This study addresses the process of risk identification at the tendering and estimating stage, which is the first stage of the risk management process, and for the risk management process be of benefit and for the project objectives to be achieved, the risk identification stage should be very detailed and thorough. The aim of this study is to identify, investigate and evaluate the process of risk identification at the tendering and estimating stage for construction contractors in the NSW region. The data for this were collected during the months of December '94 and January '95 using a sample survey of a cross-section of 19 construction contractors, and the results were analysed using frequency distribution. The results show that the most frequently used methods of risk identification are the top-down approach techniques, where the project is analysed from an overall point of view. Techniques based on top-down approach lead to guesswork in terms of contingency for risks accepted by the construction contractors. Bottom-up risk identification techniques are not popular except for a questionnaire and check-list approach. Also, it was unlikely that the contractors would discuss risk allocation with the clients. All the contractors interviewed agreed that when a risk identification process is followed it improves the accuracy of their estimates.Risk Identification, Estimating, Tendering, Contractor,
Purpose Investment in non-listed real estate funds (NREFs) in an emerging economy like India has its own challenges that entail a detailed understanding of the risks. The purpose of this paper is to identify the key risk factors across the life cycle of a NREF, based on a considered feedback of various real estate fund management stakeholders. It is important for the investors and fund managers to appreciate these risk factors to make informed investment decisions. Design/methodology/approach The present study based on the literature survey and discussion with experts identifies 39 risk attributes, which were further summarized using factor analysis into a smaller set of factors impacting NREF returns (risk). The relative importance of each risk attribute was examined and ranked using the relative importance index (RII). Further, cluster analysis using Euclidian distance was used to partition these risk attributes in various segments depending on their importance. Findings The risk attributes are summarized as five risk factors, i.e. regulatory RISK, foreign direct investment risk, entry risk, business risk and project risk. Whereas the top five perceived risk attributes are investee/partner risk, project entitlement risk, title risk, legislative and regulatory risk and project execution risk. Practical implications This study has significance to the industry practitioners and the academic community in developing an understanding of the dynamic nature of risks across the life cycle of the NREFs in India and classifying them at the macro-meso-micro levels. Originality/value This paper is one of the first attempts to understand the risks impacting NREFs in India. It will help investors develop a better strategic understanding of the risks across the life cycle of an investment.
PurposeReal estate forms an important part of any economy and the investment in real estate, in turn, is impacted by the macroeconomic environment of that country. The purpose of the present research is to examine macroeconomic determinants of foreign and domestic non-listed real estate fund (NREF) flows and to examine whether they are similar or different for an emerging economy like India.Design/methodology/approachThe long and short-run cointegration between the time-series variables is estimated using the autoregressive distributed lag (ARDL) bounds test and error correction model (ECM) using quarterly data across the 2005–2017 period. ARDL is a suitable method for short time-series data.FindingsThe empirical results indicate that domestic NREF flows are positively and significantly impacted by real GDP and performance of listed real estate stocks (i.e. BSE realty index). Whereas, foreign NREF flows are positively and significantly impacted by the exchange rate, performance of listed real estate stocks and domestic NREF flows.Practical implicationsThe empirical results have significant implications for academicians, policy makers and real estate market practitioners. In the context of these results, some interesting insights are gained that would help in the implementation of the policies aimed toward increasing the fund flows in the real estate sector, which in turn would have a significant trickle-down effect on the Indian economy.Originality/valueThe existing literature looks at macroeconomic and other drivers of foreign investment in international real estate investments. However, there are very few studies on the determinants of domestic real estate investment flows and on determinants of NREFs' investment flows; particularly in emerging markets. The present study, in contrast, evaluates simultaneously the macroeconomic determinants of the domestic and foreign NREFs' investment flows in India. The ARDL and ECM method used has been applied for the first time to the study of NREFs.
PurposeThis case study aims to appraise the financial benefits of green building construction in developing countries. The case study presents, green building's positive net present value (NPV) investment in real terms and potentially enhanced stock market returns at the firm level compared to competitors.Design/methodology/approachThe case study examines secondary data on a green building certification and longitudinal operation costs to estimate green building investments' financial benefits. The case study also compares the stock market performance of green building portfolio company with non-green building competitors of similar size and industry.FindingsThe case study finds out that the real return rate on green building investment is higher than the weighted average cost of capital (WACC) of the company with an inflation-adjusted payback period of fewer than ten years. Findings compare favourably to the extant literature which was mostly in developed economies. The paper further highlights that stock market performance for a green building focused company shows improved returns to shareholders relative to non-green competitors.Research limitations/implicationsThe results are specific to the time and building researched; green buildings costs have reduced over time, and a new study may show improved case study findings. The case study results on stock market performance are indicative and may need further research for evaluation.Practical implicationsThe case study presents a model for critical appraisal of green buildings investment. The paper further indicates that green building investment may lead to operational savings and superior stock performance compared to competitors.Originality/valueThe paper presents a green building investment appraisal model which might be useful for the industry and academia. Developing countries have limited literature on green buildings' financial benefits; this case study quantifies the financial benefits and compares them with the available literature related to developed economies’ green buildings.
Purpose This paper aims to focus on the housing situation in Indian cities and the various stakeholders involved in the housing sector. This study addresses the conflict in expectations of the supply and demand side of the housing and establishes the factors crucial to making housing successful for all the stakeholders, essential for sustainable urban development. Design/methodology/approach This paper is developed using the content analysis of preceding independent reviews on housing sustainability by authors across the globe, a review of the current housing situation in Indian cities and a Pilot study of the desired qualitative aspects of housing by the consumer group. Findings This paper identifies the challenges and constraints of the various stakeholders involved in the housing sector. A comprehensive list of all the parameters, both qualitative and quantitative, essential for successful housing implementation, focused on the preferences of the demand side, also referred to as the “Critical Success Factors (CSFs)” is generated. The results advocate a strict consideration and integration of these CSFs with the housing policies for all future housing projects. Research limitations/implications Most of the studies conducted in the past have reviewed the housing situation in India from the perspective of the government authorities and the initiatives undertaken by them to improve the housing crisis. However, a gap exists in achieving a balanced understanding of the supply-side constraints, with the demand-side expectations from the housing. Focusing only on the supply without adequately understanding the consumption can only lead to further chaos in the already turbulent housing situation. Originality/value To the best of author’s knowledge, this is among the first attempts to address the housing scenario in urban centers of India, simultaneously from the perspective of both the demand side and the supply side of the housing, giving additional impetus to the expectations of the demand side which are often ignored. This study becomes more relevant in the ongoing pandemic situation to be able to provide appropriate and acceptable housing solutions to all.
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