How Project Manager–Project Owner Interaction Can Work within and Influence Project Risk Management

Abstract

Inherent interest conflicts between a project management team and project owner are often neglected in project risk management. Risk management by the project management team basically focuses on project short-term survival, or project success toward handover to the customer, while for the project owner, strategic success should be more important. To see how this takes place in and influences real projects, seven large projects were studied, and interaction in project risk management between the project owners and project management team was examined for each project. The study revealed that the main focus in the studied projects was on operational risks, even within the project owner's set of high-priority risks.

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

“…There is a strong connection between the level of project success and focus on risk management [52]. Hence, implementation of risk management has been identified as critical for construction projects to increase their performance and ensure achievement of project objectives [30,53].…”

Motivating Project Owners to Increase Their Commitment towards Improving the Delivery Performance of Green Building Projects

“…The meaning of building project owner is not well defined in the literature (Krane, et al, 2012), which in some cases, used interchangeably with building clients (Ryd, 2004;Xia, Skitmore, Zuo, Zhao, & Nepal, 2014). In most cases, project owners are defined on the basis of their interest in building development.…”

“…According to (Hartmann, Reymen, & Van Oosterom, 2008), the interest of the project owner may lie in the strategic use of a building project, such as for business or social responsibility purposes on one hand, while on the other hand, the interest of the project owner may be end use or functional importance of a building whereby lives, produces or otherwise operate within the building. Taken together, the project owner is the financier of a building project (Krane, Olsson, & Rolstadås, 2012), whose requirements are to be satisfied and whose core business will be enhanced through the undertaking of a building project (Kelly, 2007;Krane, et al, 2012).…”

“…In most cases, project owners are defined on the basis of their interest in building development. According to Krane, et al (2012), building project owners are the financiers, who commissions building projects, and to whom the facility first of all is a strategic asset. On the other hand, they are the end-users who lives, produces or otherwise operates within the facility and to whom the facility is primarily of functional importance (Hartmann, et al, 2008).…”

Alliance strategy: context, process, and requirements

“…management areas of responsibility). A risk owner should be the one who best understands what needs to be done and who has been given mandate to implement what is required (Krane et al, 2012). Table 3 presents indicators of the different risk factor types and areas of responsibility.…”