scholarly journals Risk Management Model using Cause and Effect Analysis in Industrial Building Project

2021 ◽  
Vol 8 (8) ◽  
pp. 227-235
Author(s):  
Oki Oktaviani ◽  
Budi Susetyo ◽  
Bambang Purwoko Kusumo Bintoro

The purpose of this study is to determine the main potential risks that occur in the design planning stage of a construction project, especially in an Industrial Building project. Based on the available literature and the experiences of other authors and practitioners, a list of potential risks was developed. Risks events were initially categorized into technical, project management, commercial and external categories. Risks are evaluated by professional practitioners who have experience in construction projects. The evaluation includes the expected likelihood of the event and its impact on changes in scope of work. This study considers each risk among owners, consultants, contractors and others. The data collected were analyzed qualitatively and quantitatively to assess the severity and impact of the event. The recommended responses to major risks are introduced in this study. Keywords: risk management model, planning stage, industrial building.

2020 ◽  
Vol 6 (4) ◽  
pp. 1365-1375
Author(s):  
Shahid Iqbal ◽  
Nabeel Ehtisham ◽  
Syed Farqaleet K. Bukhari ◽  
Shahid Mahmood

Project Risk management is known as an important workout for the achievement of desired objectives for the construction projects. Success in construction project is quantified by attaining its enactment in terms of project quality, project cost, project time, project safety. Construction projects in Pakistan, typically in the whole world have a high risk of being pointedly late and over budget. However, a bit of schedule and cost related risks are unavoidable in any construction project around the world. It was found out that the engineers were generally nominated earlier the design phase of any project. Due to this reason maximum projects did not get the advantage from SMEs at the planning stage of the project. This study also supports that project managers who are engineers be involved in construction projects site selection, in preliminary budget and schedule development by using good Engineering Management Practices.


Author(s):  
Abdirahman Jibril ◽  
Belal A. Shaban

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murat Gunduz ◽  
Nasser H. Al-Naimi

PurposeDelays occur mostly in the construction process of many projects, which can have a consequent effect on the overall performance of the project in areas such as profitability, efficiency and safety. This study aims to suggest a structure that can be applied to manage construction projects effectively and, thus, to reduce delays. The integrated balanced scorecard (BSC) and quality function deployment (QFD) framework proposed in the present study enabled the identification and ranking of the objectives of the financial perspective and the enablers of construction delay mitigation. This will help construction industry professionals prioritize the enabling factors that influence the financial perspective, thereby helping them focus on the achievement of the most important ones which subsequently results in efficiency. Consequently, more tasks are accomplished with the use of less time and resources as the actions tend to be more narrowly focused on the achievement of the most important factors such as client and contractor-related factors, as opposed to the low-value adding factors.Design/methodology/approachA literature review was conducted to determine the essential factors that would help resolve or reduce delays. A total of 41 mitigation factors (seven financial objectives and 36 enabler objectives) were identified and categorized into four BSC perspectives: financial, client, contractor and project management team, and innovation and learning. Two management tools, the BSC and QFD, were used to develop the system based on the mitigation factors defined.FindingsThe results of this study show that the most significant factors affecting the achievement of the financial objectives of the project are mainly customer-related factors, accompanied by factors related to contractors and project management teams. With the fishbone diagram and cause and effect analysis, the proposed BSC and QFD system provides a long-term approach for all stakeholders to help professionals in the construction industry prioritize and reduce delays more effectively. Moreover, the findings of the present study highlight the utility of the integrated BSC and QFD framework in quantifying the strengths of association of different objectives of the financial perspective and the enablers of construction delay mitigation.Originality/valueThe contribution of this paper to the body of knowledge is the proposed integrated structure for BSC and QFD that can serve as a comprehensive and structural approach to rating the essential enabling delay mitigation factors based on the magnitude of their effects on the financial performance of the project. The proposed framework can be considered a novel tool since this is the first integrated BSC and QFD framework for construction delay mitigation. Finally, the proposed BSC and QFD framework, along with the fishbone diagram and cause and effect analysis, provides a long-term strategy for all stakeholders to mitigate delays. Thus, the proposed integrated BSC and QFD framework can serve as a systematic and structural approach for measuring the strength of influence of the enablers of delay mitigation against the financial perspective.


2018 ◽  
Vol 193 ◽  
pp. 05025
Author(s):  
Irina Vladimirova ◽  
Pavel Zemskov ◽  
Anna Tsygankova

The paper studies the relationship between transaction costs and risk management in the construction projects affecting ecosystem considering economic externalities. Quantitative indicators of the impact of transaction costs on the level of risk in the project are thoroughly investigated. The construction project risk management model based on transaction costs is discussed in detail. Collected and experimental data of the construction project, which has a significant impact on the ecology of the Baikal region in the Russian Federation is analyzed and the uncertainty reduction caused by transaction costs is measured.


2013 ◽  
Vol 838-841 ◽  
pp. 3102-3108
Author(s):  
Boon Hoe Goh ◽  
Byung Gyoo Kang ◽  
Chung Lian Liew ◽  
Wee Kang Choong ◽  
Tuck Wai Yeong

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.


2021 ◽  
Vol 7 (1) ◽  
pp. 69-79
Author(s):  
Muhammad Huzaifa Butt ◽  
Shahid Iqbal ◽  
Muhammad Abubakar Saddique ◽  
Hamza Shahid

In Project Management field “Risk management” has been known as the best and most imperative exercise for the accomplishment of virtuous enactments of the construction projects in Pakistan. Achievement of requisite objectives in construction projects as enumerated by getting its recital in relationships of Project Quality, Project Cost and Project Time in protection of sustainability areas. Construction development improvements in Pakistan, by and large in the territory and the world have a high risk/danger of being definitively late and over financial plan. Whereas a bit of schedule and cost related risks are inevitable in any construction project around the whole world, it is likely to improve risk management plans to diminish their undesirable effect and make the most of positive influence. This research/investigation indorses a very good and systematized risk management method throughout planning stage of the project and with the contribution of construction specialists, end users and engineers.


2012 ◽  
Vol 18 (5) ◽  
pp. 621-630 ◽  
Author(s):  
Wojciech Boejko ◽  
Zdzisław Hejducki ◽  
Mieczysław Wodecki

This work deals with the application of artificial intelligence instruments in a building schedule. In this article there was presented an original optimization scatter search algorithm taking into consideration both technological and organizational restrictions. This algorithm was applied to the real analysis of the industrial building project realization.


2014 ◽  
Vol 672-674 ◽  
pp. 2221-2224 ◽  
Author(s):  
Alexander Ginzburg ◽  
Anastacia Ryzhkova

Construction projects with energy-efficient technologies in use are systems that require more detailed analysis of potential risks than it could be in the evaluation of other construction projects. For that matter it is necessary to take into account non-economic "pure" project risks that are possible in the spheres, which traditional risk management does not consider in-depth. The traditional management of such "pure" risks comes down to estimating the extent of insurance coverage and redundancy in their implementation. Creation of user-friendly program could help investors to assess pure risks quickly and qualitatively and significantly reduce their time and cost spends.


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