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.
Network Theory-Based Analysis of Construction Project Risks
