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Abstract

Early identification and communication of risks throughout the construction phase allows project teams to manage and minimize cost increases and schedule delays while increasing customer satisfaction. A better understanding of the distribution of risks during a construction project can improve risk management. This research created a new term, risk encounter, which measures and defines when a risk is communicated on a project, relative to the project schedule. This paper examines risk-management data regarding 229 small building projects at a U.S. university. The project teams encountered 1,229 risk events. A risk encounter was calculated for each risk event and plotted against a project lifecycle timeline. Individual risks were found to have unique characteristics related to the impact on the project cost, the impact on the schedule, and the nature of the risk. This study attempted to identify whether the characteristics of risk affect the distribution of risks during construction. ANOVA results indicate that positive relationships exist between risk characteristics and risk distribution. Additional analysis shows that risks with large cost impacts are typically identified by project teams earlier in the project schedule and risks that cause greater schedule delays are identified toward the end of the project schedule.

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... Construction projects, including small building projects, are prone to a variety of issues that may affect project cost, schedule, and quality (Perrenoud et al., 2016). For the purposes of this study, issues are defined as project events that have the potential to affect the project cost, schedule, or scope, therefore requiring an active management response from the project team. ...
... The factors that cause project issues in large-scale sized projects are also prevalent in small building projects (Perrenoud et al., 2014). In particular, issues within small building projects have been shown to be caused by the owner's team and scope changes, subcontractors or suppliers, the designers' errors and omission, unforeseen concealed conditions, and weather conditions (Perrenoud et al., 2016). Because of the many factors that can cause negative performance outcomes in the construction industry, industry professionals have developed practices to mitigate the issues and the potential negative outcomes. ...
... Research on issue management -the identification, resolution, and monitoring of individual issues -is limited. The most comprehensive study on issue management was conducted by Perrenoud et al. (2016), which analyzed how various issues during the construction of 229 small building projects affected the cost and schedule. Their study also analyzed the relationship between when an issue was identified and the impact on the cost and schedule. ...
Article
Public institutions seek to maintain their built-environment assets by allocating sizable budgets to small construction projects that renovate or expand upon existing facilities. Small building projects can encounter many issues, which must be effectively managed by the project team to avoid negative performance outcomes. Yet relatively little research has investigated issue management within small building projects. This study’s objectives were to quantify the frequency with which various issues arise during the construction phase and to identify the timing of the project team’s corresponding actions to manage each issue. The study’s dataset consisted of 881 small building projects, including 5,236 individual issues that the project teams identified, monitored, and resolved during the construction phase. Results show that the most frequently occurring issues were designer and owner related. Design errors and omissions and unforeseen concealed conditions were typically identified and resolved the earliest in the schedule, whereas contractor-related issues were typically the last to be identified and resolved. Owner scope changes and unforeseeable events required the longest monitoring periods before the resolution was reached. This study contributes to the body of knowledge by identifying the most frequent issues and the timing with which they were identified, resolved, and monitored by the project team.
... Risk identification represents recognition of potential sources of risk and uncertainty event responsibilities [34]. The purpose of risk identification is to identified a series of risks according to their potential influence on project goals [35]. Further, risk classification is an important step in risk assessment process that attempts to structure identified risks that may affect infrastructure project [36]. ...
... Project risk management process includes risk identification and classification, risk analysis, risk assessment, risk response, and monitoring and control [35,[74][75][76]. Risk analysis is the second step and it can be carried out by qualitative or quantitative analysis [50]. ...
Research Proposal
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Infrastructure projects are large-scale and complex projects which are exposed to many uncertainties during its implementation period that could affect the successful completion of the project. Compared to traditional construction projects, infrastructure projects are exposed to higher risks due to their unique characteristics such as high capital investment and complex longitudinal site conditions. Usually, risks lead to significant cost overruns and schedule delays in projects. Recently, One Belt-One Road (OBOR) initiative has attracted a lot of attention since it cooperates with more than 65 countries in Asia, Europe, and Africa. The key element of OBOR is the infrastructure development since the infrastructure will play an essential role in fostering regional cooperation and connectivity. The aim of this research is multiple: to investigate the performance of transportation infrastructure projects in Asia and to identify causes of cost and time overruns of these projects; to identify potential risks of OBOR projects, to rank risk from the Chinese Contractor's perspective and to manage the key risks; and to reduce and prevent accidents at the construction site of infrastructure projects. In order to achieve the aim, several surveys was conducted in order to investigate the performance of transportation infrastructure projects on the Asian continent, the probability and impact of risks in OBOR projects and accident occurrence on the construction sites. Firstly, a sample of 104 infrastructure projects in 14 different countries in Asia (East, Central, South and Southeast) worth more than $100 billion have been analyzed in this survey. This study is empirical study, which is based on the collected data from the completed projects in Asia. The characteristics of project performance in terms of cost and time are determined and the key causes of cost and time overruns are identified. Secondly, a comprehensive literature review and interviews with Chinese Contractor's staff, who are participants of OBOR infrastructure projects are conducted in order to detect potential risks. In total, 43 potential risks are identified and classified into six categories according to their source and project phase in which they could occur. Compared to traditional international infrastructure projects, OBOR projects are result of the cooperation and bilateral and strategic agreement between China and other country. Hence, these projects are riskier than common international projects. Further, a novel method based on fuzzy matrices, fuzzy logic and probabilistic approach is developed and applied in order to rank potential risks. Furthermore, data about potential risks from other OBOR project in different countries is collected. This data is analyzed by the proposed fuzzy logic-based method in order to identify the key risks of OBOR projects. The third part is related to environmental incidents on the construction sites in Australia. A survey about occurred incidents is conducted and it is analyzed the causes, immediate actions, environmental impact, and time occurrence.
... Risk management is an important process in construction projects in order to meet project objectives (Chapman and Ward, 2004), yet it is still not used properly due to the amount of upfront work required and lack of qualified professionals in the company to conduct risk analysis and risk management (Liu et al., 2007), which then cost the owners more due the contingencies and reserve cost built in by the contractors in their proposals (Lee et al., 2017). Although risks can impact the cost and schedule of the of the construction project (Choudhry and Iqbal, 2013), early risk identification can help plan risk efficiently minimizing cost and schedule overruns (Perrenoud et al., 2015). ...
... Risk control is used to prevent risk and its severity (Harrington and Niehaus, 2004). Handful of research has been conducted for risk control, which analyses the relationship of risk identification with cost and schedule impact , Perrenoud et al., 2015. However, very little to no research has been conducted on the risk control documents which analyzes the impact on cost and schedule of the project due to risk not resolved on time. ...
Conference Paper
Construction projects are fraught with risks. These if occur can impact both cost and schedule of the project. Studies on risk management plan and its phases, risk-based-procurement, risk-based-delivery method selection, and risk-based-bidding, can be found in abundance in literature. However, very little to no research has been conducted to analyze the effect of risk when they are prolonged on a construction project. This study fills in the gap by determining the proportions of risks prolonged on construction projects and the impact of those risks on the cost and schedule of the project. 806 risks from 190 Design-Bid-Build (D-B-B) projects from across the United States and Canada were analyzed. It was found that almost half the time, the risk on construction projects are prolonged. Furthermore, Kruskal-Wallis H test was used to determine if there was an impact on the cost and schedule due to risk prolongation. The result showed no statistical significance exists for schedule impact but does show a statistical significance for cost. For the primary stakeholder on a construction project such as; owner, designer, and contractor, the results of the study provide a reflection on the management of risk on construction projects. Although risk prolongation has no big impact on the schedule and the cost, it does however uses up resources of the company in form of time, labor, and energy, which if resolved early or on time can be used elsewhere in the project.
... The RMP used in the evaluation criteria consisted of a two-page template in the request for proposal; the results provided qualitative measurements of contractors' abilities to manage risk ( Perrenoud et al. 2015). The RMP score on average represented 25 of the 100 points possible in this best-value model (with price, schedule dura- tion, past performance ratings, and value-added ideas representing the remaining 75 points). ...
Article
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Managing project risk in construction is becoming increasingly critical for ensuring that project objectives are met effectively. Perceptions and practices related to effective risk management vary among contractors, which results in different levels of risk-management capabilities. A best-value selection method enables owners to identify, during the selection process, contractors with strong risk-management capabilities. This paper presents qualitative data from 133 construction projects in which contractors were selected through a best-value process. During the selection process, contractors completed a risk-management plan (RMP) in which they identified the major risks of prospective projects and ways to manage the risks. The RMPs were then scored by a group of reviewers, and the scores for each contractor were averaged and used within the best-value selection model. In addition, after completion of each project, a close-out survey was used to gather data on several aspects of the contractors' project performance. A contractor's average RMP score and survey data were examined with Pearson's product-moment correlation and linear regression analysis. A positive correlation was found between average RMP scores and the performance metrics assessed in the survey. Contractors with high average RMP scores also had achieved high levels in the performance metrics of quality, professionalism, risk communication, and overall customer satisfaction. An additional correlation was found between average RMP scores and project award percentage. These correlations highlight the importance of establishing and developing effective project risk- management methods and selecting vendors through a best-value approach.
... Often due to limited time resources of project teams risk management practices are only utilized during the preparation phases of projects. It is important that risk management is performed throughout the project because of the various risks that appear throughout the project ( Perrenoud et al. 2015). The weekly risk report (WRR) and the Directors Report have been found to be beneficial risk management tools during project execution ( Perrenoud et al., 2014). ...
Conference Paper
Collaboration between owners, architects, engineers, and constructors is critical for project success; especially within alternative delivery methods such as design-build or construction management at risk. As the construction schedule is progressing and design decisions are being made, a coordinated effort is required to ensure that the finished building coincides with the owner’s expectations. This paper presents a case study of the risk management efforts from a project team to ensure that the finished exterior skin of the building met project expectations. During the planning phases of the project, efforts were placed on managing project risk. Using a tool identified as a “Risk Pulse” the team identified the top risk on the project being issues with receiving the owner’s approval of the building skin. The tool identified this risk as having a high likelihood of occurring with the largest impact to cost and schedule of the project. Upon identification of this risk the project team used a coordinated effort to mitigate the risk. The details of the risk management and planning processes have been captured based on observations and interviews with the participants. The paper will present the collaborative risk mitigation process used to ensure the approval of the building envelope.
... Two different statistical methods, namely analysis of variance (ANOVA) and Kruskal-Wallis test were considered to perform the inter-group comparison. ANOVA is a widely used parametric test that checks the differences among the means from three or above groups (e.g., Goodrum and Haas, 2002;Perrenoud et al., 2016;Shen et al., 2015), and this method has an assumption that the data tested must be normally distributed (Miller Jr, 1997); while the Kruskal-Wallis test is a rank-based non-parametric statistical method that checks the potential differences among different groups, which requires no specific distribution on the tested data (Rajendran et al., 2009;Tixier et al., 2014). Thus, the data normality test results provided by Shapiro-Wilk test determined the statistical method that would be used for inter-group comparison. ...
Article
Owing to the dramatically increased population in metropolises recently, the problem of lacking space has become more critical. To address this issue, most metropolises choose promoting underground space development. Lately, a new idea of constructing underground residential buildings emerges and has attracted considerable attention from authorities. The aims of this study are to investigate the possible advantages and disadvantages of underground residential buildings, and to investigate the critical risks in the constructions of underground residential building projects. To achieve these goals, an empirical questionnaire survey was administered to 30 Singapore-based construction companies. Results showed that “space saving” was the most significant advantage of underground residential buildings, followed by “improved indoor thermal comfort,” “more resistant to external noises,” and “increased level of privacy.” Also, results revealed that “limited access to natural light” was the most severe disadvantage, followed by “high construction cost,” “climate isolation,” “psychological resistance from residents,” “environmental issues,” and “safety concerns.” Additionally, this study disclosed and discussed the top five critical risks of underground residential building projects, including “labor restrictions,” “cost overruns,” “local contractors’ competence in underground construction,” “material restrictions,” and “economic fluctuations.” This study has contributed to the body of knowledge by examining the advantages, disadvantages, and critical risks in underground residential building projects innovatively. The findings from this study are also informative to relevant project stakeholders and policy makers from authorities, as these findings can enhance their understandings of such type of buildings and facilitate their decision-makings accordingly.
... The methodology of project risk management including risk identification, analyzing, response conceiving, and monitoring and control have been generally distinguishing and applied to construction project risk management ( [25,11,26]. Risk identification is a stage where the risks that effect on the project are identified with recording its characters which include the risks that affect inversely on the goals of the project that supposed to be Implemented as required and then classified it in lists and under each class a group of possible risks which have been identified [27]. ...
Article
Full-text available
Risk and its management is important for the success of the project, the risk management, which encompassed of planning, identification, analysis, and response has an important phase, which is risk response and it should not be undermined, as its success going to the projects the capability to overcome the uncertainty and thus an effective tool in project risk management, risk response used the collective information in the analysis stage and in order to take decision how to improve the possibility to complete the project within time, cost and performance. This stage work on preparing the response to the main risks and appoint the people who are responsible for each response. When it's needed risk response may be started in quantitative analysis stage and the repetition may be possible between the analysis and risk response stage. The aim of this research is to provide a methodology to make the plane for unexpected events and control uncertain situations and identify the reason for risk response failure and to respond to risk successfully by using the optimization method to select the best strategy. The methodology of this research divided into four parts, the first part main object is to find the projects whose risk response is failed, the second part includes the reasons for risk response Failure, the third part includes finding the most important risks generated from risk response that leads to increasing the cost of construction projects, the fourth part of the management system is selecting the optimal risk response strategy. An optimization model was used to select the optimal strategy to treat the risk by using Serval constraints such as the cost of the project, time of the project, Gravitational Search Algorithm and particle swarm used. The result of the risk response selection shows that The investment (contractor, bank) strategy shows a very good strategy as it saves the cost about 30%, while the Mitigate (pay for advances with interest 0. 1) Strategy show saving the cost 40% and giving land to contractors show saving the cost 40% finally the BIM strategy show saving the cost 25%. The risk response is an important part and should give a great attention and it must be used sophisticated method to select the optimal strategy, the two techniques both show high efficiency in selecting the strategy but Gravitational Search Algorithm show better performance.
... Generally, PRM includes three main phases: risk identification, risk analysis, and risk response (Fan et al. 2008;Zhang and Fan 2014). Risk identification is to recognize and document the underlying risks that would affect project objectives (Perrenoud et al. 2016). Risk analysis refers to analyzing and evaluating the occurrence probabilities and impacts of the risks (Taroun 2014). ...
Article
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In the practice of project risk management, project managers need to determine preventive actions to reduce risk probability before the risk occurs and/or protective actions to lower the risk impact after the risk occurrence. This paper proposes a method that integrates the bow-tie analysis and optimization model to determine risk response strategies from the preventive and protective perspectives. In the proposed method, bow-tie analysis is used to identify and analyze the causes and consequences of the risk event, the risk preventive strategies with respect to the causes, and the protective strategies with respect to the consequences. Then, the likelihood of the occurrence and the total loss of the risk event are calculated. The fuzzy optimization model is built to select proper risk preventive and protective strategies under the constraints of the risk likelihood, risk loss, and the expected loss. Finally, to demonstrate the proposed method, a case study is provided and some insights for managerial practice are drawn.
... From an owner's perspective, project management proposals provide valuable up-front insight into how each proposing contractor would approach and manage the complexities of the construction phase (Wong et al. 2000). Previous research has shown that construction projects often encounter risks early in the project schedule, which perhaps lends importance to evaluating the project management capabilities of construction teams prior to determining the final se- lection and award outcomes ( Perrenoud et al. 2015). Singh and Tiong (2006) noted contractor management capability to be a criti- cal contractor selection factor. ...
Article
Full-text available
Construction contractors have historically been procured through price-driven methods. Yet the increased use of alternate project delivery methods, along with owner-perceived concerns over construction performance, has led many owners to introduce qualifications-based selection criteria into their procurement systems. As a result, construction contractors are tasked with preparation of qualifications-based proposal submittals ever more frequently. Contractors must therefore develop strategies to consistently differentiate their qualifications from those of their their competitors, which can lead to more favorable owner evaluation scores and ultimately improve their hit rate. This paper performed a content analysis of 71 contractor proposals containing both successful and unsuccessful bids. Regression results indicate that contractor project management proposals receive more favorable owner evaluation scores when contractor-controlled, design-related, and concealed conditions content are emphasized. Regression results show that contractor scope alternate proposals are encouraged to provide a comprehensive review of potential scope options to enhance the project and ensure the associated cost and schedule impacts are clearly defined.
... A 2010 study, published a survey that measures the risk maturity of construction firms (Zou, Chen, & Chan, 2010). Although the benefits of PRM are widely published (Perrenoud, 2016;Perrenoud et al.,2015;Wang & Yuan, 2011;Zou et al., 2010) many construction firms struggle to adopt PRM practices. Various studies have identified barriers that construction firms encounter while adopting and improving PRM practices (Hwang, Zhao, & Toh 2014;Chileshe & Kikwasi, 2013;Lyons & Skitmore, 2004). ...
Conference Paper
Full-text available
A recent study has shown a positive correlation between owner satisfaction during construction projects and the contractor’s level of project risk management (PRM) capability. This capability can be measured and is known as risk maturity. Risk maturity can be improved within individuals and project teams. Both training and tools are available for improving risk maturity, however, previous studies have found that there are consistent barriers to implementing PRM. This paper provides a review of the barriers and identified five common PRM barriers. Risk maturity scores were captured for 25 contractors, additionally, the contractors were asked to rank order the five common barriers. This study measured the association and correlation between the rankings of the barriers and the risk maturity levels. Data is captured through surveys of electrical construction companies through a research grant with ELECTRI International. The associations between the barriers and risk maturity levels are identified with a Pearson correlation test and the correlation is tested through a linear regression analysis. Eight correlations were found between the levels of risk maturity and the barriers to implementing PRM. The findings from this research will help professionals and organizations identify and plan for the barriers to implementing PRM dependent on their risk maturity level.
... Decision making is a procedure of evaluating options that meets a selected group of criteria and goals [17]. Risk magnitude might be assessed by considering two parameters: (1) Risk severity and (2) Risk likelihood [75]. In lots of applications the final decision is based totally upon a number of alternative evaluations in terms of some of criteria [76]. ...
Article
Full-text available
Risk management is an approach of recognizing, classifying, analyzing and assessing of all risks in any project and is an important step for project success. Therefore, it is important to analyze and study parameters of construction risks. Numerous methods had developed to support project managers and contractors for risk management in construction. Applications of these methods enabled project managers to avert potential problems. “AHP” Analytic Hierarchy Process was discovered by Saaty (1980), and it had been studied with “MCDM” Multiple Criteria Decision Making; in this paper, AHP was used to normalize uncertainty estimates and rank risk likelihood occurrence which occurs specifically in construction projects in Egypt and Saudi Arabia during bidding and construction phases. The AHP enforcement steps had been simplified through “ECS” Expert Choice Software that is available for its fulfillment. A questionnaires survey was conducted to get opinion of experts for their priorities on most likely risks, which occur in Arabian projects, the answers were used to make pairwise comparison between all risks parameter, then AHP is applied to normalize uncertainty estimates and rank the risk likelihood occurrence. Results show project stakeholders believe that risk from financial as maximum likelihood occurrence of the construction projects. Design risk was the highest second rank most likelihood occurrence after financial risk. Political and construction risk was of the third rank.
... The results from related researches show that the risks happen in all project implementation activities. Some foreign researches include: Perrenoud and his associates [2] reviewed over 229 projects that recorded 1229 risks. Other researches have also found the risks appearing in the contracting phase [3], risks in cost calculation, finance [4,5], risks in foundation construction [6], risks occur in the design phase and can extend sequentially into the construction phase [7], labor risks, tax risks, financial risks, export risks, etc. ...
Article
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The transport system is considered the "backbone" of the urban development. Along with the rapid economic development, the urban road transport system is being paid attention and invested by Hanoi city. By the year 2050, The Hanoi municipal government is expected to complete and hand over for use about 317 urban road transport projects. Due to the high demands of social and economic efficiency, the urban road transport projects in Hanoi face many risks. In which, there are 13 high dangerous risks for the urban road transport project in Hanoi. These risks have the high probability and severity impacted on the outcome of the projects. The project participant's risk management standpoint will determine the solutions to respond the respective risks, thereby affecting the results of the project. In this paper, the authors compare the risk management standpoint of three main project participants, including owner/project management board, consultant and main contractor/subcontractor. The difference of the risk management standpoint is shown clearly by the project participants' assessments of 13 high dangerous risks.
... Construction projects have always been exposed to various unforeseeable risks, particularly during the construction phase of office projects. The following table summarizes ten critical quality risk factors of the Biconsi Tower project in Vietnam based on a survey of research publications and in-depth expert interviews (Arumsari et al., 2018;Dehdasht et al., 2017;Do et al., 2017;El-Sayegh & Mansour, 2015;Eybpoosh et al., 2011;Gan et al., 2017;Hussain et al., 2019;Kassem et al., 2020;Likhitruangsilp & Ioannou, 2009Likhitruangsilp et al., 2016;Liu et al., 2017;Naderpour et al., 2019;Nguyen & Nguyen, 2020;Nguyen et al., 2021;Perrenoud et al., 2016;Rustom & Amer, 2006;Siraj & Fayek, 2019;Subramanyan et al., 2012;Tadayon et al., 2012;Tamošaitienė et al., 2021;Viswanathan et al., 2020;Xu et al., 2010;Zavadskas et al., 2010;Zeng et al., 2007;Zou & Zhang, 2009): ...
Article
Project performance is assessed using various criteria. Quality is one of the typical triangle criteria used to assess the performance of any office building project. However, office projects in Vietnam have faced numerous quality risks, particularly during their construction periods. This can cause the building projects to be delayed and over budget. As a result, identifying quality risk factors throughout the construction phase of office projects is essential. Therefore, this paper applies the analytical hierarchy process to prioritize critical risk factors affecting project quality during the construction phase of the Biconsi Tower project in Vietnam. The research results show that the five top risk factors affecting the quality of the Biconsi Tower project from most to least impact are as follows: (1) inspection and approval work are not in accordance with regulations and procedures, (2) lack of coordination between project stakeholders, (3) poor quality design documents and drawings, (4) poor construction methods, and (5) poor quality input materials.
... Facilities projects usually range from $12k to $6M (Perrenoud et al, 2016). A typical facility oversees around 80 to 150 projects per year (Hurtado, 2018). ...
Conference Paper
Cost and schedule growth have been a heavily studied topic within the construction industry, particularly related to the horizontal sector or within the context of projects of substantial size. Yet relatively little research has focused on smaller project sizes within the facilities operation and maintenance sector, which were comprised of vertical projects that typically possess low individual dollar values but occur with high frequency. To address this gap, 881 projects were collected from the facilities management programs of 19 owner organizations in the public, vertical, and institutional sector. A unique contribution of this study was a comprehensive analysis of a project control tool: Deviations Report, which was updated weekly by the contractor teams for each project and contained all the issues that occurred during the construction phase of the project. Results not only show overall project cost and schedule growth rates, but also portion these into different causes, among the three main project stakeholders; Owner, Designer, Contractor, and Unforeseen conditions. Differences in the frequency and magnitude of the causes were investigated via the Kruskal-Wallis H Test. Analysis revealed that Owners were the largest cause of cost and schedule growth, followed by Designers and Unforeseen conditions, and, lastly, Contractors. This study assists practitioners to plan for the leading sources of cost and schedule growth within facilities management programs of the vertical institutional sector. The study was limited to Design Bid Build (D-B-B) project in vertical public sector. 2 INTRODUCTION Cost and schedule growth are the most widely used performance measures in the construction industry (Hale et al. 2009). Numerous studies have analyzed the cost and schedule growth in public sector for various types of procurement methods, contracts, owner organizations, and project delivery methods. Most of these studies have focused on the transportation sector and other new construction projects that typically represent large sizes (megaprojects, etc.). Relatively few studies have specifically focused on facilities management projects, which are typically lower dollar values, higher volume of repetitive work, and oftentimes represent reconstruction rather than new construction. The facilities management profession ensures proper and effective management of facilities (Badger and Garvin, 2007). That said, the condition of many facilities in the United States, which includes public schools (NCES, 2014), universities (Isa and Usmen, 2015), and healthcare facilities (Call et al, 2018), are poor and need some kind of renovations, repairs, and remodeling. Moreover, previous research in facilities management for schools, universities, military infrastructure, and healthcare, were majorly focused on the operations and lifecycle cost of the projects, while little research was conducted to analyze the cost and schedule growth during the construction of these facilities. This study utilizes 881 D-B-B vertical facilities projects. These projects were mainly public, vertical, and institutional sector, completed in the last 10 years, across the US and Canada. The objective of this study was to analyze the cost and schedule performance of the construction phase and to quantify the commonly identified causes of cost and schedule growth. Kruskal-Wallis H test was used to determine the group differences for cost and schedule growth. The results of this study revealed that not every issue affects the cost and schedule growth in a similar manner. Owner related issues had the highest cost and schedule growth during the construction of these projects.
... Multiple factors with complex interactions affect labor productivity such as project management skills, labor organization and change orders (Dai et al., 2009;Kisi et al., 2018). Perrenoud et al. (2015) studied the complexity of construction projects in different stages and showed that the factors that can affect productivity vary in every stage and are significantly dynamic. They also revealed that factors that lead to greater delays in a construction project are normally identified at the originally expected completion date of a project or even later than that. ...
Article
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Purpose The inevitable change orders in construction projects have either direct or indirect impacts on a project’s duration. Reduced productivity is one of the indirect consequences that lead to major delays in the completion of the project. The purpose of this study is to develop a model that could quantify the impact of change orders on labor productivity and result in the establishment of policies to lessen their effects. Design/methodology/approach A model was developed to analyze the effects of change orders on labor productivity, then policies for managing their impacts on productivity and project duration were established. A water treatment case study was selected to serve as the scenario in which to implement and evaluate the model and policies. Findings The results of this study indicated that pressure to adhere to a schedule initially leads to an increase in labor productivity, but it is often followed by a significant drop that is a result of employee frustration. It was concluded that the pressure can be positive if it is applied for a short period of time; however, it continues for a significant length of time, the duration of the project will increase appreciably. Originality/value The proposed model can be implemented to identify the factors that affect labor productivity in a construction project. Its utilization will also help project managers assess when change orders occur and determine, which policies will be most effective in optimizing labor productivity.
... The study noted the importance of distributing such information to all parties involved with the project. Perrenoud et al. (2016) recommended that construction teams document the timing with which issues are "encountered" within the project schedule. Kotb and Ghattas (2018) noted issue logs as a primary project document that can provide important information for identifying threats to project performance in the context of construction projects. ...
Article
Purpose The Project Management Body of Knowledge recommends the use of issue logs as a best practice to minimize the potential project cost and schedule growth. Although the broader topic of project control has been widely studied in the construction literature, the specific application of issue logs has remained relatively understudied. This study aims to analyze the extent and consistency with which construction teams utilize issue logs and the corresponding project performance outcomes. Design/methodology/approach A dataset of 5,635 individual issues was gathered from the final issue logs of 881 small building projects delivered via the design–bid–build method. Differences between groups were determined using the Kruskal–Wallis H test with post hoc testing via the Mann–Whitney U test with pairwise comparison. Findings The results showed that, on average, project teams who used issue logs to a greater extent achieved a 3.1 to 4.3% reduction in cost growth and a 5.3 to 12.3% reduction in schedule growth. This result shows that issue logs can be used to improve construction project performance in the areas of cost and schedule. Originality/value This result provides a contribution to practitioners, wherein project teams should be encouraged to establish their issue management practices early in the project schedule to encourage greater issue log usage for the remainder of the project.
Article
Building and infrastructure construction projects can be viewed as a complex system consisting of many subsystems. Over the last two decades, considerable researches that use system dynamics (SD) as an analytical and modeling approach exist to address construction project management issues. However, only few critical reviews have been conducted to provide an in-depth understanding of SD application in construction project management. Moreover, many studies have failed to apply SD accurately. Therefore, the present study aims to gain an understanding of the current state of play and future directions in applying SD method in construction project management research, by undertaking a comprehensive review of 105 relevant articles published from 1994 to 2018. These articles are analyzed in terms of annual publication rate, key papers and their contribution, critical issues in SD application, and research topics. A significant increase in the number of publications in the last five years has been observed. When applying SD method to model construction system, the following aspects must be carefully considered: Model boundary, model development, model test, and model simulation. In addition, SD has been applied in a wide range of research topics, including (1) sustainable construction; (2) design error, rework, and change management; (3) risk management; (4) resource management; (5) decision making; (6) hybrid modeling; (7) safety management; (8) PPP project; and (9) organization performance. Based on the review findings, this study discusses three future research directions, namely, integration of SD with other methods, uncertainty analysis, and human factor analysis. This study can help researchers gain an in-depth understanding of the critical issues in the application of SD in construction management and the state-of-the-art of SD research.
Article
As the construction of infrastructures becomes increasingly complex, it has often been challenged by construction delay with enormous losses. The delivery of complex infrastructures provides a rich source of data for new opportunities to understand and address schedule issues. Based on these data, many efforts have been made to identify key construction schedule risks and predict the probability of risk occurrence. Bayesian network is one of the most useful tools for risk inference. However, there are still two obstacles preventing the Bayesian network from being adopted popularly in construction schedule risk management: (1) the development of directed acyclic graph (DAG) and associated conditional probability tables (CPTs); and (2) the lack of observation data to trigger risk inference as evidence at the planning stage. This research aims to develop a novel Bayesian Monte Carlo simulation–driven approach for construction schedule risk inference of infrastructures, where the Bayesian network model can be developed in a more convenient way and be used without observation data required. It first constructs the key risk network with key risks and links through network theory–based analysis. Then the DAG structure of a Bayesian network is developed based on the topological structure of key risk network using deep-first search (DFS) and adapted maximum-weight spanning tree (A-MWST) algorithms. The CPTs are further developed using the leaky-MAX model. Finally, the Bayesian Monte Carlo simulation–driven risk inference method is developed for predicting and quantifying the probability of construction schedule risk occurrence. A real infrastructure project was selected as a case study to verify this developed approach. The results show that the developed approach is more appropriate to deal with risk inference of infrastructures considering its reliability, convenience, and flexibility. This research contributes a new way to construction schedule risk management and provides a novel approach for quantifying and predicting risk occurrence probability.
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