Enhancing the effectiveness of risk management practices in Sri Lankan road construction projects: A Delphi approach

The purpose of this study was twofold: (1) Identifying the risks that are critical for risk management of road construction projects in Sri Lanka on a life cycle basis and (2) defining the shares of the parties involved in projects in terms of handling the identified risks. A Delphi study was conducted among 33 Sri Lankan experts (consultants, project managers, contractors) in three rounds. The findings showed that the construction and design phases are prone to many major risks. Moreover, ‘delays in payment by the client’ was the most critical risk factor in the construction stage. Furthermore, it was established that some major risks could occur in more than one phase of the project life cycle, stressing the necessity of handling these risk factors as a prerequisite for project success. The discussions presented in this study would enhance the effectiveness of implementing risk management practices in Sri Lankan road construction projects. From a broader vantage point, it will also serve the risk management body of knowledge in the construction industry.

[1]  N. Kartam,et al.  Risk and its management in the Kuwaiti construction industry: a contractors’ perspective , 2001 .

[2]  B. G Ludwig,et al.  Predicting the future: Have you considered using the Delphi methodology , 1997 .

[3]  Patrick X.W. Zou,et al.  Identifying Key Risks in Construction Projects : Life Cycle and Stakeholder Perspectives , 2006 .

[4]  Serdar Ulubeyli,et al.  Effect of basic motivational factors on construction workforce productivity in turkey , 2008 .

[5]  Francis T. Hartman,et al.  Construction contracts: the cost of mistrust , 2003 .

[6]  Tarek Zayed,et al.  Assessing risk and uncertainty inherent in Chinese highway projects using AHP , 2008 .

[7]  Chris Chapman,et al.  Project risk analysis and management - PRAM the generic process , 1997 .

[8]  Christophe Bredillet,et al.  Profiling work motivation of project workers , 2009 .

[9]  Patrick T.I. Lam,et al.  Application of Delphi method in selection of procurement systems for construction projects , 2001 .

[10]  Stephen O. Ogunlana,et al.  Testing Herzberg’s two‐factor theory in the Thai construction industry , 2003 .

[11]  Ronald G. Stansfield.  Human Factors/Ergonomics for Building and Construction , 1983 .

[12]  Joseph H. M. Tah,et al.  A proposal for construction project risk assessment using fuzzy logic , 2000 .

[13]  Df Cooper,et al.  Risk analysis of a construction cost estimate , 1985 .

[14]  Amin Akhavan Tabassi,et al.  Training, motivation, and performance: The case of human resource management in construction projects in Mashhad, Iran , 2009 .

[15]  A. Othman,et al.  INCORPORATING VALUE AND RISK MANAGEMENT CONCEPTS IN DEVELOPING LOW COST HOUSING PROJECTS , 2008 .

[16]  Jamal F. Al‐Bahar,et al.  Systematic Risk Management Approach for Construction Projects , 1990 .

[17]  Thomas L. Saaty,et al.  DECISION MAKING WITH THE ANALYTIC HIERARCHY PROCESS , 2008 .

[18]  Audrius Banaitis,et al.  Risk Management in Projects: Peculiarities of Lithuanian Construction Companies , 2011 .

[19]  Makarand Hastak,et al.  ICRAM-1: Model for International Construction Risk Assessment , 2000 .

[20]  Bon-Gang Hwang,et al.  Risk management in small construction projects in Singapore: Status, barriers and impact , 2014 .

[21]  David H. Gustafson,et al.  Group Techniques for Program Planning: A Guide to Nominal Group and Delphi Processes , 1976 .

[22]  Young Hoon Kwak,et al.  Risk Management in International Development Projects , 2001 .

[23]  Raufdeen Rameezdeen,et al.  Risk management in road construction: The case of Sri Lanka , 2009 .

[24]  John A. Gambatese,et al.  Qualitative Research: Application of the Delphi Method to CEM Research , 2010 .

[25]  Scott Baker,et al.  Survey of Risk Management in Major U.K. Companies , 1999 .

[26]  Lyman W. Porter,et al.  Managerial attitudes and performance , 1968 .

[27]  Andi.  The importance and allocation of risks in Indonesian construction projects , 2006 .

[28]  C. Umarani,et al.  Causes of Delay in Indian Construction Industry , 2012 .

[29]  Seung Heon Han,et al.  Approaches for Making Risk-Based Go/No-Go Decision for International Projects , 2001 .

[30]  Mastura Jaafar,et al.  An Assessment of Risk Identification in Large Construction Projects in Iran , 2012 .

[31]  C. Sheu,et al.  Choosing a project risk-handling strategy: An analytical model , 2008 .

[32]  H Ren,et al.  Risk lifecycle and risk relationships on construction projects , 1994 .

[33]  Paul M. Goodrum,et al.  Latent Structures of the Factors Affecting Construction Labor Productivity , 2009 .

[34]  S. Ward,et al.  On the allocation of risk in construction projects , 1991 .

[35]  Ahmet Öztaş,et al.  Risk analysis in fixed-price design–build construction projects , 2004 .

[36]  N. Dalkey,et al.  An Experimental Application of the Delphi Method to the Use of Experts , 1963 .

[37]  David Picken,et al.  Using Risk Analysis to Determine Construction Project Contingencies , 2000 .

[38]  Dariusz Skorupka,et al.  Identification and Initial Risk Assessment of Construction Projects in Poland , 2008 .

[39]  J. U. M. Smith,et al.  Project Risk Management: Processes, Techniques and Insights , 1998, J. Oper. Res. Soc..

[40]  Norman Crolee Dalkey,et al.  An experimental study of group opinion , 1969 .

[41]  Thomas E. Uher,et al.  Risk management in the conceptual phase of a project , 1999 .

[42]  Gary David Holt,et al.  A survey of constraints on Iranian construction operatives' productivity , 1996 .

[43]  William F. Maloney.  Productivity Improvement: The Influence of Labor , 1983 .

[44]  John F. Y. Yeung,et al.  Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry , 2011 .

[45]  Roozbeh Kangari.  Risk Management Perceptions and Trends of U.S. Construction , 1995 .

[46]  Francis K. Adams.  Expert elicitation and Bayesian analysis of construction contract risks: an investigation , 2006 .

[47]  Grant K. Kululanga,et al.  Measuring project risk management process for construction contractors with statement indicators linked to numerical scores , 2010 .

[48]  Ernest H. Forman,et al.  Decision By Objectives: How To Convince Others That You Are Right , 2001 .

[49]  Gary David Holt,et al.  Factors influencing construction time and cost overruns on high-rise projects in Indonesia , 1997 .

[50]  H. Taylor,et al.  Congruence between risk management theory and practice in Hong Kong vendor-driven IT projects , 2005 .

[51]  S. El-Sayegh.  Risk assessment and allocation in the UAE construction industry , 2008 .

[52]  J. Oluwoye,et al.  An analysis of contractors' approaches to risk identification in New South Wales, Australia , 1997 .

[53]  Madhurima Deb,et al.  Evaluation of customer's mall preferences in India using fuzzy AHP approach , 2012 .

[54]  M. Hosseini,et al.  A survey of the factors affecting the productivity of construction projects in Iran , 2012 .

[55]  Thomas L. Saaty,et al.  How to Make a Decision: The Analytic Hierarchy Process , 1990 .

[56]  Hamzah Abdul-Rahman,et al.  The Identification and Management of Major Risks in the Malaysian Construction Industry , 2013 .

[57]  Shuying Li.  Risk Management for Overseas Development Projects , 2009 .

[58]  Patrick X.W. Zou,et al.  Understanding the key risks in construction projects in China , 2007 .

[59]  M. Bohanec,et al.  The Analytic Hierarchy Process , 2004 .

[60]  Ludovic-Alexandre Vidal,et al.  Measuring project complexity using the Analytic Hierarchy Process , 2011 .

[61]  Katherine Cabaniss,et al.  Computer-Related Technology Use by Counselors in the New Millennium: A Delphi Study , 2002 .

[62]  V. Tummala,et al.  Assessing and Managing Risks Using the Supply Chain Risk Management Process (SCRMP) , 2011 .

[63]  George Ofori,et al.  Leadership and Construction Industry Development in Developing Countries , 2012 .

[64]  Dongping Fang,et al.  Safety Risk Identification and Assessment for Beijing Olympic Venues Construction , 2008 .

[65]  Sataporn Amornsawadwatana,et al.  A review of techniques for risk management in projects , 2007 .

[66]  Albert P.C. Chan,et al.  Measuring complexity for building projects: a Delphi study , 2012 .

[67]  Ovidiu Cretu,et al.  Risk Management for Design and Construction , 2011 .

[68]  Dongping Fang,et al.  Risks in Chinese construction market - Contractors' perspective , 2004 .

[69]  E. Osipova,et al.  How procurement options influence risk management in construction projects , 2011 .

[70]  Richard,et al.  Motivation through the Design of Work: Test of a Theory. , 1976 .

[71]  Prasanta Kumar Dey,et al.  Project risk management: a combined analytic hierarchy process and decision tree approach , 2002 .

[72]  Anthony Mills,et al.  A systematic approach to risk management for construction , 2001 .

[73]  Suzanne D. Pawlowski,et al.  The Delphi method as a research tool: an example, design considerations and applications , 2004, Inf. Manag..

[74]  A. Maslow.  A Theory of Human Motivation , 1943 .

[75]  C. Giroux,et al.  The Motivation to work, by F. Herzberg, B. Mausner and B.-C. Snyderman, John Wiley & Sons, New York, John Wiley & Sons, 1959. , 1960 .

[76]  Andrew D.F. Price,et al.  Modelling global risk factors affecting construction cost performance , 2003 .

[77]  Ana Nieto-Morote,et al.  A fuzzy approach to construction project risk assessment , 2011 .

[78]  Mohan M. Kumaraswamy,et al.  Potential for Implementing Relational Contracting and Joint Risk Management , 2004 .

[79]  Ghassan Aouad,et al.  Learning from risks: A tool for post-project risk assessment , 2008 .

[80]  M. Dulaimi,et al.  Risk management framework for construction projects in developing countries , 2004 .

[81]  U. Renker.  [Motivation for work]. , 1975, Zeitschrift fur die gesamte Hygiene und ihre Grenzgebiete.

[82]  Luqman Oyekunle Oyewobi,et al.  Factors influencing reworks occurrence in construction: a study of selected building projects in Nigeria , 2010 .