Abaza, M and Kisi, K (2024) Improper risk management outcomes and lessons learned from an EPC water transmission project. Journal of Construction Engineering and Management, 150(11): 05024012, ISSN 0733-9364
Abstract
The lack of a proper risk management procedure for water transmission projects is a significant problem that could lead to claims and disputes. This study explores risk management practices in an engineering, procurement, and construction (EPC) water transmission project in Bahrain. It addresses key research questions on inadequate preconstruction risk management, its impact on project execution and stakeholder satisfaction, and the potential benefits of integrated risk management and project scope strategies. Using a case study approach, the research employs content analysis of 15 claims within the case study and thematic coding to identify risks across project phases. The study reveals challenges like scope gaps, technical deficiencies, and communication breakdowns resulting in legal disputes and a cost overrun of USD 3.6 million on the original EPC contract of USD 57.27 million. The dispute was ultimately resolved through intensive negotiations, with the contractor receiving USD 2.4 million; by analyzing contract agreements, meeting decisions, site reports, contractual letters. This case study emphasizes the need for proactive risk management during procurement and vigilant monitoring during execution, offering insights for effective project delivery. Lessons from the study emphasize the importance of stakeholder identification, change management procedures, and specialized works management for successful project execution. The research contributes practical recommendations, highlighting the critical role of comprehensive risk mitigation in EPC projects and empowering stakeholders to make informed decisions for successful outcomes. The findings can also assist vendors in understanding potential risks, being aware of the consequences of improper risk management implementation and making informed decisions before signing a contract. Through its methodology, case study insights, and practical recommendations, this study significantly contributes to the body of knowledge, providing valuable lessons and strategies applicable to a broader spectrum of similar projects.
| Item Type: | Article |
|---|---|
| Index terms: | lessons learned, body of knowledge, risk mitigation, stakeholder identification, methodology, change management, strategy, content analysis, project delivery, negotiation, agreements, implementation, stakeholder satisfaction, risk management, Bahrain, project scope, monitoring, cost overrun, dispute, case study |
| Subjects: | conflict resolution, professional development, management, financial and cost management, project delivery, participation process, data analysis and analytics, contract formation, control systems, dispute resolution, data collection methods, risk assessment, financial risk, Geography, research methods, contractual arrangements, knowledge management, scope management |
| Topics: | Legal Issues, Risk Management, Procurement, Project Management, Geographical Context, Organizational Design, Site Management, Contract Administration, Stakeholder Management, Cost Management, Business Strategy, Information Management, Research Practice |
| 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