Understanding the key risks in construction projects in China

Zou, Patrick X.W.; Zhang, Kevin; Wang, Jiayuan

doi:10.1016/j.ijproman.2007.03.001

Cited by 646 publications

(416 citation statements)

References 27 publications

(44 reference statements)

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“…The last category is those which, the probability of occurrence cannot be predicted. According to [20], the risk could also be grouped based on sources concerned with stakeholders. For example, the time associated risks, environmentally associated risks, cost associated risks and safety associated risks.…”

Section: Risks In Constructionmentioning

confidence: 99%

Risk management in the construction industry: a new literature review

Renault

Agumba

2016

MATEC Web Conf.

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Abstract. The construction industry is well known as a highly risk prone industry owing to the complexity of its activities and dynamic project environments generating an atmosphere of risks that must be taken into consideration in the decision process. For this reason, we have developed this treatise to elucidate the fundamentals of risk management through a concise new proposal of literature review for risk management in construction. Our explanation of this is venture is that over the years, this area has been acknowledged as a crucial process in the business institutions and the most discussed subject among experts and researchers in the construction sector. We have tried in this report to present the most recent studies considering the impossibility to present all definitions of the concept of risk. This study is mainly a literature review; it looks at the literature relating to the concept of risk, risk management in construction as well as methods used in construction industry.

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Section: Risks In Constructionmentioning

confidence: 99%

Risk management in the construction industry: a new literature review

Renault

Agumba

2016

MATEC Web Conf.

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“…This study defines the major factors that affect the project profitability according to 15 factors based on the pro forma income statement shown in Figure 2 of the risk factors of overseas projects, as shown in Table 2. The relationships between the profitability impact factors and the associated risk factors is linked to the references on overseas projects [48][49][50][51]; furthermore, these relationships are utilized in the problem-solving of this paper. This paper presents a method which is applicable to an increase in the NPV α , which is an important indicator of investment decisions based on the relationships between the profitability factors and the associated major risk factors.…”

Section: O1mentioning

confidence: 99%

A Probabilistic Alternative Approach to Optimal Project Profitability Based on the Value-at-Risk

Kim

2018

Sustainability

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This paper focuses on an investment decision-making process for sustainable development based on the profitability impact factors for overseas projects. Investors prefer to use the discounted cash-flow method. Although this method is simple and straightforward, its critical weakness is its inability to reflect the factor volatility associated with the project evaluation. To overcome this weakness, the Value-at-Risk method is used to apply the volatility of the profitability impact factors, thereby reflecting the risks and establishing decision-making criteria for risk-averse investors. Risk-averse investors can lose relatively acceptable investment opportunities to risk-neutral or risk-amenable investors due to strict investment decision-making criteria. To overcome this problem, critical factors are selected through a Monte Carlo simulation and a sensitivity analysis, and solutions to the critical-factor problems are then found by using the Theory of Inventive Problem Solving and a business version of the Project Definition Rating Index. This study examines the process of recovering investment opportunities with projects that are investment feasible and that have been rejected when applying the criterion of the Value-at-Risk method. To do this, a probabilistic alternative approach is taken. To validate this methodology, the proposed framework for an improved decision-making process is demonstrated using two actual overseas projects of a Korean steel-making company.

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“…The ISO 31000:2009 standard recommends a risk management framework that uses policies, practices, and procedures throughout the organization. Risk management is a method that functions to identify, classify and quantify all risks related to a project or business so that an informed decision can be made for managing the risks [15]. Risk management is an effective method that not only can help identify different types of risks but also assist in managing these risks in the construction project life cycle [19,21].…”

Section: Risk Managementmentioning

confidence: 99%

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

et al. 2017

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Oil and gas construction projects are complex and risky because of their dynamic environment. Furthermore, rising global energy demand has increased the need for trustworthy risk assessment models for such projects that can provide adequate and precise policy planning. Traditional risk assessments in oil and gas construction projects do not consider the interrelationships of factors in the best-fit models. The Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Processes (ANP), called the DEMATEL-ANP approach, have been applied to other research disciplines to address this shortcoming. This method is able to construct a structural relationship among the different influence factors to visualize complex correlations. Thus, the purpose of this study is to showcase the DEMTAL-ANP risk assessment model to assess the overall risk factors of OGC projects. This study thus identifies the crucial risk criteria of such projects. Data were collected in 2016 through interviews with experts active in OGC projects in Iran. DEMATEL in this situation is used to determine the interdependencies' relative strengths among the risks. The ANP method is applied to assess the relative importance of the risk factors and to determine the best strategy for implementation of a risk management program. The results presented in this study are a novel adaptation of the risk assessment methodology to OGC projects that determines the important risk factors that directly affect the project success, which in turn helps in formulation of policies for ensuring reliable energy supply planning.

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Understanding the key risks in construction projects in China

Cited by 646 publications

References 27 publications

Risk management in the construction industry: a new literature review

Risk management in the construction industry: a new literature review

A Probabilistic Alternative Approach to Optimal Project Profitability Based on the Value-at-Risk

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

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