A NEW METHODOLOGY FOR ADDRESSING CLIENT RISKS IN CONSTRUCTION PROJECTS

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Abdullah Albogamy ◽  
Nashwan Dawood ◽  
Darren Scott
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Projects ◽  
Risk Mitigation ◽  
Construction Project ◽  
Design Stage ◽  
Client Risk ◽  
Analysis System ◽  
The Impact ◽  
Hierarchy Process

Delay-risk factors associated with clients in a construction project have a major impact on a successful delivery on time and within budgeted cost. Risk management studies so far have not effectively managed project risk factors in a way that can assist clients in creating strategies to reduce impacts and risk. To address these issues, the study aims to provide a new methodology for analyzing and managing the risks by building a conceptual model. The study includes the development of a framework, named the client risk management model (CRMM), by integrating the findings from a literature review and a construction industry survey. A client risk analysis system was developed by integrating the analytical hierarchy process and a Monte Carlo simulation within an @Risk program. A case study demonstrated the methodology to analyze and quantify the impact of risk factors, and to create a suitable risk mitigation strategy at the design stage of a construction project. The system was found to be useful for quantifying the impact of client risks and the support in taking proactive decisions.

scholarly journals Identification and Qualitative Evaluation of Risk Factors in the Construction Projects in Iraq

2021 ◽  
Vol 14 (2) ◽  
pp. 91-101
Author(s):  
Noor Aletby ◽  
Hafeth Ibrahim
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Projects ◽  
Qualitative Evaluation ◽  
Qualitative Assessment ◽  
Management Process ◽  
Risk Management Process ◽  
Questionnaire Method ◽  
High Level ◽  
The Impact

Construction projects in Iraq face many dangers that cause exceeding the estimated cost of the project and not completing the project on time, and since the risk management process in construction projects is of great importance in controlling and reducing the impact of risks in construction projects, so it is necessary to identify these risks and evaluate them correctly in order to increase accuracy and the health of the subsequent stages of the risk management process in construction projects. This paper aims to identify the most important risks in construction projects in Iraq and to conduct a qualitative assessment of the identified risks and arrange them according to their importance. The researcher adopted the questionnaire method as a tool to determine the risks and used the technique of probability and effect matrix to conduct the qualitative assessment of the identified risks. The study found that there are 48 risk factors that constitute the most dangerous factor in construction projects in Iraq, and 10 of the determining factors were within the high level of risk, and at the forefront of which was the inability of the owner to finance the project.

Developing a Model for Risk and Responsibility Management Share Amongst Stakeholders Consortium in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 639-643 ◽  
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Significant Risk ◽  
Interest Rate Risk ◽  
Extensive Literature ◽  
Productivity Cost ◽  
Management Techniques

The construction project is a complex sector which characterized with low productivity, cost and time overruns and conflicts. The major challenges in construction project risk assessment which may attributed to knowledge requirements for determining the level of uncertainty and development of complex models to predict . Portfolio theory and capital market theory stipulate that risk consists of two types, First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interest-rate risk, and purchasing-power risk. Second, unsystematic risk, which can be controlled, relates to organization-specific factors such as business risk and financial risk (Fischer and Jordan 1996).) . To identifies the risk factors that influence the cost-effective management, operation, and maintenance of construction project, as well as how and when in the project life cycle the identified risk factors impact to the associated costs . The identification and design of risk is the first step of risk management. It contain the recognition of potential risk event conditions in a project and the clarification of risk responsibilities. A total of 50 risk factors on construction for stake holders (client , contractor ,consultant ) share projects were identified after conducting an extensive literature survey. A questionnaire survey was conducted from 60 project managers(20 from each category) in all three proficiencies with background experience in buildings ,road and bridges with minimum 15 years experience , to identify the most significant risk factors impact in construction projects . Interviews were conducted face to face, ensuring a 100 percent response rate. The questionnaire was amended by incorporating feedback of the experts to suit the local environments of the construction industry. The weight or rate of each risk factor gained by using a five-point Liker scale from a consolidated conceptual framework of all 50 risk factors identified from the deep literature work . The main aim of these research is to identify ,categorize and ranking common risks, exert management techniques to address those risks , effective risk management and risk status in the construction industry and to help stakeholders to take stock of their ongoing and future projects, with a focus on important risks, their management techniques and barriers to effective implementation of risk management systems.

scholarly journals Realizacja projektów inwestycyjno-budowlanych z wykorzystaniem Big Data

2017 ◽  
Vol 26 (2) ◽  
pp. 241-249 ◽  
Author(s):  
Jarosław Górecki ◽  
Jadwiga Bizon-Górecka ◽  
Karol Michałkiewicz
Keyword(s):  
Risk Management ◽  
Big Data ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Companies ◽  
On Line ◽  
Line Survey ◽  
The Impact

A paper focuses on analyzing the impact of Big Data (BD) on minimizing the risk in investment and construction projects. The work presents the aspects of risk occurring during the execution of the construction project. It presents an on-line survey which was aimed at knowing the opinion of Polish construction companies on the BD, and checking their readiness to implement technologies supporting manipulation of the data. It was underlined that results of the BD analysis provide a powerful tool for risk management, however, it is hardly noticed by the Polish respondents.

scholarly journals Model of risk management of construction project based on transaction costs

2018 ◽  
Vol 193 ◽  
pp. 05025
Author(s):  
Irina Vladimirova ◽  
Pavel Zemskov ◽  
Anna Tsygankova
Keyword(s):  
Risk Management ◽  
Transaction Costs ◽  
Construction Projects ◽  
Baikal Region ◽  
Construction Project ◽  
Management Model ◽  
The Russian Federation ◽  
Quantitative Indicators ◽  
The Impact ◽  
The Relationship

The paper studies the relationship between transaction costs and risk management in the construction projects affecting ecosystem considering economic externalities. Quantitative indicators of the impact of transaction costs on the level of risk in the project are thoroughly investigated. The construction project risk management model based on transaction costs is discussed in detail. Collected and experimental data of the construction project, which has a significant impact on the ecology of the Baikal region in the Russian Federation is analyzed and the uncertainty reduction caused by transaction costs is measured.

scholarly journals An assessment of Key Success Factors for Construction Projects in the Democratic Republic of Congo

2021 ◽  
Vol 13 (2(I)) ◽  
pp. 16-34
Author(s):  
Adrien Fariala ◽  
Olawumi Dele Awolusi
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Success Factors ◽  
Democratic Republic ◽  
Project Success ◽  
Democratic Republic Of Congo ◽  
Construction Project ◽  
Republic Of Congo ◽  
Key Success Factors ◽  
The Impact

The success of the Government's construction projects in the Democratic Republic of Congo (DRC) since 2011 has been anchored on the potential of construction firms in completing these projects based on the planned timeframe as well as the budget. Consequently, from a project management viewpoint, the main objective of the present study was to assess the critical success factors in developing countries' construction projects and to examine the impact of risk management, leadership, experience and expertise, and project size on construction projects in DRC. Data was gathered from respondents in the construction projects in DRC using quantitative methods. A statistical software program, SPSS version 25, was subsequently used to analyze the collected quantitative data. The findings emanating from this study contribute to the body of knowledge on key success factors in construction projects in DRC as a developing country. It was revealed from the study that the success of construction projects in DRC could be boosted through effective and efficient risk management. In addition, effective and efficient leadership mainly transactional leadership would affect construction project success. Further, the more the experience and expertise of construction project staff, the more likely the project success criteria would be met, and the more likely the project would be successful. And lastly, smaller-sized and medium-sized construction projects may be more successful, whereas mega projects may not be very successful due to insufficient and limited experience and expertise.

scholarly journals ASSESSMENT OF HEALTH AND SAFETY RISK (OHS) USED OHSAS VARIABLES WITH HIRA, HAZID AND HAZOP METHOD (CASE STUDY OF PROJECT CIPUTRA WORLD PHASE 3, SURABAYA)

2019 ◽  
Vol 3 (1) ◽  
pp. 28
Author(s):  
Anita Trisiana ◽  
Dwi Sanjaya ◽  
Anik Ratnaningsih
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Occupational Health ◽  
Construction Projects ◽  
Construction Project ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Phase 3 ◽  
Contract Workers

Implementation of the construction project is very necessary for the existence of risk management. It is necessary to anticipate and handle risks in construction projects because of the project's construction one such risk of occupational health and safety (OHS). So the need for the identification, assessment, analysis to anticipate the risks involved. According to OHSAS (18001:2007), OHS is all the conditions and factors that affect, or may affect, on the health and safety of employees or other workers (including contract workers and personnel contractors, or others in the workplace). The purpose of this research is to know the risk factors and the risk of dominant and controlling risks in the project. The methods used in this research is a method of HAZID, HAZOP, and HIRA. The results obtained, there are 48 types of risk factors, 47 with the medium category, and 1 with a low category. There are five dominant risks and 12 risk controls. Implementation of the construction project is very necessary for the existence of risk management. It is necessary to anticipate and handle risks in construction projects because of the project's construction one such risk of occupational health and safety (OHS). So the need for the identification, assessment, analysis to anticipate the risks involved. According to OHSAS (18001:2007), OHS is all the conditions and factors that affect, or may affect, on the health and safety of employees or other workers (including contract workers and personnel contractors, or others in the workplace). The purpose of this research is to know the risk factors and the risk of dominant and controlling risks in the project. The methods used in this research is a method of HAZID, HAZOP, and HIRA. The results obtained, there are 48 types of risk factors, 47 with the medium category, and 1 with a low category. There are five dominant risks and 12 risk controls.

scholarly journals Risk Management Analysis of Follow-up Audit in the Construction Stage of Construction Projects

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Yongjun Luo
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Project Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Project Management ◽  
Construction Process ◽  
Construction Stage

The construction project serves as one of the most important projects in the construction industry. The high cost and the particularity in the implementation generate high risks in the investment and construction process. Over the years, the development of construction project management methods has promoted the management of risk factors. This paper reviews the suggestions of risk management of follow-up audit in construction stage and evaluates its application in construction projects.

scholarly journals Strategi mitigasi risiko proyek konstruksi utilitas piping dan sipil: Studi kasus PDAM Jakarta

2020 ◽  
Vol 12 (1) ◽  
pp. 74
Author(s):  
Safruddin MJ ◽  
Sawarni Hasibuan
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Risk Model ◽  
Risk Mitigation ◽  
Construction Project ◽  
Corrective Action ◽  
Second Phase ◽  
Cooperation Agreement ◽  
Pareto Analysis ◽  
Two Phases

Construction activities such as piping and civil works utilities always potentially pose a risk. Therefore, risk management is indispensable for the success of a construction project. The pipeline and Civil works construction project to meet the distribution of clean water needs in Jakarta through the Cooperation Agreement  PDAM Pam Jaya and PT Pam Lyonnaise Jaya (Palyja) potentially generate various risks. The purpose of this research is to analyse risk management on piping and civil works utility construction using the house of risk model.  Research is conducted through two phases. The first phase is the identification of risks and risk agents in the piping and civil works utility construction through the measurement of severity and occurrence levels to produce an aggregate risk priority (ARP), then conducts a risk mitigation analysis in the second phase. 60 respondents involved in the study consisting of project managers, supervisors, and engineers on pipeline and civil works construction projects. The results of the analysis successfully identified 60 risk events and 38 risk agents in the construction of utility piping and work civil PDAM Pam Jaya. FGD and Pareto analysis used in the study produced five recommendations for mitigation actions that are expected to be able to mitigate risk on piping and civil utility construction by establishing QA/QC independently/cooperation, take corrective action (corrective action), conduct testing or testing with the applicable provisions, implement ISO certification of 9001:2015 quality management, and perform training on procedures and standards that apply periodically.

Development of a client-based risk management methodology for the early design stage of construction processes

2015 ◽  
Vol 22 (5) ◽  
pp. 493-515 ◽  
Author(s):  
Abdullah Albogamy ◽  
Nashwan Dawood
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Mitigation Strategy ◽  
Design Stage ◽  
Cost Overruns ◽  
Content Type ◽  
Early Design ◽  
Early Design Stage ◽  
Client Risk ◽  
Project Delays

Purpose – The risk factors associated with clients have a major impact on the successful delivery of a project from early design to the construction and operation stages. Risk management studies conducted so far have not succeeded in providing an effective risk assessment methodology for clients in analysing and managing the risk factors that cause both project delays and cost overruns. So, the purpose of this paper is to provide a methodology for a client-based risk management model. Design/methodology/approach – A conceptual framework is designed by integrating the findings from a literature review and a construction industry survey in the Kingdom of Saudi Arabia. The framework includes the risk identification, risk analysis and mitigation strategy, which are the key components of the model. The model of the framework is developed by integrating the analytical hierarchy process (AHP) and Monte Carlo simulation (MCS) underpinned within an @Risk program. Findings – A case study is used to demonstrate the proposed methodology; the results found that the model helps to analyse and quantify the impact of risk factors, and also to assist in taking a suitable risk mitigation strategy, particularly at the early design stage in the construction process. Practical implications – The model is applicable to both public and private clients when they need to know the possible project duration in a new construction project, and to take some proactive actions to avoid the adverse effect of client risk factors at the early stage of the project. Originality/value – The model is expected to help in understanding the nature, and analysing the influence, of client risk factors that cause project delays and cost overruns. The development of the methodology for managing the client-based risk in construction processes at the early design stage is the key value of the study.

Concepts of Risk in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 644-649
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Projects ◽  
Financial Risk ◽  
Construction Project ◽  
Cost Effective ◽  
Interest Rate Risk ◽  
Market Theory ◽  
Productivity Cost ◽  
Planning Stage

Risk is a part of business endeavours because of uncertainty (Flanagan and Norman 1993; Fischer and Jordan 1996). Portfolio theory and capital market theory stipulate that risk consists of two types, First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interest-rate risk, and purchasing-power risk. Second, unsystematic risk, which can be controlled, relates to organization-specific factors such as business risk and financial risk(Fischer and Jordan 1996). These forms of risk are fundamental to the construction and the insurance industries.( Tah et al. 1993) . The construction project is a complex sector which characterized with low productivity, cost and time overruns and conflicts. The major challenges in construction project risk assessment which may attributed to knowledge requirements for determining the level of uncertainty and development of complex models to predict . To identifies the risk factors that influence the cost-effective management, operation, and maintenance of construction project, as well as how and when in the project life cycle the identified risk factors impact to the associated costs .The web- based tool can be used by decision -makers during the pre-planning stage of construction projects to estimate cost and duration implications of various risk occurrence scenarios, determine contingencies and prepare risk management plans . In this research the author considered all key articles in the related research streams in recent 30 years and analyzed the risk management views in order to identify key risk factors and its impact on the construction projects.

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