A Hybrid MCDM Technique for Risk Management in Construction Projects

Abstract

Multi-stakeholder based construction projects are subject to potential risk factors due to dynamic business environment and stakeholders' lack of knowledge. When solving project management tasks, it is necessary to quantify the main risk indicators of the projects. Managing these requires suitable risk mitigation strategies to evaluate and analyse their severity. The existence of information asymmetry also causes difficulties with achieving Pareto efficiency. Hence, to ensure balanced satisfaction of all participants, risk evaluation of these projects can be considered as an important part of the multi-criteria decision-making (MCDM) process. In real-life problems, evaluation of project risks is often uncertain and even incomplete, and the prevailing methodologies fail to handle such situations. To address the problem, this paper extends the analytical network process (ANP) methodology in the D numbers domain to handle three types of ambiguous information's, viz. complete, uncertain, and incomplete, and assesses the weight of risk criteria. The D numbers based approach overcomes the deficiencies of the exclusiveness hypothesis and completeness constraint of Dempster-Shafer (D-S) theory. Here, preference ratings of the decision matrix for each decision-maker are determined using a D numbers extended consistent fuzzy preference relation (D-CFPR). An extended multi-attributive border approximation area comparison (MABAC) method in D numbers is then developed to rank and select the best alternative risk response strategy. Finally, an illustrative example from construction sector is presented to check the feasibility of the proposed approach. For checking the reliability of alternative ranking, a comparative analysis is performed with different MCDM approaches in D numbers domain. Based on different criteria weights, a sensitivity analysis of obtained ranking of the hybrid D-ANP-MABAC model is performed to verify the robustness of the proposed method.

Construction Projects Assessment Based on the Sustainable Development Criteria by an Integrated Fuzzy AHP and Improved GRA Model

“…In the next step of applying improved GRA, the grey relational decision matrix is normalized by using Equations (10) and (11). Then, reference alternative is determined by Equation (12) and its distance with the alternatives is calculated using Equation (12). Grey relational coefficient is obtained using Equation (14).…”

“…The study utilized technological criteria, budget amount, state requirements, and resource restrictions for determining the performance of construction projects. Some other studies utilized risk factors for assessing construction projects [11,12]. Tailan et al [13] utilized five risk criteria and evaluated 30 construction projects based on fuzzy analytic hierarchy process model and fuzzy TOPSIS model.…”

Risks assessment model for the sustainable built environment of finishing construction works

“…Ammar, Berman, & Sataporn, 2007;Klemetti, 2006), which were used to develop the hybrid model, must be presented depending on the analyzed field of risk. Construction risks can be categorized in several ways based on the source of risk, the impact of risk or by a project phase (Valipour, Sarvari, Tamošaitienė, 2018;Hatefi & Tamosaitiene, 2018;Chatterjee, Zavadskas, Tamosaitiene, Adhikary, & Kar, 2018;Fouladgar, Yazdani-Chamzini, & Zavadskas, 2012).…”

Civil Engineering and Symmetry

“…One group of papers is related to construction engineering and management. In one of the papers, the crucial problem, concerning construction management, is studied by applying a hybrid fuzzy D-ANP-MABAC model for risk evaluation of the construction projects, involving a combination of D-numbers, an analytical network process (ANP), and a multi-attributive border approximation area comparison (MABAC) method [23]. Another construction engineering paper does not apply MCDM methodology.…”