Relationships among Risk Management, Partnering, and Contractor Capability in International EPC Project Delivery

Abstract

AbstractEngineering-Procurement-Construction (EPC) method has become commonly adopted in international construction markets, in which contractors bear enormous risks. Previous studies suggest the need to improve contractors’ risk management by partnering with project participants and enhancing their organizational capability. Nevertheless, limited research has systematically and quantitatively addressed the causal relationships among them. This study quantifies the relationships among these themes via the development and validation of a conceptual mediation model. With supporting data from Chinese contractors, this research outlines the statuses on contractors’ risk management, application of partnering, and their organizational capability. Path analysis validates that partnering not only effectively facilitates risk management via promotion of contractor capability but also directly enhances risk management. Canonical correlation analyses further reveal the different degrees to which partnering critical ...