Contract clauses in the EPC contract : a case study of the Dinh Vu Polyester Project, Hai Phong, Vietnam | |
| Author | Vu Dinh Duy |
| Call Number | AIT Proj. no.CM-09-40 |
| Subject(s) | Polyester industry--Vietnam--Hai Phong Design and construction Construction contracts--Vietnam--Hai Phong |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Project Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Project ; no. CM-09-40 |
| Abstract | The Vietnamese Textile and Garment (T&G) industry consists of around 2.000 enterprises (25 State owned enterprises, 1.500 private enterprises and 450 reign direct investment enterprises) with over 2 million employees involved. Vietnam is ranking the 10th largest textile and apparel export countries in the world. The industry generates an economy contribution of 8% to country‟s GDP. The T&G industry is employing 12% of national industrial workforce, holding the econdposition in export turnover and making the contribution of 14% to country„s export turnover. Average growth rate from 2002 -2007 is about 18% per year.Therefore, valuable arguments for the implementation of a Polyester fiber project:Saving of foreign currency due to substitution of imported Polyester staple fiber and filament;Creation of new employment for qualified labor;Further strengthening of the textile industry in Vietnam as a second largest export earner after crude oil;Establishment of the whole polyester esterification, polycondensation, spinning and fiber drawing process through introduction and transfer of state-of-the-art technology;First step in the Vietnamese synthetic fiber industry to extend the business into the upstream petrochemical industry, e.g. production of PTA;Stable and long term local supply of staple fiber to the domestic downstream textile industry including the improvement of quality due to close cooperation between domestic companies.Normally, for building a polyester plant the Owner will sign an EPC (Engineering, Procurement and Construction included pre –Commissioning and Commissioning and training) contract with an EPC contractor. In the petrochemical and polyester industry, there is not any EPC Contractor in Vietnam who can execute a full EPC project, therefore the EPC contractor is selected and awarded by the international bidding. The major factors for executing an EPC project are the contract clauses which are normally stipulated too generally with unclearly understanding and interpreting when having disputes between the contractor and the owner. Therefore, studying the method to develop the effective clauses in the EPC contract is necessary to simplify and make involved parties to understand and interpret clearly during the contract negotiation prior to the EPC contract signing and commencement. The understandable and applicable contract clauses properly will help an EPC project to be executed smoothly and effectively.The sensitive clauses in the EPC contract are also needed to focus in order to minimize the conflicts and risks between the EPC contractor and the Owner.This study will also discuss on point of view and how tomanaging the EPC contract of Dinh Vu Polyesterprojectand focus on the following issues related to EPC contract:i.To study EPC contract process and management from literature review;ii.To study thecontract clauses in EPC polyester project;iii.To study the actual Dinh Vu polyester project Contract implementation. |
| Year | 2009 |
| Corresponding Series Added Entry | Asian Institute of Technology. Project ; no. CM-09-40 |
| 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 (CM) |
| Chairperson(s) | Hadikusumo, B.H.W. |
| Examination Committee(s) | Chotchai Charoenngam ; |
| Scholarship Donor(s) | Refinery and Petrochemical Projects in Vietnam |
| Degree | Project (M. Eng.) - Asian Institute of Technology, 2009 |