Risk Analysis in the Subcontractor Selection Process for International Construction Projects

ICCREM 2016 ◽  
2017 ◽  
Author(s):  
Befrin Neval Bingol ◽  
Gul Polat
Keyword(s):  
Risk Analysis ◽  
Construction Projects ◽  
Selection Process ◽  
International Construction

scholarly journals Research for Risk Management of Construction Projects in Taiwan

2021 ◽  
Vol 13 (4) ◽  
pp. 2034
Author(s):  
Chien-Liang Lin ◽  
Bey-Kun Chen
Keyword(s):  
Risk Management ◽  
Risk Analysis ◽  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Equation Modeling ◽  
Analysis Model ◽  
Sustainable Operation ◽  
Management Procedure ◽  
Risk Managers

Risks inevitably exist in all stages of a project. In a construction project, which is highly dynamic and complex, risk factors affect the expected achievement rates of the three main performance goals, namely schedule, cost, and quality. A comprehensive risk management procedure requires three crucial steps: risk confirmation, analysis, and treatment. Risk analysis is the core of risk management. Through structural equation modeling, this study developed a risk analysis model that takes a different perspective and considered the occurrence probability of risk events and the extent to which these events affect a project. The contractor dimension was discovered to exert the strongest influence on an overall project, followed by the subcontractor and design dimensions. This paper proposes a novel construction project risk analysis model, which considers the entire project. The proposed model can be used as a reference for risk managers to make decisions about project risks, so as to achieve the ultimate goal of saving resources and the sustainable operation of the construction project.

scholarly journals FUZZY MULTI-CRITERIA DECISION MAKING MODEL FOR SUBCONTRACTOR SELECTION IN INTERNATIONAL CONSTRUCTION PROJECTS

2015 ◽  
Vol 22 (2) ◽  
pp. 210-234 ◽  
Author(s):  
Serdar ULUBEYLI ◽  
Aynur KAZAZ
Keyword(s):  
Construction Projects ◽  
Decision Criterion ◽  
Practical Application ◽  
Human Judgment ◽  
Qualitative And Quantitative ◽  
International Construction ◽  
Weak Points ◽  
Initial Idea ◽  
Decision Making Model ◽  
Selection Of

A general contractor’s ability to select proper subcontractors in foreign projects is a key competitive advantage. Toward this aim, a subcontractor selection model (CoSMo) was developed in this study. As a computational approach, the fuzzy sets method was employed because it can model human judgment by means of linguistic values, combining qualitative and quantitative decision criteria into an aggregate measure. Although the algorithm may be complex for easy acceptance by industrial practitioners, this disadvantage was minimized through a computer-supported system. In order to gain a better understanding of the current practice of CoSMo, a real world construction project was conducted. As a result, it was observed that CoSMo has high practical application and can be used as an advisory system by satisfying principal contractor’s requirements to reduce the risk involved in the selection of a subcontractor. Moreover, it gives an initial idea of how subcontractors perform on each decision criterion and allows the main contractor to understand the picture on the strong and weak points of each bidder and thereby to take conscious decisions.

scholarly journals SUBCONTRACTOR SELECTION USING THE INTEGRATION OF THE AHP AND PROMRTHEE METHODS

2015 ◽  
Vol 22 (8) ◽  
pp. 1042-1054 ◽  
Author(s):  
Gul POLAT
Keyword(s):  
Construction Projects ◽  
Selection Process ◽  
Selection Problem ◽  
Preference Ranking ◽  
Analytic Hierarchy ◽  
Building Projects ◽  
Bid Price ◽  
Perform Sensitivity Analysis ◽  
Complete Ranking ◽  
The Right

On many construction projects, especially building projects, 80–90% of the tasks are performed by subcontractors. Since the success of the project highly depends on the performances of the subcontractors, selecting the right subcontractor for the right job is critical. Main contractors generally tend to select the subcontractors that offer the lowest bid price. However, working with unqualified and insufficiently financed subcontractors may result in inefficiencies and failures. Thus, a combination of several compromising and conflicting criteria underpinning financial capacity and competencies of the subcontractors should be considered during the subcontractor selection process. This paper proposes an integrated decision approach, which employs analytic hierarchy process (AHP) and preference ranking organization method for enrichment evaluations (PROMETHEE) together, for the subcontractor selection problem. In the proposed approach, AHP is used to analyze the structure of the subcontractor selection problem and to determine the weights of the criteria, and PROMETHEE is employed to obtain complete ranking and perform sensitivity analysis by changing the weights of criteria. The proposed approach is applied to a problem of selecting the most appropriate subcontractor to be worked with in an international construction project. Company management found the proposed decision approach satisfactory and implementable in future subcontractor selection problems.

scholarly journals SIMILARITY ASSESSMENT OF COUNTRIES TO FACILITATE LEARNING FROM INTERNATIONAL CONSTRUCTION PROJECTS

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Beste Ozyurt ◽  
Gozde Bilgin ◽  
Irem Dikmen ◽  
M. Talat Birgonul
Keyword(s):  
Construction Projects ◽  
Online Questionnaire ◽  
Political Condition ◽  
Similarity Assessment ◽  
International Construction ◽  
Related Information ◽  
Financial Condition ◽  
Governance Systems ◽  
Construction Experience ◽  
The Right

Companies’ ability to learn from projects is a source of competitive advantage in project-based industries. Learning from experiences in international markets is particularly important for global contractors so that the right bidding strategy can be developed, effective project governance systems can be established, and similar mistakes are not repeated. In this study, we assert that countries can be clustered according to their similarity so that experiences gained in these markets can be transferred and adapted to forthcoming projects. Thus, similarity factors to be used for clustering of countries can be identified, and a methodology can be developed to store, retrieve and reuse country-related information in international construction projects. In this paper, we report the factors identified for similarity assessment of countries to be used to facilitate learning from projects. As a result of literature review, interviews with experts and an online questionnaire administered to company professionals who have international construction experience, 12 factors have been identified for clustering of countries. As a result of ranking analysis; factors of “development level of and culture in the construction industry”, “political condition of the country” and “financial condition of the country” are obtained as the most important factors. The identified factors will be explained and how the clustering of countries can help companies to extract valuable information from previous experiences will be discussed.

scholarly journals Quantitative risk analysis procedure for economic project sustainability.

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Jithin Arakkatt Shaji
Keyword(s):  
Risk Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Methods ◽  
Economic Sustainability ◽  
Key Factors ◽  
Paper Briefly ◽  
Cost Variance ◽  
Project Sustainability ◽  
Project Deliverables

The paper briefly explains the importance of quantitative procedures of risk analysis in large and medium scale projects for the sustenance of project economic sustainability. Globally, several construction projects are being descoped and tend to close out before attaining the initial project deliverables due to cost and schedule overruns. The quantitative methods can sieve the key factors and forecast the tangible impacts that can lead to schedule or cost variance in a project. It can guide the project stakeholders for timely decision making and mitigate the risks associated to achieve the project goals. Today, the quantitative methods are pivotal to analyze the impacts of Covid-19 crises in Construction industry which are increasingly apparent. Keywords- Project economic sustainability, Risk analysis, Quantitative methods

scholarly journals Bibliometric evaluation of research on political risks in construction projects

2021 ◽  
pp. 191-208 ◽  
Author(s):  
Chunling Wei ◽  
Xiaopeng Deng ◽  
Tengyuan Chang ◽  
Amin Mahmoudi ◽  
Safi Ullah
Keyword(s):  
Content Analysis ◽  
Construction Projects ◽  
Visual Analysis ◽  
Political Risk ◽  
The Political ◽  
Scientometric Analysis ◽  
Research Directions ◽  
International Construction ◽  
Risk Research ◽  
Research Hotspots

The current study aims to provide an overview of the research on political risk using the Web of Science（WoS）database as well as summarize research results and put forward some suggestions for research directions of political risk in international construction projects. It is the first time scientometric analysis of political risk research is executed. In this regard, the papers related to political risk in the WoS database have been retrieved and the literature is sorted out by visual and content analysis methods. Visual analysis is used to analyze the research overview, knowledge base, and research hotspots of this field. The content analysis method is adopted to expound the current research focus from three perspectives inducing the influence of political risk, risk assessment, and risk management measures. The results show that in the political risk context, the number of publications has experienced an increasing trend in recent years. Based on the existing literature on political risk for all companies, this overview provides some suggestions to address the political risk in international construction projects in the future. The results contribute to the scholars understanding of the research overview, research hotspots, and future research directions of political risk research in construction projects.

scholarly journals Social network analysis of construction companies operating in international markets: case of Turkish contractors

2016 ◽  
Vol 23 (3) ◽  
pp. 327-337 ◽  
Author(s):  
Bartug Kemal AKGUL ◽  
Beliz OZORHON ◽  
Irem DIKMEN ◽  
M. Talat BIRGONUL
Keyword(s):  
Social Network ◽  
Social Network Analysis ◽  
Network Analysis ◽  
Construction Projects ◽  
International Markets ◽  
Project Networks ◽  
Construction Companies ◽  
International Construction ◽  
Multiple Partners ◽  
Complex Projects

Investigation of market entry strategies is critical for the success of international contractors. Establishing partnerships is among the most effective vehicles of operating in international markets. The major objective of this paper is to analyze the partnership behavior of contractors in overseas projects. In this respect, social network analysis (SNA) was used to better understand the collaborative project networks in different markets and for projects of differing sizes. A database was developed based on the collaborative international construction projects where Turkish firms and their non-Turkish partners were involved. A total of 449 projects carried out in 46 countries were used for the analysis. The findings of the study suggest that contractors adopt different strategies depending on the market and project character­istics. The majority of the companies tend to remain in the same markets; they keep working with the same partners or choose local partners; and engage with multiple partners in more complex projects. This study is expected to help contractors reflect on their internationalization decisions and devise appropriate strategies to establish project networks.

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