PurposeThe purpose of this paper is to introduce a novel decision‐making approach to risks assessment in commercial real estate development against social, economic, environmental, and technological (SEET) criteria. It therefore aims to describe a multiple criteria decision‐making model based on analytic network process (ANP) theory, and to use an experimental case study on an urban regeneration project in Liverpool to demonstrate the effectiveness of the ANP model.Design/methodology/approachThe paper commences with a description about risks related to commercial real estate development, and provides a list of risk assessment criteria based on literature review and experience in related areas. The ANP is then introduced as a powerful multicriteria decision‐making method. An experimental case study is finally conducted with scenarios and assumptions based on a real urban regeneration project in Liverpool.FindingsThe paper defines a group of risks assessment criteria against SEET requirements directly related to commercial real estate development. An ANP model is set up with 29 risks assessment criteria, and results from an experimental case study reveal that the ANP method is effective to support decision‐making based on risks assessment to select the most appropriate development plan; and therefore it is applicable in commercial area.Originality/valueThis paper defines SEET criteria for risks assessment in regard to SEET requirements to emphasise sustainable development; while the ANP is introduced to assess risks in commercial real estate development. The ANP model provides a platform for decision makers in commercial real estate development to evaluate different plans based on the degree of interactions among risk assessment criteria.
A novel analysis approach to support real estate developers in making decision to deal with potentialrisks in each project development stage is introduced in this paper. The analysis model applied in this researchis a multi-criteria approach, based on Analytic Network Process (ANP) theory. Risk assessment criteria toaccomplish the ANP calculation are defined based on both literature review and related experience, againstSocial, Technological, Economic, Environmental and Political (STEEP) requirements of the real estate developmentin order to assess the risks in this business effectively. A case study of a residential and commercialmixed-use project in Liverpool City Centre was used to demonstrate the effectiveness of the ANP model. Theresult of an initial case study revealed that ANP is an effective tool to support developers in making decisionbased on risks assessment. It was found through this study that the established ANP model is effective and canbe adopted by real estate developers to suit for the business needs.
Risk management in construction projects is considered as an important part of the management process. Since risk in construction projects associated with three major principles, which are Time, Cost and Quality. Those risks and uncertainties are caused by performance of workers, material and parts quality, delays in supply of important materials to site, project budget and cost control, or the complexity of project procurement processes, which may threaten the project objectives. This article will emphatically focus on risk, that is caused by the complexity of the construction procurement process. In addition, the appropriate risk identification methods will be also introduced in this article. Suggested methods shall start with setting up a risk profile, avoidance of risks, basic risk assessment and useful risk mitigation actions for project management participants, particularly architects or project managers to understand risks associated in construction procurement process including how to mitigate those risks.
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