Residential Construction Risk Management: Does It Happen in Real Life?

Panthi, Kamalesh; Waller, Lewis; Ahmed, Syed M.

doi:10.1007/978-3-030-48465-1_77

Cited by 3 publications

(3 citation statements)

References 8 publications

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“…Unpredictability results from the negative implications of risk influencing the project's efficacy (Qazi et al, 2021). The project manager's primary objective is to apply efficient methods for risk management to complete a project without compromising scope, quality, budget and schedule (Panthi et al, 2021). Risk management refers to effectively identifying and resolving known risks that can happen as an outcome of design, material, management, finance, equipment, and labor (Ratnaningsih et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

The Moderating Effects of Statutory Laws and Regulations of Risk Factors and Management in the Kingdom of Saudi Arabia Construction Industries

Rehman,

Ishak,

Adeleke

2024

Business, Management and Economics Engineering

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Purpose – Construction projects are fraught with hazards that have a detrimental impact on schedules, estimates, and quality. The project execution phase exposes contractors to internal and external hazards, either implicitly or explicitly. A project’s achievement is contingent on the proper handling of internal and external hazardous concerns. This study investigates the connection linking internal and external risk factors with risk management in Saudi Arabian contractors and the moderation role of government bylaws linking this connection. Research methodology – This study investigates 303 Saudi Arabian contractors to explain the influence of internal hazards, external hazards, and governmental by-laws on risk management by applying the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. Findings – The outcome indicates that internal hazards (active leadership, team competency, and skills and effective communication), external hazards (technological, political, cultural, and economic factors), and government by-laws (also, its moderation role with external hazards) are positively connected with risk management resulting a moderate effect. Furthermore, the outcome also highlights that the moderating influence of government by-laws with internal risk factors is insignificant. Research limitations – The current research model depicted 74.4% of the overall variation in risk management. Other latent variables can explain the 25.6% remaining overall variation in risk management which can be taken into account for future aspects of effective construction risk management. Practical implications – This study raises the efficiency of Saudi Arabian contractors by improving project output delivery. This study made recommendations to boost risk management usage. Originality/Value – This research was conducted for the first time in the Kingdom of Saudi Arabia, and it is an original work.

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Section: Introductionmentioning

confidence: 99%

The Moderating Effects of Statutory Laws and Regulations of Risk Factors and Management in the Kingdom of Saudi Arabia Construction Industries

Rehman,

Ishak,

Adeleke

2024

Business, Management and Economics Engineering

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“…The construction industry is widely associated with a high degree of risk due to the nature of construction business activities, processes, environment and organization (Panthi, et al , 2021; Mahmoudi, et al , 2020; Akintoye and MacLeod, 1997). In fact, a smart market report by Dodge Data and Analytics (2017) indicates that construction projects are more likely to fail as a result of the inherently high level of risk.…”

Section: Introductionmentioning

confidence: 99%

“…Consequently, too often, contractors accept the high risk as a standard operating condition (Dodge Data and Analytics, 2017). With the need for improved performance in construction projects and increasing contractual obligations, the requirement of effective risk management (RM) approach has never been more necessary (Panthi, et al , 2021; Nieto-Morote and Ruz-Vila, 2011).…”

Section: Introductionmentioning

confidence: 99%

Risk management in residential projects in the United States: implementation status, evaluation techniques and barriers

Adamtey

Kereri

2021

JEDT

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Purpose Residential projects frequently suffer from low-risk management (RM) implementation and, consequently, are more likely to fail to meet performance objectives. With RM becoming an essential requirement, the purpose of this study is to investigate RM implementation in terms of status, risk analysis techniques, barriers and impact of RM on residential projects across the USA. Design/methodology/approach Data were collected from 105 general contractors who had completed 3,265 residential projects in the past five years. Data collection was through a US national survey sent out through emails between August and November 2019 to residential general contractor firms. The firms were randomly selected from national organizations, such as the National Association of Home Builders, Associated General Contractors of America and Associated Builders and Contractors. Findings The analysis indicated that RM implementation is still extremely low at 22.27%. However, there was an increase in RM implementation as the cost and duration of projects increased. Direct judgment is the most used technique. Also, the one-sample t-test indicated that the barriers have a significant impact on RM implementation. Multinomial logistic regression results indicated that the impact of lack of management support, lack of money or budget, the complexity of analytical tools and lack of time to perform analysis predict the impact on the overall performance of construction projects. Overall, the results provide empirical evidence, which can influence management’s decision-making regarding RM and improve implementation in residential projects. Originality/value There is a lack of empirical evidence on the impact of barriers to RM implementation on the performance of construction projects. This research contributes to the body of knowledge by bridging this gap through a robust analysis of data collected from real residential projects.

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Proactive mechanisms for response to risks of business entities engaged in investment and construction activities

et al. 2021

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Basing on the extensive analysis of both native and foreign scientific publications, the authors have concluded that the problem of classifying risks and factors of their occurrence, and the risk assessment, as well, is well-publicized. In some works, strategies are proposed to mitigate consequences of the onset of risks by creating reserves. However, all of them are mechanisms of the management response during implementation of an investment and construction project, i.e., the reactive position. The article proposes to move from a reactive to a proactive position, which essence is to implement the goal set by the investor, regardless of the conditions, circumstances, and the likelihood of the manifestation of internal or external negative impacts. This problem is solved by the Business Impact Analysis (BIA) method, which logic is only in assessing the fact of breaching contracts by the subjects, but not the frequency of occurrence of events causing risks. The method used does not consider or observe the content of various events, their cause-and-effect relationships, but the only fact of nonfulfillment of the contract terms in relation to duration or estimated cost by a business entity implementing investment and construction projects.

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Residential Construction Risk Management: Does It Happen in Real Life?

Cited by 3 publications

References 8 publications

The Moderating Effects of Statutory Laws and Regulations of Risk Factors and Management in the Kingdom of Saudi Arabia Construction Industries

The Moderating Effects of Statutory Laws and Regulations of Risk Factors and Management in the Kingdom of Saudi Arabia Construction Industries

Risk management in residential projects in the United States: implementation status, evaluation techniques and barriers

Proactive mechanisms for response to risks of business entities engaged in investment and construction activities

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