A fuzzy model for evaluating risk impacts on variability between contract sum and final account in government-funded construction projects

2015 ◽  
Vol 13 (1) ◽  
pp. 45-69 ◽  
Author(s):  
Ernest Effah Ameyaw ◽  
Albert P.C. Chan ◽  
De-Graft Owusu-Manu ◽  
Ekow Coleman
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Fuzzy Model ◽  
High Impact ◽  
Assessment Model ◽  
Research Approach ◽  
Principal Component Factor Analysis ◽  
Related Factors ◽  
Content Type ◽  
Client Factors

Purpose – The purpose of this paper is to identify and then evaluate perceived risk factors influencing variability between contract sum and final count, and to develop a fuzzy risk assessment model for evaluating the overall impact of established critical risk factors impacting on variability between contract sum and final account in government-funded construction projects. Construction projects are characterised by risk factors that significantly impact on variability between the contract sum and final account. Design/methodology/approach – A research approach integrating questionnaire survey, mean scoring ranking and principal component factor analysis (PCFA) methods was adopted to evaluate and classify the critical risk factors. A fuzzy synthetic evaluation method was sequentially applied to compute the overall risk impact (ORI) of eight critical risk factors’ impact on variability between contract sum and final account. Findings – Initial results showed that eight critical risk factors have high impact on variations between contract sum and final account, namely (in order): project funding problems, underestimation of quantities, variations by client, change in scope of works, inadequate specification, change in design by client, defects in design and unexpected site (ground) conditions. PCFA produced two factor solutions: “professional-related factors” and “client factors”. The fuzzy model further showed that the ORI is 5.48, indicating that these risk factors have a high impact on variability between contract sum and final account in public construction projects. The client factors have a very high impact (5.59), while the professional-related factors indicated a high impact (5.41) on project cost variability. Originality/value – A practical model is proposed to evaluate the key risks associated with cost overruns in public projects. By giving effective and sustained attention to these factors, variability between contract sum and final account, a common situation in Ghana, can be controlled to achieve cost savings in public infrastructure 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.

scholarly journals Risk Assessment Model Based on Fuzzy Logic for Residential Buildings

2021 ◽  
Vol 29 (4) ◽  
pp. 37-48
Author(s):  
Namdeo Hedaoo ◽  
Amey Pawar
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Residential Buildings ◽  
Construction Project ◽  
Significant Risk ◽  
Fuzzy Model ◽  
Residential Building ◽  
Assessment Model ◽  
Response Strategy ◽  
Industry Professionals

Abstract Risk is involved in every construction project. Residential building construction projects comprise a variety of risks and are more likely to be affected due to their difficulty and many operations and threats. The study aims to identify the various risk elements and their effect on construction projects of residential buildings using a fuzzy approach with the help of MATLAB software. This study includes 60 risk factors recognised through an expert opinion and literature review. These factors are categorised into 7 major groups, i.e., construction, project manager, architect/consultant, contractor, owner, resources, and external environment-specific risk factors. A questionnaire was prepared and sent using emails based on the identified risk factors to be filled out by construction industry professionals in India and by conducting in-person interviews. Based on the risk severities obtained from the fuzzy model, the top 10 risk factors have been considered. As a result, for identified top severe risk factors, a significant risk response strategy was implemented.

Unravelling the risks of construction digitalisation in developing countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Douglas Aghimien ◽  
Clinton Aigbavboa ◽  
Tsholofelo Meno ◽  
Matthew Ikuabe
Keyword(s):  
Risk Factors ◽  
Structural Equation ◽  
Construction Projects ◽  
Quantitative Research ◽  
Industrial Revolution ◽  
Significant Risk ◽  
Research Approach ◽  
Content Type ◽  
Security Issues ◽  
Security Operations

Purpose This study aims to present the result of an assessment of the risk of construction digitalisation with a view to sensitising and preparing construction organisations for unforeseen issues that might arise in the course of their digital transformation. Design/methodology/approach The study took a post-positivist stance through a quantitative research approach. A survey of construction professionals actively involved in construction projects in South Africa was conducted using a structured questionnaire. The analysis of the data gathered was done using mean item scores, Kruskal–Wallis H test, exploratory factor analysis (EFA) and structural equation modelling (SEM). Findings EFA revealed five principal risk factors (human and financial, technological, legal and security, operations and socioeconomic risk factors) associated with the digitalisation of construction organisations. However, SEM revealed that four out of these risk components have significant direct relationships with some selected digitalisation outcomes. These significant risk factors are technology, legal and security issues, operations and socioeconomic issues. Originality/value This study provides practical insight into the risk inherent in construction digitalisation, and its result can help organisations seeking to be digitally transformed make informed decisions. Theoretically, the study reveals the risks associated with construction digitalisation – an aspect that has not gained significant attention in the current fourth industrial revolution discourse. Therefore, its findings can form a basis for future studies on the risk of digitalising construction organisations.

Evaluating the key risk factors in PPP-procured mass housing projects in Nigeria: a Delphi study of industry experts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bamidele Temitope Arijeloye ◽  
Isaac Olaniyi Aje ◽  
Ayodeji Emmanuel Oke
Keyword(s):  
Risk Factors ◽  
Delphi Study ◽  
Construction Projects ◽  
Delphi Survey ◽  
Maintenance Cost ◽  
Research Approach ◽  
Item Score ◽  
Content Type ◽  
Housing Projects ◽  
Mass Housing

Purpose The purpose of the study is to elicit risk factors that are peculiar to public-private partnership (PPP)-procured mass housing in Nigeria from the expert perspectives in ensuring the success of the scheme thereby reducing housing deficit in the country. Design/methodology/approach The risk inherent in construction projects had been established through literature in general. The risk in PPP projects is emerging because of the recent acceptance of the procurement option by governments all over the globe. The Nigerian Government has also adopted the procurement option in bridging the housing deficit in the country. This study, therefore, conducts a Delphi survey on the probability of risk occurrence peculiar to PPP mass housing projects (MHPs) in Nigeria. Pragmatic research approach through the mixed method of both quantitative and qualitative methods was adopted for this study. The quantitative method adopts the administration of questionnaires through the Delphi survey, whereas the qualitative method used interviews with the respondents. A two-stage Delphi questionnaire was administered to construction practitioners that cut across academics, the public and the private sectors by adopting convenient sampling techniques and following the Delphi principles and procedures. A total of 63 risk factors were submitted to the expert to rank on a Likert scale of 7 and any risk factors that the mean item score (MIS) falls below the grading scale of the five-point benchmark is deemed not necessary a risk factor associated with PPP MHPs and thereby expunged from the second round of the Delphi Survey. The interview was subsequently applied to the respondents to substantiate the risk factors that are peculiar to PPP-procured mass housing in the study area. Findings The findings show that risk factors such as maintenance frequent than expected, life of facility shorter than anticipated and maintenance cost higher than expected fall below 5.0 benchmark with MIS of 4.64 and 4.55 indicating that the risk factors are not peculiar to PPP mass housing in Nigeria. Research limitations/implications The implication for practise of this research is that these risk factors provide the PPP stakeholders with the comprehensive checklists that can aid in developing PPP risk assessment guidelines in the sector though both partners should be aware of the dynamic nature of risk because new ones might be emerging. Originality/value The authors hereby declare that the research findings are a product of a thorough research conducted in the study area and have not to be submitted or published by another person or publisher and due acknowledgement was made where necessary.

scholarly journals Risk factors affecting the ability for earned value management to accurately assess the performance of infrastructure projects in Australia

2019 ◽  
Vol 19 (4) ◽  
pp. 550-569 ◽  
Author(s):  
Maan Nihad Ibrahim ◽  
David Thorpe ◽  
Muhammad Nateque Mahmood
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Project Performance ◽  
Value Management ◽  
Earned Value ◽  
Related Factors ◽  
Earned Value Management ◽  
Content Type ◽  
Factors Affecting ◽  
Factors Influencing

Purpose The purpose of this paper is to investigate a set of risk-related factors influencing the earned value management (EVM) concept as an assessment technique in evaluating the progress of modern sustainable infrastructure construction projects. Design/methodology/approach A qualitative research approach has been adopted for identifying risk-related factors influencing EVM concept from a literature review and through interviewing industry personnel, followed by an inductive process to form sets of key factors and their measuring items. Findings EVM is a common method for assessing project performance. A weakness of this approach is that EVM assessment in its current form does not measure the impact of a number of project performance factors that result from the complexity of modern infrastructure construction projects, and thus does not accurately assess their impact in this performance. This paper discusses and explains a range of potential risk factors to evaluating project performance such as sustainability, stakeholder requirements, communication, procurement strategy, weather, experience of staff, site condition, design issues, financial risk, subcontractor, government requirements and material. In addition, their measuring items were identified. Practical implications This research assists projects managers to improve the evaluation process of infrastructure construction performance by incorporating a range of factors likely to impact on that performance and which are not included in current EVM calculations. Originality/value This research addresses the need to include in the EVM calculation a range of risk factors affecting the performance of infrastructure projects in Australia and therefore makes this calculation a more reliable tool for assessing project performance.

Development of a Risk Assessment Model for Oman Construction Industry

2014 ◽  
Vol 70 (7) ◽  
Author(s):  
K. N. Yafai ◽  
J. S. Hassan ◽  
S. Balubaid ◽  
R. M. Zin ◽  
M. R. Hainin
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Construction Industry ◽  
Construction Projects ◽  
Model Development ◽  
Arabian Gulf ◽  
Assessment Model ◽  
Research Approach ◽  
Secondary Sources ◽  
Assessment Procedures

Oman as one of the Arabian Gulf countries which have invested billions of dollars in the construction industries, infrastructural services and real estate, but it is clearly identified that risk assessment was not applied for once on these awarded contracts. Lack of knowledge and awareness of risk management or assessment procedures in the construction industry in Oman caused additional cost and time delay in most of the awarded construction projects. This paper aimed at developing a model for risk assessment in the Oman construction industry to save huge amounts of millions of money wasted due to this problem. A field survey of semi-structured questionnaire with face-to-face interviews was carried out in the Oman construction industry including public, contractors and consultants. The research approach relies on data collected from primary and secondary sources. Combination of quantitative and qualitative data analysis was used in analysing the data for the Model development. The risk factors in the Oman construction industry varies from one category to another, the risk factors in government category are more than the consultant category and contractor’s category. Overall, the Oman construction industry has no very high risk factors, which means it has good opportunities for investment. It is expected that the output of this research will have a good and beneficial contribution to save time and money for both public and private sectors in Oman due to expected awareness and improvements in the risk assessment procedures. 

Managing integration in infrastructure alliance projects

2017 ◽  
Vol 10 (1) ◽  
pp. 5-31 ◽  
Author(s):  
Anna-Maija Hietajärvi ◽  
Kirsi Aaltonen ◽  
Harri Haapasalo
Keyword(s):  
Construction Projects ◽  
Research Approach ◽  
Content Type ◽  
Complex Projects ◽  
Wide Range ◽  
Project Organizations ◽  
Integration Mechanisms ◽  
Organizational Integration ◽  
Time Critical

Purpose The effective management of inter-organizational integration is central to complex projects. Such projects pose significant challenges for integration, as organizations struggle with constantly changing inter-organizational interdependencies and must develop and adapt integration mechanisms to meet new demands. The purpose of this paper is to understand what kinds of integration mechanisms are used and how they are developed and adjusted during the infrastructure alliance projects. Design/methodology/approach This study provides empirical evidence of integration dynamics in project alliancing by analyzing two infrastructure alliance projects – a complex tunnel construction project and a railway renovation project. The research approach is an inductive case study. Findings This paper identifies integration mechanisms adopted in two case projects and three central triggers that led to changes in the integration mechanisms: project lifecycle phase, unexpected events and project team’s learning during the project. Practical implications Integration capability should be a precondition for alliance project organizations and requires the adoption of a wide range of integration mechanisms, as well as an ability to adjust those mechanisms in response to everyday dynamics and emergent situations. Originality/value Although unplanned contingencies and the responses to them represent important influences in organizations, there is limited amount of research on the dynamics of integration. The findings will be of value in supporting the management of inter-organizational integration in complex, uncertain and time-critical construction projects.

Factors affecting the delivery of optimum health and safety on construction projects during the covid-19 pandemic in Zimbabwe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benviolent Chigara ◽  
Tirivavi Moyo
Keyword(s):  
Factor Analysis ◽  
Construction Projects ◽  
Health And Safety ◽  
Project Managers ◽  
Small Sample ◽  
Related Factors ◽  
Content Type ◽  
Factors Affecting ◽  
Related Risk ◽  
Monitoring And Enforcement

Purpose The purpose of this study was to investigate the perceptions of construction professionals relative to factors that affect the delivery of optimum health and safety (H&S) on construction projects during the COVID-19 pandemic. Design/methodology/approach The study adopted a quantitative design which entailed the distribution of a web-based questionnaire among construction professionals, namely, architects, construction/project managers, engineers, H&S managers and quantity surveyors working for contractors and construction consultants in Zimbabwe. The data were analysed with descriptive and inferential statistics. Factor analysis was used to reveal interrelated significant sets of factors affecting the delivery of optimum H&S. Findings Factor analysis revealed nine components/factors: change and innovation-related, monitoring and enforcement-related, production-related, access to information and health service-related, on-site facilities and welfare-related, risk assessment and mitigation-related, job security and funding-related, cost-related and COVID-19 risk perception-related factors as the significant factors affecting the delivery of optimum H&S during the COVID-19 pandemic in Zimbabwe. Research limitations/implications The results highlighted the need for social dialogue among construction stakeholders to support initiatives that will enhance the delivery of H&S on construction projects. Construction stakeholders may find the results useful in highlighting the areas that need improvement to protect workers’ H&S during the pandemic. However, the small sample limits the generalisability of the results to construction sectors in other regions. Originality/value The study investigated factors affecting the delivery of optimum H&S during the COVID-19 to inform interventions to enhance H&S.

Major construction risk factors considered by general contractors in Qatar

2015 ◽  
Vol 13 (1) ◽  
pp. 165-194 ◽  
Author(s):  
Abdulaziz M. Jarkas ◽  
Theodore C. Haupt
Keyword(s):  
Risk Factors ◽  
Cost Effective ◽  
The State ◽  
Risk Allocation ◽  
Relative Importance ◽  
Related Factors ◽  
Policy Makers ◽  
Content Type ◽  
Construction Risk ◽  
General Contractors

Purpose – The purpose of this paper is to identify, explore, rank the relative importance and determine the prevalent allocation response trends of the major construction risk factors considered by general contractors operating in the State of Qatar. Design/methodology/approach – A structured questionnaire survey comprising 37 potential risk factors was distributed to a statistically representative sample of contractors. The influence ranks of the factors explored were determined using the “Relative Importance Index (RII)” technique, whereas the prevalent trend of contractors’ attitudes toward risk allocation of each factor investigated was quantified and expressed as a percentage, based on the number of respondents who selected a specific option, in relation to the total number of respondents. Findings – The results obtained indicate that risks related to the “client” group are perceived as most critical, followed by the “consultant”, “contractor” and “exogenous” group-related factors, respectively. The outcomes further show that the “transfer” option is the contractors’ prevalent response to “client” and “consultant”-related risks, while the “retention” decision is the principal pattern linked to “contractor” and “exogenous” group-related risk factors. Research limitations/implications – The dominant respondents’ perception that the crucial construction risks are related to clients and consultants suggests that these two parties have an essential role in controlling the negative ramifications of the associated factors. Practical implications – The findings suggest that increasing designers’ awareness of the significant effect of applying the constructability concept can considerably help reducing the risks concomitant of the construction operation. Policy makers may contribute, moreover, in alleviating the risk of incompetent technical staff and operatives’ employment by controlling the migration of inexperienced and unskilled construction workforce into the State. Originality/value – Given the knowledge gap for the major construction risk factors considered by general contractors in Qatar, the results reported in this study can provide clients, industry practitioners and policy makers with guidance to effectively manage the significant risks determined, which can further assist in achieving a reasonable level of competitiveness and cost-effective operation.

scholarly journals The prevalence and risk factors of musculoskeletal disorders among subcontracted hospital cleaners in Thailand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanaphum Laithaisong ◽  
Wichai Aekplakorn ◽  
Paibul Suriyawongpaisal ◽  
Chanunporn Tupthai ◽  
Chathaya Wongrathanandha
Keyword(s):  
Risk Factors ◽  
Musculoskeletal Disorders ◽  
Teaching Hospital ◽  
Stress Test ◽  
Cross Sectional Study ◽  
Related Factors ◽  
Cross Sectional ◽  
Middle Income ◽  
Content Type ◽  
History Of

PurposeThis research aimed to explore the prevalence of musculoskeletal disorders (MSDs) and related factors among subcontracted cleaners in a teaching hospital in Thailand.Design/methodology/approachA cross-sectional study was conducted of 393 subcontracted cleaners in a teaching hospital, from May to June 2020. Face-to-face interviews were carried out using a standard questionnaire, consisting of four parts: (1) participant characteristics, (2) stress test, (3) work characteristics and (4) standardized Nordic questionnaire, Thai version, for MSDs outcome. Multiple logistic regression analyses were performed to determine the association between MSDs and related factors.FindingsThe prevalence of MSDs was 81.9%, involving mostly the lower back (57.7%), followed by the shoulder (52.6%). Factors significantly associated with MSDs were as follows: male gender (OR = 3.06, 95% CI [1.19, 7.87]), severe stress (OR = 2.72, 95% CI [1.13, 6.54]), history of injuries (OR = 4.37, 95% CI [1.27, 15.11]), mopping posture (OR = 2.81, 95% CI [1.43, 5.50]) and task duration (OR = 1.90, 95% CI [1.01, 3.57] for 2–4 h and OR = 3.39, 95% CI [1.17, 9.86] for more than 4 h). Sick leave due to MSDs was associated with history of injuries, Thai nationality and having another part-time job.Originality/valueThe study findings about MSDs in terms of prevalence and related factors contributed to limited pool of the knowledge among subcontracted hospital cleaners in Thailand and middle-income country settings. With growing popularity in outsourcing cleaning services among hospitals in these countries, the study findings could raise a concern and inform policymakers and hospital administrators the importance of the magnitude and risk factors for MSDs necessitating design of preventive strategies.

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