A stakeholder-based risk assessment and intervention framework for international construction projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tao Wang ◽  
Shangde Gao ◽  
Pinchao Liao ◽  
Tsenguun Ganbat ◽  
Junhua Chen
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Intervention Strategies ◽  
The Body ◽  
Content Type ◽  
International Construction ◽  
Project Objectives

Purpose The purpose of this paper is to construct a two-stage risk management framework for international construction projects based on the meta-network analysis (MNA) approach. A plethora of international construction studies seems to assume risks as independent and therefore, risk intervention strategies are usually critiqued as ineffective. Design/methodology/approach In the risk assessment stage, a multi-tiered risk network structure was developed with the project objectives, risk events, risk factors and stakeholders, and critical risk factors were selected based on a series of calculations. In the risk intervention stage, targeted risk intervention strategies were proposed for stakeholders based on the results of the first stage. A highway construction project in Eastern Europe was selected as a case study. Findings The results showed that 17 risk factors in three categories – external, stakeholder-related and internal – are critical, and the project manager, construction management department, supplier and contract department are the most critical stakeholders that affect the entire project performance. Based on the critical risk factors and project stakeholders, targeted risk intervention strategies were proposed. The risk assessment results of MNA were found to be more reliable and consistent with the project conditions than the risk matrix method; the risk intervention strategies of MNA can effectively address project objectives. Originality/value This study modeled risk priorities based on risk associations and put forward a new method for risk management, supplementing the body of knowledge of international construction. The results of this study are of critical importance in management practices.

Critical risk factors in international construction projects

2020 ◽  
Vol 27 (5) ◽  
pp. 1169-1190 ◽  
Author(s):  
Satish Kumar Viswanathan ◽  
Kumar Neeraj Jha
Keyword(s):  
Risk Factors ◽  
Risk Factor ◽  
Construction Projects ◽  
International Market ◽  
The Body ◽  
Content Type ◽  
Specific Risk Factor ◽  
International Construction ◽  
Specific Risk ◽  
Overall Performance

Purpose International construction projects encompass various risks, and it is essential to evaluate and manage them to achieve project and firms’ success. As approaches to addressing international market risks vary from one country to another, the purpose of this paper is to identify the critical risk factors of embarking on international construction projects according to Indian experiences. Design/methodology/approach After primarily verifying the identified 26 risk variables, a questionnaire survey was conducted to draw upon the views of experts who possess international project experience. The 105 responses were analyzed using univariate and multivariate techniques. An analysis of variance identified the significant variables that influence overall performance on international construction projects, which were then grouped according to underlying relationships using factor analysis to determine the specific risk factors. Furthermore, considering these risk factors as independent variables and overall project performance as a dependent variable, a stepwise regression analysis was carried out to identify relatively critical risk factors. Findings The results revealed that of the identified four risk factors, the project-specific risk factor emerged as the foremost critical risk factor, the economic and market-specific risk factor was the second most critical risk factor, the firm-specific risk factor was the third most critical risk factor and the political-specific risk factor was the least critical risk factor. These findings were also validated appropriately. Research limitations/implications This study was limited to the data acquired from Indian construction firms, predominantly consultants and contractors. Though the survey respondents possessed adequate familiarity in international construction, commonly perceived limitations in self-reported surveys such as the lack of conscientious responses and reporting bias were not an exception in this research. Practical implications The risk factors and their criticality – as identified in this study – can aid the multinational firms and international aspirants to prioritize the critical aspects and develop a suitable risk mitigation strategy to achieve greater project success in international market. Originality/value By investigating the various risk factors that influence overall performance of international construction projects, this research considerably contributes to the body of knowledge pertaining to international construction risk management that will enable firms from India and similar developing nations to emphasize on critical risk factors.

DEVELOPING A COMPREHENSIVE RISK ASSESSMENT MODEL BASED ON FUZZY BAYESIAN BELIEF NETWORK (FBBN)

2020 ◽  
Vol 26 (7) ◽  
pp. 614-634
Author(s):  
Li Guan ◽  
Qiang Liu ◽  
Alireza Abbasi ◽  
Michael J. Ryan
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Risk Management ◽  
Construction Projects ◽  
Bayesian Belief Network ◽  
Assessment Model ◽  
Risk Assessment Model ◽  
Causal Relationships ◽  
Belief Network ◽  
International Construction

Reliable and efficient risk assessments are essential to deal effectively with potential risks in international construction projects. However, most conventional risk modeling methods are based on the hypothesis that risk factors are independent, which does not account adequately for the causal relationships among risk factors. In this study, a risk assessment model for international construction projects was developed to improve the efficacy of risk management by integrating fault tree analysis and fuzzy set theory with a Bayesian belief network. The risk rating of each risk factor, expressed as the product of risk occurrence probability and impact, was incorporated into the risk assessment model to evaluate degrees of risk. Therefore, risk factors were categorized into different risk levels taking into account their inherent causal relationships, which allowed the identification of critical risk factors. The applicability of the fuzzy Bayesian belief network-based risk assessment model was verified using a case study through a comparative analysis with the results from a fuzzy synthetic evaluation method. The comparison shows that the proposed risk assessment model is able to provide guidelines for an effective risk management process and ultimately to increase project performance in a complex environment such as international construction projects.

The evolution of stakeholder management practices in Australian mega construction projects

2018 ◽  
Vol 25 (6) ◽  
pp. 690-706 ◽  
Author(s):  
Rebecca Jing Yang ◽  
Sajani Jayasuriya ◽  
Chathuri Gunarathna ◽  
Mehrdad Arashpour ◽  
Xiaolong Xue ◽  
...  
Keyword(s):  
Stakeholder Engagement ◽  
Construction Projects ◽  
Management Practices ◽  
Stakeholder Management ◽  
Empirical Studies ◽  
Stakeholder Analysis ◽  
Secondary Data ◽  
Project Teams ◽  
Content Type ◽  
Project Objectives

Purpose The complicated nature of megaprojects requires appropriate analysis of multiple stakeholders to achieve project objectives and to accommodate stakeholder interests. During the last two decades, many stakeholder theories and empirical studies have sprouted. Although previous studies have contributed to the development of stakeholder theory, it seems that these theoretical advances have not been fully adopted and acknowledged in practices, especially in megaprojects. The purpose of this paper is to explore the evolution of stakeholder analysis and engagement practices adopted in the Australian megaprojects over the last two decades. Design/methodology/approach Four mega construction projects are described and analysed in this study. Secondary data were first assembled in order to get general knowledge of each case. Interviews were conducted with the project directors. Project documents were collected from the project teams and reviewed. Wherever the project information was unclear, e-mails were sent to the directors and the team members to confirm the details. Findings Project teams have started to apply snowball rolling and stakeholder attribute assessment methods to analyse stakeholders. However, there is still a way to adopt the “network” analysis perspective because the project teams are reluctant to use complicated tools which need specialists’ assistance. The stakeholder engagement practices have evolved to an extent where the project teams monitor the dynamics of stakeholders’ requirements. Projects teams have identified the importance of continuity to manage stakeholders in these massive projects. However, a structured method selection mechanism for stakeholder engagement has not been developed. Originality/value This study will help academics to understand the adoption progress and status of stakeholder management methods.

Risk analysis of construction of administration projects using Bayesian networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Osama ◽  
Aly Sherif ◽  
Mohamed Badawy
Keyword(s):  
Risk Factors ◽  
Life Cycle ◽  
Risk Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Causal Relationships ◽  
Content Type ◽  
Project Life Cycle ◽  
Project Objectives ◽  
Project Life

Purpose This paper aims to enlighten the importance of the risk management process which is considered as a major procedure to effectively handle the potential inherent risks in the construction industry. However, most traditional risk analysis techniques are based on theories that deal with each risk factor as an independent, which does not take into consideration the causal relationships between risk factors. Design/methodology/approach This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using Bayesian belief networks (BBN). Through a review of the literature, 27 risk factors were identified and categorized as the most common risk factors in the construction industry. A structured questionnaire was performed to estimate the probability and severity of these risks. Through site visits and interviews with experts in the construction field, 200 valid questionnaires were collected. A risk analysis model was developed using BBNs, then the applicability of this model was verified using a case study in Egypt. Findings However, the outcome showed that critical risks that manipulate administrative construction projects in Egypt were corruption and bribery, contractor financial difficulties, force majeure, damage to the structure and defective material installation. Practical implications The proposed study presents the possibilities available to the project parties to obtain a better forecast of the project objectives, including the project duration, total project cost and the target quality by examining the causal relationships between project risks and project objectives. Originality/value This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using BBNs.

Risk mitigation modelling of international construction projects executed by Indian firms: a structural equation modelling approach

2020 ◽  
Vol 27 (9) ◽  
pp. 2687-2713
Author(s):  
Satish Kumar Viswanathan ◽  
Kumar Neeraj Jha
Keyword(s):  
Risk Factors ◽  
Structural Equation ◽  
Construction Projects ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Content Type ◽  
Construction Firms ◽  
International Construction ◽  
Equation Modelling ◽  
International Projects

PurposeA number of previous studies have investigated international construction project risks and have proposed risk mitigation measures without examining their interdependence. The purpose of the current study is to identify the influence of various risk mitigation measures on macro-level risk factors in the international marketplace.Design/methodology/approachThe authors initially identified 26 risk variables and nine risk mitigation measures through a literature review, which were then verified for their pertinence to international projects by three experts. Subsequently, 105 questionnaire survey responses were collected and analysed using factor analysis and structural equation modelling to test the interrelations between the risk variables and mitigation measures.FindingsThe findings suggest that joint ventures with local partners is emerged as the most critical risk mitigation measure that influences the international projects, which are exposed to political, project and firm-specific risk factors. Further, it is worth noting that among the recognised risk mitigation measures in international projects, offering more local employment is the least critical mitigation measure in the international projects.Research limitations/implicationsThe findings of this study are based on the macro-risk factors encountered by Indian construction firms in international projects, mostly from specific Asian and African regions. Thus, the opinions of construction firms from the developed countries might be different.Originality/valueThe main contribution of this study to existing knowledge is empirical evidence of the interrelationships between risk mitigation measures and risk factors that are portrayed as latent variables of different manifest risk variables. The generated model can assist construction firms in emphasising several risk mitigation methods, in order to reduce risk and enhance performance in international construction projects.

Developing a fuzzy risk assessment model for guaranteed maximum price and target cost contracts in South Australia

Facilities ◽  
2014 ◽  
Vol 32 (11/12) ◽  
pp. 624-646 ◽  
Author(s):  
Daniel W.M. Chan ◽  
Joseph H.L. Chan ◽  
Tony Ma
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Construction Projects ◽  
South Australia ◽  
Assessment Model ◽  
Risk Assessment Model ◽  
Content Type ◽  
Risk Levels ◽  
Target Cost ◽  
Fuzzy Risk Assessment

Purpose – This paper aims to develop a fuzzy risk assessment model for construction projects procured with target cost contracts and guaranteed maximum price contracts (TCC/GMP) using the fuzzy synthetic evaluation method, based on an empirical questionnaire survey with relevant industrial practitioners in South Australia. Design/methodology/approach – A total of 34 major risk factors inherent with TCC/GMP contracts were identified through an extensive literature review and a series of structured interviews. A questionnaire survey was then launched to solicit the opinions of industrial practitioners on risk assessment of such risk factors. Findings – The most important 14 key risk factors after the computation of normalised values were selected for undertaking fuzzy evaluation analysis. Five key risk groups (KRGs) were then generated in descending order of importance as: physical risks, lack of experience of contracting parties throughout TCC/GMP procurement process, design risks, contractual risks and delayed payment on contracts. These survey findings also revealed that physical risks may be the major hurdle to the success of TCC/GMP projects in South Australia. Practical implications – Although the fuzzy risk assessment model was developed for those new-build construction projects procured by TCC/GMP contracts in this paper, the same research methodology may be applied to other contracts within the wide spectrum of facilities management or building maintenance services under the target cost-based model. Therefore, the contribution from this paper could be extended to the discipline of facilities management as well. Originality/value – An overall risk index associated with TCC/GMP construction projects and the risk indices of individual KRGs can be generated from the model for reference. An objective and a holistic assessment can be achieved. The model has provided a solid platform to measure, evaluate and reduce the risk levels of TCC/GMP projects based on objective evidence instead of subjective judgements. The research methodology could be replicated in other countries or regions to produce similar models for international comparisons, and the assessment of risk levels for different types of TCC/GMP projects (including new-build or maintenance) worldwide.

Risk ranking and analysis in PPP water supply infrastructure projects

Facilities ◽  
2015 ◽  
Vol 33 (7/8) ◽  
pp. 428-453 ◽  
Author(s):  
Ernest Effah Ameyaw ◽  
Albert P.C Chan
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Water Supply ◽  
Management Practices ◽  
Demand Forecasting ◽  
Significant Risk ◽  
Mitigation Strategies ◽  
Extensive Literature ◽  
Water Projects ◽  
Content Type

Purpose – This paper aims to identify and evaluate the most significant risk factors that strongly affect the implementation of public–private partnership (PPP) water supply projects. PPP for water supply infrastructure services has seen continued growth over the past two decades, following public sector’s budgetary constraints and inability to provide infrastructure-based water services efficiently and cost effectively. However, these projects are often subjected to major risks leading to failures. Design/methodology/approach – Following extensive literature review and case study analyses, an international questionnaire survey was conducted with practicing and experienced PPP experts to establish the significant risks in PPP water projects. Both the probability of occurrence and severity of 40 risks were evaluated by the expert panel to determine their significance and impact on water projects procured under the PPP arrangement. Findings – The paper presents a derived risk factor list, ranks the factors and describes the “top-ranked” risk factors as: poor contract design, water pricing and tariff review uncertainty, political interference, public resistance to PPP, construction time and cost overrun, non-payment of bills, lack of PPP experience, financing risk, faulty demand forecasting, high operational costs and conflict between partners. Originality/value – This factor list broadens PPP stakeholders’ view of important project risks, rather than relying on culture-dependent studies – an area that has received less attention in PPP risk management research. The identified risk factors would provide governments and investors a useful tool in implementing constructive water PPPs by facilitating the development of risk mitigation strategies, particularly for developing countries with poor risk management practices.

scholarly journals STUDY ON RISK MANAGEMENT PRACTICES ON PUBLIC BUILDING CONSTRUCTION PROJECT: IN CASE OF EASTERN WOLLEGA ZONE

2021 ◽  
Vol 6 (3) ◽  
Author(s):  
Zelalem Mebrate Ejeta ◽  
Zelalem M ◽  
Vignesh Kumar M ◽  
Getnet Tadesse ◽  
Biftu Jaleta
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Practices ◽  
Management Practice ◽  
Construction Project ◽  
Research Work ◽  
Building Construction ◽  
Market Condition ◽  
Public Building ◽  
Project Objectives

The Construction Industry is embedded with risky situations that affect construction projects and therefore requires systematic processing to achieve project objectives and ensure business sustainability (5). This research work was tries to study the risk management practice on public building construction projects and aims to identify the level that use of risk management practice especially in the public building. The data collection method was a combination of interview and questionnaire. Samples were purposively selected from clients, consultants, and contractors representatives who are now actively participating in public building construction projects. For this study, the data was collected using both primary and secondary sources. Depending on the data that was gathered from the respondent to test the level of awareness, identifying the Risk that affect the performance of public building construction project and major risk management practice on public building construction project are considered and the RII was used to rank the factors. This data was analyzed using SPSS of version 22 to perform descriptive statistics. A total of 75 questionnaires were targeted to be distributed and out of those 50 which is 66.67% are successfully responded. The finding from this study revealed that, about (52%) of the project progress is lagging from the schedule. Regarding the awareness of the risk management, (94%) of the respondents where confirmed that they have awareness of risk management ideologies and they are confident enough to implement their knowledge while, (6%) of them have no concept about the risk management. The top five risks that affect the performance of construction project have been identified and ranked. Accordingly; market condition, unexpected inflation, local taxes, inadequate production of raw materials, and the economic condition of country are the top five identified associated project risks.

Risk management in residential projects in the United States: Implementation status, evaluation techniques and barriers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simon Adamtey ◽  
James Ogechi Kereri
Keyword(s):  
Risk Management ◽  
Empirical Evidence ◽  
Construction Projects ◽  
Multinomial Logistic Regression ◽  
The United States ◽  
The Body ◽  
Content Type ◽  
General Contractors ◽  
The Impact ◽  
Residential Projects

Purpose Residential projects frequently suffer from low-risk management (RM) implementation and, consequently, are more likely to fail to meet performance objectives. With RM becoming an essential requirement, the purpose of this study is to investigate RM implementation in terms of status, risk analysis techniques, barriers and impact of RM on residential projects across the USA. Design/methodology/approach Data were collected from 105 general contractors who had completed 3,265 residential projects in the past five years. Data collection was through a US national survey sent out through emails between August and November 2019 to residential general contractor firms. The firms were randomly selected from national organizations, such as the National Association of Home Builders, Associated General Contractors of America and Associated Builders and Contractors. Findings The analysis indicated that RM implementation is still extremely low at 22.27%. However, there was an increase in RM implementation as the cost and duration of projects increased. Direct judgment is the most used technique. Also, the one-sample t-test indicated that the barriers have a significant impact on RM implementation. Multinomial logistic regression results indicated that the impact of lack of management support, lack of money or budget, the complexity of analytical tools and lack of time to perform analysis predict the impact on the overall performance of construction projects. Overall, the results provide empirical evidence, which can influence management’s decision-making regarding RM and improve implementation in residential projects. Originality/value There is a lack of empirical evidence on the impact of barriers to RM implementation on the performance of construction projects. This research contributes to the body of knowledge by bridging this gap through a robust analysis of data collected from real residential projects.

An analysis of risk management in practice: the case of Ghana’s construction industry

2015 ◽  
Vol 13 (2) ◽  
pp. 240-259 ◽  
Author(s):  
Adwoa Boadua Yirenkyi-Fianko ◽  
Nicholas Chileshe
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Management Practices ◽  
Perceived Benefits ◽  
Scoring Method ◽  
Cross Sectional ◽  
Content Type ◽  
Private And Public ◽  
Internal Benchmarking ◽  
Project Objectives

Purpose – The purpose of this paper is to report the findings of research into the levels of awareness, usage and benefits of risk assessment and management practices (RAMP) within the construction industry in Ghana. Design/methodology/approach – The study was conducted through a structured questionnaire administered to 103 construction professionals practising with construction client (private and public), consultant and contractor organisations within the Ghanaian construction industry. The results were analysed to establish the current levels of awareness, usage and perceived benefits of risk management practices. Survey response data were subjected to descriptive statistics; subsequently, ANOVA and other non-parametric tests were used to examine the differences in the levels of agreement of the perceived benefits. Findings – This study illustrates that although the majority of the respondents are aware of RAMP, some professionals found the process not to be formal. Relative to the benefits, there was a disparity in the ranking of agreement scores on two of the eight benefits among the respondents in relation to “product to the required quality” and “reduction in contract claims”. However, they all agreed on “improved team morale” as the most important benefits. Research limitations/implications – The research limitation of the study is that the cross-sectional data made it difficult to generalise the findings. Geographically, only respondents from construction organisations in the Greater Accra Region were considered. However, it is recommended that future work on RAMP be extended to cover all the regions of the country. Practical implications – The findings of the study provide practical for organisations to measure the benefits and capture the awareness of risk management practices through the provision of a framework based on an index and scoring method. This can be used by senior management in assessing the current benefit levels within projects “internal benchmarking” and has potential for external benchmarking purposes. Furthermore, through education and training, both formal and informal process including more information and provision of expertise within RAMP could enhance the levels of awareness. Originality/value – Little is known about the current levels of awareness, usage and benefits of risk management among Ghanaian construction organisations, and this study provides some insights and deepening our understanding on the uptake and perceived benefits of RAMP among construction professions in Ghana. These findings may help construction practitioners in having an increased awareness of risk management practices, and this can further lead to a higher uptake and usage resulting in reaping the advocated benefits of the implementing risk management practices such as achievement of project objectives of time, cost and quality, as well as enhanced decision-making processes.

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