Genc, O (2023) Identifying principal risk factors in Turkish construction sector according to their probability of occurrences: A relative importance index (rii) and exploratory factor analysis (EFA) approach. International Journal of Construction Management, 23(6), pp. 979-987. ISSN 1562-3599
Abstract
A construction project has many phases, all of which involve various risks. The first step in risk management is risk identification. The literature lacks to address identifying key risk factors affecting construction projects concerning the variables' likelihood of occurrences. The goal of this paper is therefore to investigate key risk factors affecting Turkish construction sector based on their probability of occurrences by using Relative Importance Index (RII) and Exploratory Factor Analysis (EFA). 201 valid responses to a questionnaire detailing 33 risk variables are analyzed using RII and EFA. The results emphasize that disaster and force majeure, project management, technical management, external, and design-estimation are the main risk factors in the construction projects. It is also found that using unqualified subcontractors/workers/staff during the process, delays in payments, economic matters such as inflation, speculations on prices, late change-order requests of project stakeholders and, failure to complete the work within expected budget limits are the top five most-likely risks while flood, boycott, landslide, attack, hurricane, tornado risks are rare. Through the findings, practitioners that consider defined risk factors when evaluating the potential risk management approaches may increase the accuracy of their risk response method and related cost estimates.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction sector; exploratory factor analysis; relative importance index; risk factors; risk management |
| Index terms: | construction sector, subcontractor, inflation, construction project, project stakeholder, practitioner, questionnaire, relative importance index, accuracy, risk identification, risk response, exploratory factor analysis, cost estimate, landslide, project management, risk factor, risk management, estimation, force majeure |
| Subjects: | practitioner, mitigation, risk assessment, data collection methods, economic analysis, financial and cost management, financial risk, project management theory and practice, professional development, production management, statistical analysis, environmental hazards, industry analysis, sociology |
| Topics: | Contract Administration, Research Practice, Project Management, Information Management, Cost Management, Business Strategy, Sustainability, Risk Management, Roles and Professions, Stakeholder Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here