Owusu-Manu, D G; Ghansah, F A; Darko, A; Asiedu, R O and Edwards, D J (2020) Insurable and non-insurable risks in complex project deals: Case of the Ghanaian construction industry. Journal of Engineering, Design and Technology, 18(6), pp. 1971-1995. ISSN 1726-0531
Abstract
Purpose: The purpose of this study is to investigate the insurable risks that impacted the operations on complex construction projects in developing countries using Ghana as a case study. Design/methodology/approach: In this study, structured questionnaires were used to collect relevant information from the top management of construction and insurance firms in Ghana, comprising 50 industry professionals. The study adopted the χ2 and independent samples’ t test to interpret the responses from participants. Findings: The study revealed the major risks that severely impacted the operations on complex construction projects, including strikes and labour disputes, long waiting time for approval of test samples, damages to property during construction, delay in payment to contractor for work done, poor construction method, pressure to deliver project on an accelerated schedule, labour shortage, permits delayed or take longer than expected, inaccurate materials estimating, change in weather pattern, low productivity of subcontractors and inadequate contractor experience. Practical implications: The study is expected to contribute to increase in the awareness of the insurable risks and policies that project participants are exposed to, which will serve as a decision-making tool for contract formation. Originality/value: This study assists in managing construction and insurance firms to note the major risk in managing a complex construction project. In addition to knowing the major risks identified, the study investigates the insurable risk by managing both construction and insurance firms.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | complex construction project; construction industry; Ghana; insurable risk; non-insurable risk; risk management |
| Index terms: | case study, Ghana, dispute, productivity, risk management, labour shortage, insurance, complex project, contract formation, construction industry, approval, developing country, construction method, damages, questionnaire, construction project, decision-making, methodology, top management, estimating, weather, subcontractor |
| Subjects: | contract formation, financial and cost management, strategic project management, economic analysis, data collection methods, risk assessment, contractual role, air quality, dispute resolution, practitioner, building construction, decision analysis, industry analysis, management, research methods, economics, production management, Geography, development economics |
| Topics: | Contract Administration, Site Management, Organizational Design, Supply Chain Management, International Construction, Legal Issues, Sustainability, Risk Management, Roles and Professions, Research Practice, Geographical Context, Project Management, Cost Management, Business Strategy |
| Descriptive scope: | 5 PCTEA |
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