Weak labor cost management of company T

Abstract

This assignment focuses on company T, a private company whose main business is providing gondola rental services and construction equipment for projects in Ho Chi Minh City. In the last four years, the company has failed to meet the target Gross Profit Margin from gondola rental services. Through mainly qualitative research methods, data collected via in-depth interviews and literature review, the main problem was identified as weak labor cost management. Subsequently, two possible causes are determined including insufficient cost control process and poor project management skills. These were then validated using a theory-based approach and the company’s internal data, and the results showed poor project management skills as the root cause. Accordingly, two alternative solutions were designed including conducting a training course of project management with external experts and recruiting a new qualified project manager who has experienced in construction management. Based on the company’s requirements and conditions, the recruiting a new qualified project manager solution was selected for implementation. A detailed action plan was also developed for this solution.