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.

Concepts of Risk in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 644-649
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Projects ◽  
Financial Risk ◽  
Construction Project ◽  
Cost Effective ◽  
Interest Rate Risk ◽  
Market Theory ◽  
Productivity Cost ◽  
Planning Stage

Risk is a part of business endeavours because of uncertainty (Flanagan and Norman 1993; Fischer and Jordan 1996). 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). These forms of risk are fundamental to the construction and the insurance industries.( Tah et al. 1993) . 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 . 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 web- based tool can be used by decision -makers during the pre-planning stage of construction projects to estimate cost and duration implications of various risk occurrence scenarios, determine contingencies and prepare risk management plans . In this research the author considered all key articles in the related research streams in recent 30 years and analyzed the risk management views in order to identify key risk factors and its impact on the construction projects.

scholarly journals Risk Management Analysis of Follow-up Audit in the Construction Stage of Construction Projects

2021 ◽  
Vol 2 (2) ◽  
Author(s):  
Yongjun Luo
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Project Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Project Management ◽  
Construction Process ◽  
Construction Stage

The construction project serves as one of the most important projects in the construction industry. The high cost and the particularity in the implementation generate high risks in the investment and construction process. Over the years, the development of construction project management methods has promoted the management of risk factors. This paper reviews the suggestions of risk management of follow-up audit in construction stage and evaluates its application in construction projects.

scholarly journals A review of causes of variation order in the construction of terrace housing projects in Malaysia

2019 ◽  
Vol 277 ◽  
pp. 03013
Author(s):  
Noraziah Mohammad ◽  
Zabidi Hamzah
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Extensive Literature ◽  
Time Cost ◽  
Construction Time ◽  
Building Projects ◽  
Housing Projects ◽  
Building Project

Variation order refers to any changes from the scope, plan, specification or contract document in the construction project. This changes of work is a common problem in construction projects in Malaysia. It is inevitable in any construction project and this problem can become more serious when variation order causes work progress to be impaired as a results it increased the construction time and cost that affects the construction industry in Malaysia. This paper critically review the causes of variation order in the construction industry on the double-storey terrace housing project in Malaysia. The discussions began with the construction industry in Malaysia and then related parties involved in the construction industry. The extensive local and abroad literature review on the definitions of variation order and analysis of past studies conducted on variation order and the previous study of the prediction model of variation. The extensive literature on variation order in the construction of building project may help to improve the performance in term of time, cost and quality of the construction of building projects in Malaysia.

scholarly journals A Study on Construction Risks Prioritization and its Management

2018 ◽  
Vol 7 (3.12) ◽  
pp. 822
Author(s):  
Subramanyam B ◽  
Nycilin Karunya.Nemi Chandran
Keyword(s):  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Development Process ◽  
Direct Costs ◽  
Bodily Injury ◽  
Proposed Model ◽  
Model Set ◽  
Management Techniques ◽  
Financial Losses

Construction industry is an important industry and remains so with the continuation of the development process especially in the developing countries. On the other it is very risk and hazard. As industry when compared to other industries financial losses and bodily injury and death, and resulting human, social impacts are more in the case of construction.  Mishaps also contain significant costs that are not insurable. Financial deliberations contains direct costs like medical reimbursement and  hidden costs includes loss of competence by breaking up crew, cost to train fresh or changed employee, damage to equipment and tools, cost experienced by delays. Many researchers have been suggested risk management techniques to minimize the losses in the industry and very few companies may be implemented the suggestions.  The goal of this study is to recognize and rank risks in construction projects. This study proposes the hierarchical dependencies between the criteria. The variations and factors have been investigated via questionnaire and is an element of an on-going research into the application of risk management in major projects. To know the performance and applicable of proposed model set of data collected from different industries by using the informal approaches such as intuition and experiences the study is conducted to prioritize and manage risks. 

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.

Risk ranking and analysis in PPP water supply infrastructure projects

Facilities ◽  
2015 ◽  
Vol 33 (7/8) ◽  
pp. 428-453 ◽  
Author(s):  
Ernest Effah Ameyaw ◽  
Albert P.C Chan
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Water Supply ◽  
Management Practices ◽  
Demand Forecasting ◽  
Significant Risk ◽  
Mitigation Strategies ◽  
Extensive Literature ◽  
Water Projects ◽  
Content Type

Purpose – This paper aims to identify and evaluate the most significant risk factors that strongly affect the implementation of public–private partnership (PPP) water supply projects. PPP for water supply infrastructure services has seen continued growth over the past two decades, following public sector’s budgetary constraints and inability to provide infrastructure-based water services efficiently and cost effectively. However, these projects are often subjected to major risks leading to failures. Design/methodology/approach – Following extensive literature review and case study analyses, an international questionnaire survey was conducted with practicing and experienced PPP experts to establish the significant risks in PPP water projects. Both the probability of occurrence and severity of 40 risks were evaluated by the expert panel to determine their significance and impact on water projects procured under the PPP arrangement. Findings – The paper presents a derived risk factor list, ranks the factors and describes the “top-ranked” risk factors as: poor contract design, water pricing and tariff review uncertainty, political interference, public resistance to PPP, construction time and cost overrun, non-payment of bills, lack of PPP experience, financing risk, faulty demand forecasting, high operational costs and conflict between partners. Originality/value – This factor list broadens PPP stakeholders’ view of important project risks, rather than relying on culture-dependent studies – an area that has received less attention in PPP risk management research. The identified risk factors would provide governments and investors a useful tool in implementing constructive water PPPs by facilitating the development of risk mitigation strategies, particularly for developing countries with poor risk management practices.

scholarly journals Prospects for the adoption of Agile Project Management techniques in Nigerian construction industry

2021 ◽  
Vol 40 (3) ◽  
pp. 357-362
Author(s):  
O.P. Esangbedo ◽  
D.E. Ealefoh
Keyword(s):  
Project Management ◽  
Construction Industry ◽  
Team Performance ◽  
Construction Projects ◽  
Construction Project ◽  
Project Delivery ◽  
Survey Method ◽  
Agile Project Management ◽  
Management Techniques ◽  
The Individual

Persistent failure of construction projects to meet clients’ objectives has compelled a review of the extant systems for project delivery. This study assessed the prospect of adopting Agile Project Management (APM) for construction project delivery in Lagos State. To achieve this, the study examined the level of awareness of APM among construction stakeholders and developed a SWOT model for the adoption of APM technique for construction projects. The research adopted survey method using questionnaire. The study sample involved 196 construction stakeholders. Data obtained were analysed using Mean Score and Fussy Set Theory. The result showed that stakeholders’ level of awareness about the individual methodologies of APM is high. There are also weighty strengths, weaknesses, opportunities and threats in the adoption of APM in construction project delivery. The level of awareness among stakeholders portrays high prospects for APM adoption. However, there is need to embed trust, cooperation and improved team performance.

scholarly journals ASSESSMENT OF HEALTH AND SAFETY RISK (OHS) USED OHSAS VARIABLES WITH HIRA, HAZID AND HAZOP METHOD (CASE STUDY OF PROJECT CIPUTRA WORLD PHASE 3, SURABAYA)

2019 ◽  
Vol 3 (1) ◽  
pp. 28
Author(s):  
Anita Trisiana ◽  
Dwi Sanjaya ◽  
Anik Ratnaningsih
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Occupational Health ◽  
Construction Projects ◽  
Construction Project ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Phase 3 ◽  
Contract Workers

Implementation of the construction project is very necessary for the existence of risk management. It is necessary to anticipate and handle risks in construction projects because of the project's construction one such risk of occupational health and safety (OHS). So the need for the identification, assessment, analysis to anticipate the risks involved. According to OHSAS (18001:2007), OHS is all the conditions and factors that affect, or may affect, on the health and safety of employees or other workers (including contract workers and personnel contractors, or others in the workplace). The purpose of this research is to know the risk factors and the risk of dominant and controlling risks in the project. The methods used in this research is a method of HAZID, HAZOP, and HIRA. The results obtained, there are 48 types of risk factors, 47 with the medium category, and 1 with a low category. There are five dominant risks and 12 risk controls. Implementation of the construction project is very necessary for the existence of risk management. It is necessary to anticipate and handle risks in construction projects because of the project's construction one such risk of occupational health and safety (OHS). So the need for the identification, assessment, analysis to anticipate the risks involved. According to OHSAS (18001:2007), OHS is all the conditions and factors that affect, or may affect, on the health and safety of employees or other workers (including contract workers and personnel contractors, or others in the workplace). The purpose of this research is to know the risk factors and the risk of dominant and controlling risks in the project. The methods used in this research is a method of HAZID, HAZOP, and HIRA. The results obtained, there are 48 types of risk factors, 47 with the medium category, and 1 with a low category. There are five dominant risks and 12 risk controls.

scholarly journals Risk identification in tunnel construction project: A literature review

2020 ◽  
Vol 18 (3) ◽  
pp. 261-286
Author(s):  
Sihombing Mauretta ◽  
Humiras Purba ◽  
Aleksander Purba
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Literature Review ◽  
Construction Project ◽  
Road Construction ◽  
Risk Identification ◽  
Tunnel Construction ◽  
Extensive Literature ◽  
Construction Work

Every construction project is always faced with the possibility of various occurrence kinds of risks. The higher the level of complexity of a project, the greater the level of risk that might happen to the project. Based on historical data from tunnel construction many problems and even failure of tunnel construction caused by various factors has been noted and it can have an impact on project delays. A risk management is expected to reduce the adverse impact of risks faced during construction work. Tunnel construction needs management handling with high risk, so it is necessary to identify risks that can minimize bad risks. A risk management is expected to reduce the adverse effects of risks faced in a construction work. It is necessary to perform risk identification to manage the risks that we will face. To successfully improve the performance of tunnel projects, we need to identify various risk factors in a project for efficient project fulfillment. The research method begins with an extensive literature review by reviewing at least 48 journal, journal papers, review articles to provide a list of the main risk factors which are also added to the expertise to achieve a list of final risk factors that contain all risks that may be encountered during road construction. This analysis involves the identification, classification of various risks involved in the construction of a tunnel construction project.

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