Hiyassat, M A; Alkasagi, F; El-Mashaleh, M and Sweis, G J (2022) Risk allocation in public construction projects: The case of Jordan. International Journal of Construction Management, 22(8), pp. 1478-1488. ISSN 1562-3599
Abstract
Proper risk identification, assessment, and allocation can reduce cost and time delay. This study identifies, assesses and allocates risks in public construction projects in Jordan with the goal of reducing the overall costly claims and disputes. Based on extensive literature review, the study identifies 62 risk factors that are grouped under 14 categories. The respondents were asked to estimate the probability, impact and proper allocation of these risk factors. Based on 208 valid responses, the results indicate that the top ranked risk factors are delays in client’s payments, poorly tailored contract forms, competition, delay in approval of permits, default by subcontractors, unclear specifications, material prices fluctuations, different construction standards, change in design, and poor design. The respondents of the study recommend 4 risk factors to be shouldered by owners, five risk factors to be shouldered by contractors, and 42 risk factors to be shared by the contracting parties. The results of the study also help practitioners to allocate risks to the stakeholder who is more capable to assesses, controls and manages these risks. The generated risk priority can be used to prioritize the risks for response planning.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction project; Jordan; public projects; risk allocation; risk factors |
| Index terms: | literature review, risk identification, approval, default, specification, subcontractor, construction project, public project, practitioner, competition, owner, dispute, contracting party, construction standard, estimate, Jordan, time delay, public construction, risk factor, risk allocation |
| Subjects: | dispute resolution, practitioner, contractual role, standards, data analysis and analytics, financial and cost management, production management, contractual condition, Geography, financial risk, infrastructure engineering, environmental hazards, project controls, market analysis, building construction, sociology |
| Topics: | Sustainability, Stakeholder Management, Roles and Professions, Engineering Principles, Project Management, Geographical Context, Research Practice, Cost Management, Contract Administration, Time Control, Legal Issues |
| Descriptive scope: | 3 PCA |
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