Risk Management Strategies in Construction Organizations

2021 ◽  
Vol 15 (1) ◽  
pp. 406-413
Author(s):  
Shabbab Ajami Alhammadi ◽  
Bassam A. Tayeh ◽  
Wesam S. Alaloul ◽  
Tareq J. Salem
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Gaza Strip ◽  
Management Strategies ◽  
Validity And Reliability ◽  
International Agencies ◽  
Construction Organizations ◽  
Risk Management Strategies ◽  
The Gaza Strip

Background: Construction projects are among the riskiest businesses due to the number of factors involved that are difficult to control; hence, the popularity of risk management as part of the decision-making process in construction organizations is increasing. Despite the advancements, there are various risks involved that lead to project failure. Aim: Thus, this study aims to assess the risk management strategies in construction organizations in the Gaza Strip, Palestine. Methods: Seventy questionnaires were distributed after subjecting them to pretesting and pilot study that confirmed the validity and reliability of the questions. The target respondents included engineers and consultants from the construction organizations, Ministry of Works and Housing, and international agencies. The questionnaire was retrieved with a 65.71% response rate. Results: Results indicated that the most popular method of risk factor determination in the Gaza Strip is the “checklist” (RII=84%). For tools/methods of risk analysis, relying on experience in the direct assessment is the most prominent, with an RII of 78%. For the methods of avoiding risk before the project implementation, dependence on experience in the work for preparing and planning was ranked highest (having RII of 81.6%). Finally, follow-up on the implementation to avoid rework, with an RII of 77.6%, was ranked highest among other factors of avoiding risk during the construction projects implementation. Conclusion: This study highlights the key risk management strategies that will be beneficial for the construction industry stakeholders to resolve the unwanted risk failures in the construction industry.

STRATEGIES TO IMPROVE RISK MANAGEMENT IN CONSTRUCTION INDUSTRIES

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Yisakor Solomon Ferede ◽  
WELLINGTON DIDIBHUKU THWALA ◽  
NOKULUNGA XOLILE MASHWAMA
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Management Strategies ◽  
Parametric Modelling ◽  
Building Information Modelling ◽  
Defensive Strategies ◽  
Risk Management Strategies ◽  
Building Information ◽  
Response Percentage

In today’s world of construction, management of risks is no more about defensive strategies where the management system only protects the business. Modern-day risk management strategies should protect the business from risks, and in addition, should improve the values of the construction industry. The risk management strategies covered in this work, for the Ethiopian construction industry include Building Information Modelling (BIM), BIM-Knowledge Risk Management Strategy (BKRMS), and Statistical Parametric Modelling (SPM). This work presents the analysis and discussion of the data obtained from structured questionnaires gathered from contractors, managers, civil engineers, architects, supervisors of construction projects, and contracts in Ethiopia. The questionnaire was administered to achieve the aim of our research and descriptive, empirical, factor, and reliability statistics were used to analyze the questionnaire on the Statistical Package for Social Science (SPSS). Out of the 120 questionnaires sent out, 110 responses were received and used for analysis to represent an 83.0% response percentage. BIM accounted for 41.4% of the total variance explained in the exploratory factor analysis, BKRMS accounted for 11.8% of the variance and SPM accounted for 9.9% of the variance. The findings obtained from this work confirm that these strategies block risks at the three major phases of construction projects: design, construction, and operational phases.

ATTITUDES OF CLIENTS TOWARDS UNETHICAL BEHAVIOR IN CONSTRUCTION PROJECTS

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Adnan Enshassi ◽  
Ayat Al Sweity
Keyword(s):  
Unethical Behavior ◽  
Construction Projects ◽  
Gaza Strip ◽  
Code Of Conduct ◽  
Great Difficulty ◽  
Ethical Practice ◽  
Ethical Awareness ◽  
Construction Organizations ◽  
Evaluation Phase ◽  
The Gaza Strip

This paper investigates the attitudes of clients towards unethical behavior in construction projects in the Gaza Strip. A questionnaire survey was adapted in this study. A total number of 220 questionnaires were distributed to construction projects clients and 162 questionnaires were returned, a 73.6% response rate. The results indicated that most respondents agreed there is a positive relationship between ethical behavior and long-term profitability of construction organizations. The majority of respondents believed improving ethical practice for professionals could improve ethical performance in construction projects, while unethical behavior may decrease quality. Respondents indicated the major difficulty in developing a strong ethical awareness is that unethical behavior is the prevailing trend within the industry. Most organizations have an ethical code of conduct, but there is great difficulty in applying it due to political and economic conditions. Respondents agreed that the most serious phase in the construction project life cycle affected by unethical behavior is the construction phase, followed by the bid evaluation phase.

scholarly journals Identifying Political Risk Management Strategies in International Construction Projects

2018 ◽  
Vol 2018 ◽  
pp. 1-11 ◽  
Author(s):  
Tengyuan Chang ◽  
Bon-Gang Hwang ◽  
Xiaopeng Deng ◽  
Xianbo Zhao
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Management Strategies ◽  
Political Risk ◽  
Implementation Phase ◽  
Construction Enterprises ◽  
International Construction ◽  
Political Risks ◽  
Risk Management Strategies ◽  
International Experts

International construction projects are plagued with political risk, and international construction enterprises (ICEs) must manage this risk to survive. However, little attention has been devoted to political risk management strategies in international construction projects. To fill this research gap, a total of 27 possible strategies were identified through a comprehensive literature review and validated by a pilot survey with 10 international experts. Appraisals of these 27 strategies by relevant professionals were collected using questionnaires, 155 of which were returned. Exploratory factor analysis was conducted to explore the interrelationships among these 27 strategies. The results show that all of the 27 strategies are important for political risk management in international construction projects. Moreover, these 27 strategies were clustered into six components, namely, (1) making correct decisions, (2) conducting favorable negotiations, (3) completing full preparations, (4) shaping a good environment, (5) reducing unnecessary mistakes, and (6) obtaining a reasonable response. The 6 components can be regarded as 6 typical management techniques that contribute to political risk management in the preproject phase, project implementation phase, and postevent phases. The findings may help practitioners gain an in-depth understanding of political risk management strategies in international construction projects and provide a useful reference for ICEs to manage political risks when venturing outside their home countries.

Job stress, job burnout and safety performance in the Palestinian construction industry

2015 ◽  
Vol 20 (2) ◽  
pp. 170-187 ◽  
Author(s):  
Adnan Enshassi ◽  
Yasmine El-Rayyes ◽  
Suhair Alkilani
Keyword(s):  
Developing Countries ◽  
Construction Industry ◽  
Job Stress ◽  
Gaza Strip ◽  
Construction Project ◽  
Job Burnout ◽  
Safety Performance ◽  
Content Type ◽  
Construction Organizations ◽  
The Gaza Strip

Purpose – The purposes of this paper are to identify the most significant job-related stressors that influence construction project professionals’ safety, identify the form of stresses and job burnout experienced by construction professionals and investigate the impact of stress and job burnout on safety performance from the perception of construction project professionals in the Gaza Strip construction industry. Construction is characterized as a stressful industry, which influences the safety performance of construction personnel, especially when the stress transfers into burnout. Design/methodology/approach – The views of a variety of construction professionals operating in Gaza Strip were sought using a questionnaire survey. Project managers, project coordinators and site engineers were targeted. Of the 45 questionnaires distributed, 33 were returned. Data were analyzed using the relative importance index (RII), Pearson correlation and regression analysis that used one-way ANOVA test. Findings – Findings revealed that an organizational stressor is the major contributor to physical stress, behavioral stress and job burnout. In addition, the findings showed that construction professionals suffered from emotional stress and invisible burnout. Of significance, the findings revealed that job stresses and job burnout did not affect safety performance in the Gaza Strip construction industry because the first priority for most construction professionals was to maintain permanent employment and, therefore, stresses were often hidden. Research limitations/implications – This study is limited by its small sample size. However, the findings represent novel results, which can be taken into consideration by construction organizations. Practical implications – The findings may help construction organizations in the Gaza Strip to understand job stressors’ factors, which affect construction project professionals to help minimize or eliminate their impact on safety performance and, hence, improve productivity in construction projects. Furthermore, the study promotes personnel health and safety and enhancement of the quality of work and construction workers’ personal life. The recommendation of this study may also apply to other developing countries. Originality/value – The study contributes to the overall body of knowledge relevant to job stress and burnout in the construction industry of developing countries. It draws attention to the interrelationship between stressors, stresses, burnout and safety performance, and it illustrates a new form of burnout that is invisible burnout.

Factors driving contractors to implement energy management strategies in construction projects

2018 ◽  
Vol 23 (3) ◽  
pp. 295-311 ◽  
Author(s):  
Adnan Enshassi ◽  
Abed Ayash ◽  
Sherif Mohamed
Keyword(s):  
Energy Management ◽  
Construction Projects ◽  
Energy Use ◽  
Management Education ◽  
Gaza Strip ◽  
Management Strategies ◽  
Education And Training ◽  
Content Type ◽  
The Gaza Strip ◽  
And Training

Purpose The purpose of this paper is to investigate the factors driving Palestinian construction contractors to implement energy management strategies during the execution of construction projects. Design/methodology/approach The study was conducted by administering a questionnaire that comprised 26 drivers for adopting energy management strategies. Data were collected from 67 contractors in the Gaza Strip. Factor analysis was adopted to explore the underlying relationships among the identified drivers. Findings Drivers were grouped into one of the four categories: economic and financial, institutional and legal, organisational and managerial and educational and informational. The results revealed that the majority of the respondents were of the view that economic and financial factors were the most important factors driving the adoption of energy management strategies by construction companies in the Gaza Strip. Of the economic and financial drivers, the cost savings derived from the adoption of energy management strategies was considered the most important item. Energy management education and training programmes are scarce in the Gaza Strip, and local contractors have no formal energy management education and training. The government needs to allocate sufficient funds for policy implementation and regulation enforcement. Research limitations/implications Difficulties in accessing energy management data are deemed as a limitation to this study, as the topic of energy management in the construction has received no or very little academic attention so far. Practical implications This study provides a valuable reference for studying ongoing research in the practice of energy management development in other industries and locations. The priority of the drivers for energy management will help the local contracting companies to focus on weak and strong points of the company for energy use development to remove these weak points and invest in strong points. This paper results can increase the encouragement for greater social responsibility of the contracting organisations towards energy use. Government and concerned organisations can get benefits from the identified factors in encouraging contractors to adopt energy management strategy in their projects. Originality/value This study is the first investigation of energy management aspects in a local construction industry, especially from contracting organisations.

scholarly journals Towards lean and green thinking in construction projects at Gaza Strip

2018 ◽  
Vol 10 (1) ◽  
pp. 1827-1838
Author(s):  
Nabil I. El-sawalhi ◽  
Bilal Majid Jaber ◽  
Abed Al Shukri
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Gaza Strip ◽  
Green Building ◽  
Economic Benefits ◽  
Lean Construction ◽  
Construction Process ◽  
Green Construction ◽  
Lean And Green ◽  
The Gaza Strip

Abstract Background and problem: Integrating lean and green principles while implementing construction project has become an important aspect of modern construction. Lean construction and green building are used to maxi­mize the economic benefits, address quality, reduce waste and minimize the negative environmental impacts in con­struction. Aims: The objectives of this paper were to measure the degree of knowledge of lean and green approaches in con­struction industry in Gaza Strip and to identify the most important benefits from application of lean and green in construction. Methodology: Literature review and questionnaire survey were used in this study. A total of 155 copies of the questionnaire were distributed randomly to owners, con­sultants and contractors in the Gaza Strip, and 119 copies of the questionnaire were received. Results: The results revealed that the awareness level of lean and green construction by owners, consultants and contractors in the construction industry in Gaza Strip is moderate. There are very important benefits of applying lean and green construction such as “reduce non-useful work that does not add value to work”, “reduce the environmental impact of the construction process” and “saving the money needed to complete the project”. Conclusions: It was concluded that integrating both concepts on projects showed that lean leads to green but not necessarily vice versa. The fields of lean and green thinking, however, have been developed largely independent of each other. There is a big gap in the knowledge and application of the lean construction and the green application.

scholarly journals Risk Factors Affecting the Performance of Construction Projects in Gaza Strip

2020 ◽  
Vol 14 (1) ◽  
pp. 94-104
Author(s):  
Bassam A. Tayeh ◽  
Tareq J. Salem ◽  
Yazan I. Abu Aisheh ◽  
Wesam S. Alaloul
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Risk Factor ◽  
Construction Projects ◽  
Gaza Strip ◽  
Design Factor ◽  
Factors Affecting ◽  
The Gaza Strip ◽  
The Right ◽  
High Level

Background: The construction industry is generally associated with a high level of risk and ambiguity because of the nature of its working contexts. In the Gaza Strip, construction projects are among the riskiest projects, which require the application of the right rules and adherence to the proper management standards. Identification of these risks is the first step in risk management. Aims: This study aims to investigate and understand the main risks faced by the construction projects in the Gaza strip. Methods: A questionnaire survey was conducted to achieve the study aim, whose applicability was tested through a pilot study. Using targeted participants from engineering offices and consulting engineering companies, 70 questionnaires were distributed and collected with a response rate of 85.71%. The Quantitative method was used for data analysis using SPSS. 38 risk factor statements were considered from the seven clusters of risk factors. Results: The results show that the political risk factor was determined to be the highest with a Relative Important Index (RII) of 75.47%, while the design factor was the least factor with an average RII of 61.89%. Conclusion: It is recommended that companies should appoint a specialist in the field of risk management.

The management of risk in a dryland environment

2011 ◽  
pp. 13-21
Author(s):  
D.I. Gray ◽  
J.I. Reid ◽  
D.J. Horne
Keyword(s):  
Risk Management ◽  
Service Providers ◽  
Management Strategies ◽  
Subterranean Clover ◽  
Farming Systems ◽  
Market Risk ◽  
Farm Size ◽  
Forage Crops ◽  
Risk Management Strategies ◽  
Upside Risk

A group of 24 Hawke's Bay hill country farmers are working with service providers to improve the resilience of their farming systems. An important step in the process was to undertake an inventory of their risk management strategies. Farmers were interviewed about their farming systems and risk management strategies and the data was analysed using descriptive statistics. There was considerable variation in the strategies adopted by the farmers to cope with a dryland environment. Importantly, these strategies had to cope with three types of drought and also upside risk (better than expected conditions), and so flexibility was critical. Infra-structure was important in managing a dryland environment. Farmers chose between increased scale (increasing farm size) and geographic dispersion (owning a second property in another location) through to intensification (investing in subdivision, drainage, capital fertiliser, new pasture species). The study identified that there may be scope for further investment in infra-structural elements such as drainage, deeper rooting alternative pasture species and water harvesting, along with improved management of subterranean clover to improve flexibility. Many of the farmers used forage crops and idling capacity (reduced stocking rate) to improve flexibility; others argued that maintaining pasture quality and managing upside risk was a better strategy in a dryland environment. Supplementary feed was an important strategy for some farmers, but its use was limited by contour and machinery constraints. A surprisingly large proportion of farmers run breeding cows, a policy that is much less flexible than trading stock. However, several farmers had improved their flexibility by running a high proportion of trading cattle and buffer mobs of ewe hoggets and trade lambs. To manage market risk, the majority of farmers are selling a large proportion of their lambs prime. Similarly, cattle are either sold prime or store onto the grass market when prices are at a premium. However, market risk associated with the purchase of supplements and grazing was poorly managed.

The Effects of Decision Aid Orientation on Risk Factor Identification and Audit Test Planning

2002 ◽  
Vol 21 (2) ◽  
pp. 39-56 ◽  
Author(s):  
Jean C. Bedard ◽  
Lynford E. Graham
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Decision Aid ◽  
Decision Aids ◽  
Management Strategies ◽  
Risk Identification ◽  
Matched Pair ◽  
Audit Planning ◽  
Audit Firms ◽  
Risk Management Strategies

In auditing, risk management involves identifying client facts or issues that may affect engagement risk, and planning evidence-gathering strategies accordingly. The purpose of this paper is to examine whether auditors' identification of risk factors and planning of audit tests is affected by decision aid orientation, i.e., a “negative” focus wherein client risk and its consequences are emphasized, or a “positive” focus where such factors are not emphasized. Specifically, we expect that auditors will identify more risk factors using a negatively oriented risk identification decision aid, but only when engagement risk is relatively high. We address this issue in the context of auditors' knowledge of actual clients, manipulating decision aid orientation as negative or positive in a matched-pair design. Results show that auditors using the negative decision aid orientation identify more risk factors than do those using a positive orientation, for their higher-risk clients. We also find that decisions to apply substantive tests are more directly linked to specific risk factors identified than to direct risk assessments. Further, our results show that auditors with repeat engagement experience with the client identify more risk factors. The findings of this study imply that audit firms may improve their risk management strategies through simple changes in the design of decision aids used to support audit planning.

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