Construction Project Risk Research Articles

Evaluation of bidding risk for wind farm construction projects

With the rapid development and expansion of wind power generation capacity in China, the risk of wind farm construction projects has been paid more and more attention. Based on the method of can-expandable element and multi-level fuzzy comprehensive evaluation method, this paper makes an empirical analysis of the bidding risk of the wind farm construction project of Xintiandi Energy Company in Hebei Province. The research shows that the can-expander element method is more accurate in risk evaluation because there are no different evaluation principles, which can provide effective support for decision makers.

The Security Risk Evaluation of Railway Construction Based on CIM Model

In this paper, the CIM model is used to evaluate and manage the safety risk of subway construction. Taking Nanchang Metro Line 4 bid section 3 as an example, the total safety risk of the project construction is estimated, and the corresponding countermeasures are proposed, which is of certain significance to avoid and respond to the construction project risk. The results show that the possibility of moderate total safety risk in the construction of the third bid section of Nanchang Metro Line 4 is relatively large, and the probability is about 40%.

Risk allocation in public construction projects: the case of Jordan

Proper risk identification, assessment, and allocation can reduce cost and time delay. This study identifies, assesses and allocates risks in public construction projects in Jordan with the goal of reducing the overall costly claims and disputes. Based on extensive literature review, the study identifies 62 risk factors that are grouped under 14 categories. The respondents were asked to estimate the probability, impact and proper allocation of these risk factors. Based on 208 valid responses, the results indicate that the top ranked risk factors are delays in client’s payments, poorly tailored contract forms, competition, delay in approval of permits, default by subcontractors, unclear specifications, material prices fluctuations, different construction standards, change in design, and poor design. The respondents of the study recommend 4 risk factors to be shouldered by owners, five risk factors to be shouldered by contractors, and 42 risk factors to be shared by the contracting parties. The results of the study also help practitioners to allocate risks to the stakeholder who is more capable to assesses, controls and manages these risks. The generated risk priority can be used to prioritize the risks for response planning.

The Level of Influence of Human and External Risks on a Construction Company’s Sustainability

The impact human and external risks in construction projects, which significantly affect the production activities and sustainable functioning of construction companies is very relevant. This article describes the human and some external risks affecting the sustainability functioning of construction companies. The authors examined internal risks staff can be exposed, as well as external risks that may affect the work of construction companies, how they are analyzed and evaluated, as well as identified there reasons to increase the competitiveness of contracting companies to manage any potential risks during construction and after operating facility, This will prevent losses and increase company’s sustainability in the labor market. this research paper aims at analyzing the impact of human risks, on sustainability and assessing, as well as determining their frequency and the likelihood of occurrence of these risks, their impact on the construction project and on a company. Mathematical and statistical methods as well as algorithms were used in this research. This research indicates that risks of all kinds shall be accurately, determined in addition to indicating the importance of each of them and assessing the likelihood occurrence of these risks. To determine methods and procedures that could decrease the chances of these risks leading to increased construction company’s sustainability in the labor market.

Development of Safety Cost on Upper Structure Building Based on Work Breakdown Structure

Construction as one of the most influencing industry to the country’s economy on the other hand also have the highest number of workplace accidents. Based on the data, 32% of accidental cases in Indonesia happened on constructional sectors. Hazard combine with work environments, workers behavior, organizational factor are the few reasons on the high number of workplace accident. In order to controlling the accidents, the safety risks in the construction industry need to be addressed. This paper aims to developing the standardized work breakdown structure for upper structure in building as a series of task in the form activities and to identify the safety risks in construction project based on work breakdown structure in order to effectively listing the workplace safety risk to maximizing the prevention. The risks listed also following by the prevention needed for controlling the risks, and the prevention would help to develop the component needed for cost of safety. In the end, the component of the cost of safety based on the prevention on the risk for each work breakdown structure will be more detailed and accurate.

Assessment of risk management and evaluate the level of risk in construction project: Case Study

This study illustrates the risk assessment and analysis which was made as a requirement in the beginning of the project of a stadium.Risks at project are classified into ten items so that it is easy to manage and monitor them. Simple model is adopted in assessing risks such that it is easy to be understood and modified in contrast with the complex models that produce misleading. Sharing, mitigation and accepting risk are strategies adopted in the final assessment. In the case of sharing risks, it is shown that contracting strategy must be based on risk allocation. Inplanning for risk, purpose must be clear as well as responsibilities and this can be shown precisely in a form of Risk Plan. The objective that this study serves is to identify the cost needed for the whole project from the stage of design to the finishing works.This includes all facilities in the stadium like the concrete frames, buildings and so. The study was very important to provide information to the contractor (a private company) and made confidence in that the estimated cost and time needed for achieving the objectives of the project are realistic and based on sound information.The experience gained from previous similar projects was an advantage factor in that most of problems were clear. The most important problem was the likelihood of delay, which, in the worst case will lead to dramatic increasing in costs. Therefore, the assessment of this risk was principal task in the study although it is necessary to take care for all potential risks.The study shows that risks at construction projects carried by many parties found to be changing according to internal or external changes and the change of priorities can be seen by simulating changes in ranking in each case. It is shown also that badly risk communication leads to real problems as in the case of making thought of building the stadium to be late. The cost of the delay which is the primary risk was calculated for each part of the project. For the construction activities, these were assumed to be the overhead. The time costs calculated was in maximum ($ 1,500,000) which is about (10%) of the total cost of the project.

A BIM-based framework for construction project scheduling risk management

The management of risks has been at the heart of most construction projects. Building information modelling (BIM) provides opportunities to manage risks in construction projects. However, studies about the use of BIM in risk management are sketchy with a lack of a systematic approach in using BIM for managing risk in construction projects. Based on existing risk models, this study investigated and developed a BIM-based framework for the management of construction project scheduling risk. Although, the frameworks were developed by mining risk management processes from Synchro and Vico, both being amongst leading 4D/5D BIM software systems, they can inform risk management in BIM projects that are supported by 4D/5D BIM software systems that contain risk management modules. The frameworks were validated for their syntactic and semantic correctness.

Risk Management Processes and Analysis in Projects Construction Industry

In the area of project construction industry, risk management has become an indispensable index of concern which needs to be focused on in order to ensure effective and successful execution of projects in the construction industry. This paper focuses on risk management within projects construction field and also to find out the opinions and ideas on the significance of the construction projects risks, and also to explore the risk analysis, risk response techniques and strategies as well as risk management processes and practices in construction industry. The questionnaire prepared for the survey was distributed both via e-mail and by sending questionnaire link onto a WhatsApp platform group of the respondents and 85 member respondents results were analyzed in the form of bar charts, column chart and radar chart. The survey results revealed that majority of the total respondents are in the capacity or position as Project Managers and also have over 15 years working experience, and as well attained Master’s degree qualification. It was also revealed that risk events are usually responsible for the poor delivery and quality of work, accompanied with delays and other associated losses in project construction and also risks that are associated with high probability and high impact are required to undergo further analysis, including quantification and thorough risk management. The most frequently used risk response technique according to the respondents is through the issuance of performance bonds, warranties and guarantees and also the most frequently used risk analysis practice is the Project Documented knowledge and Review Analysis. Risk management in project construction is therefore a constant learning process to constantly improve upon practices in order to adapt and increase the process efficiency of dealing with risk in construction projects as well as its successful execution.

Railway Construction Project Risk Assessment Techniques: Systematic Literature Review

Railway Construction Project Risk Assessment Techniques: Systematic Literature Review

Identification of critical risks in international engineering procurement construction projects of Chinese contractors from the network perspective

International engineering procurement construction (IEPC) is a complex subject interconnected with risk transfer. In-depth understanding of risks in IEPC projects is essential for effective risk management and managerial strategies. Most related studies focus on the critical risks based on the perceptions of stakeholders or their direct “contribution” to the project loss. This study aims to investigate risk interconnection in IEPC projects through social network analysis, with a focus on the critical risks, risk interactions, and risk mitigation strategies. Three approaches were employed. First, the risk register and interconnection between IEPC projects were identified through a literature review. Second, the risk register and interrelationships were investigated using a questionnaire to formulate theoretical risk-interdependent networks. Third, practical IEPC projects were analyzed using network metrics to identify mitigation strategies for the associated critical risks. From the obtained results, we concluded that controlling security and contract risks in project management can reduce the occurrence or impact of other risks. Moreover, environmental issues related to contractors are also critical in international construction projects. Investigating relationships between risks has uncovered different risk-propagation mechanics within IEPC projects, thus extending the theoretical knowledge for international construction and risk management.

Development of a computer model for evaluating the alternative options of an investment and construction project under conditions of uncertainty and risk

The paper reports the proposed method of quantitative analysis of risks in investment construction projects, which uses a probabilistic approach. The specific feature of this approach is a multistage evaluation process and complex accounting of indicators for decision making regarding the investment attractiveness of sites under conditions of uncertainty.Based on this approach, an automated computer model for evaluating investment attractiveness of construction projects was developed. The indicators of investment efficiency and risks for various options of construction project implementation were explored, the alternative for a project development was selected and the best investment project was determined with the use of the computer model.The reliability of the results was proved by studying the stability of decisions and by their errors.The results were obtained in order to improve the efficiency of managerial decisions in the sector of investment in construction sector of economy. The developed computer model makes it possible, based on statistical data of demand for residential real estate, to perform a quantitative analysis of risks of investment in construction projects, to make a choice of a construction project by profitability and risk indicators, as well as by the criteria of decision making under conditions of risk and uncertainty.Numerical experiments with a computer model showed the need to invest in additional research in order to clarify the environmental parameters and to invest in the construction of a multi-storey building.The obtained results are relevant due to a high degree of turbulence in the environment in the construction sector, as well as in connection with the importance of attracting investments from the position of competitiveness. The computer model developed in the process of research is universal regarding the type of a residential real estate construction object

An IoT-based risk warning system for smart libraries

Purpose When integrating smart elements offered by emergent technologies, libraries are facing the challenges of technological renovation and maintaining their operation using emerging technology. Given the importance of smart library, new technologies are needed in building new libraries or renovation of existing libraries. The purpose of this paper is to propose a risk warning system for library construction or renovation in the aspect of risk management. Design/methodology/approach The proposed Internet of Things (IoT)-based system consists of sensors that automatically monitor the status of materials, equipment and construction activities in real time. AI techniques including case-based reasoning and fuzzy sets are applied. Findings The proposed system can easily track material flow and visualize construction processes. The experiment shows that the proposed system can effectively detect, monitor and manage risks in construction projects including library construction. Originality/value Compared with existing risk warning systems, the proposed IoT-based system requires less data for making dynamic predictions. The proposed system can be applied to new builds and renovation of libraries.

Analysis of plant construction accidents and loss estimation using insurance loss records

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.

A review of application of risk management in Malaysia construction industry

Risk management is project management tools that provide a very significant information about risk and uncertain event during perform the construction project. This management tool must be applying to all project life cycles stages in order to get high performance of achievement in completing project objective. However, in Malaysia construction industry this project management tools were very new in implementation among construction players. In construction industry, project risk and uncertain event are very unique activity to manage because of the project itself have a different type agreement, project environment and stakeholder. In this review paper, information on how the process in risk management in Malaysia is obtained from various writings and what is the methodologies that are actively being used in Malaysia construction industry. Furthermore, effectiveness of implementation of risk management in Malaysia construction are discussed thoroughly in this paper. From that the main aim is to review whether this risk management is a successful tool applied in Malaysia construction industry or not. For that purpose, one method are primarily use in conducting this review is by obtaining data and information from literature review, books and standards. The major risk is differed between each type of performing the construction project. The result show most of research work are relating to agreement of contract, partner selection, financial problem, economic condition and variation order in execution of project. Therefore, conducting risk management starting in early of performing project and continue in every project life cycle will give very low negative impact to accomplish the objective and scope of project.

Critical Risks in Construction Projects in Ethiopia

Construction management is a very important process in order to achieve the objectives of every project in terms of time, cost, quality, and insured safety. But most recent studies most researchers have been focusing on the management of risks rather than identifying the critical risks involved in construction projects. This paper aims to identify the major risks associated with construction projects that expected to affect project performance during the project life cycle in Ethiopia. Various risk factors in construction projects were identified from the literature. Questionnaire survey and interview method was used to collect data from the respondents. The relative importance index (RII) was used for data analysis to identify the major variables. Based on the analysis of the likelihood of occurrence of the risks, this paper identified the critical risks in construction projects in Ethiopia. The research found that the critical risks were mainly unforeseen site conditions, improper design, incomplete contract documents, inflation, lack of timely decision making, scope change, political instability, payment delay, lack approvals, corruption, and poor contract administration. Finally conclusions made from the finding and recommendations forwarded to minimize risks in construction projects.

LEVEL OF RISK MANAGEMENT PRACTICE IN MALAYSIA CONSTRUCTION INDUSTRY FROM A KNOWLEDGE-BASED PERSPECTIVE

The construction industry is a competitive high-risk industry with unprecedented uncertainties in technology, budget, and development processes. The need then evolved to develop a framework for project performance in Malaysia construction company. This study investigated the associated problem in the management of risks in Malaysian construction projects using the knowledge-based approach. This perspective proposed a methodology based on a one-fold arrangement involving the application of risk management modelling function, evaluation of the comparative effectiveness and desired quality with the availability of a best practices model. The preliminary conclusion from these findings revealed that risk management in Malaysian construction projects is ineffective and still at a developmental stage. The applications of a knowledge-based framework, therefore, allow clients, contractors and consultants to develop a project’s risk management function based on best practices. The implementation of knowledge management will, therefore, avoid the organization the cost of repeating the same mistakes. This will invariably lead to improvement in the performance of construction work in Malaysia when incorporated as part of the organizational strategic plan.

Construction project risk evaluation based on FMEA

FMEA (Failure Mode & Effects Analysis) is a preventive risk analysis technique, which purpose is to make the prevention in advance, rather than correct afterwards. Its core is to evaluate the failure mode from three dimensions: S (Severity), O (Occurrence) and D (Detection). The risk is reduced to an acceptable level by quantifying the failure mode of the risk and the cause of the key failure, and developing preventive measures to control it. Fuzzy comprehensive evaluation is a combination of qualitative and quantitative analysis, which combines the advantages of qualitative and quantitative. Combining FMEA with the Fuzzy comprehensive evaluation method, using the advantages of FMEA’s pre-existing control and full-process participation, it can make up for the shortcomings of the EX-post control higher than Ex-ante control in the current risk management, and make the risk evaluation method more perfect. It is necessary and meaningful to reduce the losses caused by the risk of projects by making effective and reasonable analysis and control of the risks that may occur in the construction project.

Forming Mechanism of Political Risks in International Construction Projects: From the Perspective of Chinese Contractors

The performance is analysed from the perspective of the characteristics of overseas business of Chinese contractors and political risks. Based on the results of this research project, it further analyse the funds and pricing model of Chinese Contractors Overseas Projects, as well as their ability to withstand political risks and coping strategies. This study aims to explore the statistical analysis of the project system and transnational operations to political risks in international construction projects. This research is based on one belt and one road. The questionnaire was distributed to 100 Chinese international contractors in the form of emails. Of the 100 contractors, 50 are in the top 225 of the 2017 ENR. Researches based on the project, each project only fill in a questionnaire, the final recovery of 370 copies, and recovery rate of 37%. 370 respondents are from 46 Chinese international contractors, of which 28 (60.87%) are from top ENR225 enterprises and 18 (39.13%) are from other enterprises. This survey reflects the general situation of political risks of Chinese contractors in overseas project management. Generally speaking, Chinese contractors are facing higher political risks, and they do not attach enough importance to political risks, and their ability to deal with political risks. This research study is a useful reference for managing the political risks for international contractors when expanding into this emerging market.

Using probability impact matrix (PIM) in analyzing risk factors affecting the success of oil and gas construction projects in Yemen

Purpose This study aims to identify and assess the significant risks in Yemen oil and gas construction projects based on their risk rating (impact and probability) by using probability–impact matrix (PIM). Design/methodology/approach In total, 51 risk factors that might affect construction projects in the oil and gas sector are defined through a detailed literature review and expert judgment. The risk factors were tabulated in a questionnaire form, which was sent to a total of 400 participants asking their contribution in identifying the risk matrix for the risk factors in terms of impact and probability of occurrence during the project life cycle. Five zones were used in the matrix according to the degree of risk factor’s severity on the success of the project. These zones are light green, dark green, yellow, light red and dark red. Findings The PIM analysis for risk factors found that five factors are located in the dark red zone, as top risks factors have a very high impact and very high probability of occurring; 40 factors are located in the light red zone; six factors are located in the yellow zone; and no factors are located in the green zone (light and dark), which is considered an indication of the importance of risk factors under study and their impact on the success of construction projects in the oil and gas sector. Moreover, the factors under feasibility study and design and resources and material; are the most categories effect on project success. Research limitations/implications The research was limited to the oil and gas construction projects in Yemen. Practical implications Practically, this study highlights the top risk factors in oil and gas construction projects, which might cause an adverse effect on project success in Yemen. Classification and ranking of these factors by using the risk matrix provide the basis for risk response planning to enhance the chances of project success. Originality/value This paper identifies the matrix for risk factors affecting the success of construction projects in the oil and gas industry in Yemen. There is a significant contribution expected from this research, especially for companies operating in the oil and gas sector and other organizations that plan to invest in this field, in addition to expected benefits for the Yemeni Government and researchers because of lack of research in this area.

An interval risk assessment method and management of water inflow and inrush in course of karst tunnel excavation

An interval risk assessment method of water inflow and inrush in karst tunnel is proposed. Based on the method, both a conceptual and a computational form of the risk assessment model is introduced, and risk surroundings, construction factors and feedback information are analyzed. The conceptual model consists of three hierarchies and three stages. Thirteen factors were chosen as assessment indices and can be grouped into three categories: karst hydrogeological conditions and geological engineering conditions, construction factors and feedback information for management. An analytic hierarchy process and fuzzy mathematical theory were used to develop a computational model based on the interval number. The interval membership function and the weight of each factor were quantified and a relative superiority analysis of the interval matrix was performed. Moreover, a construction permission mechanism of water inflow and inrush in karst tunnels was established. In the present study, the three-stage risk assessment model and construction permission mechanism were successfully applied to the Qiyueshan tunnel. Thus, the interval risk assessment method may provide a practical reference for the risk assessment and management of karst tunnel construction and is worth exploring to control risk in other engineering construction projects.