1 AIT Asian Institute of Technology

Management of claims in construction project : a case study of ABC Hydropower Plant Project (HPP)

AuthorBui Van Nghia
Call NumberAIT Proj no.MPM-CM-22-06
Subject(s)Construction projects--Management
Construction contracts--Vietnam
Hydroelectric power plants--Vietnam
NoteA project submitted in partial fulfillment of the requirements for the degree of Master of Engineering (Professional) in Construction Engineering and Infrastructure Management
PublisherAsian Institute of Technology
AbstractAlthough Vietnam's electricity system has changed a lot in terms of source structure and diversification of sources, hydropower plant is still very important in providing electricity, serving the country's socio-economic development. In addition, medium and large hydropower plants also play an important role in flood regulation, ensuring water security and ecological environment. The role of hydropower plant becomes more and more important, helping the power system to operate stably, reliably and safely. At the same time, contributing to the implementation of green energy transition, clean energy, minimizing CO2 emissions and implementing Vietnam's international commitments at COP26, bringing net emissions to "0" by 2050. The development of hydropower is to promote and take advantage of the country's available potential, reduce dependence on imported fuels, especially when the Ukraine crisis occurred from the May, 2022 has pushed up oil and gas prices. Normally, hydropower projects in Vietnam are divided into many different bidding packages. In which, the bidding package “Supply of electromechanical equipment” is a largest technological equipment package of the project. Due to the complicated nature and great value, this package is widely bid internationally and the PMB (representative of the Owner) have to work with foreign contractors (or Consortium) for this package. Additionally, the geographical distance combined with the complicated situation of the Covid-19 epidemic in recent years, tasks such as negotiation and contract signing often be done online via online meeting platforms. This poses certain limitations compared to face-to-face meetings, leading to the risk of future claims and contract disputes between PMB and contractor. This is more undesirable for the growing and developing hydropower plant or ensuring energy security in Vietnam. Therefore, this thesis is concentrated in equipment supply contract claims in hydropower plant projects in Vietnam. In general, contract claims frequently happen on various reasons. The causes/origins of claims, the different types of claims, and the different methods of claim resolution were identified from the literature review and applied in practice with case studies of ABB hydropower plant project. The conclusions are assumed to give a clear picture of how claim and disputes arise, the types and most commonly used resolution methods by which recommendations can be made to prevent similar claims in upcoming projects. Thereby, it is expected to serve as a reference in aspects of better claims handling and settlement methods and also increase the successful timely completion rate of hydropower plant projects within the scope of the project. It is required that the resources as small as possible are allocated to thoroughly resolve claims, don't wastefully consume important resources such as time, cost and project personnel expertise, preventing similar cases occurring in the future. To ensure that, the negotiation stage between the parties is the most important stage. Unfortunately, this negotiation stage can be ineffective if the parties do not provide convincing information basic. Through this topic, we study together to come up with a reasonable, clear, effective and feasible solution in avoiding and dealing with claims.
Year2022
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, Bonaventura H. W.
Examination Committee(s)Chotchai Charoenngam;Wasan Teerajetgul
DegreeProject (M. Eng.) - Asian Institute of Technology, 2022


Usage Metrics
View Detail0
Read PDF0
Download PDF0