Adopting a QCA Approach to Investigating the Risks Involved in Megaprojects from Auditing Perspective

Miao Cui,Liang Ma,Bing Zhang,Ruoyu Jin

doi:10.1155/2019/4037859

Abstract

There is an increase of megaproject construction worldwide. At the same time, risks involved in megaprojects have also become a wide concern. Extending from the macrolevel of qualitative analysis focusing on complexity, politics, and morality, the research conducted the microscopic empirical analysis on twenty-two typical cases by adopting the quality comparative analysis (QCA) from the auditing perspective. Different from the traditional analysis method taking each causation as independent variable, the results in the study revealed that there was complex multiple concurrent causation among eight conditions; additionally, the configuration of those would be divided into six types, among which, the coverage of the three types, namely, project management risk, preliminary and construction risk, and tendering and contract management related risk, was almost eighty percent. Finally, megaproject risks in China were caused by complicated and changeable combination conditions, which would provide a new breakthrough for seeking analyzing megaproject risks through this quantitative analysis method, and indicate the researchers and practitioners to control the megaproject risks from a more systematic way.

Highlights

As a special means of economic control, megaproject auditing provides an opportunity to uncover those misconduct issues by financial and compliance audits, which detect and combat those unethical practices in those megaprojects, to ensure fundamental project principles with appropriate practices
Megaproject risks in China were caused by complicated and changeable combination conditions, which would provide a new breakthrough for seeking analyzing megaproject risks through this quantitative analysis method, and indicate the researchers and practitioners to control the megaproject risks from a more systematic way
The raw coverage of this configuration is 0.167 and contains 6 conditions, and there are five core conditions except Req, and, except Pro, the other five conditions of bidding and contract management regulations (Bid), quality management regulations (Qua), construction management regulations (Con), Inv, and Req are all the presence of conditions. This configuration of megaproject risks via auditing is mainly caused by the uncontrollable tendering and contract management, the process of tendering of megaprojects is in chaos, and even the tendering system is virtually nonexisting, i.e., set unseasonal terms in the bidding documents to exclude potential bidders, and turn the whole projects into several parts to avoid tendering, there is illegal subcontracting, as a result, it is difficult to select qualified megaproject contracts, and it is inevitable that the megaproject quality cannot meet the requirements, and the investment is out of control and the other construction management problems emerge endlessly

Summary

Introduction

As a special means of economic control, megaproject auditing provides an opportunity to uncover those misconduct issues by financial and compliance audits, which detect and combat those unethical practices in those megaprojects, to ensure fundamental project principles with appropriate practices. Megaproject auditing is a cornerstone of good megaproject governance, which is an “immune system” and watchdog of megaprojects It plays a significant role in improving the ability of megaproject management, preventing the risks, and ensuring fundamental project management principles among megaproject design, tender, construction, and settlement phase [1]. It helps public organization achieve accountability and integrity, as well as improving operation [1]. The study revealed that there was complex multiple concurrent causation among eight conditions for megaproject risk; the configuration of those would be divided into six types, among which, project management risk, preliminary and construction risk, and tendering and contract management related risk were almost eighty percent. All the entities in the market should work together to handle the various risks from megaprojects

Literature Review

Research Method and Data Description

Findings

Conclusions