Selecting Appropriate Risk Response Strategies Considering Utility Function and Budget Constraints: A Case Study of a Construction Company in Iran

Abstract

Successful implementation of construction projects worldwide calls for a set of effective risk management plans in which uncertainties associated with risks and effective response strategies are addressed meticulously. Thus, this study aims to provide an optimization approach with which risk response strategies that maximize the utility function are selected. This selection is by opting for the most appropriate strategies with the highest impact on the project regarding the weight of each risk and budget constraints. Moreover, the risk assessment and response strategy of a construction project in Iran as a case study, based on the global standard of the project management body of knowledge (PMBOK) and related literature, is evaluated. To handle the complexity of the proposed model, different state of the art metaheuristic algorithms including the ant lion optimizer (ALO), dragonfly algorithm (DA), grasshopper optimization algorithm (GOA), Harris hawks optimization (HHO), moth-flame optimization algorithm (MFO), multi-verse optimizer (MVO), sine cosine algorithm (SCA), salp swarm algorithm (SSA), whale optimization algorithm (WOA), and grey wolf optimizer (GWO). These algorithms are validated by the exact solver from CPLEX software and compare with each other. One finding from this comparison is the high performance of MFO and HHO algorithms. Based on some sensitivity analyses, an extensive discussion is provided to suggest managerial insights for real-world construction projects.

Risk Management Practices and Performance of Road Construction Projects in Kilifi County, Kenya

“…However, the failure of many construction projects in meeting deadlines, cost and quality targets is continuously on the rise and there are signs of accentuating year after year suffering significant financial losses of construction works in Kenya. The successful implementation of construction projects worldwide calls for a set of effective risk management plans (Safaeian et al, 2022). However, the effective implementation of risk management practices has been overlooked in developing nations (Shayan, Pyung Kim, & Tam, 2022).…”

“…The project risk identification addresses need of appreciation of risks (Obondi, 2022), by identifying what might happen considering all possible causes and scenes that indicate potential consequences (Sarkar & Singh, 2022). However, despite the various definitions of project risk identification, it is surprising that there is no unanimous definition that all researchers agree on (Safaeian et al, 2022).…”

Risk Management Practices and Performance of Mining Projects in Kwale County, Kenya

“…Risk management is an important exercise in order to achieve better performance of projects (Chepkoech & Wairimu, 2023). However, many a times, projects fail to keep up with the planned schedules and budgeted costs to meet their goals (Shafiuddin et al, 2022;Safaeian, Fathollahi-Fard, Kabirifar, Yazdani, & Shapouri, 2022). The existing literature suggests that there is a consensus between academia and industry that project risk management is critical to project success (Aramali, Sanboskani, Gibson Jr, El Asmar, & Cho, 2022;Ahmad et al, 2022).…”

Home Health Care Problem with Synchronization Visits and Considering Samples Transferring Time: A Case Study in Tehran, Iran

“…Numerous researchers have an interest in meta-heuristic algorithms due to their effectiveness and applicability in solving real-world problems [ 24 , 25 , 26 , 27 ]. Therefore, they have been used in many different research areas [ 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 ]. This paper utilizes GA and PSO, which have been extensively used in literature reviews for various types of vehicle routing problems [ 39 ], and they have demonstrated their capability in handling complex problems [ 40 , 41 ].…”