of Dinh Vu Polyester Plant Project in Vietnam | |
| Author | Hoang Chi Kien |
| Call Number | AIT Proj. no.MPM-CM-13-31 |
| Subject(s) | Polyester industry--Vietnam Polyester industry--Risk management--Vietnam |
| Note | A Project submitted in partial fulfillment of the requirements for the degree of Master of Engineering (Professional) in Construction Engineering and Infrastructure Management, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Project ; no. MPM-CM-13-31 |
| Abstract | Completion of a project within its planned budget has long been regarded as one of the most important goals and the determining factor of the project success. Having an accurate scheduled cost estimateis critical for clientsto makedecisionto start a project. Despite the proven importance of cost target, cost overrun still occurs in almost any construction projects, regardless of the scales, the types of projects or the countries. Many factorscan cause cost overrun, some are unforeseen, but most of them occur due to the incompetencyof project management, especiallyin risk analysis.In an attempt to minimize cost overrun, the owners of processingprojects in Viet Nam adoptEPC delivery model using fixed price contracts; however, cost overrun is still extremely severe, even exceeds 100% of the anticipated costin certain cases such as Dung Quat refinery project (according to Vietnam Energy 2013). Systematic analysis and full comprehension of all significant causation factors that impact a project cost are, therefore, ultimately important in project management. In this report, the major causative factors leading to cost overrunwill be analyzed; focusing onthe context of processingprojects in Viet Nam.With the causes identified, we will make a recommendation on how to manage these factors for future projects and furthermore, propose a framework for cost control in processingplant project. |
| Year | 2013 |
| Corresponding Series Added Entry | Asian Institute of Technology. Project ; no. MPM-CM-13-31 |
| Type | Project |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (Professional Master) (MPM-CM) |
| Chairperson(s) | Hadikusumo, Bonaventura H. W.; |
| Examination Committee(s) | Chotchai Charoenngam;Santi Charoenpornpattana; |
| Scholarship Donor(s) | Petro Vietnam; |
| Degree | Project (M. Eng.) - Asian Institute of Technology, 2013 |