6 Reasons Why Construction Projects Fail

According to the Ministry of Construction, investors and construction participants have made significant efforts in project deployment. Quality management and construction safety have gradually become more disciplined, with positive changes, and investment efficiency has been increasingly controlled.

However, there have been consecutive construction accidents and labor incidents, resulting in casualties and property damage.

Notable incidents include the accident at the Dak Mi 1 Hydropower Plant in Dak Glei District, Kon Tum Province, which claimed five lives; the Cu Kroa 1 Irrigation Plant in M’Drak District, Dak Lak Province, which exhibited severe damage in several components just eight months after operation; the collapse of the administration building of the Dong Nam A – Nam Luc Hydropower Plant in Bac Ha District, Lao Cai Province, where five people went missing after the flood; and the sign of subsidence and cracks in Tang Long Bridge in Thu Duc City (Ho Chi Minh City) just two months after its inauguration.

Six root causes were identified by the Ministry of Construction:

Firstly, some construction and construction supervision contractors participated in construction activities without meeting the prescribed conditions, mobilizing inappropriate human resources and equipment, and failing to implement approved construction and safety measures.

Secondly, the control of construction materials, components, and equipment was not strict according to technical specifications and bidding documents.

Thirdly, the testing and results lacked indicators compared to technical specifications and applicable standards; construction specialty laboratories and on-site testing stations did not meet the prescribed conditions in terms of human resources, machinery, and equipment, and did not comply with testing procedures.

Fourthly, the supervision of construction by investors was perfunctory and failed to promptly detect and handle technical issues arising during construction.

Fifthly, there were many shortcomings in the compilation and storage of completed project records.

Finally, some state management agencies have not fully performed their functions of guiding, inspecting, supervising, and monitoring the quality management and labor safety in construction; nor have they detected and handled violations promptly.

Firmly halt construction when defects are found

To overcome the shortcomings in construction quality and safety management, the Ministry of Construction requested the People’s Committees of provinces and cities to review and clearly define the responsibilities of specialized agencies under the People’s Committees at the provincial level and the lower levels, especially in the context of rearranging administrative units and implementing the model of two-level local government.

Localities need to develop and issue strict procedures for implementing investment project feasibility report appraisal, post-feasibility study design appraisal, and construction acceptance inspection within their competence. At the same time, they should strengthen the review of the capacity of organizations and individuals participating in construction activities and inspect the compliance with legal provisions on conditions for construction commencement, construction order management according to planning, design, and construction permits, as well as conditions for putting works into exploitation and use.

The Ministry of Construction emphasized other key tasks, including strengthening the management of machinery, equipment, and materials with stringent safety and labor hygiene requirements used at construction sites; and inspecting the maintenance of human resources, equipment, and tools at construction specialty laboratories and on-site testing stations.

Notably, the People’s Committees of provinces and cities should direct specialized agencies to strengthen inspection and strictly handle violations of regulations on construction quality, safety, and construction order management. Firmly halt the construction of works, temporarily stop the use of machinery and equipment when defects and flaws that may cause construction accidents or endanger labor safety are detected.

Choose a capable contractor

For investors and project management boards, the Ministry of Construction requires the selection of contractors with sufficient capacity suitable for the type and grade of the project. Self-performance of project management, construction supervision, and other construction activities is only permitted when fully meeting the prescribed capacity conditions.

Investors need to tightly control the design steps according to the principle that the design at the subsequent stage must be consistent with the previous stage and comply with the approved design tasks. Contractors must construct strictly according to the approved construction methods, ensuring human resources and equipment suitable for the bidding package and the actual progress. At the same time, strengthen the control of construction supervision at the construction site.

In addition, construction contractors need to ensure their capacity according to regulations; establish and notify the construction management system to the investor and related parties suitable to the project’s scale and nature; fully provide human resources and equipment according to the construction contract; and promptly notify the investor if there are discrepancies between survey, design, contract, and actual site conditions.