scholarly journals Risk Management in Construction Project

2018 ◽  
Vol 8 (3) ◽  
Author(s):  
Mahi Raj ◽  
Nakul Kumar Wadsamudrakar
Keyword(s):  
Risk Management ◽  
Information Exchange ◽  
Construction Projects ◽  
Central Element ◽  
Risk Management Process ◽  
History Of ◽  
Project Risks ◽  
Open Discussion ◽  
Project Procurement ◽  
Design Bid Build

This article is intended to describe the concise history of the first Portuguese cements companies (Mining and Industrial Company of Cabo Mondego, General Company of Lime and Cements of Rasca, Cement Company of Tejo, Company of Maceira-Liz, Company of White Cements, Northern Cement Company, South Cement Company) that contributed to the emergence of Cimpor SGPS (current Portuguese cement company).Risks have a significant impact on a construction project’s performance in terms of cost, time and quality. As the size and complexity of the projects have increased, an ability to manage risks throughout the construction process has become a central element preventing unwanted consequences. How risks are shared between the project actors is to a large extent governed by the procurement option and the content of the related contract documents. Therefore, selecting an appropriate project procurement option is a key issue for project actors. The overall aim of this research is to increase the understanding of risk management in the different procurement options: design-bid-build contracts, designbuild contracts and collaborative form of partnering. Deeper understanding is expected to contribute to a more effective risk management and, therefore, a better project output and better value for both clients and contractors. The study involves nine construction projects recently performed in Sweden and comprises a questionnaire survey and a series of interviews with clients, contractors and consultants involved in these construction projects. The findings of this work show a lack of an iterative approach to risk management, which is a weakness in current procurement practices. This aspect must be addressed if the risk management process is to serve projects and, thus, their clients. The absence of systematic risk management is especially noted in the programme phase, where it arguably has the greatest potential impact. The production phase is where most interest and activity are to be found. As a matter of practice, the communication of risks between the actors simply does not work to the extent that it must if projects are to be delivered with certainty, irrespective of the form of procurement. A clear connection between the procurement option and risk management in construction projects has been found. Traditional design-bid-build contracts do not create opportunities for open discussion of project risks and joint risk management. A number of drivers of and obstacles to effective risk management have been explored in the study. Every actor’s involvement in dialogue, effective communication and information exchange, open attitudes and trustful relationship are the factors that support open discussion of project risks and, therefore, contribute to successful risk management. Based on the findings, a number of recommendations facilitating more effective risk management have been developed for the industry practitioners.

scholarly journals AN INVESTIGATION INTO CONTRACTORS’ EVALUATION OF RISKS ASSOCIATED WITH THE JBCC PRINCIPAL BUILDING AGREEMENT IN SOUTH AFRICA

2011 ◽  
Vol 1 (1) ◽  
pp. 1-26
Author(s):  
Ayman Othman ◽  
Nishani Harinarain
Keyword(s):  
South Africa ◽  
Risk Management ◽  
Construction Projects ◽  
Validity And Reliability ◽  
Classification Framework ◽  
Data Collection And Analysis ◽  
Risk Management Process ◽  
Unbiased Manner ◽  
Project Risks ◽  
The Relationship

Construction is a risky business, and risk management is an essential responsibility in managing construction projects and organisations. Hence, construction contracts have been developed to organise the relationship between project participants and manage associated risks. This paper provides an investigation into the contractors’ responses and feedback obtained through the application of an innovative framework developed by the authors towards identifying, quantifying and classifying the risks associated with the Joint Building Contractors Committee Principal Building Agreement Series 2000 (JBCC PBA) in South Africa. Qualitative and quantitative techniques have been used in this study for data collection and analysis. Purposive sampling was adopted to identify the respondents, and 9 construction managers were interviewed. The interviews were structured so that they were carried out in a free and unbiased manner and responding contractors were asked to complete a questionnaire. Analysis of responses showed that the developed Identification, Quantification and Classification Framework (IQCF) is an innovative and accepted tool that is able to fill the gap in managing project risks and will complement current practices. It is seen to be of benefit to firms in assisting with training of employees and helping junior employees understands and uses the JBCC (PBA). Investigating the validity and reliability of the developed framework is of prime importance to ensure its suitability to manage risks associated with the JBCC (PBA). For this reason contractor’s responses and feedback are based on the practical application of the framework which ultimately increases its value and contribution to the construction industry. The adoption and application of the framework will enable contractors to enhance the risk-management process in South Africa.

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.

scholarly journals Network Theory-Based Analysis of Construction Project Risks

2016 ◽  
Vol 5 (2) ◽  
pp. 24
Author(s):  
Hafida Lmoussaoui ◽  
Hicham Jamouli
Keyword(s):  
Risk Management ◽  
Network Theory ◽  
Construction Projects ◽  
Construction Project ◽  
Risk Identification ◽  
Project Risk Management ◽  
Monitoring And Control ◽  
Project Risk ◽  
Novel Approach ◽  
Project Risks

<p>Because of their specific and complex characteristics, construction projects are exposed to numerous risks of various natures, which make their management more difficult. In this setting, Project Risk Management is an indispensable activity for their successful delivery. It consists in the risk identification, assessment, prioritization, treatment, monitoring and control. This paper presents a novel approach for the identification of construction project risks and a network theory-based methodology for their modelling and analysis. These models serve as a powerful tools comparing to classical methods and provide a support for decision-making regarding Project Risk Management. A case study of a real construction project is used to illustrate these findings.</p>

scholarly journals THE EFFECT OF MANAGING RISK PROCESS IN CONSTRUCTION PROJECTS

2020 ◽  
Vol 5 (4) ◽  
pp. 101-114
Author(s):  
Khanm Noori Kaka HamaAttar
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Theoretical Aspect ◽  
Risk Process ◽  
Risk Identification ◽  
Management Process ◽  
Risk Management Process ◽  
Risks Assessment ◽  
Managing Risk ◽  
The Impact

The aim of this study is to get a better understanding for the effect of the set of the risks in the construction projects, in addition to how mitigating these risks in those projects. Indeed risks are frequently playing the same rules, but the nature of project defines the specific risks of the project. The first step in process of risks assessment is identification them. Once risk identification is complete, risk analysis is used to identify the likelihood the risks that have been identified will happen. Thus by using evidence from other research in the area, this study showed the impact of the set of the stages in the risk management process in the construction projects, which were discussed in greater detail in the theoretical aspect of the current study. The findings of the study were revealed the fact that the comprehension of risk and its management has the direct effect of understanding specific issues that involve to the project. In addition to that, the integration of a risk management process at each stage of its stages in construction projects must be oriented to the progress of the project and permeate all areas, functions and processes of the project. In this regard, the most successful project managers maintain open lines of communication throughout their organizations to stay in touch with constituent’s needs.

scholarly journals Risk management in construction projects in Somalia

2021 ◽  
Vol 2 (2) ◽  
pp. 38-41
Author(s):  
Abdirahman Jibril ◽  
Belal A. Shaban
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Construction Projects ◽  
Risk Tolerance ◽  
Construction Companies ◽  
Use Of Resources ◽  
Foreign Countries ◽  
Project Risks ◽  
Negative Impacts ◽  
Building Project

These days, risk management and analysis are serious issues in the effective management of construction projects, because construction projects are likely to be very dynamic, productive, diverse and increasingly competitive. Risk management helps project parties such as clients, contractors and vendors/suppliers to meet their obligations to reduce negative impacts on their works. The outcomes of the risk management method include the analysis and detection of risks, the creation of building project management systems and the efficient use of resources. The aim of this article is to find out how the Somalian construction companies see the value of construction project risks and how to manage it by dispatching a questionnaire. The total questions of the questionnaire are seventeen questions and were distributed by various participants such as clients, contractors and designers. The findings show that in the implementation of risk management techniques, the Somalian construction industry varies greatly from building companies in foreign countries. The contractor needs to consider risk obligations, dynamics of risk incidents, risk tolerance and risk control skills to handle the risks effectively and efficiently. Due to the insufficiency of experience in the attitude of Somalian entrepreneurs towards risk management is very hard to change. However, as a component of their project management, the construction companies must include risk analysis in projects. The application of risk management in Somalian construction companies is small to moderate, with little difference between organizations' types, sizes and risk tolerances and individual respondents' experience.

scholarly journals RISK MANAGEMENT IN PROJECTS: PECULIARITIES OF LITHUANIAN CONSTRUCTION COMPANIES / RIZIKOS VALDYMAS PROJEKTUOSE: LIETUVOS STATYBOS ĮMONIŲ SAVITUMAI

2011 ◽  
Vol 15 (1) ◽  
pp. 60-73 ◽  
Author(s):  
Nerija Banaitienė ◽  
Audrius Banaitis ◽  
Artūras Norkus
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Construction Projects ◽  
Construction Project ◽  
Critical Factor ◽  
Construction Project Management ◽  
Construction Companies ◽  
Use Of Resources ◽  
Risk Management Process ◽  
Negative Impacts

Risk analysis and management is nowadays a critical factor to successful construction project management, as construction projects tend to be more complex, dynamic, always unique, and competition increasingly tougher. risk management helps the project participants—client, contractor or developer, consultant, and supplier—to meet their commitments and minimize negative impacts on construction project scope, cost, schedule (and quality, as a Result). The benefits of the risk management process include identifying and analyzing risks, and improvement of construction project management processes and effective use of resources. This paper reports the research that aims to discover how construction companies perceive the significance of the construction projects risks they face and the extent to which they employ potential risk responses. Santrauka Šiandien rizikos analizė ir valdymas yra svarbūs sėkmingam statybos projektų valdymui, nes statybos projektai tampa vis sudėtingesni, dinamiškesni, visada unikalūs, o konkurencija tarp statybos bendrovių taip pat didėja. Rizikos valdymas padeda projekto dalyviams—užsakovui, plėtotojui, rangovui, konsultantui ir tiekėjui—vykdyti savo įsipareigojimus ir sumažinti neigiamą taką statybos projekto apimčiai, išlaidoms, tvarkaraščiui ir kokybei kaip rezultatui. Rizikos valdymo proceso metu sistemingai nustatomi, analizuojami ir reaguojama į potencialius rizikos veiksnius, todėl statybos projektai valdomi efektyviau, veiksmingai naudojami ištekliai. Šiame straipsnyje trumpai pristatomas tyrimas, kuriuo siekiama sužinoti, kaip statybos bendrovės suvokia statybos projektų rizikos veiksnius, su kuriais jiems tenka susidurti, ir kokią reagavimo strategiją ir atsakomuosius veiksmus jos renkasi.

scholarly journals Prediction of Climate Risk Management in Infrastructure Projects

2019 ◽  
Vol 8 (11S2) ◽  
pp. 268-272
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Climate Risk ◽  
Annual Number ◽  
Project Schedule ◽  
Risk Environment ◽  
Construction Period ◽  
History Of ◽  
Construction Schedule ◽  
The Impact

Risk Management in Construction Project is playing important role to achieve successes of the Project. Risk is in everywhere and every project particularly in construction has innumerable risks occurring before construction and during construction period. Most of the risks are repeatedly occurring but the impact & probability of risk is varying. However, the climate risk may lead to impact the Time, Cost and losing an opportunity Cost of the project. This study is to create a model for risk data collection, risk analysis, risk interpretation with the combination of project schedule and cost, India climate is varying from states to states especially the annual number of raining days different from 10 to 130 days throughout India and its impact the construction schedule 3% to 36% on average, Temperature is verifying for winter (0C to 25C) and summer (25C to 50C) is also impact the productivity of project this will reflected in the Project Cost 1% to 10% on average. The History of Climate we can identify the Climate Risk, Environment Risk, impact the time and Cost. However, this paper is measuring and handling risks to help for upcoming construction projects.

scholarly journals Developing a Risk Management Process for General Contractors in the Bidding Stage for Design–Build Projects in Vietnam

Buildings ◽  
2021 ◽  
Vol 11 (11) ◽  
pp. 542
Author(s):  
Duy-Hoang Pham ◽  
Dang-Huy Ly ◽  
Ngoc-Khue Tran ◽  
Yong-Han Ahn ◽  
Hyeongjae Jang
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Local Level ◽  
Management Process ◽  
Management Objectives ◽  
Risk Management Process ◽  
Design Build ◽  
General Contractors ◽  
Bid Prices ◽  
The Cost

Design–build (DB) projects have become increasingly popular for construction projects in developing countries due to the cost and scheduling advantages and their design optimization ability. As a result, much research has been conducted on improving DB efficiency in terms of cost, scheduling, risk management, etc. However, the existing studies have mainly focused on the owner’s roles, whereas general contractors (GCs) must also take many risks on behalf of owners in DB projects. The adequate identification and assessment of risks before engaging a contractor can increase the likelihood of a project’s success, at least from a DB contractor’s perspective. Therefore, this study interviewed procurement experts to conduct a survey at the local level, then analyzed, developed, and proposed an additional risk management process (RMP) for use by GCs during the bidding process of DB projects. A case study was conducted with a large Vietnamese GC to evaluate the effectiveness of the process and find ways to optimize it in the future. The results of the study showed that risk management during a DB project is imperative. Nevertheless, preparing bids is time-consuming and increases the contingency costs, reducing the competitiveness of the bid prices for contractors. Therefore, depending on the specific project and risk management objectives, an RMP is recommended for adjusting the risk management target to reduce the risk, while still maintaining the competitiveness of the bid prices.

scholarly journals Venturing to the Far Reaches

2005 ◽  
Vol 127 (09) ◽  
pp. 38-40
Author(s):  
Michael Stamatelatos
Keyword(s):  
Risk Management ◽  
Management Process ◽  
The People ◽  
Risk Management Process ◽  
Undesired Event ◽  
Project Risks ◽  
Probabilistic Risk Assessments ◽  
Frequency Probability ◽  
And Control ◽  
Technological Options

This article discusses that it is a testament to the hard work and ingenuity of the engineers working in the space program that such complicated systems get launched successfully. To the people who study it professionally, risk is the probability, or frequency (probability per unit time), and the consequence (severity) of an undesired event, and the uncertainties associated with the estimated probabilities and consequences. NASA has adopted a “continuous risk management” process for all its programs and projects. This process begins with the identification and analysis of program or project risks that impact success criteria. The risk management process continues with risk analysis, planning, tracking, and control. All unacceptable risks are dealt with before a project or program can proceed. Probabilistic risk assessments (PRA) are useful in every phase of a mission life cycle, not just at design or before launch. A PRA performed in the design phase can help identify the risks associated with systems and components and with technological options.

Analysis of Risk in Construction Projects

2019 ◽  
Vol 1 (1) ◽  
pp. 64-69
Author(s):  
B Dhivya ◽  
V Prabu
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Behavioral Pattern ◽  
Survey Questionnaire ◽  
Cross Sectional ◽  
Project Risks ◽  
Key Barrier ◽  
Priority Model ◽  
Current Risk

The construction industry is subject to more risk and uncertainty than any other industry. Most of the participants experience risks in cost and time over runs and many times fail to meet quality standards and operational requirements. Therefore the need to increase the understanding of risk management. In this project, the qualitative analysis of all types of risks except financial and economical risks in the construction projects is done by ‘Risk factor and priority model’. The industry has shifted from risk transfer to risk reduction, current risk management systems are inadequate to manage project risks, and lack of joint risk management mechanisms is the key barrier to adequate risk management. SPSS (Statistical Package for Social Sciences) software is used for statistical analysis of the data collected from respondents. The general methodology of this study relies largely on the survey questionnaire which was collected from the local building contractors of different sizes by mail or by personnel meeting. A thorough literature review is initially conducted to identify the risk factors that affect the performance of construction industry as a whole. The survey questionnaire is designed to problem the cross-sectional behavioral pattern of construction risks in construction industry.

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