Abstract
ABSTRACTThere are many risks and uncertainties in plant construction projects, because of their complexity, difficulty in loss prediction and size of construction being large. The risk management of plant construction projects should not be relied solely on experiences and intuition of the contractors or the construction managers as it has been in the past. Therefore, a new quantitative and empirical risk analysis is required, in order for the development of a risk assessment using risk indicators for the plant construction projects. This research used the insurance payout record from a global insurance company to reflect the actual quantitative loss in the risk assessment model for plant construction project. The researchers adopted the geographic information as well as construction information (construction phase and commissioning phase, schedule rate, total duration), as the independent variables, which found to be statistically significant in the analysis in this study. It was found that the relationship between damage ratio and the valid variables was statistically significant, and thus, the damage model is also statistically significant. This research suggests that the regression model containing such valid independent variables could be beneficial in terms of providing foundational guidelines for the plant construction project risk analysis.
Highlights
The plant construction industry holds much in common with general construction, in the sense that 1) production methods vary according to the project location and purpose, 2) it is difficult to judge the effective value of the investment, and 3) it demands high manpower
The regression model proposed in this study is to present quantitative grounds through the model for predicting the appropriate insurance payment for the objective damage compensation of the plant construction project
Plant construction projects require a higher risk management at the commissioning phase compared to general construction projects
Summary
The global low oil prices, which have continued in recent years, are on the reduction trend and plant orders have risen. Plant construction has any differences from the general construction; the equipment supplier interface directly or indirectly affects the design and construction, since the equipment is produced in special order according to the project, compared with the general construction using the standardized parts. Due to such distinctive features, the plant construction business holds a relatively high risk. This study aims to 1) analyze the cause of accidents as per the specific aspects of different plant construction projects (construction/commissioning, schedule, landform and total duration) based on the actual plant construction damage compensation insurance data, and to 2) develop a loss predictive regression model in order to understand the quantified management factors of plant construction risks
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
