Perera, B A K S; Samarakkody, A L and Nandasena, S R (2020) Managing financial and economic risks associated with high-rise apartment building construction in Sri Lanka. Journal of Financial Management of Property and Construction, 25(1), pp. 143-162. ISSN 1366-4387
Abstract
Purpose: The financial and economic risks associated with high-rise building projects are many. They make project stakeholders to undergo financial difficulties. However, very few past studies have discussed the management of these risks. Thus, the purpose of this paper is to provide a guideline for the effective management of these financial and economic risks associated with high-rise apartment building projects in Sri Lanka. Design/methodology/approach: The study adopted the mixed research approach. A literature review and semi-structured interviews were used to identify the financial/economic risk factors of high-rise apartment building projects and their risk response measures. The data obtained were used for a questionnaire survey, and the findings were analysed using the mean score method. They were validated using pattern matching. The risk response measures that were identified were ranked according to their effectiveness. Findings: The findings revealed that “financial problems arising from errors in estimating” is the most significant financial and economic risk factor faced by the property developers involved in high-rise apartment building projects, while “poor contract management” is the most significant financial and economic risk factor faced by the contractors of these projects. Originality/value: The study recommends a guideline to manage, using effective risk response measures, the financial and economic risk factors that are significant in high-rise apartment building projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | financial and economic risk factors; high-rise apartments; risk response measures |
| Index terms: | risk factor, effectiveness, Sri Lanka, literature review, apartment building, risk response, survey, interview, contract management, high-rise building, estimating, methodology, questionnaire, project stakeholder |
| Subjects: | construction type, data collection methods, data analysis and analytics, financial and cost management, Geography, financial risk, contract management, performance management, research methods, environmental hazards, sociology |
| Topics: | Construction Technology, Sustainability, Stakeholder Management, Geographical Context, Research Practice, Cost Management, Contract Administration, Quality Management |
| 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