Relationships among Risk Management, Partnering, and Contractor Capability in International EPC Project Delivery

Wang, Tengfei; Tang, Wenzhe; Du, Lei; Duffield, Colin; Wei, Yongping

doi:10.1061/(asce)me.1943-5479.0000459

Cited by 70 publications

(44 citation statements)

References 66 publications

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“…Osipova (2015) observed that risks are inherent in all construction projects, which may negatively affect project delivery in terms of time, cost, and quality. If risks are not properly managed, the project stakeholders may seriously suffer from cost overruns, delays, or even project failures (Wang et al, 2016). Arising from this, the construction industry globally has been reported to have a poor reputation in risk management (RM) (Renuka et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Ishaq

2021

LAUJOCES

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Construction projects are prone to a number of risks due to their complexity, dynamic nature, capital intensive nature and involvement of many stakeholders. These risks if left unmanaged will negatively influence the completion cost and other primary objectives of construction projects. Numerous studies have been conducted globally to determine the potential risks that negatively impacts construction projects; however, the risks aren’t alike across all the regions and the potential degree of impact may changes with time. This study assessed the impact of risk factors on completion cost of construction projects in Nigeria. Data was collected using structured questionnaires administered to 192 construction practitioners using convenience sampling technique. Descriptive statistics (mean and standard deviation) were used to analyse the data. The study found ‘inadequate cost estimate’ (MS = 4.39), ‘risk incurred due to bribery and corruption’ (4.30), ‘increase in prices of materials’ (4.25), ‘increase in cost of labour’’ (4.11), ‘poor cash flow management’ (4.04) ‘mistakes/errors in design’ (4.04) and ‘mistakes during construction’ to be the topmost risk factors that impact on project completion cost. The study concludes that ‘economic’, ‘financial’ and ‘contract administration and project management’ related factors group are those with high impact on project completion cost.

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Section: Introductionmentioning

confidence: 99%

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Ishaq

2021

LAUJOCES

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“…(2000c);Cheng et al (2001);Naoum (2003);Cheng and Li (2004);Lu and Yan (2007b);Bresnen (2007); Bygballe et al (2010); Eriksson (2010); Hartmann and Bresnen (2011); Gottlieb and Jensen (2012); Eriksson (2015); Du et al (2016); Børve et al (2017); Anthony et al (2017); Conley and Gregory (1999); Eriksson and Pesämaa (2013) and Gray (1994); Peña-Mora and Harpoth (2001); Humphreys et al (2003); Manley et al (2007); Eriksson and Nilsson (2008); Bayliss et al (2004); Beach et al (2005) . (2001); Ng et al (2002); Packham et al (2003); Chan et al (2003a, 2003b); Wood and Ellis (2005); Lu and Yan (2007a); Alderman and Ivory (2007); Crespin-Mazet and Portier (2010); Chan et al (2013); Mollaoglu et al (2015); Black et al (2000); W. T. Chen and T.-T. Chen (2007); Chan et al(2008) (2000);Bresnen and Marshall (2000a, 2000b;Swan and Khalfan (2007);Kadefors et al (2007);Mason (2007);Laan et al (2011a);Du et al (2016);Cheng (2016);Wang et al (2016);Lazar (2000);Cheung et al (2003);Cacamis and Asmar (2014) …”

mentioning

confidence: 99%

Collaborative Project Delivery Methods: A Scoping Review

Engebø

Lædre

Young

et al. 2020

Journal of Civil Engineering and Management

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Understanding how to systemise, organise, and finance the design, construction, operation, and maintenance activities are all parameters needed to be optimised simultaneously in a Project Delivery Method. To meet the challenges of increasingly complex projects, a new class of delivery methods is emerging. These methods are often labelled “collaborative” since they seek to align the client’s interest with those of the supply chain. The purpose of this article is to present the current state-of-the-art through a review of 156 identified articles concerning Partnering, Integrated Project Delivery, Alliancing, Relational Contracting, and Relationship-Based Procurement. A framework for the methodological procedure based on the state of the art within qualitative research was elaborated and is reported on in this paper. The results show that there is a range of research on collaborative project delivery methods across the world. By analysing the study purposes, important themes generated and delineated as a) Conceptualisation, b) Implementation and experiences, c) Pros & Cons, d) Building Partnership & Social Dimensions, and e) Performance and Success. The paper provides an overview of collaborative project delivery methods identified in the realm of academic journals. Secondly, knowledge gaps have been identified by creating a summary of the body of evidence.

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“…Through the integration of design and construction, the introduction of the EPC model can not only reduce the risk of project uncertainty but also provide a platform for the EPC general contractor to optimize the project [11]. With the continuous development of construction management reform in China's hydropower industry and the extensive application of EPC in the Architecture, Engineering & Construction (AEC) industry worldwide [12,13], both theoretical and practical experts have agreed that it is imperative to further develop the EPC project delivery system in order to improve the level of management and productivity of the hydropower industry in China. Since 2009, several pilot projects have been implemented to take the lead in using EPC in Guangdong Province, China [14].…”

Section: Project Delivery Methods and Epcmentioning

confidence: 99%

Study on Added-Value Sharing Ratio of Large EPC Hydropower Project Based on Target Cost Contract: A Perspective from China

Ding

Chen

et al. 2018

Sustainability

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Engineering, procurement, and construction (EPC) has been applied in China's hydropower projects for its value-added advantages compared with traditional project delivery systems in theory. However, the actual performance of large EPC hydropower projects has been challenged by the complexity of the stakeholders' interest demands and conflicts. The increasing use of target cost contracts (TCC) in the construction industry has provided a pain/gain share mechanism for the owners to incentivize contractors to complete projects within cost budgets. The added-value sharing ratio is the core element of TCC, and it predetermines how much proportion of savings the contractor can get paid if the actual cost is below the target cost, and how much proportion of overspend the contractor has to pay if the actual cost is higher than the target cost. In this paper, we consider the added-value sharing ratio under the framework of TCC based on the principal-agent theory, and look at how the added-value sharing ratio is influenced by various factors and how it affects the owner and the contractor in large EPC hydropower projects. Determination of the added-value sharing ratio in both discrete and continuous conditions are discussed, respectively. It is found that the added-value sharing ratio is relatively explicit in the discrete case, while the optimal added-value sharing model in the continuous case is more complex, which can be used to analyze the relationship between the added-value sharing ratio and the key influencing factors. Our research conclusions can provide both theoretical guidance and practical suggestions to contract design in the implementation of EPC hydropower projects, to some extent.

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Relationships among Risk Management, Partnering, and Contractor Capability in International EPC Project Delivery

Cited by 70 publications

References 66 publications

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Impact of Risk Factors on Construction Projects’ Completion Cost in Nigeria

Collaborative Project Delivery Methods: A Scoping Review

Study on Added-Value Sharing Ratio of Large EPC Hydropower Project Based on Target Cost Contract: A Perspective from China

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