scholarly journals Success Factors for Project Risk Management in Construction Projects: A Vietnam Case Study

2020 ◽  
Vol 12 (2) ◽  
pp. 63
Author(s):  
Nguyen Le ◽  
Oswald Chong ◽  
Dean Kashiwagi
Keyword(s):  
Risk Management ◽  
Developing Countries ◽  
Construction Industry ◽  
Construction Projects ◽  
Success Factors ◽  
Rank Order ◽  
Success Factor ◽  
Project Risk Management ◽  
Extensive Literature ◽  
Project Risk

Despite being one of the oldest industries in human history, the modern construction industry is still suffering from delays, cost overruns, and low satisfaction levels. As construction activities greatly contribute to economic growth for any nation, the study of how to achieve success in construction projects should be continuously developing and attracting scholars’ attention. The Vietnam Construction Industry (VCI) is no exception. The economy in Vietnam has been growing fast and steady with significant contributions from construction activities. The VCI also faces unique risks pertaining to the conditions of developing countries that require a separate study on project risk management strategies. This paper focuses on a survey that is adopted from 23 Critical Success Factors (CSFs) pertaining to common construction risks in the VCI. Factors were found through extensive literature reviews, and inputs were solicited from 101 VCI participants. The participants ranked those CSFs with respect to impact to project success. The study reveals the top five impactful CSFs such as all project parties clearly understand their responsibilities, more serious consideration during contractor selection stage, test contractors’ experience and competency through successful projects in the past, project team members need to be well matched to particular projects, and promote pre-qualification of tenders and selective bidding. Spearman’s rank-order correlation tests determined no significant differences between the participating groups. Factor analysis was conducted to explore the principal success factor groupings and yielded four outcomes – Improving Management Capability, Adequate Pre-Planning, Stakeholders’ Management, and Performance-based Procurement. The findings lay the foundation to understand project management in developing countries and assist project managers in planning and forming strategies to ensure high performance in their projects.

scholarly journals Risk management in construction sector

2020 ◽  
Vol 8 (2) ◽  
pp. 237-243
Author(s):  
Oğuzhan Yavuz Bayraktar
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Management System ◽  
Construction Projects ◽  
Cyclic Process ◽  
Project Risk Management ◽  
Construction Sector ◽  
Monitoring And Control ◽  
Project Risk ◽  
Risk Management System

The major requirement of every construction project is meeting client’s need of cost, quality and time. However, the construction industry is overwhelmed with risks more than any other industry due to the fact that they are present in every activity from design to completion. These risks need to be controlled early or face the possibility of cost overruns, time delays and poor quality work leading to displeasure of client and public. Although risk management in construction projects is a very important issue in terms of the firms operating in the construction sector, it has not yet gained clarity and prevalence in our country. Within the scope of this research, the aim of this research is to introduce the risk management system as a concept and to classify the risk in construction projects and to demonstrate the risk management techniques. Risk management system is a cyclic process. In the monitoring and control phase of applied risk responding strategies, some of the risks will be eliminated or reduced, some of unforeseen risks will appear and analysis steps will be realized again. At the end of the project, determination of to what degree project aims and targets have been reached and documentation of risk management system after evaluation regarding to the project will enable the company to use project risk management system more effectively and usefully in the projects undertaken later. Due to construction activities, processes, environment and organization’s structures, construction industry and the clients are broadly in relation with high risk degrees. Therefore, it is highly important for our country’s firms in construction industry to give necessary significance to project risk management idea and system and to consider them as a basic function of the projects for permanence of their enterprise existence.

scholarly journals Risk management in construction sector

2020 ◽  
Vol 8 (2) ◽  
pp. 237-243
Author(s):  
Oğuzhan Yavuz Bayraktar
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Management System ◽  
Construction Projects ◽  
Cyclic Process ◽  
Project Risk Management ◽  
Construction Sector ◽  
Monitoring And Control ◽  
Project Risk ◽  
Risk Management System

The major requirement of every construction project is meeting client’s need of cost, quality and time. However, the construction industry is overwhelmed with risks more than any other industry due to the fact that they are present in every activity from design to completion. These risks need to be controlled early or face the possibility of cost overruns, time delays and poor quality work leading to displeasure of client and public. Although risk management in construction projects is a very important issue in terms of the firms operating in the construction sector, it has not yet gained clarity and prevalence in our country. Within the scope of this research, the aim of this research is to introduce the risk management system as a concept and to classify the risk in construction projects and to demonstrate the risk management techniques. Risk management system is a cyclic process. In the monitoring and control phase of applied risk responding strategies, some of the risks will be eliminated or reduced, some of unforeseen risks will appear and analysis steps will be realized again. At the end of the project, determination of to what degree project aims and targets have been reached and documentation of risk management system after evaluation regarding to the project will enable the company to use project risk management system more effectively and usefully in the projects undertaken later. Due to construction activities, processes, environment and organization’s structures, construction industry and the clients are broadly in relation with high risk degrees. Therefore, it is highly important for our country’s firms in construction industry to give necessary significance to project risk management idea and system and to consider them as a basic function of the projects for permanence of their enterprise existence.

scholarly journals Measuring the performance of project risk management: a preliminary model

2019 ◽  
Vol 11 (1) ◽  
pp. 1984-1991
Author(s):  
Alfredo Federico Serpell ◽  
Ximena Ferrada ◽  
Larissa Rubio
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Research Literature ◽  
Lessons Learned ◽  
Project Risk Management ◽  
Project Risk ◽  
Know How ◽  
Construction Companies ◽  
Important Concern ◽  
Preliminary Model

Abstract The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM process.

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 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 Critical success factors for implementing risk management systems in developing countries

2016 ◽  
Vol 16 (1) ◽  
pp. 18-32 ◽  
Author(s):  
M.Reza Hosseini ◽  
Nicholas Chileshe ◽  
Jacqueline Jepson ◽  
Mehrdad Arashpour
Keyword(s):  
Risk Management ◽  
Developing Countries ◽  
Knowledge Management ◽  
Construction Projects ◽  
Critical Success Factors ◽  
Success Factors ◽  
Management Practices ◽  
Management Systems ◽  
Construction Education ◽  
Critical Success

A review of published studies on risk management in developing countries reveals that critical success factors for implementing risk management has remained an under-researched area of investigation. This paper is aimed at investigating the perceptions of construction professionals concerning the critical success factors (CSFs) for implementation of risk management systems (IRMS). Survey data was collected from 87 construction professionals from the Iranian construction industry as a developing country. The results indicate that four factors are regarded as highly critical: ‘support from managers’, ‘inclusion of risk management in construction education and training courses for construction practitioners’, ‘attempting to deliver projects systematically’, and ‘awareness and knowledge of the process for implementing risk management’. Assessing the associations among CSFs also highlighted the crucial role of enhancing the effectiveness of knowledge management practices in construction organisations. Study also revealed that parties involved in projects do not agree on the level of importance of CSFs for implementing risk management in developing countries. This study contributes to practice and research in several ways. For practice, it increases understanding of how closely knowledge management is associated with the implementation of risk management systems in developing countries. For research, the findings would encourage construction practitioners to support effective knowledge management as a precursor to higher levels of risk management implementation on construction projects. 

Application of Risk Significance Index Score to Construction Projects in Malaysia

2013 ◽  
Vol 838-841 ◽  
pp. 3102-3108
Author(s):  
Boon Hoe Goh ◽  
Byung Gyoo Kang ◽  
Chung Lian Liew ◽  
Wee Kang Choong ◽  
Tuck Wai Yeong
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Literature Review ◽  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Index Score ◽  
Project Risk ◽  
Interview Survey ◽  
Potential Risks

Risk management is one of the most important areas in project management particularly in the construction industry. However it is not possible to analyze all of the potential risks as it will require too much time and effort. Therefore in order to identify and analyze the significant risks, the risks should be categorized and ranked. This research applied the concept of risk significance index score to construction projects in Malaysia. A comprehensive list of 40-potential risks has been developed through literature review and an interview survey. A questionnaire survey was conducted to produce project risk significance index score for the risks. The ranks of the risks have been identified and solutions for the significant risks have been produced through interviews. This research proves the practical use of risk significance index score for construction projects in Malaysia.

scholarly journals Construction Risks in Developing Countries: A Vietnam Case Study

2020 ◽  
Vol 12 (1) ◽  
pp. 30-49
Author(s):  
Nguyen Le ◽  
Oswald Chong ◽  
Kenneth Sullivan
Keyword(s):  
Risk Factors ◽  
Developing Countries ◽  
Construction Projects ◽  
Rank Order ◽  
Extensive Literature ◽  
Cost Overruns ◽  
Legal Information ◽  
Financial Difficulties ◽  
Common Risk Factors

Most construction projects in the developing countries are marred with delays, cost overruns and low satisfaction levels. This paper focuses on analysis of the data collected from a survey that include the twenty-three (23) common risk factors that cause non-performance in construction projects in developing countries. The factors were consolidated from an extensive literature review, and inputs were solicited from 103 construction practitioners in Vietnam. The study reveals the top five risk factors as the bureaucratic administrative system, financial difficulties of owner, slow payment of completed works, poor contractor performance, financial difficulties of contractor. Spearman’s rank-order correlation tests determined no significant differences between the participating groups. Factor analysis explored the correlations among the risks and yielded four outcomes – Lack of Site and Legal Information, Lack of Capable Managers, Poor Deliverables Quality, and Owner’s Financial Incapability. The findings lay the foundation for stakeholders in the developing countries’ construction industry to better plan and manage the risks for their projects and investment and develop innovative solutions to improve their construction project performances.

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