Proper Risk Allocation during Construction: Differing Site Conditions

Hanna, Awad S.; Swanson, Justin R.; Aoun, Diane G.

doi:10.1061/(asce)la.1943-4170.0000146

Cited by 12 publications

(5 citation statements)

References 2 publications

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“…Picha et al (2015) used EPC/Turnkey (FIDIC Silver book: 1999) contracts to determine the suitability in terms of risk allocation and risk coverage for international power projects. Other studies using a similar approach include Mooney and Mooney (2013); Hanna et al (2013). In this study, construction contracts were used as cases for risk allocation verification.…”

Section: Methodsmentioning

confidence: 99%

“…This means the risk management capabilities of parties have to be established (Mu et al, 2014). It is important for risks to be properly allocated in the contract (Hanna et al, 2013). Hanna et al (2013) argues that it is difficult to predict responsibility even by the courts if no clause exists in the contract that properly allocates a given risk.…”

Section: Risk Allocation In Architectural Engineering and Constructimentioning

confidence: 99%

“…It is important for risks to be properly allocated in the contract (Hanna et al, 2013). Hanna et al (2013) argues that it is difficult to predict responsibility even by the courts if no clause exists in the contract that properly allocates a given risk. Moreover, one measure of contracts' efficiency and effectiveness is its ability to clearly assign risks between contracting parties (Hartman and Patrick, 1996).…”

Section: Risk Allocation In Architectural Engineering and Constructimentioning

confidence: 99%

“…1). The fixed price contract is the most common contract normally associated with traditional or separated procurement (Allensworth, 1996;Hackett et al, 2007;Hanna et al, 2013;Turner, 2004). It is therefore important to establish the extent to which the fixed price contract is used in relation to other methods of pricing since it has been established that types of contract can be used in combination or as hybrids (Hackett et al, 2007).…”

Section: Risk Allocation In Architectural Engineering and Constructimentioning

confidence: 99%

“…Moreover, Loosemore and McCarthy, (2008) suggest that contract clauses are designed to record the deals that are agreed between the many parties to a construction contract. Depending on how the distribution has been done, it has a direct impact on project performance (Akintoye and MacLeod, 1997;Alsalman and Sillars, 2013;Hanna et al, 2013). Alsalman and Sillars (2013) modelled the effects of risk misallocation on projects in the USA construction industry using a rational decision-making process using data from a questionnaire survey, the findings indicated, tensions cost/time overruns, quality issues and disputes.…”

Section: Fig 3 Proposed Conceptual Modelmentioning

confidence: 99%

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A Conceptual Model for Risk Allocation in the Construction Industry

Tembo-Silungwe¹,

Khatleli²

2017

American Journal of Applied Sciences

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Appropriate risk allocation influences positive project delivery on construction projects while inappropriate allocation results in disputes, quality shortfalls, time and cost overruns. The existing body of knowledge provides guides on how risks should be allocated between the contracting parties. Nevertheless, the full appreciation of risks allocation is rarely given as risk allocation is more than just which party should bear a risk. This study provides a conceptual model of the various ways risks could be allocated. (2013) are used to demonstrate the practicality of the conceptual model. An understanding of risk allocation prerequisites might help to mitigate risks that influence project performance negatively. The use of this conceptualization may help to assign a risk with more than one treatment option to maximize a positive outcome of a negative risk factor.

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Section: Methodsmentioning

confidence: 99%