Risk Management In Construction Industry Research Articles

Analysis of Occupational Safety and Health (K3) Risk Management in Construction Industry (Case Study: Construction of Natural Gas Transmission Pipelines)

The need for gas in Indonesia is currently quite urgent, but the infrastructure to provide natural gas supplies for industry is inadequate, so the government is encouraging the development of national natural gas infrastructure. In this project, build facilities including Tie-in at the Onshore Receiving Facilities (ORF) and then build a pipeline. The ORF consists of various large instruments, the installation process of which requires the assistance of heavy equipment such as a crane. Instrument installation work at ORF using a crane is included in the critical & extreme risk because the placement will use more than one crane and this work is carried out on a platform. Apart from that, the ORF was built next to an existing LPG station, so this condition has its own potential danger. To find out the source of the biggest risks, risks that may occur, methods of risk mitigation, and the level of effectiveness of the mitigation provided, occupational safety and health risk management analysis could be carried out using the House of Risk (HOR) and Hazard Identification, Risk Assessment & Determining Control (HIRADC) method. Lifting activities on the ORF platform was the biggest source of danger and there were 15 possible risks that may occur, 3 risk agents were in the mobilization of heavy equipment activities (cranes), 5 risk events were in the crane placement activities and 7 risk events were from material transport activities and there were 36 risks agents in it, 9 risk agents for mobilization activities, 11 risk agents for crane placement activities and 14 risk agents for material transport activities. Of the 36 risk agents, 16 of them have high potential, so suggestions for risk mitigation actions were given using the HOR phase II method. By conducting discussions, there were 48 mitigation action plans that were able to reduce the potential of risk agents with 36 main preventive actions, namely suggestions for mitigation actions that had difficulty value 3 or easy to implement. After assessing the recommended preventive actions, an assessment is carried out that there was a reduction in the level of risk using the Hazard Identification, Risk Assessment & Determining Control (HIRADC) method, where there were 3 medium risk categories and 13 low-risk categories. Before recommendations for risk mitigation actions, there were 3 extreme risk categories and 13 high risk categories.

Using cased based reasoning for automated safety risk management in construction industry

The purpose of this study is to develop a CBR-based platform that integrates all steps of safety risk management (SRM) for the realization of automation in construction safety risk management. To realize this purpose, accident data from 2015 to 2020 in China has been collected and analyzed. Based on the collected data, this study adopts system thinking and stakeholder theory to establish an accident attribute system for accurate and comprehensive case representation, which was usually ignored in the previous study. Following case representation, the development process of case-based reasoning (CBR) is introduced in detail. The core of CBR—case retrieval is designed with the k-Nearest Neighbor (k-NN) algorithm and rough set theory to improve retrieval accuracy. In terms of case reuse and revise, a hybrid risk response model based on historical experience and risk factor control is proposed. Finally, the practical application of this study is illustrated with a specific construction project. The findings of this study confirm the feasibility of machine learning in improving safety performance at construction sites. Construction accidents can be effectively prevented by identifying the potential safety risks, and employing on-site management.

Risk resources management influence on public–private partnership risk management in construction industry. Confirmatory factor analysis approach

PurposeConstruction organisations cannot underestimate the improvement in public–private partnership (PPP) projects’ implementation. At the same time, construction organisations cannot overlook the risk arising from engaging in PPP construction projects. Hence, this study aims to establish the influence of risk resource management (RRM) in managing PPP risk in the construction industry in Ghana.Design/methodology/approachThe researchers adopted qualitative and quantitative research methods to achieve the aim of the study, in which Delphi questions and a close-ended questionnaire were developed. A total of 650 construction specialists, including procurement officers, consultants, project managers, quantity surveyors, site engineers and planning officers were chosen using random and purposive sampling techniques. Recovered data were analysed using descriptive statistics and confirmatory factor analysis (CFA). The CFA maximum likelihood estimation extractor compresses 19 variables into 3 pattern matrices.FindingsThe results of the study revealed three factors that measure RRM in Ghana’s PPP construction industry, including financial resource management which was influenced by communicating the budget to project team members and project partners understanding the budget, and material resource management which was influenced by the provision of materials transportation and provision of delivery programs and labour resource management which was impacted by a commitment to pay social security and taxes and provision of good salaries, to address RRM in PPP construction organisations.Research limitations/implicationsTo incessantly improve the PPP risk management (RM) in construction through RRM, there should be a strong liaison between the universities, government agencies and the construction industry, and such collaboration will assist the industry to obtain first-hand information regarding the study findings and how they can be implemented to help the development of RM in the construction industry. This study is limited to Ghana and CFA and further study should explore structural equation model to determine the structure and measurement model of the risk resource variables.Originality/valueThe study may be valuable to industry stakeholders looking for new approaches to improve RM in their construction activities, particularly in PPP projects. Also, to assist reduce PPP risk, construction companies should use RRM in their organisations.

Bibliometric and systemic review of the state of the art of occupational risk management in the construction industry

Objectives. The objective of this study is to use bibliometric and systemic terms to select and analyze a set of articles dealing with occupational risk management in the civil construction industry. Methods . Knowledge development process – constructivist (ProKnow-C) methodology was used as an intervention instrument to guide the selection of the bibliographic portfolio and to support systemic analysis. Results. The bibliographic portfolio was created and included 20 articles. Bibliometric highlights were relevant articles, authors, countries of origin, journals and keywords. Systemic analysis showed opportunities to contribute to the state of the art in all areas of knowledge, enabling the researcher to understand theoretical bases, gaps and research opportunities for the theme and thus establish their research question in accordance with the established knowledge vision. Conclusions. The systemic analysis of each article in the bibliographic portfolio based on the decision support model and areas of knowledge present in each stage of its construction measures the amplitude of the knowledge at each stage, and therefore the completeness of or gaps in each article. This clarifies the overall state of and gaps in the field, showing opportunities for new research.

An Assessment of Risk Management Factors Delaying Construction Project in Nigeria

Risk management is a field that exists within the subject area of project management deals with the identification, monitoring and mitigation of risks. It is seen as the effect of uncertainty on objectives so this process serves as an optimization of the project delivery process to ensure that the project objectives are achieved. Risk results from a variety of factors like design problems, technological complexity and lack of experienced personnel. Managing these risks involves contemplating actions or measures. The study aimed at assessing risk management factors delaying construction project in Nigeria. The objectives were to examine the factors that influence the development of risk management in the construction industry and identify the level of knowledge, experience and barrier to risk management practice. The research approach adopted for this study was quantitative design. To cover the study area effectively, a field survey was utilized inform of a structured questionnaires for the major study population and anchored with semi-structured interviews for the secondary population and other relevant secondary data. 70 Professional Project Managers were sampled from different construction firm. Hence, 70 questionnaires were administered while 40 questionnaires were properly filled and returned for collation represents 57.1% response rate. Statistical tools was used for the study. The result confirms showed that Change in climactic condition is the major factor that influences the development of risk management in Nigerian construction industry. Result also suggests that majority of the respondents upheld the relevance of risk management practice in project management. The implication is that most though Professional Project Managers understood the relevance of risk management in the construction industry, they should always make provisions for uncertainties through effective risk management strategies.

Risk Management in Construction Industry

Risks are managed in construction projects mostly through management to realize the construction project objectives in terms of cost, time, quality, environment, safety, design, risks because of crises. In questionnaire, likelihood occurrences and level of impact risk factors are identified using three point Likert scale. Therefore, furthermost research has been concentrated on a number of aspects of risk management in construction by means of an organized and complete approach towards identifying risks, then analyzing the likelihood occurrences and impacts of the risks. The goal of this research is towards identifying and analyzing the risks which are related towards the development of the construction projects. The information is gathered through questionnaires basing on different possibilities of occurrences of likelihood assessment and their level of impacts on the construction project goals too. Questionnaire responses from the construction professionals are gathered from Andhra Pradesh State and Telangana State within Indian construction. In this paper, Cronbach alpha, Kaiser-Meyer- Olkin (KMO) is the Measure of Sampling Adequacy and Component matrix shows the factor loadings for all the factors considered are calculated by using Statistical Package for Social Sciences (SPSS) version 25 software. This research paper is quantitative in nature and the results of the highest rankings of risk factors Cronbach Alpha, KMO and Factor loadings of likelihood occurrences are 0.883, 0.834, 0.779 in Andhra Pradesh and 0.911, 0.850, 0.781 in Telangana State of India. Coming to the results of level of impact, the highest rankings of risk factors of Cronbach Alpha, KMO and Factor loadings are 0.820, 0.773, 0.794 in Andhra Pradesh and 0.911, 0.843 and 0.780 in Telangana State of India. Its scope is limited to Indian context only and few recommendations are also mentioned.

The Impact of Risk Management Practices on the Performance of Construction Projects

Construction performance and risk management has been widely discussed in the literature from various perspectives. The main objective of performing risk management in construction industry is to ensure timely delivery of good construction within sepecific budget. However, the failure of many construction projects in meeting deadlines, cost and quality targets is continuously on the rise and there are signs of accentuating year after year suffering significant financial losses of construciton works in Oman. Therefore, there is a need for empirical evidences to explain the relationship between risk management and project performance. This study applied quantitative methods to examine this relationship. Construciton companies from grade excellent to grade second in Oman haven included in the survey. The result revealed that practicing risk managementimprove the performance of construciton project significantly. Based on this result it is essential to hire qualified project managers who has sufficient knowledge in risk managmeent and its main activities.

Implementation of Risk Management in Construction Industry

Implementation of Risk Management in Construction Industry

Risk management framework for Continuous Flight Auger piles construction in Egypt

Performing risk management in construction industry has a potential effect on project success. Achieving schedule, cost, quality and other objectives are highly dependent on applying an effective risk management approach. The main purpose of this study is to construct a specific risk management framework for managing Continuous Flight Auger (CFA) piles construction in the Egyptian working conditions to uncover the potential risk categories facing this work package, identifying their causes, behavior of occurrence and effect on project objectives. The identified risks are then prioritized to focus on the most effective elements to optimize risk responses. The study went through planning proactive and/or reactive risk responses for high and moderate risks to enhance positive risks (opportunities) and reduce negative risks (threats) so that the project can smoothly achieve the needs for which it was undertaken. The structured framework will be integrated later with the previously developed time and cost estimating modules to develop an Integrated Management Model (IMM) for (CFA) piles construction to provide more accurate risk data and consequently more reliable time and cost estimates. The framework was presented to a sample of specialized performing organizations to be applied in their projects where the feedback shows a cost and schedule reduction based on considering this framework as a guide to manage risks in their (CFA) projects.

Price risk management in BOT railroad construction projects using financial derivatives

PurposeRailroad transit infrastructures are amongst major capital-intensive projects worldwide, which impose significant risks to the contractors of build-operate-transfer projects because of the fluctuations in steel price fluctuation. The purpose of this paper is to introduce a methodology for hedging steel price risk using financial derivatives.Design/methodology/approachCox–Ross valuation lattice has been used as an option valuation model for determining option’s price for the construction companies involved in fixed-price railroad projects. A sensitivity analysis has been conducted using the financial option Greeks to evaluate the impacts of option’s pricing factors in the total price of option.FindingsThe result of valuation shows that European options cost to safeguard against the effects of price risk is only a fraction in contrast to the total cost of steel procurement for a typical railroad construction company. This confirms that using this kind of financial derivative is a beneficial yet effective approach for hedging steel price risk for railroad construction companies.Practical implicationsThe applicability of the financial derivatives, both exchange-traded and over-the-counter instruments, is evident in broad financial industry. This paper shows how European options can be readily used for risk management of a typical railroad project, and explains the methodology in a step-by-step procedure.Originality/valueAlthough the financial engineering literature is rife of theory and application of derivatives in various contexts, to the best knowledge of authors there is only few papers on the application of these well-developed financial instruments for risk management in construction industry. This study intends to illustrate how financial derivatives can add value to risky construction projects and shed new light in this important application area.

A review of risk management process in construction projects of developing countries

In the construction industry, risk management concept is a less popular technique. There are three main stages in the systematic approach to risk management in construction industry. These stages include: a) risk response; b) risk analysis and evaluation; and c) risk identification. The high risk related to construction business affects each of its participants; while operational analysis and management of construction related risks remain an enormous task to practitioners of the industry. This paper tends towards reviewing the existing literature on construction project risk managements in developing countries specifically on risk management process. The literature lacks ample risk management process approach capable of capturing risk impact on diverse project objectives. This literature review aims at discovering the frequently used techniques in risk identification and analysis. It also attempts to identify response to clarifying the different classifications of risk sources in the existing literature of developing countries, and to identify the future research directions on project risks in the area of construction in developing countries.