Risk impact assessments in project budget development: architects’ perspectives

ABSTRACT Knowledge of how risks combine to impact variability between design stage elemental cost plans and final tender sums, in traditionally procured commercial building projects, from the architects’ perspectives in NZ is yet to be investigated. This study therefore evaluates identified risk factors through risk measurement, in order to determine the most significant. Data for the study were collected through an online questionnaire survey of 82 practising architects in NZ. Responses to the survey were analysed using descriptive statistics, risk mean analysis, degree of risk and Spearman's correlation. A ranking of the mean and degree of risk values enabled the most significant risk factors during design development to be determined. The findings revealed the top 10 risk factors impacting the variability observed. Armed with this information, architects may be better able to provide information on the influence of design- and construction-related risks on building project performance and, consequently the client's cash flow position. Moreover, as risk elements are inherent in construction projects globally, these findings have ramifications for commercial projects by expanding existing knowledge on what is needed for reasonable budgetary performance and successful delivery of construction projects.

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