Impacts of risk allocation on conflict negotiation costs in construction projects: Does managerial control matter?

Tang, Yinqiu; Chen, Yongqiang; Hua, Yuanyuan; Fu, Yongcheng

doi:10.1016/j.ijproman.2020.03.002

Cited by 44 publications

(24 citation statements)

References 56 publications

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“…Further, enhanced understanding of how contractual parties perceive risk handling responsibilities is of particular importance to contractors and consultants in effective risk management and decision making when intending to participate in such projects during the construction stage. As observed by Tang et al [53], conflict negotiation costs will increase with more risks allocated to the contractor. Therefore, the Tanzanian contractors would benefit from minimising these costs based on the enhanced and better management of the critical risks as identified.…”

Section: Practical Implicationsmentioning

confidence: 84%

Risk Handling Responsibilities in Tanzanian Project-Based Organisations

Sospeter

Chileshe

2021

Sustainability

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Risk handling is one of the elements and essential parts of risk management when properly incorporated into a project. However, there is inadequate knowledge amongst the contractual parties on risk handling responsibilities in road projects, particularly in Sub-Saharan African developing countries. This study is aimed at bridging that knowledge gap by investigating the perceptions of contractors and consultants on the risk handling responsibilities in road projects in Tanzania. The primary data were collected from 80 registered foreign and local civil contractors and engineering consultants based in Dar es Salaam. Descriptive statistics and inferential statistics were used for the data analysis. The results show that both contractors and consultants ranked safety project provision and ensuring quality provision in terms of construction as shared risk responsibilities among contractual parties. The findings further show that consultant-related risk responsibilities are: safety provision, the use of historical cost deviation, ensuring quality provision, and review of knowledge on budgeting. On the other hand, contractor-related risk responsibilities include: safety provision and ensuring quality provision. The findings of this study can be used by the practitioners and stakeholders as important lessons useful for controlling risks and making decisions when they intend to participate in such projects during the construction stage.

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Section: Practical Implicationsmentioning

confidence: 84%

Risk Handling Responsibilities in Tanzanian Project-Based Organisations

Sospeter

Chileshe

2021

Sustainability

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“…For example, when owners focus on cost-based risk management, they emphasize controlling land prices and accurately budgeting costs [32]. For contractors, the emphasis of costbased risk management is to identify reasonable suppliers during the construction period to establish partnerships that stabilize material supply prices [33]. Across the supply chain, the costs and risks of different stakeholders are closely related [34][35][36].…”

Section: Cost Risk In Construction Project Supply Chainmentioning

confidence: 99%

“…When evaluating cost-related risks, El-Sayegh [43] listed examples of important cost-related risks in construction projects as including economic environment changes, project delays, insufficient technical personnel reserves, improper interventions, and material supply changes. Tang et al [33] divided cost-based risks into internal risk and external risks when studying the management of construction projects. Internal risks include design defects, payment delays, inaccuracies in orders or data, labor disputes, and third-party delays.…”

Section: Cost Risk In Construction Project Supply Chainmentioning

confidence: 99%

“…With respect to the research methodology, previous studies have usually assessed the importance of cost-based risks based on the possibility of occurrence and the impact of different risks (examples include El-Sayegh [43] and Tang et al [33]). Social network analysis (SNA) is a commonly used method to rank risks in construction projects [15,46].…”

Section: Special Interest Groupsmentioning

confidence: 99%

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Managing Cost-Based Risks in Construction Supply Chains: A Stakeholder-Based Dynamic Social Network Perspective

et al. 2020

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In construction projects, cost-related risks are challenges that need to be coped with. These cost-related risks interact with each other along with the project progress and involve different stakeholders, forming a stakeholder-cost risk network. Previous studies have discussed the stakeholder-cost risk network; however, few studies have considered its dynamic characteristics. Different from traditional methods, this study employed the social network analysis (SNA) to explore the key indicators of cost-related risks within the supply chain and identify the key risks and stakeholders across four project stages: the planning start-up stage, design preparation stage, construction period, and operations and maintenance period. From a horizontal point of view (i.e., network development process), the complexity of the stakeholder-cost risk network demonstrates a U-shaped development process during the project life cycle, ranging from simple to complex to simple. From a vertical point of view (i.e., network hierarchical characteristics), the important cost-based risks are diversified within each stage. The current study contributes to forming a better understanding of the stakeholder-cost risk network from a dynamic perspective as well as the crucial cost-based risks within each stage of the project. The findings provide implications for managers to better align cost-based risk intervention strategies, thereby facilitating the achievement of construction project success.

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“…Literature in construction conflict management also leaves the impact of conflict on trust as a gap. Current studies mainly concern about: how conflict influences project performance (Chen et al, 2014); what causes conflict (Jaffar et al, 2011) and how it evolves (Mahato and Ogunlana, 2011); and how to use different conflict-handling strategies (Tang et al, 2020) or dispute resolutions (Feng and Xie, 2019) to make use of the functional conflicts and reduce the dysfunctional impacts (Liu and Zhai, 2011).…”

Section: Introductionmentioning

confidence: 99%

Surviving trust from conflict in the construction industry: an interaction between conflict handling behaviors, behavioral outcomes, conflict and trust

Wang

Liu

Zhang

et al. 2021

IJCMA

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Purpose This paper aims to reveal the role of conflict management in the process of trust development. Specifically, this study investigates how the salience of conflict varies with different conflict-handling behaviors and behavioral outcomes and how the variation of the salience of conflict influences the trust development between contracting parties. Design/methodology/approach A questionnaire survey was undertaken to collect data from 310 experienced project practitioners. Hierarchical regression analysis and bootstrapping with a structural equation model were mainly used to test the hypotheses. Findings This paper finds that the relational degree of conflict handling behaviors can influence the salience of conflict and furthermore to influence trust between contracting parties, with this relationship mediated by the behavioral outcomes; however, all these relationships are contingent on the stage where relational conflict handling behaviors are adopted and the specific type of outcomes the behaviors result in. Practical implications This study provides some specific directions for the practitioners to conduct relational conflict handling behaviors and generate positive outcomes to keep trust developing between contracting parties in conflictual situations. Originality/value This study contributes to the knowledge of inter-organizational trust development as well as conflict management, by investigating the relationship between conflict and trust in a direction, which is less examined and revealing the process of conflict management, where the conflict handling behaviors influence behavioral outcomes to further manage conflict, in trust development.

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Impacts of risk allocation on conflict negotiation costs in construction projects: Does managerial control matter?

Cited by 44 publications

References 56 publications

Risk Handling Responsibilities in Tanzanian Project-Based Organisations

Risk Handling Responsibilities in Tanzanian Project-Based Organisations

Managing Cost-Based Risks in Construction Supply Chains: A Stakeholder-Based Dynamic Social Network Perspective

Surviving trust from conflict in the construction industry: an interaction between conflict handling behaviors, behavioral outcomes, conflict and trust

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