1 AIT Asian Institute of Technology

Turnkey/EPC contract administration for chemical & fertilizer project : a case study of di-ammonia phosphat (fertilizer) project in Vietnam

AuthorNguyen Hong Hanh
Call NumberAIT Proj. no.MPM-CM-12-28
Subject(s)Construction contracts--Vietnam

NoteA project submitted in partial fulfillment of the requirements for the Degree of Master of Science (Professional) in Construction Engineering And Infrastructure Management, School of Engineering and Technology
PublisherAsian Institute of Technology
Series StatementProject ; no. MPM-CM-12-28
AbstractThe contract administration is essential for construction project in every stage from conceptual phase until project close out. The appropriate contract administration is vitally important to determine the success or failure of any construction project. In recent years, turkey/EPC projects have seen rapid growth and have been a popular system in public sector. Due to the development in construction industry, the natures of construction project are increase in size and becoming more complex. In order to decrease number and frequency of claims and disputes, it is essential to have knowledge, understanding in contract administration and strong negotiation skill. The objective of this study intends to assist the process of turnkey/EPC contract implementation in chemical & fertilizer project in Vietnam, which is increasingly developed in public sector. This study emphasizes particular on turnkey/EPC contract implementation of chemical & fertilizer project in Vietnam, Di-Ammonia Phosphate Project (DAP) as a critical and single case. Due to the project just has started in May 2012 and only getting about 30% engineering, so limit of information from project, and therefore this study is conducted from mobilization and procedures of project on engineering, procurement and construction, it also focus on critical issue relate to schedule delay and payment process of project and comparative between contract and FIDIC Silver form. Finding from this study is that inadequacy contract administration to cover the risk of management in the employer’s organization, the dealing with Licensor and payment issue are concerned as the weakness of the project contract from the point of view of contractor. Accordingly, unclear contract conditions may lead to the dispute arising and losing chances to recover claim. To overcome the worsening situations, it is recommended that the contract administration among the parties should provide a proper fair risk allocation that covers all possible risk in accordance with the nature of each project.
Year2012
Corresponding Series Added EntryAsian Institute of Technology. Project ; no. MPM-CM-12-28
TypeProject
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Civil and Infrastucture Engineering (DCIE)
Academic Program/FoSConstruction Engineering and Infrastructure Management (Professional Master) (MPM-CM)
Chairperson(s)Hadikusumo, Bonaventuna .H.W.;
Examination Committee(s)Chotchai Charoenngam;Oulawan Kulchartchai;
Scholarship Donor(s)Chemical Industry Engineering J.S Company (CECO);
DegreeProject (M. Sc.) - Asian Institute of Technology, 2012


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