Risk management trends in the Hong Kong construction industry: a comparison of contractors and owners perceptions

Ahmed, Syed M.; Ahmad, Riaz; Saram, D. Darshi De

doi:10.1046/j.1365-232x.1999.00107.x

Cited by 24 publications

(33 citation statements)

References 5 publications

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“…The pilot questionnaire was developed based on the risk factors documented in previous research studies by Bernhard (1988), Ahmed et al (1998), Al-Subhi Al-Harbi Kamal (1998), Ahmed et al (1999), Broome and Perry (2002), Haley and Shaw (2002), Rahman and Kumaraswamy (2002), Cheng (2004), Fan and Greenwood (2004), Oztas and Okmen (2004), Sadler (2004), Environment, Transport and Works Bureau (2005), Li et al (2005), Tang (2005), Hong Kong Housing Authority (2006), Shen et al (2006), Ng and Loosemore (2007), Chan et al (2007a), Chan et al (2007b), Yew (2008), together with seven structured interviews with experienced industrial practitioners with abundant hands-on practical experience in those TCC/GMP procurement approaches undertaken by the authors (Chan et al, 2010b). The interviewees suggested that nature of variations, change in scope of work, quality and clarity of tender documents, unforeseen ground conditions, fluctuation of materials price, and approval from regulatory bodies for alternative cost saving designs were the key risk factors associated with TCC/GMP contracts in Hong Kong.…”

Section: Literature Reviewmentioning

confidence: 99%

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Chan

Lam

et al. 2011

International Journal of Project Management

112

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The construction industry is often characterized by the traditional adversarial working relationships between contracting parties. There has been a strong call for applying target cost contracts to align the interest of owners and contractors together. By doing so, it aims to achieve a win-win situation under a partnering arrangement within the construction industry. Even though a multitude of research studies have been undertaken on target cost contracts (TCC) or guaranteed maximum price (GMP) contracts, not many of them have focused on the risk management and analysis of these procurement strategies. This paper aims to identify, rank and compare the key risk factors encountered with these forms of procurement based on an empirical questionnaire survey geared towards the clients, contractors and consultants in Hong Kong. Despite the limited number of completed TCC and GMP (TCC/GMP) construction projects in Hong Kong, the chosen sample was perceived to be truly representative of the survey population. A four-level data analysis framework was applied in this paper, including descriptive statistics, Kendall's concordance test, Spearman's rank correlation test and Mann-Whitney U Test. The research findings showed that the client group, contractor group and consultant group are in general agreement on the impact of individual risks. The identification of the key risk factors and their relative significance are important in the risk management of target cost contracts and guaranteed maximum price projects, which, if properly done, would enhance the value for money throughout the whole procurement process. This research study also helps various key project stakeholders to equip with better knowledge and understanding of TCC/GMP scheme by paying close attention to those This is the Pre-Published Version. (Final Accepted Manuscript), Volume 29, Issue 6, August 2011, Pages 751-763 2 high-risk factors and then the implementation of appropriate risk mitigation measures in a proactive manner. International Journal of Project Management (IJPM)

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Section: Literature Reviewmentioning

confidence: 99%

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Chan

Lam

et al. 2011

International Journal of Project Management

112

View full text Add to dashboard Cite

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“…This is based on the principle that the party in the greatest position of control or possessing the best capability of management with respect to a particular risk has the best opportunity to reduce the likelihood of the risk eventuation and to control the consequences of the risk if it materialises, and thus should assume it (Rahman and Kumaraswamy, 2002;Thomas et al, 2003). Allocating the risk in line with those opportunities creates an incentive for the controlling party to use its infl uence to prevent or mitigate the risk and to use its capacity to do so in the overall interests of the project (Ahmed et al, 1999).…”

Section: Risk Allocation In Ppp Projectsmentioning

confidence: 99%

Allocating Risks in Public-Private Partnerships Using a Transaction Cost Economic Approach: A Case Study

Jin

2012

CEB

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Public-private partnership (PPP) projects are often characterised by increased complexity and uncertainty due to their idiosyncrasy in the management and delivery processes such as long-term lifecycle, incomplete contracting, and the multitude of stakeholders. An appropriate risk allocation is particularly crucial to achieving project success. This paper focuses on the risk allocation in PPP projects and argues that the transaction cost economics (TCE) theory can integrate the economics part, which is currently missing, into the risk management research. A TCE-based approach is proposed as a logical framework for allocating risks between public and private sectors in PPP projects. A case study of the Southern Cross Station redevelopment project in Australia is presented to illustrate the approach. The allocation of important risks is put under scrutiny. Lessons learnt are discussed and alternative management approaches drawing on TCE theory are proposed.

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“…The questionnaire design were undertaken in the phase consisted of literature review of past research focused on risks in construction and IBS housing project. 27 construction risks were compiled from previous similar studies conducted in the USA [7] and Hong Kong [1] and from an interview with experienced personnel involved in IBS projects it was reduced to 12 risks based on IBS project in Malaysia construction situation. Table 1 shows 12 risks types in IBS project included in the questionnaires.…”

Section: Methodsmentioning

confidence: 99%

The Contractor Perception Towers Industrialised Building System Risk in Construction Projects in Malaysia

Hassim¹,

Jaafar²,

Sazalli³

2009

American Journal of Applied Sciences

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Abstract:The use of IBS (Industrialised Building System) has attracted a lot of countries like Singapore, Sweden, Germany, Japan and the United Kingdom. This system can replace the conventional building system which is labour oriented. However, since the first project of IBS in year 1964 till today, IBS in Malaysia is not well accepted by the construction parties because of failure to adequately deal with risks in the IBS projects. To address this matter, this study had identified the risks faced by contractor in IBS construction projects. The risk identification techniques used were brainstorming, analysis of journal and conference papers and discussion with practitioners and data were collected by a questionnaire survey on contractors. It was found that there are twelve major risks in construction using IBS which are; acts of God, change in work and defective design, changes in government regulation, contractor competence, delayed payment and resolving contractual issues, financial failure-any party, labour and equipment productivity, labour, equipment and material availability, quality of work, safety, site access/right of way and suppliers/manufacturers poor performance. Therefore, it is hoped that the finding of this research could assist Malaysian contractors in making risk management planning besides improving decisions making to achieve project.

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Risk management trends in the Hong Kong construction industry: a comparison of contractors and owners perceptions

Cited by 24 publications

References 5 publications

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Risk ranking and analysis in target cost contracts: Empirical evidence from the construction industry

Allocating Risks in Public-Private Partnerships Using a Transaction Cost Economic Approach: A Case Study

The Contractor Perception Towers Industrialised Building System Risk in Construction Projects in Malaysia

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