Contents
1.
A contingency theory perspective on the risk management control system
within Birmingham City Council ............................................................................................ 6
2.
A new look at investment risk – the organic risk management stance? ............ 6
3.
A review of techniques for risk management in projects .................................. 6
4.
A Risk Management System of City Lifelines Based on ArcGis ........................... 6
5.
A Risk Register Database System to aid the management of project risk.......... 7
6.
Activity-Based Safety Risk Quantification for Concrete Formwork Construction
7
7.
Analytical Framework for the Choice of Dispute Resolution Methods in
International Construction Projects Based on Risk Factors .................................................. 7
8.
Applying a Risk Management Process (RMP) to manage cost risk for an EHV
transmission line project ....................................................................................................... 8
9.
Assessing and managing risks using the Supply Chain Risk Management
Process (SCRMP).................................................................................................................... 8
10.
Assessing and Managing the Potential Environmental Risks of Construction
Projects
9
11.
Assessing Scope and Managing Risk in the Highway Project Development
Process
9
12.
Bootstrap Technique for Risk Analysis with Interval Numbers in Bridge
Construction Projects ............................................................................................................ 9
13.
Comparative Study on the Perception of Construction Safety Risks in China and
Australia
10
14.
Construction Project Network Evaluation with Correlated Schedule Risk
Analysis Model .................................................................................................................... 10
15.
Construction Project Risk Assessment Using Existing Database and
Project-Specific Information ................................................................................................ 11
16.
Construction Risk Assessment Using Site Influence Factors ............................ 11
17.
Construction Risks: Single versus Portfolio Insurance ...................................... 11
18.
Construction Safety Risk Mitigation ................................................................. 12
19.
Contract Administration Guidelines for Managing Conflicts, Claims, and
Disputes under World Bank Funded Projects ..................................................................... 12
20.
Contractors’ Claims Insurance: A Risk Retention Approach ............................. 13
21.
Decision support system for risk management: a case study .......................... 13
22.
Developing a Fuzzy Risk Allocation Model for PPP Projects in China ............... 14
23.
Development of a Methodology for Understanding the Potency of Risk
Connectivity ......................................................................................................................... 14
24.
Downside Risks in Construction Projects Developed by the Civil Service: The
Case of Spain ....................................................................................................................... 14
25.
Drought Management Planning with Economic and Risk Factors ................... 15
26.
Dynamic Risk Management System for Large Project Construction in China .. 15
27.
Effects of Contractors’ Risk Attitude on Competition in Construction............. 15
28.
Empirical Study of Risk Assessment and Allocation of Public-Private
Partnership Projects in China .............................................................................................. 16
29.
Empirical Study of the Risks and Difficulties in Implementing Guaranteed
Maximum Price and Target Cost Contracts in Construction ............................................... 17
30.
Evaluation of Risk Factors Leading to Cost Overrun in Delivery of Highway
Construction Projects .......................................................................................................... 17
31.
External Risk Management Practices of Chinese Construction Firms in
Singapore 17
32.
Fostering a Strong Construction Safety Culture ............................................... 18
33.
Fuzzy Analytical Hierarchy Process Risk Assessment Approach for Joint Venture
Construction Projects in China ............................................................................................ 18
34.
Geological hazards risk evaluation of pipeline construction site based on
extension method ............................................................................................................... 19
35.
Health-Risk-Based Remedial Alternatives for Contaminated Aquifer
Management ....................................................................................................................... 19
36.
Hedgehog and Fox Strategies for Reducing Risks in Infrastructure Systems ... 19
37.
Hierarchical Fuzzy Expert System for Risk of Failure of Water Mains .............. 20
38.
Hierarchical Structuring of PPP Risks Using Interpretative Structural Modeling
20
39.
High-Risk, 610 mm (24-Inch) Diameter, 1,645 m (5,400-Foot) HDD Project— A
Case Study 20
40.
Human Resource Allocation for Remote Construction Projects ...................... 21
41.
Identification and Initial Risk Assessment of Construction Projects in Poland 21
42.
Identification of Risk Paths in International Construction Projects Using
Structural Equation Modeling ............................................................................................. 22
43.
Improved Risk Assessment of Pipeline Based On Fault Tree Quantitative
Analysis
22
44.
Influence Study of Site Conditions on Buried Pipeline’s Seismic Performance 22
45.
Integrated Methodology for Project Risk Management .................................. 23
46.
Interactions between Business and Financial Strategies of Large Engineering
and Construction Firms ....................................................................................................... 23
47.
Knowledge and Data Integration for Modeling of Problems of Risk due to
Natural and Man-Made Hazards ......................................................................................... 23
48.
Managing Construction Projects Using the Advanced Programmatic Risk
Analysis and Management Model ....................................................................................... 24
49.
Managing Owner’s Risk of Contractor Default ................................................. 24
50.
Methodology for Integrated Risk Management and Proactive Scheduling of
Construction Projects .......................................................................................................... 24
51.
Model for Efficient Risk Allocation in Privately Financed Public Infrastructure
Projects Using Neuro-Fuzzy Techniques ............................................................................. 25
52.
Model for Environmental Risk Assessment of Tourism Project Construction on
the Egyptian Red Sea Coast ................................................................................................. 25
53.
Natural Gas Pipeline Risk Assessment for Third-Party Interference Based on
Fault Tree Analysis............................................................................................................... 25
54.
Natural Hazard Risk Reduction: Making St. Lucia Safe in an Era of Increased
Hurricanes and Associated Events ...................................................................................... 26
55.
Objectively Assessing Risk in a Complex World................................................ 26
56.
Oil & Gas Pipeline Quantitative Risk Assessment System Development with the
Intermediate Database Technology .................................................................................... 26
57.
Ontology for Relating Risk and Vulnerability to Cost Overrun in International
Projects
27
58.
Overview of the Application of “Fuzzy Techniques” in Construction
Management Research ....................................................................................................... 27
59.
Partnering Mechanism in Construction: An Empirical Study on the Chinese
Construction Industry .......................................................................................................... 28
60.
Perceptions of Contractual Risk Allocation in Construction Supply Chains .... 28
61.
Political, Economic, and Legal Risks Faced in International Projects: Case Study
of Vietnam 29
62.
Population and Initial Validation of a Formal Model for Construction Safety
Risk Management ................................................................................................................ 29
63.
Practical Application of SWOT Analysis in the Management of a Construction
Project
29
64.
Predicting Profit Performance for Selecting Candidate International
Construction Projects .......................................................................................................... 29
65.
Premium-Rating Model for Workers’ Compensation Insurance in Construction
30
66.
Programmatic Cost Risk Analysis for Highway Megaprojects .......................... 30
67.
Project and Engineering Management Certification ........................................ 31
68.
Project risk management.................................................................................. 31
69.
Quantifying Qualitative Information on Risks: Development of the QQIR
Method
31
70.
Relational Risk Management in Construction Projects: Modeling the
Complexity 32
71.
Relationship between Organizational Sizes and Contractors’ Risk Pricing
Behaviors for Weather Risk under Different Project Values and Durations ....................... 32
72.
Research and Development for the Risk Assessment System of City Gas
Transmission and Distribution Networks ............................................................................ 32
73.
The Research on Quantitative Risk Evaluation of RBI Methodology in Gas
Pipeline Systems .................................................................................................................. 33
74.
Research on Risk Management and Emergency Response of Oil Pipeline Based
on WebGIS 33
75.
Risk Allocation and Risk Handling of Highway Projects in Taiwan ................... 33
76.
Risk Allocation in Public-Private Partnership Infrastructure Projects:
Comparative Study .............................................................................................................. 34
77.
Risk analysis and management in construction ......................................... 34
78.
Risk and Price in the Bidding Process of Contractors ....................................... 34
79.
Risk and Resilience to Enhance Sustainability with Application to Urban Water
Systems
35
80.
Risk Assessment for Bridge Maintenance Projects: Neural Networks versus
Regression Techniques ........................................................................................................ 35
81.
Risk Assessment Methodology for a Deep Foundation Pit Construction Project
in Shanghai, China ............................................................................................................... 36
82.
Risk Explicit Interval Linear Programming Model for Uncertainty-Based
Nutrient-Reduction Optimization........................................................................................ 36
83.
Risk Factors of Public-Private Partnership Projects in China: Comparison
between the ........................................................................................................................ 37
84.
Risk Index Model for Minimizing Environmental Disputes in Construction ..... 37
85.
Risk Management for International Construction Projects .............................. 37
86.
Risk Management in the Chinese Construction Industry ................................. 38
87.
Risk Management Issues of Branch Engineering Offices .................................. 38
88.
Risk Management: Lessons from Six Continents .............................................. 38
89.
Risk management: the need to set standards .................................................. 39
90.
Risk management trends in the construction industry: moving towards joint
risk management ................................................................................................................. 39
91.
Risk-Based Framework for Safety Investment in Construction Organizations. 39
92.
Risk/Reward Compensation Model for Civil Engineering Infrastructure Alliance
Projects
40
93.
Risks, Contracts, and Private-Sector Participation in Infrastructure ................ 40
94.
Safety Risk Identification and Assessment for Beijing Olympic Venues
Construction ........................................................................................................................ 41
95.
Scheduling-Based Risk Estimation and Safety Planning for Construction
Projects
41
96.
Survey of Bioterrorism Risk in Buildings ........................................................... 41
97.
Venture Capital Opportunities in Green Building Technologies: A Strategic
Analysis for Emerging Entrepreneurial Companies in South Florida and Latin America .... 42
1.
A contingency theory perspective on the risk management control system within
Birmingham City Council
In recent years the topic of risk management has moved up the agenda of both government and
industry, and private sector initiatives to improve risk and internal control systems have been
mirrored by similar promptings for change in the public sector. Both regulators and practitioners
now view risk management as an integral part of the process of corporate governance, and an aid
to the achievement of strategic objectives.
The paper uses case study material on the risk management control system at Birmingham City
Council to extend existing theory by developing a contingency theory for the public sector. The
case demonstrates that whilst the structure of the control system fits a generic model, the
operational details indicate that controls are contingent upon three core variables—central
government policies, information and communication technology and organisational size. All
three contingent variables are suitable for testing the theory across the broader public sector arena.
Keywords: Risk management, Case study, Contingency theory
2. A new look at investment risk – the organic risk management stance?
The author suggests that methods for rating investment risk are flawed. He suggests a risk analysis,
management and projects (RAMP) approach. Number-crunching will produce better results than
listening to analysis.
Keywords: Investment, Risk management, Banking, Governance
3. A review of techniques for risk management in projects
Purpose – This paper aims to provide a review of techniques that support risk management in
product development projects using the concurrent engineering (CE) philosophy.
Design/methodology/approach – The Australia/New Zealand risk management standard AS/NZS
4360:1999 proposes a generic framework for risk management. This standard was adapted for
product development projects in the CE environment. In this paper, existing techniques were
reviewed for their applicability to processes in risk management; namely, techniques for
establishing context, risk identification, risk assessment and treatment.
Findings – Risk management is an activity within project management that is gaining importance
due to current business environment with a global focus and competition. The techniques
reviewed in this paper are used on an ad hoc basis currently. A more risk focused approach is
likely to result in an integration of several of these techniques, resulting in an increased
effectiveness of project management.
Practical implications – The techniques reviewed in this paper can be used for the development
of risk management tools for engineering and product development projects.
Originality/value – This paper provides a gist of techniques categorized in the form that they are
applicable for implementation of risk management functions in product development projects
using CE philosophy.
Keywords: Risk management, Project management, Product development, Risk assessment
4. A Risk Management System of City Lifelines Based on ArcGis
Based on ArcGIS, a risk management system of city lifelines was built. For the system, the
database of the city lifelines information and layers are designed based on the architecture of
intelligent decision system. Using improving the object of Kent method which is commonly used
in international, and some simulation model of the consequences of major accidents，the risk
management model database was built. Then a risk management system of city lifelines was built,
which took database, methods database, models database, and knowledge database as the core.
The system is a visible management means to provide supervision advices for risk management of
city lifelines.
Keywords: Lifelines; Risk Management; ArcGIS; IDSS
5. A Risk Register Database System to aid the management of project risk
This paper presents a Risk Register Database System, which incorporates a Risk Register and a
Risk Assessment Tool which have been used to aid the management of project risk within an
automotive company. The Risk Register is primarily a tool which has enabled the risks within a
project to be documented and maintained irrespective of geographical location, and has provided
the platform for the reduction and mitigation plans to be developed for the high level risks within
the project. The Risk Assessment Tool uses the information documented within the Risk Register
to enable the overall riskiness of a project to be reported on a regular basis and as such, track the
effectiveness of utilising a Project Risk Management Methodology throughout the lifespan of a
project.
Keywords: Project risk management; Risk Register Database System; Risk register; Risk
Assessment Tool; Qualitative Assessment
6. Activity-Based Safety Risk Quantification for Concrete Formwork Construction
Most of safety risk research focuses on high-severity safety risks for large-scale construction
processes. Such studies help firms identify the highest risk processes so they may be targeted for
improvement. However, few studies quantify safety risk at the activity level or include
low-severity, high-frequency risks that some literatures suggest contribute to a large proportion of
total risk. This paper presents research that involved the holistic quantification of risks for the
activities associated with the construction of concrete formwork. Three major research efforts are
discussed: (1) identification of activities required to construct concrete formwork; (2) selection of
an appropriate all-inclusive and mutually exclusive risk classification system; and (3) the
quantification of the average frequency and severity levels for each risk classification associated
with each activity. To identify formwork construction activities, 256 worker-hours of observation
were conducted and the resulting activity descriptions were reviewed and validated by industry
professionals. Risk classifications appropriate for this study were created by aggregating relevant
literature. Finally, the Delphi method was implemented to individually quantify average frequency
and severity using scales that define the entire spectrum of possible values. In total, 130 frequency
ratings and 130 severity ratings were obtained over three rounds of Delphi surveys. Results
indicate that there are 13 major activities required to construct concrete formwork and the highest
risk activities are applying form oil, lifting and lowering form components, and accepting
materials from a crane. The data presented in this paper can be used to target specific high-risk
formwork construction activities for improvement.
Keywords: Concrete construction; Risk management; Safety; Occupation
7.
Analytical Framework for the Choice of Dispute Resolution Methods in International
Construction Projects Based on Risk Factors
International construction projects provide opportunities for developing countries to advance in
the global economy and for international construction and design firms to increase their profit and
market share. Despite the attractive opportunities that international construction offers,
international contractors are faced with many challenges and difficulties when moving into
international markets. Many risks are associated with international construction, whether external
or project-specific risks. Those risks affect how contract clauses are written, including the dispute
resolution clause. This paper discusses the different dispute resolution methods employed in
international construction contracts and develops an analytical framework (DRM-Risk matrix)
suggesting the use of specific dispute resolution methods depending on the risks expected in the
project. The matrix may eventually help international contractors in the selection of the
appropriate dispute resolution method during contract formation depending on the risks involved
in a project.
Keywords: Dispute resolution; Risk management; Contract management; International factors.
Author keywords: Dispute resolution; Risk management; Contract management; International.
8.
Applying a Risk Management Process (RMP) to manage cost risk for an EHV
transmission line project
Risk management processes (RMPs) are logically consistent and structured approaches to
enumerating and understanding potential risk factors and assessing consequences and uncertainties
associated with these identified risk factors. Based on this information, we can evaluate and
choose the best course of action in order to cope up with the identified risks and to achieve the
desired objectives of a given project. An RMP is applied in this paper to formulate a risk
management model to evaluate the risks associated with an (EHV) transmission line project cost.
This model can be applied successfully in reviewing and taking corrective actions over different
project life cycle phases as shown in this paper.
Keywords: risk, risk management process, risk management model, transmission line,
construction, cost estimation
9.
Assessing and managing risks using the Supply Chain Risk Management Process
(SCRMP)
Purpose – The purpose of this paper is to propose a comprehensive and coherent approach for
managing risks in supply chains.
Design/methodology/approach – Building on Tummala et al.’s Risk Management Process (RMP),
this paper develops a structured and ready-to-use approach for managers to assess and manage
risks in supply chains.
Findings – Supply chain risks can be managed more effectively when applying the Supply Chain
Risk Management Process (SCRMP). The structured approach can be divided into the phases of
risk identification, risk measurement and risk assessment; risk evaluation, and risk mitigation and
contingency plans; and risk control and monitoring via data management systems. Specific
techniques for conducting this process are suggested.
Originality/value – While supply chain risk management is an emerging and important topic in
our dynamic and interconnected world, conceptual frameworks providing a clear meaning and
normative guidance are scarce (Manuj and Mentzer, 2008). This paper presents such a framework,
offering structure and decision support for managers.
Keywords: Supply chain management, Risk management process, Supply chain risk, Risk
management
10. Assessing and Managing the Potential Environmental Risks of Construction Projects
Policy makers make key decisions regarding economic development, but engineers are central to
the implementation of these policies. With the realization that economic development and
environment are interlinked, engineers are well advised to ensure avoidance of adverse impacts on
society and environment by adopting better practices during the design and implementation of
construction projects. The objective of this paper is to present a project’s proponents and
construction contractors with a framework to identify the environmental risks early in a project’s
life so that a proper plan could be developed to mitigate the impact of them. The paper also
discusses options currently available in Canada for environmental-type insurance and contractual
liability indemnity clauses. A survey conducted among construction companies to assess current
risk-management practices in the construction industry show that although many companies are
concerned about the possible implications of environmental risks to their project, there still needs
to be more emphasis on identification and mitigation of these risks and the need to have a
comprehensive framework to properly identify and develop an action plan for environmental
related risk issues. The current research trends to achieve these objectives are also outlined in the
paper.
Keywords: Construction; Environmental issues; Insurance; Liability; Canada.
11. Assessing Scope and Managing Risk in the Highway Project Development Process
Abstract: The project development process is a critical component of highway projects. Decisions
made during this phase have a significant impact on the final project outcomes. This paper
describes a research project that studied this process and subsequently developed a method to help
the highway project team improve the project development process. This method does so by
proactively identifying risk sources based on the analysis of the project scope. This method uses a
comprehensive list of scope elements with descriptions and a mechanism to evaluate
quantitatively the scope elements’ level of definition. Assessing the level of definition of each
scope element and of the project as a whole allows the project team to determine the potential
level of risk to which the project is exposed. The project team can then develop risk mitigation
plans to respond to the potential high risk elements. The proposed method was tested on real
completed and ongoing projects undertaken by experienced professionals. The method was well
received by the subject matter experts, and a number of benefits were observed, including the use
as an integrated checklist, a mechanism for monitoring the project development progress, as well
as a means for improving communication and promoting alignment within the project team.
Keywords: Construction management; Planning, Highway and road construction; Risk
management.
12. Bootstrap Technique for Risk Analysis with Interval Numbers in Bridge Construction
Projects
Bridges are principal and vital transportation structures. If risk management is not considered in
bridge construction projects, objectives cannot be delivered on time, on budget, or with suitable
quality results. Risk data set sizes and experts’ judgments are not usually sufficient for analyzing
significant risks in bridge construction projects; moreover, the statistical distributions for risk
parameter estimates are usually unknown. Standard parametric statistical techniques cannot
provide appropriate solutions for cases with small data sets or unknown distributions. This paper
proposes a new hybrid approach by using a nonparametric resampling technique and interval
computations for risk analysis, in particular, for bridge construction projects. Bootstrap techniques
produce more accurate inferences for comparing parametric techniques and are an alternative
when the underlying parametric assumptions are not considered. Increasingly, because of the
complexity and uncertainty in decision making at bridge projects, it is easier or more natural to
provide interval values for parts or all of decisionmaking judgments. Furthermore, the goal of
reducing standard deviations for both risk probability and risk impact compared with the conventional approach is another conclusion of this paper. The proposed approach is applied to a case in
Iran to show the validity of the approach.
Keywords: Bridge construction projects; Non-parametric statistics; Bootstrap technique; Interval
risk score.
13. Comparative Study on the Perception of Construction Safety Risks in China and
Australia
Safety is a major concern in the construction industry because fatalities and injuries from
construction work bring great losses to individuals, organizations, and societies as a whole. This
paper aims to understand how construction personnel perceive safety risks in China as compared
with those in Australia. Postal questionnaire surveys were used to collect data on safety risk
perceptions from the two nations. The safety risk factors were assessed using a risk significance
index based on the likelihood of occurrences and the impacts on safety performance. The survey
results revealed that in China the main perception of safety risks came from human-and/or
procedure-related issues, with “low/no safety education” paramount, followed by “inadequate fire
prevention and electrical prevention procedures,”etc. In contrast, the major safety risks perceived
in Australia were related to the environment and physical site conditions with “contamination of
land, water and air” ranked first, followed by “unforeseen excavation of soil,” etc. To minimize
construction safety risks in China, this paper suggests that the government should develop
collective legislation and safety protection procedures, and enforce safety education and training
to all site participants. Risks related to environmental and site conditions were generally realized
by the Australia construction industry, which were not highly acknowledged in China. This may
also bring imminent attention in this regard to the Chinese government.
Keywords: Risk management; Construction management; Safety; Labor relations; Compensation;
China;Australia.
14. Construction Project Network Evaluation with Correlated Schedule Risk Analysis
Model
Abstract: Schedules are the means of determining project duration accurately, controlling project
progress, and allocating resources efficiently in managing construction projects. It is not sufficient
in today’s conditions to evaluate the construction schedules that are affected widely by risks,
uncertainties, unexpected situations, deviations, and surprises with well-known deterministic or
probabilistic methods such as the critical path method, bar chart (Gantt chart), line of balance, or
program evaluation and review technique. In this regard, this paper presents a new
simulation-based model—the correlated schedule risk analysis model (CSRAM)—to evaluate
construction activity networks under uncertainty when activity durations and risk factors are
correlated. An example of a CSRAM application to a single-story house project is presented in the
paper. The findings of this application show that CSRAM operates well and produces realistic
results in capturing correlation indirectly between activity durations and risk factors regarding the
extent of uncertainty inherent in the schedule.
Keywords: Construction management; Network analysis; Scheduling; Risk management;
Correlation; Simulation models.
15. Construction Project Risk Assessment Using Existing Database and Project-Specific
Information
This paper develops a risk assessment methodology for construction projects by combining
existing large quantities of data and project-specific information through updating approaches.
Earlier studies have indicated that risk assessment is still difficult for practicing engineers to use
due to the requirement of data on too many input variables. However, the availability of existing
large quantities of data and project-specific information makes it possible to simplify the risk
assessment procedure. Two main ideas are pursued in this paper to facilitate practical
implementation: identify and evaluate the critical risk events, and develop a systematic updating
methodology. Both epistemic and aleatory types of uncertainties in the data are considered, and
corresponding updating procedures are developed. The proposed methodology is illustrated for the
construction risk assessment of a cable-stayed bridge.
Keywords: Construction management; Databases; Information management; Fuzzy sets; Risk
management.
16. Construction Risk Assessment Using Site Influence Factors
Many work-related risk factors can cause accidents on construction sites. Considering the varied
characteristics of these sites, risks within the same type of work can differ. Furthermore, the
established safety management performed in other industries does not necessarily apply to
construction. To suggest an assessment system considering risk influence factors on construction
sites, this study examines the factors through literature reviews and surveys, and builds a
weighting system for their classification. The risks for each type of work are estimated based on
their frequency and severity. With the understanding that perceiving a specific type of risk on a
construction site increases the effectiveness of safety management, the study suggests an
assessment system integrating associated risks and risk influence factors. A risk assessment system
is proposed that considers influence factors and addresses the characteristics of construction sites.
The system is intended for use with regard to the safety of construction workers.
Keywords: Construction Safety Management, Risk Management, Risk Assessment, Risk
Influence Factor
17. Construction Risks: Single versus Portfolio Insurance
Risks and uncertainties are naturally inherent in the construction industry and negatively affect
contracting parties and executed projects. This paper explores the possibility of insuring against
construction risks, which are beyond the control of contractors and not covered by surety policies,
through single and portfolio insurance strategies. Accordingly, the writers programmed Iman and
Conover’s bootstrapping method for inducing correlations using Microsoft Excel and
consequently, developed a technique for pricing insurance premiums as an exotic option using
Monte Carlo simulation. The aforementioned methodology was applied on a data set of five
defined risks that were collected from small, medium, and large scale projects in California.
Pursuant to this study, the calculated premiums for insuring against the defined risks are in line
with the premiums available in market for other insurance policies. Moreover, the estimated
premium for the proposed portfolio insurance product is more advantageous to contractors in both
risk coverage and cost because it is well below the estimated premiums for single insurance
products covering individual risks. It is foreseen that this research could open horizons for new
construction related insurance products, which would significantly contribute to the efficiency of
the risk management process in the construction industry.
Keywords: Risk management; Insurance; Construction management; California.Author keywords:
Risk management; Bootstrapping; Options theory; Insurance.
18. Construction Safety Risk Mitigation
Construction safety and health management has improved significantly following the
Occupational Safety and Health Act of 1970. In response to this legislation, contractors began
implementing safety programs to reduce occupational safety and health hazards on construction
sites. Researchers recently found that the current process of selecting specific elements for a safety
program is informal. This paper describes the results of a recent study designed to determine the
relative effectiveness of safety program elements by quantifying their individual ability to mitigate
construction safety and health risks. In order to determine the effectiveness of individual safety
program elements, the following research activities were performed: (1) an appropriate safety risk
classification system was created using an aggregation of relevant literature; (2) highly effective
safety program elements were identified in literature; and (3) the ability of each safety program
element to mitigate a portion of each of the safety risk classes was quantified using the Delphi
method. The results of the research indicate that the most effective safety program elements are
upper management support and commitment and strategic subcontractor selection and
management and the least effective elements are recordkeeping and accident analyses and
emergency response planning. It is expected that the data presented in this paper can be used to
strategically select elements for a safety program, target specific safety and health risks, and
influence resource allocation when funds are limited.
Keywords: Construction management; Risk management; Safety.
19. Contract Administration Guidelines for Managing Conflicts, Claims, and Disputes
under World Bank Funded Projects
Conflicts, claims, and disputes could be considered an unavoidable consequence of the
construction process. The frequency and severity of conflicts, claims, and disputes can
significantly increase under the World Bank funded projects where many multinational and
multicultural stakeholders are involved. World Bank projects are managed through the Standard
Bidding Documents for Procurement of Works (SBDW) where the Conditions of Contract
included in the SBDW (i.e. WB Contract) are based extensively on the Conditions of Contract for
Construction published by the International Federation of Consulting Engineers (FIDIC). Most of
the U.S. contractors are more familiar with the families of contracts issued by the American
Institute of Architects Conditions of Contract (namely the A201) and are less familiar with the
FIDIC Conditions of Contract. This paper uses a two-step research methodology to present
comprehensive contract administration guidelines to deal with conflicts, claims, and disputes
including unforeseeable physical conditions, Employer’s risks, force majeure, and delay damages.
The guidelines presented in this paper should promote efficient and effective management of the
World Bank contracts, and consequently high-performance project outcomes. Ultimately, the
World Bank will be more enabled and aligned to attain its mission and objectives because neither
the Bank nor its associated stakeholders will suffer from lengthy dispute resolution problems
during the course of their projects.
Keywords: World Bank, FIDIC, Claims, Dispute Resolution, Risks, Unforeseeable Physical
Conditions, Force Majeure, Delay Damages, and High Performance.
20. Contractors’ Claims Insurance: A Risk Retention Approach
Abstract: The negative effects of claims and disputes have serious negative impacts on contracting
parties, their projects, the construction industry as a whole, and consequently on the nation’s
economy. This paper explores a method for mitigating the negative effects associated with
contractors’ claims and disputes using a risk retention approach. This method can help contractors
in getting early relief from the financial and economic burdens of construction claims. To meet the
goals and objectives of this study, the writers have: (1) investigated the feasibility of pricing
insurance premiums using the options pricing theory; (2) explored the applicability of modeling
the options pricing theory using Monte Carlo simulation; (3) set up the principles required for
optimal design of a risk retention group for construction claims; and 4tested the possible impact of
the newly developed risk retention group using historic data of 10,193 construction projects
spanning over 12 different California districts. Pursuant to this study, it was verified that
construction claims satisfy the required principles for insurance. Also, based on the used testing
framework, the developed risk retention group for construction claims has been proved a success
from the insured and insurer sides. It is the writers’ hope that this study will lay the basis for a
leading risk management technique that could be extended over the nation for the benefit of
relieving the negative consequences associated with lengthy claims and disputes resolution in the
construction industry.
Keywords: Contracts; Claims; Financing; Risk management; Construction management.
21. Decision support system for risk management: a case study
This study demonstrates a quantitative approach to construction risk management through analytic
hierarchy process and decision tree analysis. All the risk factors are identified, their effects are
quantified by determining probability and severity, and various alternative responses are generated
with cost implication for mitigating the quantified risks. The expected monetary values are then
derived for each alternative in a decision tree framework and subsequent probability analysis aids
the decision process in managing risks. The entire methodology is explained through a case
application of a cross-country petroleum pipeline project in India and its effectiveness in project
management is demonstrated.
Keywords: Risk management, Analytical hierarchy process, Decision trees
22. Developing a Fuzzy Risk Allocation Model for PPP Projects in China
Equitable allocation of risks between the government and the private sector in concession
agreement is essential to the success of public-private partnership PPPprojects. The
decision-making process, based on the established risk allocation principles expressed in linguistic
terms, requires qualitative judgment and experiential knowledge of construction experts. However,
it is subjective, partial, and implicit in actual application. This paper aims to develop a fuzzy
synthetic evaluation model for determining an equitable risk allocation between the government
and the private sector. By doing so, it assists the PPP project practitioners to transform the risk
allocation principles in linguistic terms into a more usable and systematic quantitative-based
analysis using fuzzy set. Twenty-three principles and influencing factors for risk allocation were
identified through a comprehensive literature review. Nine critical risk allocation criteria (RACs)
that evaluate the risk carrying capability of project participants were further identified, validated,
and compiled based on the experts’ knowledge via face-to-face interviews. On the other hand, the
weighting for each critical risk allocation criterion was determined through a two-round Delphi
questionnaire survey. A set of knowledge-based fuzzy inference rules was then established to set
up the membership function for the nine RACs. Based on the research findings, a fuzzy synthetic
evaluation model was finally established to determine an equitable risk allocation between the
government and the private sector.
Keywords: Quantitative risk allocation; PPP projects; Fuzzy set; Fuzzy synthetic evaluation;
China.
23. Development of a Methodology for Understanding the Potency of Risk Connectivity
The Strategic Risk Register System (SRRS) is proposed by the writers as a practical methodology to enable
the connectivity of risks to be elicited and evaluated so that the most potent risks in a system can be
identified. The SRRS methodology builds on the impact × likelihood paradigm by introducing a connectivity
matrix to modify traditional risk registers and uses graph theories to depict the relations between risks.
Several techniques are employed to visualize and interpret the significance of the results. A case study is
used to demonstrate how the SRRS works in practice. This paper builds on the 3-year research program
called STRATrisk, commissioned by the Department for Trade and Industry (DTI) in the UK, which
reported that the assessment of the interconnectivity of risks is necessary to understand key risks in complex
systems.
Keywords: Risk management; Decision making; Uncertainty; Systems; Management tools.
24. Downside Risks in Construction Projects Developed by the Civil Service: The Case of
Spain
The purpose of the work summarized here was to improve the efficiency of the construction project
management processes performed by the Spanish civil service, identifying and analyzing the main risks in
these kinds of projects, and also establishing potential risk responses. The scope of this effort included a list
of 96 risk events, categorized and prioritized first by impact, then by frequency. The most relevant ones are
related to issues such as an inadequate prequalification system, insufficient training of public servants, or
political considerations prevailing over real needs, among others. A total of 117 potential risk responses
were identified, categorized, and prioritized by potential efficiency and difficulty of implementation. Each
risk event was associated to a set of potential responses. The paper includes the top 15 risk events with its
main potential responses, including qualitative assessments. A survey was carried out among Spanish public
servants working in construction projects, to validate risk identification and to obtain a qualitative
assessment. Moreover, a Delphi analysis was developed to validate the risk response identification and
obtain a qualitative assessment. One of the conclusions is that small and medium-sized Spanish civil service
agencies should work toward increasing their maturity in managing projects and, mainly, project risks.
Keywords: Contracts; Contract management; Construction management; Project management; Public
works; Risk management; Spain; Case reports.
25. Drought Management Planning with Economic and Risk Factors
Traditional drought management planning has focused on curtailing demand through various conservation
measures when regional hydroclimatic indicators reach specific trigger levels. This study suggests a
methodology that can augment traditional drought management methods in two ways. First, regional
hydroclimatic indicators, which are not necessarily indicative of the impacts of droughts on individual water
storage systems, are replaced with system specific indicators in the context of supply reliability, or
likelihood of system failure. Second, the study illustrates how economically optimal programs for
conjunctive supply and demand management can be developed once the susceptibility of a specific water
supply system to drought conditions is quantitatively understood. The method links a stochastic simulation
program with a mixed-integer linear program aimed at achieving target levels of supply reliability at
minimum economic cost. Results from a case study in Western Massachusetts were used to guide capital
planning by indicating a clear need for emergency water sources. Results were also used during a recent
drought to justify the avoidance of premature tapping of emergency supplies which could have cost up to
$750,000.
Keywords: Droughts; Economic factors; Risk management.
26. Dynamic Risk Management System for Large Project Construction in China
Risk assessment and risk management of large projects are essential for the quality and safety of
civil engineering. A dynamic risk management system for large construction projects in China is
proposed. The dynamic risk management system is composed of six main parts, which are event
database, risk database, risk identification, risk assessment, risk pre-control, and risk tracking. The
results of risk assessment can promote reasonable decision-making for risk tracking. The risk
tracking is an essential part of risk management, which contains a process of site risk exploration,
risk re-identification, risk treatment and formation of risk tracking report. By using the risk
management system in large project construction, the key risk events we caring about are
monitored and new risk events may be found. Then the new risk event will be assessed and the
decision will be made whether monitoring or not. Through the dynamic risk management system,
we can clearly know the real-time statement and developing trend of every risk events, and then
can take some precaution and control measures to treat the risk events for the purpose of
preventing the occurrence of risk events or reducing the risk to an acceptable level.
Keywords: risk management system; dynamic risk management; large project; risk rating; control
measures
27. Effects of Contractors’ Risk Attitude on Competition in Construction
Competitive bidding is the major mechanism of competition. Bidding is risky because the actual cost of the
job is unknown. Thus, the bid should be high enough to make a profit but low enough to win the bidding.
The result of competition depends on the competitor’s risktaking behaviors, which are affected by the
organization’s risk attitudes. A contractor’s risk-taking is an essential element of the construction business.
The current study explores the domain of competition at the aggregate market level. An evolutionary
simulation model was developed to investigate the effects of risk attitude on a contractor’s success and on
the market structure. The analysis accounts for different risk-taking behaviors in competition, different
performances by contractors, corresponding organizational changes, and aggregate patterns in the form of
the market structure. The study finds that risk attitude is a competitive characteristic of contractors. The
results provide new insight on competition in the market place, and explanations are given for a contractor’s
competitive success.
Keywords: Organizational risk attitude; Competitive success; Evolutionary approach; Competitive bidding;
Market structure; ENR top 400 contractors.
28. Empirical Study of Risk Assessment and Allocation of Public-Private Partnership
Projects in China
Earlier research studies on public-private partnership (PPP) indicated that an objective, reliable, and practical
risk assessment model for PPP projects and an equitable risk allocation mechanism among different parties
are crucial to the successful implementation of these PPP projects. However, actual empirical research works
in this research area are limited. This paper reports the first stage of a research study, which aims to identify
and assess the principal risks for the delivery of PPP projects in China and to address their proper risk
allocation etween the private and public sectors. An empirical questionnaire survey was designed to examine
the relative importance of different risk factors and to analyze the allocation of risk factors to different
parties in PPP projects. A total of 580 questionnaires were sent out, and a total of 105 valid responses were
obtained for data analysis. The Mann-Whitney U test is employed to investigate whether significant
difference in perception existed first between the private and public sectors and second between industrial
practitioners and academics in China. The empirical findings show that the three most important risk factors
for PPP projects in China are (1) government intervention; (2) government corruption; and (3) poor public
decision-making processes. These findings reveal that the Chinese government intervention and corruption
may be the major obstacles to the success of PPP projects in China. A major cause for these risks may be
attributed to inefficient legislative and supervisory systems for PPP projects in China. After conducting the
Mann-Whitney U test on the 105 survey respondents, the empirical findings indicate that the perceptions of
all 34 risk factors in China between the private and public sectors were not significantly different. Similarly,
there were no significant differences between academics and industrial practitioners except that the former
perceived the problem of government corruption to be more severe than did the latter. For risk allocation, the
empirical results indicate that the public and private sectors were in general consensus with most of the risks
identified. The major risks that the public sector preferred to accept are within the systematic risk category,
especially political, legal, and social risks. The private sector preferred to retain the principal risks within the
specific project risk category, especially construction, operation, and relationship risks, in addition to
economic risks within systematic risk category. The remaining risk, environment risk, is preferred to be
shared between the two sectors. This research study enables international construction companies to better
understand how risks should be assessed and allocated for PPP projects in China. It also assists in risk
response planning and control for future PPP projects in China.
Keywords: Public-private partnerships (PPP); Risk assessment; Risk allocation; Risk management; China.
29. Empirical Study of the Risks and Difficulties in Implementing Guaranteed Maximum
Price and Target Cost Contracts in Construction
Over the past few decades, both the guaranteed maximum price (GMP) and target cost contracting (TCC)
arrangements have been regarded as alternative integrated procurement strategies for clients to mitigate risks,
minimize claims, integrate the diverse interests of a complex construction project, and offer incentives to
provide value-added services. However, the adoption of GMP/TCC contracts may also generate significant
risks and difficulties that merit considerable attention. This paper aims to provide a concise review of the
potential pitfalls of the GMP/TCC scheme in general and identifies the key risk factors and potential
difficulties associated with GMP/TCC in comparison with other procurement strategies in construction in
particular via an empirical survey of clients, contractors, and consultants in Hong Kong. The survey data
gleaned from 45 valid replies were analyzed using the mean score ranking technique, Kendall’s concordance
test, and Spearman’s rank correlation test. The survey results indicated that “involvement of inexperienced
or claim-conscious contractors in a project procured by a GMP/TCC contract” was considered to be the most
significant risk factor; while “design development must keep pace with main contractor’s program for
tendering the domestic subcontractors’ works packages” as the major difficulty in implementing GMP/TCC
projects. The research findings derived from this study are particularly essential in assisting the contracting
parties to mitigate the detriments brought about by potential risks or difficulties when embarking on
GMP/TCC contracts. It has also generated valuable insights into developing effective recommendations for
alleviating the barriers to GMP/TCC success for future construction projects.
Keywords: Guaranteed maximum price; Target cost contracting; Pitfalls; Risks; Difficulties; Hong Kong .
30. Evaluation of Risk Factors Leading to Cost Overrun in Delivery of Highway
Construction Projects
Accurate owner budget estimates are critical to the initial decision-to-build process for highway construction
projects. However, transportation projects have historically experienced significant construction cost
overruns from the time the decision to build has been taken by the owner. This paper addresses the problem
of why highway projects overrun their predicted costs. It identifies the owner risk variables that contribute to
significant cost overrun and then uses factor analysis, expert elicitation, and the nominal group technique
to establish groups of importance ranked owner risks. Stepwise multivariate regression analysis is also used
to investigate any correlation of the percentage of cost overrun with risks, together with attributes such as
highway project type, indexed cost, geographic location, and project delivery method. The research results
indicate a correlation between the reciprocal of project budget size and percentage cost overrun. This can be
useful for owners in determining more realistic decision-to-build highway budget estimates by taking into
account the economies of scale associated with larger projects.
Keywords: Construction management; Cost estimates; Cost overrun; Highway construction; Risk
management.
31. External Risk Management Practices of Chinese Construction Firms in Singapore
External risk management encompasses many areas such as finance, politics and national cultures, and there
are many literatures that focus significantly on risk management in each area. Managing external risks are
not unlike managing project risks and the same principles that are applied to project risk management may
well be used to manage external risks. However, although external risk management is a critical success
factor for many construction firms who have ventured out of their home countries, like project risks, this is
often neglected by construction firms and construction firms generally either do not have sufficient
knowledge pertinent to external risk management, or tend to overlook the effects that a lack of external risk
management may have on their businesses. The objective of this study is to examine how construction firms
attempt to manage external risks during the period that they venture into host countries. The study anchors
on the external risk management practices of Chinese contractors that have ventured out of Mainland China
into Singapore. A survey was conducted of all Chinese contractors in Singapore to gain a better insight into
the external risk management practices which a typical Chinese contractor implements. From these, areas
that may be improved in the current external risk management system will also be discussed to gain a
learning experience from what is currently being practiced in the industry.
Keywords: risk, external risk, management, Chinese contractors, Singapore
32. Fostering a Strong Construction Safety Culture
The construction industry has a reputation of being one of the most unsafe industries because of its
high rates of injuries and fatalities. To improve safety performance, some construction companies
have implemented innovative safety management programs. This paper reviews programs
implemented by five construction companies in the United States, Australia, and Hong Kong and
reviews the objectives, implementation strategies, and lessons learned from each. Seven program
elements emerged in all cases: (1) The programs were focused on shaping employees’ beliefs,
attitudes, and commitment to achieve safe behavior on construction sites; (2) programs were
based on the belief that all incidents and injuries are preventable and unacceptable; (3) there was a
strong commitment to safety among top management; (4) the programs extended safety
management issues to the entire supply chain and involved all stakeholders; (5) safety risk
management systems were in place to identify, assess, and respond to on-site hazards, (6) clear
authority and accountability for safety were established and safe behavior rewarded; and (7)a
safety knowledge database was established to capture lessons learned. The paper suggests that
organizations adopt a holistic strategy that focuses not only on improving the physical working
environment, safety risk assessments, and employees’ safety knowledge, but also on shaping
employees’ beliefs and attitudes that lead to safe behavior and ultimately to a strong safety culture.
In conclusion, a conceptual model for balancing the art and science of managing construction
safety is proposed for use by construction enterprises.
33. Fuzzy Analytical Hierarchy Process Risk Assessment Approach for Joint Venture
Construction Projects in China
Research and practice show that construction joint venture (JV) activities in China are opportunities that can
bring potential benefits but at the same time may generate many risks. While research has studied these risks
and presented useful advice for managing individual risks, the methodologies used to analyze the risks were
mainly qualitatively based, and there is a gap in using the quantitative method that can integrate a risk
expert’s knowledge to assess the risks associated with JV projects. This paper sets up a hierarchy structure of
the risks and then develops a fuzzy analytical hierarchy process _AHP_ model for the appraisal of the risk
environment pertaining to the JVs to support the rational decision making of project stakeholders. An
empirical case study is used to demonstrate the application of the proposed fuzzy AHP model. It is
concluded that the fuzzy AHP model is effective in tackling the risks involved in JV projects. The
information presented in this paper should be shown to all parties considering JV business opportunities in
China, and the proposed approach should be applicable to the research and analysis of risks associated with
any type of construction projects.
Keywords: Risk management; Construction management; Joint ventures; Fuzzy sets; China .
34. Geological hazards risk evaluation of pipeline construction site based on extension
method
The extension method can reflect a sample’s compressive level from two angle of
qualitative and quantitative by constructing its model. Based on this theory, this paper
investigates the risk zoning method of geological hazards of a coal bed gas pipeline
construction site in Weibei area, China. According to the development characteristics of
the geological hazards near the construction site, the index system and grading standards
for geological hazards risk evaluation are put forward in the aspects of geological
hazard’s activities in history and future level of development. After using a simple
correlation function to determine the weight of evaluation factors, the degree of
geological hazards risk in pipeline construction site can be comprehensively zoned. The
result indicated that the zoning results are in accordance with actual situations. It supplies
the basis for the work of routes choosing as well as geological hazards prevention and
reduction. As a result, this research can serve as a reference of geological hazards risk
evaluation for similar pipeline engineering projects.
Keywords: Extension Method, Geological Hazard, Weight, Risk Zoning
35. Health-Risk-Based Remedial Alternatives for Contaminated Aquifer Management
In the risk-based management approach, the risks associated with human health and the environment in a
contaminated site are evaluated and corrective measures are undertaken to reduce the risk level to acceptable
limits. In this study, a risk-based management model is developed and applied to a hypothetical aquifer
system. The model couples the simulated contaminant transport in the aquifer and the health risk assessment
procedure to predict human health risk level and later relate it to the total cost of a proposed groundwater
contamination remedial action. Amongst a number of remedial alternatives considered, those consisting of
different combinations of pump and treat remediation system are compared with the bioremediation strategy
in the study. Later, the computed residual risk and the cost associated with the risk reduction are taken as
parameters used for justification of a better remedial alternative. The results highlight the importance of
applying an integrated approach for decision making which may include costs, risk levels, and the
cost-effectiveness of the various available alternatives. Furthermore, the uncertainty in risk associated with
these remedial alternatives for available aquifer parameters due to a given exposure is also studied applying
fuzzy set theory. Amongst the various alternatives considered, the bioremediation method is found to be a
better alternative even in cases where there is uncertainty in parameter estimation compared to other
technologies used for cleanup of hazardous waste.
Keywords: Remediation; Risk-based management; Risk assessment; Decision analysis; Groundwater.
36. Hedgehog and Fox Strategies for Reducing Risks in Infrastructure Systems
In this paper, we employ the metaphors of the hedgehog and the fox, as elaborated by Isaiah Berlin and
recently employed by Philip Tetlock, in order to contrast two opposite but complementary approaches to
infrastructure risk management. We summarize how a combined hedgehog and fox strategy is in evidence in
two peer-reviewed monographs recently published by ASCE, as well how additional activities such as those
by the American Lifelines Alliance have deployed this combined strategy. We provide plausible reasons
why a combined hedgehog and fox strategy can be more successful in reducing risks in civil infrastructure
systems than either an exclusively hedgehog or an exclusively fox strategy.
Keywords: Risk management; Disasters; Lifeline systems; Infrastructure.
37. Hierarchical Fuzzy Expert System for Risk of Failure of Water Mains
In Canada and the United States, there have been 700 water main breaks per day costing more than CAD 6
billion since 2000. Risk of failure is defined as the combination of probability and impact severity of a
particular circumstance that negatively impacts the ability of infrastructure assets to meet municipal
objectives. The presented research in this paper assists in designing a framework to evaluate the risk of water
main failure using hierarchical fuzzy expert system (HFES). This system considers 16 risk-of-failure factors
within four main categories representing both probability and negative consequences of failure. Results show
that pipe age confers a strong impact on risk of failure followed by pipe material and breakage rate. They
also show that damage to surroundings has the most negative consequence of a failure event. A set of
municipal water network data are collected and used to examine the developed HFES. According to the
proposed scale of risk of failure, about 8.4% (13 km) of the network’s pipelines are risky and require
mitigation actions in the short term.
Keywords: Hierarchical fuzzy expert system; Risk of failure; Water mains; Infrastructures .
38. Hierarchical Structuring of PPP Risks Using Interpretative Structural Modeling
Project risk management emphasizes the need to rank and prioritize risks in a project to focus the
risk management efforts. This risk prioritization is of special significance in public-private
partnership (PPP) projects, since project success depends upon the efficient allocation of risks to
the party who can best manage it. Previous studies on risk identification and assessment of PPP
project risks have only produced an unstructured list of such risks and prioritizing them on the
basis of probability and impact. This paper suggests the use of interpretative structural modeling
(ISM) to prepare a hierarchical structure as well as the interrelationships of these risks that would
enable decision makers to take appropriate steps. MICMAC (matrice d’impacts
croises-multiplication appliqué a un classemen) analysis is also done to determine the dependency
and driving power of the risks. ISM, along with MICMAC analysis, provides a useful hierarchy
of risks whose individual relationships are unambiguous but whose group relationships are too
complex to organize intuitively and can help practitioners better understand risk dependencies and
prioritize risk-mitigation efforts. This study identified 17 risks encountered during the
development phase of PPP projects in Indian road sector and found that fourteen risks were weak
drivers and weak dependents. Delay in financial closure, cost overrun risk, and time overrun risk
have been found to have the highest dependence on other risks. The analysis can be extended by
practitioners for risk analysis in other infrastructures such as railways, seaports, airports etc.
Keywords: Build/operate/transfer; Infrastructure; Risk management; Risk; Toll roads.
39. High-Risk, 610 mm (24-Inch) Diameter, 1,645 m (5,400-Foot) HDD Project— A Case
Study
The Middlesex Water Company (MWC) is a 113-year-old, publically traded company providing
water, wastewater and related utility services to a population of nearly 400,000 in central New
Jersey and Delaware. Recently, MWC completed the planning, design and construction of a new
610 mm (24-inch), 1,768 m (5,800-foot) long water main to replace an existing 610 mm (24-inch)
cast iron water main more than 100 years old. The existing water main conveys water from
MWC’s northern distribution system near the city of Perth Amboy, across the Raritan River, and
into MWC’s South River Basin system in southern Middlesex County, New Jersey. Due to the age,
corrosivity and unstable nature of the surrounding environment, the existing main experienced
several breaks, requiring costly emergency repairs on an increasing frequency. These outages
caused major operations disruptions and repairs were costly due to access impediments associated
with the river, soft sediments adjacent to and under the river, and regulatory considerations
associated with adjacent wetlands and river navigation.
Alternative construction methods for crossing the 1,463 m (4,800-foot) wide Raritan River were
evaluated. Studied options included open-cut trenching, microtunneling, pipe jacking,
conventional tunneling and horizontal directional drilling (HDD). Factoring in construction
schedule, cost, sustainability, impacts to the environment and marine traffic, and permitting
requirements, HDD and fusible polyvinyl chloride pipe (FPVCP) were recommended for the river
crossing. The final design consisted of an HDD crossing, approximately 1,635 m (5,365 feet) long,
using 610 mm (24-inch) FPVCP. The completion of this HDD and pipe pullback makes this the
longest FPVCP pullback for a diameter of 610 mm (24 inches) or greater completed to date
in the world.
This paper highlights the planning, design and construction of this 1,635 m (5,365-linear-foot),
610 mm (24-inch) FPVCP water main installed using HDD techniques across the Raritan River.
Elements of this high-risk project that are discussed include the geotechnical investigation, HDD
construction techniques, staging and fusing of the FPVCP, and startup. This paper also discusses
the design process and compares pulling forces predicted by the design with the actual pulling
forces recorded during pipe installation.
This project was awarded the 2010 Project of the Year for New Installation by Trenchless
Technology.
40. Human Resource Allocation for Remote Construction Projects
As the construction industry expands from local markets to global markets, many construction and
engineering firms have acquired tenders remotely from their home base. When allocating human resource
for the management team of distant project sites, these firms have the strategies between assigning regular
staff and hiring local temporary employees. Since management expenses and project risks may vary for these
two strategies, it is important to make a favorable decision between the choices to mitigate project risks and
achieve maximum benefits during the global expansion of construction companies. This paper first proposes
a decision-making model for human resource allocation in remote construction projects by estimating “total
project cost,” which is the sum of total project expenses, expected project loss, and direct construction cost.
Next, this study provides a case study of three remote construction projects to illustrate the usefulness of the
proposed model. The case study results show that regular project administrators, who are able to reduce
managerial flaws and cut down project losses, are favored over local ones. Regular site engineers, who hold
lower level managerial responsibility, on the other hand, apparently lose their edge to local employees
because of their high wages and relatively minor impact on overall project performance.
Keywords: International development; Personnel management; Employment; Economic models; Cost
estimates; Risk management.
41. Identification and Initial Risk Assessment of Construction Projects in Poland
This paper presents an analysis of the Polish construction market with examples of project risk
assessment taking into consideration one of the biggest markets in Central Europe. The writer has
conducted research in identification and quantification of construction risks based on the Polish
market that has developed considerably since joining the European Union. The risk analysis
consists of verbal and quantitative description. The specification of risk indicators is directly
linked to the Polish construction market and the writer has provided examples for applying the
risk assessment process in construction projects. A summary of the analysis is presented in the
final part of the paper.
Keywords: Risk management; Poland; Construction management.
42. Identification of Risk Paths in International Construction Projects Using Structural
Equation Modeling
The major aim of this research is to demonstrate that causal relationships exist among various risk factors
that necessitate identification of risk paths, rather than individual risk factors, during risk assessment of
construction projects. International construction projects have more complex risk-emergence patterns
because they are affected by global and foreign country conditions and project-related factors. Identification
of a network of interactive risk paths, each of which initiated from diverse vulnerabilities of the project
system, is considered to be a better reflection of the real conditions of construction projects than the use of
generic risk checklists. In this study, using the data from 166 projects carried out by Turkish contractors in
international markets and utilizing structural equation modeling (SEM) techniques, 36 interrelated risk paths
were identified and the total effects of each vulnerability factor and risk path on cost overrun were assessed.
SEM findings demonstrate that every risk path is initiated from a specific vulnerability factor related to
project environment, and that contractor-specific vulnerabilities have the most effect on project cost overrun.
Risk identification using SEM helps decision makers in answering what-if questions in the early stages of a
project, tracing the effects of interdependent risks throughout the life cycle of the project and evaluating the
influence of alternative mitigation strategies, not only on specific risks but also on the whole network of
interrelated risk factors.
Keywords: Risk paths; Risk identification; International construction; Structural equation modeling.
43. Improved Risk Assessment of Pipeline Based On Fault Tree Quantitative Analysis
The fault tree of the pipeline was studied by investigating the failure modes and statistics of pipeline
accidents of PetroChina. After a quantitative analysis of the impact factors for different failure modes, a
Quantitative method for calculating the failure possibility of pipeline was established. The result was used to
improve the most widespread pipeline risk assessment method - Kent scoring method. It can give
comparable quantified description of the pipeline risk under current operation condition, and can give further
support for decision-making of integrity management.
Keywords: Risk Assessment; Fault tree; Quantitative analysis
44. Influence Study of Site Conditions on Buried Pipeline’s Seismic Performance
Long-distance buried pipelines are subject to various and complicated geological conditions. The finite
element analysis method is used to study the influence of site conditions on the response of buried pipelines
to seismic conditions. The buried pipeline is modeled as a shell element, subjected to simulated seismic
waves. The seismic performance of buried pipelines in different site conditions is compared, and the
influence of the main technical parameters is evaluated. The results indicate that the thickness of overlaying
soil layers and the shear wave velocity significantly affects the seismic response of long oil transportation
pipelines.
Keywords: Buried Pipeline; Site; Seismic Performance; Shear Wave Velocity
45. Integrated Methodology for Project Risk Management
This article presents a generic project risk management process that has been particularized for construction
projects from the point of view of the owner and the consultant who may be assisting the owner. The process
could also be adapted to the needs of other project participants, and many points referred to in the article can
be directly applied to them. Any project risk management process must be tailored to the particular
circumstances of the project and of the organization undertaking it. First, the article explains a complete or
generic project risk management process to be undertaken by organizations with the highest level of risk
management maturity in the largest and most complex construction projects. After that, factors influencing
possible simplifications of the generic process are identified, and simplifications are proposed for some cases.
Then the application to a real project is summarized. As a final validation, a Delphi analysis has been
developed to assess the project risk management methodology explained here, and the results are presented.
Keywords: Construction; Risk management; Project management; Construction planning; Methodology.
46. Interactions between Business and Financial Strategies of Large Engineering and
Construction Firms
In this research study, selected indicators are set up to analyze the strategic performance of large
international engineering and construction (E&C) firms from North America, Europe, and East Asia. The
primary objective is to examine critical areas of corporate strategy that would affect the long-term prospects
of E&C firms and provide guidance for their growth and survival. This paper focuses on the relationships
between selected aspects of business strategies (internationalization and product/service diversification) and
financial strategies (asset liquidity and capital structure). By analyzing data derived from financial reports
and other public sources, it is deduced that internationalization is positively associated with current ratio but
negatively correlated with book leverage. An opposite trend is found for the aspect of diversification. These
results signal different risk management strategies for the respective modes of business strategies. It is thus
suggested that if liquidity cannot be increased in the near term to support internationalization, firms should
then concentrate on product/service diversification. Overall, the study confirms the importance of examining
interactions between business and financial strategies.
Keywords: Accounting; Business management; Engineering firm; Risk management; Construction
industry.
47. Knowledge and Data Integration for Modeling of Problems of Risk due to Natural and
Man-Made Hazards
It is necessary to develop continually efficient methodologies and techniques for moderating risks to be
within acceptable limits. After a brief background about risk analysis, a comprehensive view is presented
about the methodologies and techniques for the same. Briefly discussed are the steps such as scope definition,
hazard identification, knowledge integration, risk estimation, and computation of risk and its understanding
including the role of qualitative and quantitative aspects of modeling for analyzing risk. Windstorm induced
damage due to natural hazards is highlighted. A case study on estimation of the roof damage in overall risk
analysis of a roof structure against damage due to cyclonic winds is used for demonstrating knowledge and
data integration.
Keywords: Risk analysis; Man-made hazard; Natural hazard; Qualitative modeling; Quantitative modeling;
Uncertainty; Knowledge and data integration; Graph; Interdependencies.
48. Managing Construction Projects Using the Advanced Programmatic Risk Analysis and
Management Model
Risk management is an important part of construction management, yet the risk-based decision support tools
available to construction managers fail to adequately address risks relating to cost, schedule, and quality
together in a coherent framework. This paper demonstrates the usefulness of the Advanced Programmatic
Risk Analysis and Management Model _APRAM_ originally developed for the aerospace industry, for
managing schedule, cost, and quality risks in the construction industry. The usefulness of APRAM for
construction projects is demonstrated by implementing APRAM for an example based on an actual building
construction project and comparing the results with other risk analysis techniques. The results show that
APRAM simultaneously addresses cost, schedule, and quality risk together in a coherent, probabilistic
framework that provides the information needed to support decision making in allocating scarce project
resources.
Keywords: Risk management; Construction management; Resource management .
49. Managing Owner’s Risk of Contractor Default
The objective of the study presented in this paper is to provide owners with a decision-making mechanism
that will free them from automatically taking the typical “transfer the risk to a surety” option and will allow
them to make intelligent and economical decisions that include retaining or avoiding the risk of contractor
default. The methodology involves using artificial neural network (ANN) and a genetic algorithm (GA)
training strategies to predict the risk of contractor default. Prediction rates of 75 and 88% were obtained with
the ANN and GA training strategies, respectively. The model is of relevance to owners because once the
likelihood of contractor default is predicted and the owner’s risk behavior is established, the owner can make
a decision to retain, transfer, or avoid the risk of contractor default. It is of relevance to surety companies too
as it may speed up the process of bonding and of reaching more reliable and objective bond/not bond
decisions. The comparative use of the ANN and GA training strategies is of particular relevance to
researchers.
Keywords: Risk management; Contractors; Owners; Predictions; Construction industry
50. Methodology for Integrated Risk Management and Proactive Scheduling of
Construction Projects
An integrated methodology is developed for planning construction projects under uncertainty. The
methodology relies on a computer supported risk management system that allows for the identification,
analysis, and quantification of the major risk factors and the derivation of their probability of occurrence and
their impact on the duration of the project activities. Using project management estimates of the marginal
cost of activity starting time disruptions, a heuristic procedure is used to develop a stable proactive baseline
schedule that is sufficiently protected against the anticipated disruptions that may occur during project
execution and that exhibits acceptable makespan performance. We illustrate the application of the
methodology on a real life construction project and demonstrate that our proactive scheduler generates
baseline schedules that outperform the schedules generated by commercial software packages in terms of
robustness and timely project completion probability.
Keywords: Construction management; Risk management; Resource allocation; Scheduling; Methodology.
51. Model for Efficient Risk Allocation in Privately Financed Public Infrastructure Projects
Using Neuro-Fuzzy Techniques
Risk allocation plays a critical role in privately financed public infrastructure projects. Project performance
is contingent on whether the adopted risk-allocation strategy can lead to efficient risk management. Founded
primarily on the transaction cost economics, a theoretical framework was recently developed to model the
risk allocation decision-making process in privately financed public infrastructure projects. In this paper, a
neuro-fuzzy model adapted from an adaptive neuro-fuzzy inference system was further designed based on
the framework by combining fuzzy logic and artificial neural network techniques. Real project data were
used to train and validate the neuro-fuzzy models. To evaluate the neuro-fuzzy models, multiple linear
regression models and fuzzy inference systems established in previous studies were used for a systematic
comparison. The neuro-fuzzy models can serve the purpose of forecasting efficient risk-allocation strategies
for privately financed public infrastructure projects at a highly accurate level that multiple linear regression
models and fuzzy inference systems could not achieve. This paper presents a significant contribution to the
body of knowledge because the established neuro-fuzzy model for efficient risk allocation represents an
innovative and successful application of neuro-fuzzy techniques. It is thus possible to accurately predict
efficient risk-allocation strategies in an ever-changing business environment, which had not been achieved in
previous studies.
Keywords: Risk allocation; Transaction cost economics; Organizational capability; Fuzzy logic; Artificial
neural networks; Public-private partnership (PPP)
52. Model for Environmental Risk Assessment of Tourism Project Construction on the
Egyptian Red Sea Coast
An environmental risk assessment model was developed to evaluate the environmental risk associated with
the construction of tourism projects along the Red Sea coast of Egypt. The model estimates the risk of
causing environmental harm to existing ecological receptors, while considering the cumulative effect of
different stressors and impacts. It combines risk assessment and environmental impact assessment (EIA) into
a unified analysis process. It assists planners, cooperating with the EIA team, in the analysis of different
planning alternatives, construction methods, and mitigation measures. It also assists decision makers in
evaluating the submitted EIAs before issuing construction permits. The model is based on a specially
designed network diagram that describes the intermediate links between construction activities and existing
ecological receptors. Based on the model results, activities responsible for high risk levels could be tracked
backward for better management, where the effect of different mitigation measures could be investigated.
Keywords: Environmental impacts; Risk management; Tourism; Coastal management; Computer models;
Ecology; Egypt; Construction industry.
53. Natural Gas Pipeline Risk Assessment for Third-Party Interference Based on Fault Tree
Analysis
In the modern petroleum industry, pipeline is one of the safest and the most economical methods to transport
lager quantities of oil and natural gas. However, accidents of pipelines cased by the third-party interference
are recorded in the newspaper. The accidents always exert catastrophic influence on our social life and
environment, at the same time, they cause a great deal of economic loss. The reasons caused the third-party
interference are complicated and it occurs randomly, so that it is hard to be forecasted or controlled the
third-party interference in advance, and it has become a serious threat to the safe operation of long pipeline
transportation. This paper conducts the research on the risk management of long natural gas pipeline
transportation. The fault tree analysis provides reliable evidences for risk assessment. On the basis of
investigating and studying, taking “gas pipeline be damaged by third-party interference” as top event and
considering 31 basic events, a relatively integrated fault tree model is established. Then the results of
qualitative analysis on this fault tree are discussed. Based on this conclusion, suggestions for prevention and
control measures of gas pipeline third-party interference are provided.
Keywords: Third-party interference; Risk assessment; Fault tree analysis; Prevention and control measures.
54. Natural Hazard Risk Reduction: Making St. Lucia Safe in an Era of Increased
Hurricanes and Associated Events
This paper seeks to answer the question, “how to make islands safer using natural hazard risk reduction
measures.” It uses St. Lucia as a case study. Among the key findings of the paper is that physical risk
reduction measures are difficult to implement or enforce despite their enactment. Furthermore, structural
measures are costly to build and maintain. Another finding is that although a hazard mitigation plan is
comprehensive, its usefulness is limited if it does not monitor, evaluate, and make provision for updating the
plan and its policies. Additionally, hazard maps give inadequate guidance in selecting safe locations if the
data are poor. Socioeconomic measures are costly in monetary and administrative terms; therefore,
legislation encourages the population to locate in safe areas. A key finding is that supplementary measures
for risk reduction are useful. The paper concludes that an array of risk reduction measures is used, but they
are not easy to implement or enforce. In short, to achieve success, realistic expectations and priorities, clear
policy goals, enforcement capacity, and the political will are paramount.
Keywords: Natural hazard risk reduction measures; Impact reduction; Caribbean.
55. Objectively Assessing Risk in a Complex World
When engineers think of risk management, it’s often in the context of events directly related to specific
program elements—adequately addressing all design criteria, identifying and securing commitments for the
necessary program resources, or executing the program plan within budget and schedule constraints. While
risks specific to the engineering effort must be addressed and managed to support a successful program
outcome, our increasingly complex and interdependent operating environments do not allow the luxury of
assuming events beyond the scope of the program plan are either unlikely to happen, or if they do, will result
in only minimal inconvenience. As recent catastrophic events associated with large public projects have
shown—ceiling panel collapses in the Boston Big Dig tunnel, levee breaches in New Orleans—events
beyond the direct control of the designer and contractor can greatly affect not only the successful
implementation of the overall infrastructure program, but adversely impact professional reputations and raise
questions of institutional bias and complacency. Such externally generated risks may be realized due to
errors by an intermediate supplier, perhaps a subcontractor’s subcontractor, or lack of action or oversight by
a customer or governmental representative, indirect risks that are easily overlooked when planning and
executing in a complex, multifaceted environment.
56. Oil & Gas Pipeline Quantitative Risk Assessment System Development with the
Intermediate Database Technology
According to ASME B31.8 S gas pipeline integrity management standard requirement, basic data, corrosion
monitoring, inspection data, evaluation data collection and integration is to realize the integrity management
foundation and prerequisite. At the same time, quantitative risk assessment is the key link of integrity
management flow, with pipeline GIS and the design and construction of the database management system
establishment and the consummation, efficient quantitative risk sharing of special evaluation data, the results
can improve the pipeline integrity management effectiveness. Using middle database interface way, it can
bring about the dynamic real-time exchange between the quantitative risk evaluation module and basic
database system. According to the results of assessment, management personnel and department of pipeline
can make reasonable decisions of operating measures. In improving data use efficiency, the developed
management system can provide means used to ensure the pipeline in physics and function integrity
condition.
Keywords: Pipeline; Interface Way; Intermediate Database; Quantitative Risk Assessment
57. Ontology for Relating Risk and Vulnerability to Cost Overrun in International Projects
Risk management is about identifying risks, assessing their impacts, and developing mitigation strategies to
ensure project success. The difference between the expected and actual project outcomes is usually attributed
to risk events and how they are managed throughout the project. Although there are several reference
frameworks that explain how risks can be managed in construction projects, a major bottleneck is the lack of
a common vocabulary for risk-related concepts. Poor definition of risk and patterns of risk propagation in a
project decrease the reliability of risk models that are constructed to simulate project outcomes under
different risk occurrence scenarios. This study aims to extend previous studies in risk management by
presenting an ontology for relating risk-related concepts to cost overrun. The major idea is that cost overrun
depends on causal relations between various risk sources (namely, risk paths) and sources of vulnerability
that interfere with these paths. Ontology is used to develop a database system that represents risk event
histories of international construction projects and to construct a model for estimation of cost overrun. It will
form the basis of a multiagent system that can be used to simulate the negotiation process among project
participants about sharing of costs considering the risk allocation clauses in the contract, sources of
vulnerability, and causal relations between risk events and their impacts. The ontology is constructed by
interaction with Turkish contractors working in international markets and extensive literature review on
risk-related concepts. The validation test results provide evidence that the ontology is fairly effective to help
Turkish contractors to assess cost overrun by considering sources of vulnerability and risk in international
construction projects.
Keywords: International construction; Risk management; Vulnerability; Ontology
58. Overview of the Application of “Fuzzy Techniques” in Construction Management
Research
During the last decade, “fuzzy techniques” have been increasingly applied to the research area of
construction management discipline. To date, however, no paper has attempted to summarize and present a
critique of the existing “fuzzy” literature. This paper, therefore, aims to comprehensively review the fuzzy
literature that has been published in eight selected top quality journals from 1996 to 2005, these being
Journal of Construction Engineering and Management, ASCE; Journal of Management in Engineering,
ASCE; Construction Management and Economics; Engineering, Construction and Architectural
Management; International Journal of Project Management; Building Research and Information; Building
and Environment; and Benchmarking: An International Journal. It has been found that fuzzy research, as
applied in construction management discipline in the past decade, can be divided into two broad fields,
encompassing: (1) fuzzy set/fuzzy logic; and (2) hybrid fuzzy techniques, with the applications in four main
categories, including: (1)decision making; (2) performance; (3)evaluation/assessment; and (4)modeling. The
comprehensive review provided in this paper offers new directions for fuzzy research and its application in
construction management. Based on a comprehensive literature review on the applications of fuzzy set/fuzzy
logic, and hybrid fuzzy techniques in construction management research, an increasing trend of applying
these techniques in construction management research is observed. Therefore, it is suggested that future
research studies related to fuzzy techniques can be continuously applied to these four major categories.
Fuzzy membership functions and linguistic variables in particular can be used to suit applications to solving
problems encountered in the construction industry based on the nature of construction, which are widely
regarded as complicated, full of uncertainties, and contingent on changing environments. Moreover, hybrid
fuzzy techniques, such as neurofuzzy and fuzzy neural networks, can be more widely applied because they
can better tackle some problems in construction that fuzzy set/fuzzy logic alone may not best suit. For
example, neural networks are strong in pattern recognition and automatic learning while fuzzy set and fuzzy
logic are strong in modeling certain uncertainties. Their combination can assist in developing models with
uncertainty under some forms of pattern. Finally, an increasing trend of applying fuzzy techniques in the
building science and environmental disciplines is also observed; it is believed that the application of fuzzy
techniques will go beyond the construction management area into these disciplines as well.
Keywords: Fuzzy sets; Hybrid methods; Construction management; Research.
59. Partnering Mechanism in Construction: An Empirical Study on the Chinese
Construction Industry
Partnering and its principles have increasingly been introduced to the construction industry to improve the
efficiency of project delivery. However, little research outlines the mechanism behind its application. This
paper presents the findings of a study that was conducted to develop and test a partnering model that reveals
the relationships between the critical success factors (CSFs) of partnering and demonstrates their importance
to construction. With support of data collected from the Chinese construction industry, this study has
revealed strong correlations among partnering (CSFs) risk management, total quality management (TQM),
use of incentives, and project performance. It is concluded that project success is the outcome of the
interaction between a variety of techniques, and that partnering, associated with incentives, is a basic
management method through which risk management and TQM can be strongly improved.
Keywords: Partnerships; Risk management; Quality control; Construction industry; China
60. Perceptions of Contractual Risk Allocation in Construction Supply Chains
Common perceptions of contractual risk allocation are the basis of a harmonious, effective and efficient
construction project. This paper explores the extent to which common perceptions of risk allocation exist
along the construction supply chain. The results of a survey indicate that differing perceptions are
worryingly high in all relationships, but particularly further down the supply chain. The paper indicates the
relationships in which this is most likely to occur and the types of risk it is most likely to affect. The results
provide important lessons for project managers, negotiators and contract drafters. In particular, by providing
a better understanding of where and how differences in risk perceptions are likely to emerge, they help those
negotiating and drafting contracts focus their energies more effectively to help minimize the potential for
unnecessary loss and dispute. Finally, our results indicate that the key to better managing perceptions of risk
is fundamentally one of communication, consultation and involvement in contractual decision-making. The
key point is that contractual allocations of risk have little meaning if they are separated from the social and
behavioral context in which risk is experienced by those involved in a project.
Keywords: Risk management; Communication; Conflict; Contracts; Construction management;
Procurement.
61. Political, Economic, and Legal Risks Faced in International Projects: Case Study of
Vietnam
The aim of this research is to investigate the political, economic, and legal PELrisks faced by foreign firms
when undertaking construction projects in Vietnam. The specific objectives are to investigate the types of
PEL risks faced and the risk response techniques adopted. The data collection instrument was a
questionnaire with open ended questions. The data collection method was in-depth face to face interviews
with 18 experts from France, Hong Kong, Malaysia, Singapore, and the United States who have managed
construction projects in Vietnam. The major risks faced include corruption, termination of public projects,
bureaucratic administrative system to obtain permits and approvals, changing and inconsistent regulations,
inadequate legal framework, fluctuation of exchange, and interest and inflation rates. Ways to respond to
these risks are recommended by the experts. Foreign firms undertaking construction projects in Vietnam may
make use of these findings to identify their PEL risks and determine the appropriate risk response measures
to give their projects a higher chance of success.
Keywords: Risk management; Vietnam; Political risk; Legal risk; Economic risk.
62. Population and Initial Validation of a Formal Model for Construction Safety Risk
Management
The transient, unique, and complex nature of construction projects makes safety management exceptionally
difficult. Most construction safety efforts are applied in an informal fashion under the premise that simply
allocating more resources to safety management will improve site safety. Currently, there is no mechanism
by which construction-site safety professionals may formally evaluate safety risk and select safety program
elements for implementation. This paper introduces and validates a risk-based safety and health analytical
model that can be used to evaluate expected risk given specific worker activities, strategically select highly
effective safety program elements for implementation when resources are limited, and quantify resulting risk
once the identified safety elements have been implemented. Specifically, the paper has three primary
objectives: (1) introduce a risk-based construction safety and health analytical model; (2) validate relevant
data used to populate the model; and (3) illustrate the applications of the model in practice. The findings of
this research indicate that the values used to populate the model are reliable and that the model has the
potential to significantly improve construction safety management.
Keywords: Occupational safety; Labor issues; Risk; Risk management.
63. Practical Application of SWOT Analysis in the Management of a Construction Project
This analysis shows strengths, weaknesses, opportunities, and threats (SWOT) from both the investor’s and
the contractor’s point of view in the planning, contracting, and construction phases of a project. With the
current market economy, and when private interests provide significant financing, construction within time
and budget limits is very important. To identify potential risks for both the investor and the contractor, it is
desirable to conduct a SWOT analysis. A decision maker must then decide which risks are worthwhile in
order to realize the expected investment benefits.
64. Predicting Profit Performance for Selecting Candidate International Construction
Projects
International projects are inherently exposed to unpredictable and complicated risk scenarios. To minimize
possible losses due to these risk exposures, construction firms have their own procedures or basic tools for
selecting potential projects, but they are usually based on the experience and knowledge of the firm’s
engineers and decision makers that are often very subjective and lack scientific basis. This paper presents a
quantitative profit prediction model for the early stage of an international project as a systematic
risk-screening tool that involves the processes of defining, analyzing, and evaluating various
profit-influencing risk variables. Various successful and unsuccessful international project cases with respect
to profit levels are collected. Then, a scale-based profit prediction model to select candidate overseas
projects is developed through factor analysis and a multiple regression analysis. Finally, this paper provides
implications for global project management and lessons learned from case studies to improve profitability
for international projects.
Keywords: Foreign projects; Profits; Forecasting; Regression analysis; Risk management; Construction
industry.
65. Premium-Rating Model for Workers’ Compensation Insurance in Construction
Providing adequate workers’ compensation insurance WCIis mandatory by legislation in most countries for
employers to hire workers. It is enforced to safeguard the interests of occupational injury victims while
eliminating their employers’ financial burden of compensation. WCI’s significance in construction is
immeasurable because the construction industry appears to be recording higher injury and fatality rates
globally. On the other hand, insurance companies must be meticulous in deciding premiums for WCIs for
construction projects. Traditionally, insurers have been adopting the experience modification rating
technique for premium-rating of WCI. However, this technique has been proven ineffective for construction
applications due to the unique characteristics of construction projects. Hence, a new premium-rating model
for construction was developed and tested in the Singapore general insurance industry. The proposed model
streamlines structured analyses of project hazards, contractors’ safety management systems, market
conditions, and insurers’ internal factors to decide optimal premiums. Moreover, it infuses the partnering
notion in WCI for construction. The implementation of the proposed model in the insurance industry would
facilitate accident control in the construction industry and thereby loss minimization for insurers.
Keywords: Construction site accidents; Safety; Insurance; Models
66. Programmatic Cost Risk Analysis for Highway Megaprojects
Highway megaprojects (construction projects over $100 million) are fraught with uncertainty. These projects
have historically experienced increases in project costs from the time that a project is first proposed or
programmed until the time that they are completed. Persistent cost underestimation reflects poorly on the
industry in general but more specifically on engineers. Traditional methods take a deterministic,
conservative approach to project cost estimating and then add a contingency factor that varies depending on
the stage of project definition, experience, and other factors. This approach falls short, and no industry
standard stochastic estimating practice is currently available. This paper presents a methodology developed
by the Washington State Department of Transportation (WSDOT) for its Cost Estimating Validation Process.
Nine case studies, with a mean cumulative value of over $22 billion, are presented and analyzed.
Programmatic risks are summarized as economic, environmental, third party, right-of-way, program
management, geotechnical, design process, construction, and other minor risks. WSDOT is successfully
using the range cost output from this procedure to convey project costs to management and the public.
Keywords: Highway construction; Cost estimates; Risk analysis; Uncertainty analysis; Risk management;
Transportation planning; Scheduling.
67. Project and Engineering Management Certification
This paper summarizes the requirements for eight major project management (PM) certificates—including
new program management, risk assessment, and scheduling management certificates—and two major
engineering management certificates that are offered in the United States by professional societies. We
provide information on the number of people holding the certification, eligibility to obtain the certification,
exam for-mat, cost for the certification, and contact information for the organization offering the certification.
We also include information about societies outside the United States that offer PM certifications in 83
countries. Finally, we discuss international PM certifications offered by a U.S.-based organization. Many
organizations are starting to require certifications for their project and program managers. This paper will
help readers decide what certifications are applicable and the requirements for obtaining a specific
certificate.
68. Project risk management
Purpose – The aim of this article is to develop an understanding of the issues related to risk management in
digital library projects as well as techniques for mitigating risk in these projects.
Design/methodology/approach – Using evidence from other research in the area, this article outlines the
major risk issues within a project and then defines a model for mitigating risk within a project.
Findings – The article finds that understanding the risk management entails understanding the underlying
factors that contribute to project risks. These risks are often the same, regardless of the nature of the project.
The first step in risk assessment is risk identification. Once risk identification is complete, risk analysis is
used to identify the likelihood the risks that have been identified will happen. While there are several formal
methods that can be used for risk analysis, many project managers use some type of matrix-based decision
process for analyzing and evaluating project risk. The most successful project managers maintain open lines
of communication throughout their organizations to stay in touch with constituent’s needs.
Originality/value – This article fills a gap in the digital project management literature by helping project
managers understand the issues related to project risk and how to avoid them, thereby insuring greater
probability their project will come to a successful and satisfying conclusion.
Keywords: Digital libraries, Project management, Risk management, Risk analysis
69. Quantifying Qualitative Information on Risks: Development of the QQIR Method
The method for quantifying qualitative information on risks (QQIR) bridges the gap between qualitative and
quantitative risk assessment methods. It employs fuzzy set theory and results in deriving customized
probability density functions (PDFs) for stochastic applications in risk assessment and financial modeling.
The QQIR method uses fuzzy sets for capturing expert opinions on uncertain information and it uses the
fuzzy weighted average method for aggregating that information. The aggregated opinion then is converted
proportionally into a PDF with respect to the possibility–probability consistency principle and the
uncertainty–invariance principle. This paper describes the construction of the proposed QQIR method and
explains the underlying operations and principles used. The different competing possible methods and
principles that exist in fuzzy set theory and could have been chosen for designing the QQIR method will be
introduced and numerically tested in detail to determine which method best fits the purposes of making the
QQIR method work. The paper refers to possible applications of the method that have been published by the
writers and concludes with a summary and limitations of the QQIR method. The QQIR method is generic
and has been successfully validated and applied to the impact of political risks on infrastructure projects.
Keywords; Probability distribution; Construction management
70. Relational Risk Management in Construction Projects: Modeling the Complexity
Relational risk management (RM) in m ultiorganizational construction projects addresses uncertainty about
collaborative working performance. Relational risk constitutes a m ultifaceted management problem that
substantially influences the project ’s success. Pragmatic approaches, such as relational contracting and
stakeholder manage-ment, guide relational RM in construction projects. Yet the theoretical explication of the
fundamental nature and processes of relational risk and relational RM is insufficient for capturing the full
potential of these management approaches. This paper describes research intended to provide a conceptual
model for relational RM in collaboration-intense construction management projects that is based on
grounded theory analysis of interviews and a review of theory bases (lenses). Relational RM is uncovered
within communication channels on multiple organizational levels and serves the main functions of learning
and incentivizing. The results of this research promote a flexible, multilevel management approach in
construction project organizations. Moreover, they suggest that the research community should adopt
complexity thinking more extensively in exploring informal management functions.
71. Relationship between Organizational Sizes and Contractors’ Risk Pricing Behaviors for
Weather Risk under Different Project Values and Durations
A problem that always annoys building employers and their consultants when drafting building contracts is
whether it is more cost efficient to retain certain risks with themselves or to transfer the same to contractors,
and it has long been a difficulty to accurately estimate the cost for transferring risks to the other contract
party. It is a very common market practice to remove contractors’ entitlement to extension of time due to
inclement weather, and in view of the significant impacts that inclement weather posed on construction
behavior is affected by the contractor’s risk perception and risk attitude. However, merely working out
contractors’ risk perception and risk attitude patterns is inadequate, as they may vary in accordance with
different organizational sizes and project backgrounds. Therefore, further studies should be carried out on
the implications of project information, such as project value and contract period, on different-sized
contractors’ risk behaviors. In this research, a questionnaire survey was conducted to investigate the
weather-risk-pricing behavioral patterns of various-sized contractors under different given project scenarios.
The survey revealed that the impacts of project value and contract period and, thus, the intensity of work and
scale of exposure to weather riskwere significant on contractors’ risk behaviors, and these impacts varied in
accordance with different organizational sizes. The medium-sized contractors’ pricing behaviors were rather
constant under different project values and contract periods, while both small and large contractors behaved
differently when the intensity of work and scale of risk exposure varied. Despite the fact that contractors of
various sizes behaved differently in some given scenarios, the number of days of delaying cost allowed by
them in returned tenders were generally less than the actual number of days of inclement weather affecting
work.
Keywords: Risk management; Weather; Contracts; Contractors; Pricing; Project management.
72. Research and Development for the Risk Assessment System of
and Distribution Networks
The paper discusses the basic theory of
City Gas Transmission
risk assessment and improves the method proposed by W. Kent
Muhlbauer through analyzing and studying a large number of documentation, including the method of risk
assessment and development of system. The risk assessment index-system is determined by the method of
multiple analysis and Delphi.
Keywords: City Gas Transmission and Distribution Networks; Index System; Risk Assessment System
73. The Research on Quantitative Risk Evaluation of RBI Methodology in Gas Pipeline
Systems
As
natural
gas
is flammable
and
explosive,
gas
pipeline accidents
would
vicious consequences such as fires and explosions and bad influence in society. And as
transmission
is
interrupted, the accidents
development
and
social stability to
a
will
great
also
impacts
extent.
on
lead
to
the gas
regional economic
Risk-based Inspection (RBI) which has
arisen and developed in western countries in the past 30 years, is a system management concept and method
that in pursuit of the unification of security and economics. Risk-based Inspection is one of the key
technologies of risk management of pipelines. Application of RBI is in a wide range, but it is still a new
attempt to apply RBI in the risk assessment of the gas pipeline systems at present. In this paper, the
quantitative risk evaluation of RBI in API 581 was in-depth analyzed and researched, and the factors of
third-party damage of gas pipelines
account,
then
established.
the
RBI quantitative
A RBI quantitative
the model, and the result of the
basis
for
in the failure probability assessment part
risk assessment model
of
gas
were
taken
pipeline system
into
was
risk assessment of one certain gas pipeline system was done by using
risk
ranking
was
carried
out,
which
provided theory
the operation and management of the pipelines.
Keywords: Gas Pipelines;
Risk-based
Inspection
(RBI);
Quantitative
Risk Evaluation; Model;
Risk Ranking
74. Research on Risk Management and Emergency Response of Oil Pipeline Based on
WebGIS
The risk management and emergency response is among the most important safety management work for oil
pipelines. As an alternative, the research on the risk management and emergency response based on WebGIS
is being considered to improve safety management. An information management system for oil pipeline
based on WebGIS has been established using ArcGIS. According to the collected practical pipeline data and
an analytic hierarchy process (AHP), the latent risk of oil pipeline was quantified based on the modified W.
Kent Muhlbauer method, the risk grading of oil pipeline was devised and daily maintenance was emphasized.
The orientation system of leakage in the oil pipeline was devised based on negative pressure, and the best
emergency rescue paths was decided based on improved Dijkstra arithmetic. Finally, it was demonstrated
with examples that this system of the risk management and emergency response based on WebGIS is more
veracious and easier to apply.
Keywords: WeGIS; Oil pipeline; Risk management; Emergency response
75. Risk Allocation and Risk Handling of Highway Projects in Taiwan
Risks always exist in construction projects and often cause schedule delay or cost overrun. Risk management
is a key issue in project management. The first step of risk management is risk identification. It includes the
recognition of potential risk event conditions in the project and the clarification of risk responsibilities. We
conducted multiple-case studies using a systematic analytical procedure to identify risks in highway projects
in Taiwan, to recognize risk allocation by contract clauses, and to analyze the influence of risk allocation on
the contractor’s risk handling strategies. The results show that the owner allocates risks by stipulating
specific contract clauses into five kinds of risk allocation conditions. If a risk is more controllable by the
contractor, the owner has a greater tendency to allocate the risk to the contractor. Risk allocation determines
which kinds of risks the contractor would take and influences the contractor’s risk handling decisions. The
analysis furthermore indicates that, if the probability of a certain risk event condition is uncontrollable, then
with the increasing possibility of taking the risk, the contractor’s tendency of risk handling changes from
actively transferring the risk to passively retaining the risk. In contrast, if a risk is controllable and certainly
allocated to the contractor, the contractor tends to take the initiative to reduce the impact caused by the risk
event rather than retain the risk.
Keywords: Risk management; Taiwan; Highway Construction; Contractors
76. Risk Allocation in Public-Private Partnership Infrastructure Projects: Comparative
Study
It is important for the public and private sectors to establish effective risk allocation strategies for
public-private partnership (PPP) projects in order to achieve a more efficient process of contract negotiation
and reduce the occurrence of dispute during the concession period. This paper aims first to identify the
preferred risk allocation in PPP projects of mainland China and the Hong Kong Special Administrative
Region referred to as China and Hong Kong from here onwardand then to compare these preferences to
those in the U.K. and Greece by a questionnaire survey based on the same risk register. The results in China
and Hong Kong show that the public sector preferred to retain most political, legal, and social risks, and
share most microlevel risks and force majeure risk; while the majority of mesolevel risks were preferred to
be allocated to the private sector. The comparative analyses of risk allocation preference among these four
countries/jurisdictions indicate that the public sector in the U.K. was most able to transfer the PPP risks to
the private sector, followed by Greece, Hong Kong, and China. Respondents from Greece exhibited the
greatest degree of support for the public sector to retain the macrolevel risks. All respondents agreed that
private investors should take a more active role in managing the mesolevel risks. Respondents from China
and Hong Kong considered that majority of the microlevel risks should be shared equally between the public
and private sectors, while respondents from Greece indicated that the private sector should take a more
active role in managing the microlevel risks. The comparative study provides international investors a better
understanding of risk preferences in different countries/jurisdictions so that they could adjust their strategies
according to the specific situation and achieve better value for money in running their PPP projects.
Keywords: Risk allocation; Risk management; Public-private partnership (PPP); Comparative study.
77. Risk analysis and management in construction
The
paper
describes, on the basis
project management
of a questionnaire
survey of general
contractors
and
practices, the construction industry's perception of risk associated with its activities
and the extent to which the industry uses risk analysis and management techniques. It concludes that risk
management is essential to construction activities in minimizing losses and enhancing profitability.
Construction risk is generally perceived as events that influence project objectives of cost, time and quality.
Risk analysis and management in construction depend mainly on intuition, judgement and experience.
Formal risk analysis and management techniques are rarely used
to doubts on
the suitability of these
techniques
due to a lack
for construction
of knowledge and
industry activities.
Copyright
Keywords: Risk perception, risk analysis, risk management, project managers, contractors
78. Risk and Price in the Bidding Process of Contractors
Formal and analytical risk models prescribe how risk should be incorporated into construction bids.
However, the actual process of how contractors and their clients negotiate and agree to price is complex and
not clearly articulated in the literature. With participant observation, the entire tender process was shadowed
in two leading g U.K. construction firms. This was compared with propositions in analytical models, and
significant differences were found. A total of 670 h of work observed in bot h firms revealed three stages of
the bid ding process. Bidding activities were categorized and their extent estimated as deskwork (3 2%),
calculations (19%), meetings (14%) , documen ts (1 3%), off-days (1 1%), conversations (7%),
correspondence (3%), and travel (1%). Risk allowances of 1– 2% were priced in some bid s, and three tiers
of risk apportionment in bids were identified. However, priced risks may be excluded from the final bid to
enhance competitiveness. Al though risk apportionment affects a contractor ’s pr icing strategy, other
complex microeconomic factors also affect price. Instead of including pricing contingencies, risk was price d
primarily through contractual rather than price mechanism s to reflect commercial imperatives. These
findings explain why some assumptions underpinning analytical models may not be sustain able in practice
and why what actually hap pens in practice is import ant for those who seek to mo del the pricing of
construction bids.
Keywords: Bidding; Contractors; Participant observation; Risk apportionment ; United Kingdom.
79. Risk and Resilience to Enhance Sustainability with Application to Urban Water
Systems
Many cities in water-stressed environments are seeking sustainable alternatives to traditional solutions such
as supply augmentation and water restrictions. One alternative is to upgrade urban water systems in an
integrated manner. Design of an integrated urban water system IUWSrequires an understanding of the risk of
the IUWS failing to deliver sustainable outcomes. We present a rationale for enhancing well-established risk
assessment and management tools with concepts of ecosystem resilience. Although traditional risk
assessment focuses on the states of controls that operate on specific system components and the likelihood
and consequences of control failure, resilience theory addresses whole-of-system behavior. In identifying
critical controls, risk management focuses on the ability to prevent failure and stabilize a certain system state,
whereas resilience focuses on the “uncontrollable” to identify pathways for managing system adaptation to
change. Based on conceptual analysis of two key resilience metaphors, the “stability landscape” and the
“adaptive cycle,” we investigate pathways toward risk-based IUWS design and management that explicitly
include system resilience as an over-arching measure of sustainability. Areas for future research include
development of methodologies for measuring system adaptive capacity, and identifying and quantifying
emerging thresholds. The challenge for the risk assessment community is to reconsider what “risk” is: In a
resilience context, events traditionally seen as risky are not necessarily bad, and may become opportunities.
The challenge for the resilience community is to identify thresholds and the system’s proximity to them.
Keywords: Risk management; Urban areas; Water distribution systems; Sustainable development; Water
management.
80. Risk Assessment for Bridge Maintenance Projects: Neural Networks versus Regression
Techniques
Bridge risk assessment often serves as the basis for bridge maintenance priority ranking and optimization
and conducted periodically for the purpose of safety. This paper presents an application of artificial neural
networks in bridge risk assessment, in which back-propagation neural networks are developed to model
bridge risk score and risk categories. The study investigated and utilized 506 bridge maintenance projects to
develop the models. It is shown that neural networks have a very strong capability of modeling and
classifying bridge risks. The average accuracies for risk score and risk categories are both over 96%. A
comparative study is conducted with an alternative methodology using multiple regression techniques. The
results revealed that neural networks achieved much better performances than regression analysis models. In
addition an integrated forecasting approach was utilized to combine neural networks and regression analysis
to generate hybrid models, which produced better accuracies than any of the individually developed models.
Keywords: Bridge maintenance; Risk management; Neural networks; Regression analysis; Hybrid methods
81. Risk Assessment Methodology for a Deep Foundation Pit Construction Project in
Shanghai, China
Risk assessment and risk management for deep foundation pit engineering are essential for quality and safety
in civil engineering owing to the needs of urban construction projects. However, uncertainty and fuzziness
continue to challenge studies of the probability and con sequences of risks in this area. Therefore, a fuzzy
comprehensive evaluation method based on Bayesian networks (BNs) is proposed to assess the risks of deep
foundation pit construction. This methodology has five main parts: modeling of BNs, determination of
occurrence probabilities of risk events, assessment of consequences, calculations of risk value and
membership degree of risk rating, and definitions of risk acceptance criteria. In a case study, primary data
analysis of a simple accident database from a deep foundation pit construction project in Shanghai is used to
provide the probabilities of basic events and approximate distributions of risk consequences. The probability
of every risk event is calculated by using deductive BN techniques. Then the con sequence of each event is
calculated by using fuzzy analysis (i.e., statistical consequence distributions and weight coefficients of risk
events are determined through the database) . A fuzzy comprehensive evaluation model with a member ship
function is also presented, and each risk event in the deep foundation pit construction his rated. In addition,
risk precautions and control measures are suggested on the basis of the risk assessment results and are
applied to risk management in deep foundation pit construction.
Keywords: Deep foundation pit; Risk assessment methodology; Bayesian networks; Fuzzy comprehensive
evaluation; Membership function.
82. Risk Explicit Interval Linear Programming Model for Uncertainty-Based
Nutrient-Reduction Optimization
Water quality management is subject to large uncertainties due to inherent randomness in the natural system
and vagueness in the decision-making process. For water quality management optimization models, this
means that some model coefficients can be represented by probability distributions, while others can be
expressed only by ranges. Interval linear programming (ILP) and risk explicit interval linear programming
(REILP) models for optimal load reduction at the watershed scale are developed for the management of Lake
Qionghai Watershed, China. The optimal solution space of an ILP model is represented using intervals
corresponding to the lower and upper bounds of each decision variable. The REILP model extends the ILP
model through introducing a risk function and aspiration levels (λpre) into the model formulation. The
REILP model is able to generate practical solutions and trade-offs through solving a series of submodels,
minimizing the risk function under different aspiration levels. This is illustrated in the present study by
solving 11 submodels corresponding to different aspiration levels. The results show that the ILP model
suffers severe limitations in practical decision support, while the REILP model can generate solutions
explicitly relating system performance to risk level. Weighing the optimal solutions and corresponding risk
factors, decision makers can develop an efficient and practical implementation plan based directly on the
REILP solution.
Keywords: Interval linear programming; Risk explicit; Load reduction; Aspiration level; Lake Qionghai
Watershed.
83. Risk Factors of Public-Private Partnership Projects in China: Comparison between the
With the growing economic development experienced in China, there is an urge for more and better public
infrastructure. Public-private partnership (PPP) is an innovative method for delivering these facilities and
services. However, along with this method there are certain risk factors that exist or are more severe when
compared to the traditional delivery method. This paper considers three types of common public projects in
China that are often delivered by the PPP method, including water and wastewater, power and energy, and
transportation. For each type of project, experienced practitioners in China were asked to rank the severity of
20 risk factors sought from a comprehensive literature review. The top five most severe risk factors for each
type of project were considered. Government intervention and public credit were ranked severe for all three
types of projects. The findings indicate that the most severe risks are government-related. It appears that the
stakeholders have low confidence in the government. These findings have highlighted the severity of risk
factors for common types of PPP projects in China. With this information, both public and private parties
can be more aware of which risk factors would be the most severe for certain projects. As a result,
appropriate precautions can be made to avoid or minimize the likelihood and consequences of these risks. By
doing so, PPP projects can be carried out more successfully, and their further use can be encouraged in
China. PPP stake-holders from other countries can also use the findings presented in this paper to prevent the
occurrence of potential risks. Furthermore, the methodology adopted in this paper can easily be adopted for
other countries.
Keywords: Risk management; Partnerships; Procurement; China; Water; Energy; Transportation
management.
84. Risk Index Model for Minimizing Environmental Disputes in Construction
Although the number of environment-related disputes is increasing, no risk management approach exists to
minimize such disputes at construction sites. The purpose of this study was to develop an environmental risk
index model for general contractors to minimize third-party environmental disputes at construction sites. The
analytic hierarchy process is used to weigh and calculate an environmental risk index. A case study
demonstrated how to apply this model for risk evaluation, on-site monitoring, and environmental
management, whereas a comparative analysis revealed that the model decreased the number of disputes to
some degree at sites where it was used. This model makes it possible to minimize environmental disputes in
the field effectively.
Keywords: Environmental issues; Dispute resolution; Risk management; Site evaluation; Construction
management.
85. Risk Management for International Construction Projects
Risk management for international project is a relatively new problem for Chinese construction companies.
The research in this paper first introduces the risk management techniques for international construction
projects, then analyzes the characteristics of the international projects, and finally puts forward some useful
countermeasures to the possible risks which are likely to occur during the execution of the international
construction projects. The research method of this paper is to apply the risk management techniques to the
international construction projects which the Chinese companies have been contracting and is aimed to
introduce some helpful risk management techniques for those companies.
Keyword: risk management; international project; countermeasures
86. Risk Management in the Chinese Construction Industry
There has been an increase in research on risk management practice in the construction industry. However,
little research has been conducted to systematically investigate the overall aspects of risk management on the
perspectives of various project participants. This paper reports the findings of an empirical Chinese industry
survey on the importance of project risks, application of risk management techniques, status of the risk
management system, and the barriers to risk management, which were perceived by the main project
participants. The risk management strategies adopted in the Three Gorges Project were also studied. The
study reveals that: Most project risks are commonly of concern to project participants; the industry has
shifted from risk transfer to risk reduction; current risk management systems are inadequate to manage
project risks; and lack of joint risk management mechanisms is the key barrier to adequate risk management.
Future studies should be conducted to systematically improve the risk management in construction by
different approaches that facilitate equitable sharing of rewards through effective risk management among
participants. Such studies should also consider the establishment of an open communication risk
management process to permit the corporate experience of all participants, as well as their personal
knowledge and judgment, to be effectively utilized.
Keywords: Risk management; Partnership; Contracts; Incentives; Measurement; Construction management.
87. Risk Management Issues of Branch Engineering Offices
Growth of consulting engineering firms often involves opening a branch office. The risk associated with this
can be in every element of office operation. Understanding these risks and prior experience in branch office
management can eliminate or significantly mitigate those risks. The discussion is from the writer’s
experience over 20 years of overseeing 16 branch offices. Consulting engineering has evolved over the past
number of decades from small professional partnerships to large national and international corporations.
Today’s consulting engineering entities range from sole proprietorship to these large corporations.
Companies that have strategic plans to grow often expand by opening branch offices. In any business, work
that is performed remote from the main facility can pose risks that could lead to a tempering of the
company’s success. This is true in consulting engineering as well. This paper will discuss many of the
factors that need to be carefully planned to help ensure the branch office success. Understanding the
components of risk facing a new branch office can greatly assist in managing these risks.
88. Risk Management: Lessons from Six Continents
Globally, the need to construct new pipelines is increasing dramatically, both on shore and off shore. So too
are the risks that are faced in attempting to meet project and stakeholder goals. Not meeting such goals has
even greater consequences as a result. Project execution from potential identification of its need through
execution and in-service use to decommissioning requires project management processes and tools at all
stages of this timeline. Today, global project management standards are being developed, promulgated,
taught, and applied. The reason is obvious. Project management is an essential function that is the single
greatest means of assuring that a project is successful in meeting all objectives from cost to functionality. It
also is the single greatest means of assuring that a party with a role in the project execution (developer,
owner-employer, engineer-constructor, contractor-subcontractor, vendor, operator-user, etc.) achieves its
commercial, professional, and related goals. Project management is the most widely found cause for failure
to meet project objectives and goals. Within today’s project management bodies of knowledge, risk
management techniques are evolving as a key tool to maximize achievement of goals, yet application of risk
management in pipeline projects is not focused on a broad spectrum of the risks being experienced
throughout the project. Ultimately, risk management application provides the ability to identify risks,
determine characteristics of risk emergence, allow measurement through control systems, and apply
enhanced project management methods for improved achievement of project and stakeholder goals
throughout the life of a pipeline project. Risk management is essential to recognize and develop input to
meet the different needs for the project and respective stakeholders’ success throughout the seasons of a
pipeline project’s life—a project’s spring season from the identification of a possible need that may become
a project to its financing/funding, a project’s summer season project execution, a project’s fall season project
use, and a project’s winter season sustainable recycling. This paper develops the types of risks for eight
categories of risk factors being experienced, tools being used, application options and successes, and the
contexts needed for success. The basis for these approaches is the global project management experience of
the writer over the last three decades on six continents on-shore and off-shore, including oil and gas, water,
and wastewater.
Keywords: Risk management; Pipelines; Owners; Project management.
89. Risk management: the need to set standards
Terry Simister explains the background behind the initiative led by the Institute of Risk Management to
establish recognised British and International standards for the practice of risk management. He discusses
the historical development of the concept of risk management and how this has led to recognition of the need
to create a profession to deal with all its aspects.
90. Risk management trends in the construction industry: moving towards joint risk
management
This paper reports the outcomes of the first of three planned questionnaire surveys in the first phase of
a broader Hong Kong based study on 'Joint Risk Management' (JRM). The survey compared
perceptions on both present and preferred risk allocation, including JRM, in construction contracts.
Data was mainly collected in Hong Kong and mainland China (with most respondents having working
experience from Hong Kong) from various professionals and practitioners representing broad
groups of academics, consultants, contractors and owners (clients). Survey results reinforce previous
observations (in Canada) of the divergences in perceptions on both present and preferred risk
allocation, both within and between different contracting parties. The present study reveals quite
wide (marked) divergencies with many individual cases of diametrically opposing views on allocating
particular risks within specific groups. Despite such divergencies, respondents professed a general
enthusiasm towards JRM, irrespective of their contractual or professional affiliation. Moreover, they
generally preferred to assign reduced risks from either one or both contracting parties to JRM, rather than
shifting more risks to the other party. This is indicative of a perceived trend towards more collaborative and
teamwork based working environments.
Keywords: Hong Kong, joint risk management, risk allocation, risk perceptions, teamwork
91. Risk-Based Framework for Safety Investment in Construction Organizations
The costs of construction injuries can have a substantial impact on the financial success of construction
organizations and increase the overall costs of construction up to 15%. Following the Occupational Safety
and Health Act of 1970, construction firms began to implement a variety of management techniques to
reduce the frequency of injuries. Although these strategies decrease the cost of injuries, they consume time
and other significant resources. Thus, it is imperative for construction organizations to objectively evaluate
the cost-benefit of investments in injury prevention through formal and robust processes. This paper presents
a risk-based framework that can be used to evaluate the incremental return on investment of a series of
investments in highly effective injury prevention strategies. The framework was developed using
foundational risk quantification and analysis techniques and is illustrated using a hypothetical case study that
is based on archival data published by United States government agencies. The conclusion of this study is
that the optimal investment strategy can be identified through a formal analysis and that optimization
depends on the frequency and cost of injuries, the sequence in which the specific injury prevention
techniques are implemented, the risk mitigated by each strategy, and the organization’s attitude toward
acceptable risk.
Keywords: Safety; Risk; Finance; Contingent liability
92. Risk/Reward Compensation Model for Civil Engineering Infrastructure Alliance
Projects
A risk/reward model is described as that which aligns project participants’ behaviors toward the achievement
of a project’s performance objectives through the use of incentives. A risk/reward model typically includes
the following mechanisms: risk/reward shared percentages among nonowner participants, project cost
risk/reward, noncost risk/reward, risk cap, and achievability of performance targets. This paper examines the
influence of a risk/reward model on the behavior of project participants. Twenty-nine industry practitioners from eight civil infrastructure project alliances were interviewed. The interviews revealed that
individual features of a risk/reward model identified had merits, but the achievability of performance targets
model appeared to be the most appropriate for promoting positive behaviors within the project team.
Additionally, it was found that all incentive aspects of the model examined led to positive and constructive
behaviors occurring due to their perceived fairness and equity of payment structure. Participants indicated
that having a commercial interest in an alliance’s performance outcomes ensured collaboration and
engagement throughout the project’s life cycle. It is concluded that risk/reward sharing is pivotal to
obtaining a successful project outcome for the procurement of civil engineering infrastructure projects when
using an alliance.
Keywords: Australia; Alliance; Risk/reward model; Compensation; Behaviors; Project team.
93. Risks, Contracts, and Private-Sector Participation in Infrastructure
This article examines how risk is reflected in infrastructure regulatory contracts, using examples from water
utilities to illustrate key points. Partnerships between public and private sectors in intensive capital network
services require risks to be assigned to the contractual party that is better able to mitigate them or to bear
them. After identifying risks that must be addressed in infrastructure contracts, their classification, allocation,
and impact are presented along with the measures to minimize risks. Two contracts in the water sector in
Portugal are analyzed. One arrangement corresponds to a public–private partnership (PPP) of the purely
contractual type (concession arrangement) and the other to an institutionalized PPP (mixed company). We
conclude that risk is a key issue in contracts with the private sector; an appropriate allocation of risks is a
necessary condition for successful contracts.
Keywords: Contracts; Infrastructure; Private-sector participation; Public–private partnerships; Risks; Water
utilities.
94. Safety Risk Identification and Assessment for Beijing Olympic Venues Construction
New technologies, new materials, and innovative designs have been extensively adopted in Beijing Olympic
venues construction. The extreme requirements for time deadline and competition function expose the
venues construction to high risks. These risks would potentially bring negative impacts on the site safety
performance. Meanwhile, there is a lack of systematic management for safety risks in China’s construction
industry, especially for large projects such as the Beijing Olympic venues construction. This paper identifies
and assesses safety risk factors inherent in Beijing Olympic venues construction with the involvement of 27
experienced and highly respected experts from government agencies, the construction industry, and academe
through brainstorming, workshop discussions, and questionnaire surveys. The finding reveals that more than
half of the critical safety risk factors are from contractors and subcontractors such as: lack of emergency
response plan and measures; workers’ unsafe operation, and contractors ignoring safety under schedule
pressure. Based on these critical safety risks, a risk register is composed and a model is developed in
application of the analytic hierarchy process to assess the status of risks on site safety. The model has been
attempted in two Olympic venue projects under construction and the validity has been approved. The risk
checklist, register, and assessment model developed in the paper were integrated into the risk management
system that has been used for Beijing Olympic venues construction.
Keywords: Construction management; Safety; Risk management; Assessments; China.
95. Scheduling-Based Risk Estimation and Safety Planning for Construction Projects
This paper considers the issue of safety risks on construction sites. It introduces the concept of combined
effect of different risk factors to the accident. For proper safety planning, safety managers need to be well
aware of the direct causes of the accident as well as indirect factors that adversely effect on site safety. If it is
observed that if a hazardous environment exists at the site, then either that hazardous environment must be
eliminated or occupations and processes related to that hazard must be properly protected. One of the
measures for evading such hazardous situations is to predict such situations and to reschedule the start time
of high-risk situation so that risks are not concentrated during certain periods and at certain locations. In
order to predict when and where the risk will reach its highest level, analysis should be performed based
upon various information including statistical sources such as accident histories and this should be done in
coordination with the activity scheduling. This paper analyzes the result of accident history and provides
information about vulnerable situations. In addition, it presents a theory of safety planning method which
estimates the risk distribution of a project and helps the safety manager to both estimate situations of
concentrated risk and then to reschedule it when it is necessary.
Keywords: Accident prevention; Construction sites; Construction management; Risk management;
Occupational safety; Scheduling; Safety.
96. Survey of Bioterrorism Risk in Buildings
Due to the lack of data and experience with designing buildings for a bioterrorism hazard, it is important for
civil engineering professionals to understand both the way that risk is currently accounted for in the design
of a building for a bioterrorism hazard and the methods for analyzing risks to buildings that can be borrowed
from risk analysis professionals. This paper provides a literature survey of four subject areas dealing with the
risk analysis of bioterrorism applied to buildings: (1) perception of the risk of bioterrorism; (2) risk analysis
of bioterrorism; (3) risk management of bioterrorism risks; and 4risk communication of bioterrorism risks,
and includes an example of a simple risk analysis process for a hypothetical building. Bioterrorism presents
building design engineers with new challenges. It is a very unpredictable hazard, and very little data exist to
guide building designers and decision makers in protecting buildings from this hazard. Designing a building
with bioterrorist attacks in mind involves many different disciplines, including, for example, structural,
mechanical, and electrical engineering, architecture, landscape architecture, security design professions, and
law enforcement. Large consequences are possible in the event of a successful attack, and many building
design engineers have little or no experience with defending against a bioterrorist attack. It is important that
a reasonable process for analyzing and dealing with these risks be established, and that the process include
issues of risk perception and communication within the risk analysis framework.
Keywords: Terrorism; Security; Risk management; Buildings.
97. Venture Capital Opportunities in Green Building Technologies: A Strategic Analysis for
Emerging Entrepreneurial Companies in South Florida and Latin America
Venture capital is an investment intended to finance high-risk companies, and particularly entrepreneurs
such as those dedicated to the development of new and innovative technologies. Venture capitalists provide
such investments since entrepreneurs may have difficulty obtaining loans from banks due to high interest
rates, the risks involved in the technological arena, and the absence of a proven track record. The rate of
success for venture capital investments has, however, been unconvincing. Given this poor success rate, there
is a need for comprehensive research to assist entrepreneurs and investors in understanding the opportunities
and difficulties of start-up venture capital investments in green building technologies. This article not only
analyzes the current trends of venture capital
investments in green building and construction technologies,
but also outlines a potential course of action. The findings of the study show that the future of venture capital
investment opportunities is very bright. The Latin-American countries are not only interested in using green
construction materials or technologies by themselves, but also see the United States as a market to which
they can export such materials and technologies. However, considerable effort is required, especially from
regulatory organizations, to achieve this cooperation and raise awareness in both investors and
entrepreneurs.
Keywords: Venture capital, entrepreneur, green construction, Latin America