Hanna, A S; Thomas, G and Swanson, J R (2013) Construction risk identification and allocation: Cooperative approach. Journal of Construction Engineering and Management, 139(9), pp. 1098-1107. ISSN 0733-9364
Abstract
Over the past decades, numerous research efforts have been undertaken concerning the allocation of construction risks. Although the research currently available provides many valuable insights into the issue, industry participants remain concerned over risk associated with construction contracting. Based on this problem, a research product was developed to aid contracting parties in identifying, assessing, and allocating each construction risk. After a three-phase survey methodology for data collection, three worksheets were developed to identify construction risks with high potential for conflict and to aid in assessing and allocating these risks to the appropriate parties. To complement the model worksheets, three tools were developed: flowcharts, to help determine which party should carry each particular risk; legal research; and risk allocation principles, to help select appropriate contract language to address the identified risks. This paper discusses (1) the risk assessment and allocation model, including its accompanying tools, followed by a legal research discussion that will help parties to better understand construction contracts; and (2) the legal terms that often cause misallocation of risk with severe consequences.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | change management; claims; contracting; contracts; legal factors; risk management |
| Index terms: | contracting party, risk assessment, risk allocation, construction contract, risk management, change management, risk identification, survey, methodology |
| Subjects: | financial risk, management, research methods, practitioner, risk assessment, data collection methods, contract type |
| Topics: | Organizational Design, Roles and Professions, Risk Management, Procurement, Cost Management, Research Practice |
| Descriptive scope: | 3 PTE |
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