Investigating risks of lumpsum contracts in highrise building projects

Abstract

Risks are inevitable in construction projects, especially complex projects such as high-rise building projects. Risk identification helps stakeholders have better success of project management. The study aims at investigating risks of applying lump sum contracts in high-rise projects. The analysis data collected through the survey based on 49 risks explored for literature. The risk effects are ranked by mean values and grouped by a factor analysis technique. The analysis confirms that 25 risks are grouped into five groups: 1) the group of risks of attitude, cognition, and capacity of project personel, (2) the group of risks of delays in project execution, (3) the group of risks of related contract issues, (4) the group of risks of project complexity, and (5) the group of risks of financial capacity of stakeholders. Contractors may utilize the research results as considering signing the lump sum contracts or paying attention during the project implementation.