Development of risk misallocation causal networks using interpretive judgement in the construction industry

The allocation of risk in the construction industry determines to some extent the success of the project as inappropriate allocation has the resultant effects of claims, disputes, tensions, cost overruns, schedule overruns and quality shortfalls. The existent literature has predominantly focused on risk misallocation as the allocation of risk to the inappropriate party. Notwithstanding, risk misallocation includes use of inappropriate mechanisms, incomprehensive allocation and use of inappropriate resources. This paper developed causal networks resulting in risk misallocation. The causal networks are developed from 15 purposive semi-structured interviews from a heterogeneous sample and supplemented sequentially by 198 questionnaire survey responses in the building sector selected randomly from construction clients, contractors and consultants. The causal networks depict how the processes of risk identification, risk analysis, risk control measures and risk allocation could lead to risk misallocations. The findings suggest that the risk control/response stage has potential for various forms of risk misallocation in comparison to any other stage. Networks presented are a basis for improvement in professional practice for construction professionals as they manage risk on various projects.