Risk assessment and ranking in the developing countries’ construction industry: the case of Jordan

Abstract

PurposeRisk impedes the success of construction projects in developing countries due to planning in an unpredictable and poorly resourced environment. Hence, the literature suggests that practitioners are not fully aware of how important the risk identification process is. Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry. Therefore, this study highlights this process and identifies the key risks that affect the Jordanian construction industry.Design/methodology/approachThis study adopted an exploratory sequential mixed approach, two rounds of face-to-face interviews that were conducted in Jordan among 12 experts followed by a questionnaire randomly distributed to 122 practitioners. This study utilized the relative importance index, coefficient of variation, and Mann–Whitney (U) to analyze the data. Also, the factor analysis technique was used to identify and regroup the risk factors to further understand the correlation among the risks.FindingsThe result revealed an agreement among contractors’ and consultants’ responses toward allocating risks. Furthermore, several risks can be traced back to the project communication management process, highlighting a deficiency in the process. Also, four-factor groups were established, the first group includes the risk of defective design, late decisions making by other project participants and poor coordination with the subcontractor. The second group has only the risk of corruption, including bribery at sites. The third group includes stakeholders’ financial instability and inadequate distribution of responsibilities and risks. The fourth group includes adverse weather conditions and the use of illegal foreign labor.Originality/valueSome of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry.

Enhancing project stakeholder communication under insufficient knowledge of project management concepts

“…However, poor engagement and miscommunication between project managers and their stakeholders is common and can result in several risks (Hatamleh et al, 2021). In this paper, we argue that a major reason for such poor communication is the stakeholders' insufficient knowledge of some unique project management terminology.…”

“…However, poor engagement and miscommunication between project managers and their stakeholders is common and can result in several risks (Hatamleh et al. , 2021).…”

Research on Risk Management in International Engineering Project Contracting with Third World Countries in Africa

“…The variability in risks in most cases has a direct correlation with factors such stakeholder dynamics, technological advancements, or market conditions. [2,13,14,15] Traditional risk management approaches that rely on fixed assumptions and standardized procedures may not be suitable for addressing the dynamic and diverse risks encountered with third world countries in Africa. Instead, project managers and stakeholders need to adopt flexible and adaptive risk management strategies that can accommodate the changing nature of risks throughout the project lifecycle.…”

“…Instead, project managers and stakeholders need to adopt flexible and adaptive risk management strategies that can accommodate the changing nature of risks throughout the project lifecycle. [2,13,14,15]…”

A Scientometric Analysis of Studies on Risk Management in Construction Projects

“…Risk identification involves developing a checklist and categorising the risks that might evolve during the project execution [34]. Historical experiences with risks in past projects can be leveraged to identify risks in current construction projects [35]. Risk allocation is the process of identifying project risks and determining how they may be equitably and realistically shared by all of the parties in a construction project [36].…”