scholarly journals Loss Assessment for Sustainable Industrial Infrastructure: Focusing on Bridge Construction and Financial Losses

2020 ◽  
Vol 12 (13) ◽  
pp. 5316 ◽  
Author(s):  
Ji-Myong Kim ◽  
Taehui Kim ◽  
Sungjin Ahn
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
New Technologies ◽  
Rapid Development ◽  
Significant Risk ◽  
Sustainable Construction ◽  
Insurance Company ◽  
Estimation Model ◽  
Bridge Construction ◽  
Financial Losses

Bridges are important infrastructures for urban growth and the economic development of a country, because bridges allow a large volume of logistics and transportation by connecting rivers, canyons, islands and lands. As such, massive resources including financial, material and human resources are invested for bridge construction and management. However, although the latest bridge construction is undergoing rapid development of new technologies and designs, the management and prevention of risks still tend to rely on qualitative practices, which, as a result, calls for more quantified and systematic measurement and, thus, more sustainable management of potential risks. As part of efforts in managing risks to achieve quantitative risk management, this study aimed to predict losses of financial resources by identifying statistically significant risk factors based on the past record of insurance claim payouts (compensation for a loss that occurred as a result of a material damage in bridge construction projects) from a major insurance company in Korea, and conducted a multiple regression analysis to identify the loss indicators and to develop a loss estimation model. The statistical analysis confirmed that superstructure types, superstructure construction methods, and construction duration are the three significant risk factors that affects financial losses of bridge construction projects among the seven variables adopted as independent variables, which included the superstructure type, maximum span length, superstructure construction method, foundation type, floods, typhoons, and construction duration. Such findings, and the consequentially developed risk prediction model of this study, will contribute to sustainable construction management through cost reduction by predicting and preventing the future financial loss factors of bridge construction.

scholarly journals Sustainable Risk Assessment through the Analysis of Financial Losses from Third-Party Damage in Bridge Construction

2020 ◽  
Vol 12 (8) ◽  
pp. 3435 ◽  
Author(s):  
Sungjin Ahn ◽  
Taehui Kim ◽  
Ji-Myong Kim
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Third Parties ◽  
Assessment Model ◽  
Third Party ◽  
Risk Indicators ◽  
Insurance Company ◽  
Bridge Construction ◽  
Foundation Type ◽  
Financial Losses

Due to the recent introduction of innovative construction methods and technologies, construction projects increasingly require sustainability in their high degrees of specialization and complex work processes. This is due to a wide variety of new risk factors associated with construction projects that can lead to extensive and severe damage. When an accident occurs during a construction project, it can cause material, property, or bodily damage not only within the actual construction site but also outside, affecting third parties. This study analyzed the record of such third-party damage and the subsequent financial losses in bridge construction management, to identify the objective and quantified relationship of risk indicators related to the damage and losses. In order to assess the actual losses in construction projects, we adopted the loss claim payout data as recorded and provided by a major Korean insurance company, and conducted a multiple regression analysis to identify the loss indicators and to develop a loss estimation model. In this study, the analysis of the data indicated that the superstructure type, the foundation type, floods, and company ranking by the amount of the contract were the four statistically significant risk indicators that affected financial losses from third-party damage, among the nine variables used as independent variables, which included the superstructure type, foundation type, superstructure construction method, maximum span length, floods, typhoons, total construction cost, total construction period, and company ranking. As this study focused on identifying the risk factors and producing a loss assessment model quantified in numerical values, the results provide important references for assessing and minimizing the risks to third parties and the consequential financial losses in bridge construction, while promoting sustainability objectives.

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 A Suggested Module for Risk Framework of Water Control Construction Projects using Qualitative and Quantitative Techniques

2020 ◽  
Vol 9 (3) ◽  
pp. 1448-1454
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Quantitative Analysis ◽  
Construction Projects ◽  
Control Strategies ◽  
Significant Risk ◽  
Water Control ◽  
Global Challenge ◽  
Managing Risk ◽  
The Cost

Managing risk is an integral part of sound management and risk management helps to achieve projects objectives. Although the process of risk management is standardized to a great extent, risk control strategies depend on project circumstances and feature. One of the essential humanity’s challenges in the future, is surely ensuring water needs. Equitable and sustainable management of water resources is a major global challenge, and supply of clean fresh water is decreasing around all nations. Egypt is one of the countries hardest affected by climate change. Also challenges include population growth, increase in food demand and Lack of water and energy Leads to let managing risk for construction of water control structures projects on water streams in Egypt becomes more challenging and essential than ever before. Moreover, this study aims to show the effect of risk on cost and time targets for water control structure projects in Egypt .This study mainly identify a list of significant risk factors effecting on cost and time for these type of projects in Egypt through studying pervious publishing for risk management in construction projects and a questionnaire survey , then conducting a qualitative analysis using a Severity and Probability matrix (S/P matrix) techniques to assess the influence of risk factors and to isolate critical risk factors for a quantitative analysis. Finally, conducting a quantitative analysis by mean of Analytical Hierarchy Process (AHP) to determine the cost and time contingency, s the conclusion of this study shows that the cost contingency needed to account for the different critical risk factors is to increase the estimated cost by 12.35 % on the total estimated budget of the project. In addition that the time contingency needed to consider for different critical risk factors is to increase the scheduled time by 11.25% over the total originally scheduled of the project

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.

Significant risk factors in construction projects: Contractor's perception

2012 ◽  
Author(s):  
Nur Alkaf Abd Karim ◽  
Ismail Abd. Rahman ◽  
Aftab Hameed Memmon ◽  
Nurhidayah Jamil ◽  
Ade Asmi Abd. Azis
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Significant Risk

Identification of risk patterns in Vietnamese road and bridge construction

2017 ◽  
Vol 7 (1) ◽  
pp. 59-72 ◽  
Author(s):  
Chau Ngoc Dang ◽  
Long Le-Hoai ◽  
Soo-Yong Kim ◽  
Chau Van Nguyen ◽  
Young-Dai Lee ◽  
...  
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Bridge Construction ◽  
Content Type ◽  
Construction Companies ◽  
Related Data ◽  
Foreign Companies ◽  
Actual Risk ◽  
Real Risk ◽  
Different Types

Purpose The purpose of this paper is to identify risk patterns of road and bridge projects in Vietnam, where the construction market is emerging but attractive to construction organizations, especially foreign companies. Design/methodology/approach Using a questionnaire, experienced practitioners of various contractors were interviewed to collect risk-related data in terms of actual likelihood and impact from road and bridge construction projects in Vietnam. Using the collected data of actual likelihood and impact, the specific probability and impact of risk factors were determined for different types of road and bridge projects, including small and medium type, big type, government-funding type, and other-funding type (e.g. official development assistance funds, public-private partnership). Findings The results of analysis indicate the specific probability and impact of risk factors in four risk themes, including contractor-related, project-related, owner-related, and external risks. Actual risk patterns for different types of road and bridge projects in Vietnam were identified. Practical implications The identification of actual risk patterns could help practitioners to know which risk factors are severe in frequency and/or impact. Hence, they could establish proper strategies to manage risk-related problems of road and bridge projects, in which they are directly involved. Originality/value The findings of this study could provide construction companies, especially foreign companies, with a better understanding of real risk panorama in Vietnamese road and bridge construction. Hence, they could make effective improvements on risk management of road and bridge projects in Vietnam.

APPROACHES TO ACCOUNTING RISKS OF LOSS OF COMPETITIVENESS OF SPACE SERVICES AND SERVICES

2020 ◽  
Vol 1 (7) ◽  
pp. 30-35
Author(s):  
A. V. YUDIN ◽  
◽  
E. M. MORDANOVA ◽  
Keyword(s):  
Risk Factors ◽  
Remote Sensing ◽  
New Technologies ◽  
Rapid Development ◽  
The Earth ◽  
Level Of Risk

In the conditions of rapid development of new technologies in the field of space services and services (including remote sensing of the Earth), the issue of maintaining the competitiveness of these services and services is gaining significant importance. Effective competitiveness management is not possible without tools for diagnosing probable risk factors, and therefore, the author’s model for determining the level of risk of loss of competitiveness of space services and services is of significant relevance.

SCHEDULE RISK ASSESSMENT IN GREEN BUILDING PROJECTS

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Asli Pelin Gurgun ◽  
Hasan Gokberk Bayhan ◽  
Gul Polat ◽  
Harun Turkoglu
Keyword(s):  
Risk Factors ◽  
Risk Assessment ◽  
Construction Projects ◽  
Significant Risk ◽  
Green Building ◽  
Building Projects ◽  
Schedule Risk ◽  
Potential Risks ◽  
Potential Impact

Construction projects are subjected to a variety of risks eventually affecting the overall duration and green building projects are no exception. Use of risk assessment means in such projects is also critical to complete them within aimed schedule. In this study, risks that have potential schedule impacts in certified green building projects are identified and their impact and likelihood of occurrence values are researched. For this purpose, a survey is administered to construction professionals with green building experience. Based on the responses, risks are plotted to draw their potential impact on schedule/likelihood of occurrence in a graph to identify the most significant risk factors. This tool may help the practitioners to identify and prioritize potential risks and allocate resources in projects accordingly to prevent or minimize their possible impacts.

scholarly journals ALGORITHM FOR REDUCING THE RISK FACTORS OF TEMPORARY BRIDGE CONSTRUCTION PROJECTS BASED ON THEIR ASSESSMENT

2020 ◽  
Vol 1 (4) ◽  
pp. 168-171
Author(s):  
Фан Ван Чуен ◽  
Капустина Надежда Валерьевна
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Bridge Construction
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