Hassanein, A A G and Afify, H M F (2007) Risk management practices of contractors: A case study of power station projects in Egypt. Journal of Financial Management of Property and Construction, 12(3), pp. 164-179. ISSN 1366-4387
Abstract
This research aimed at identifying the most significant risks relevant to construction contracts of two power station projects in Egypt. These were large scale, fast-track projects where a multi-package contracting plan was utilized. Further, the study investigated how risks were perceived and managed by a large sample of Egyptian and international contractors who participated in the execution of these two major projects. A checklist of risk categories was developed to aid contractors in their risk identification effort. The compilation of this checklist identified the following risk categories: 1) owner's obligations; 2) interface with other contractors; 3) liability risks; 4) financial risks; 5) risks related to changes; 6) technical risks and 7) consortium risks. Research results identified a marked lack of consistency in the contractors' risk identification effort. Contractors possessing past experience in Egypt were far better able to identify the relevant risks. On the other hand, local Egyptian contractors with vast experience in Egypt but limited project management experience were shown to lack the necessary expertise to properly identify risks and to take the appropriate exceptions. Furthermore, the results revealed that bidders do not include in their proposals their “true” lists of exceptions which represent genuine risks to them.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction contracts; risk checklist; risk identification; risk management |
| Index terms: | construction contract, consortium, liability, owner, power station, risk management, major project, case study, Egypt, project management, bidder, package, proposal, risk identification |
| Subjects: | data collection methods, infrastructure and transport systems, bidding, strategic project management, project planning, project management theory and practice, contractual arrangements, partnership management, sociology, risk assessment, Geography, liability law, contract type, financial risk |
| Topics: | Risk Management, Cost Management, Legal Issues, Geographical Context, Project Management, Research Practice, Engineering Principles, Procurement, Stakeholder Management |
| Descriptive scope: | 3 PCE |
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