Arif, F and Tahir, S (2025) Housing sector risk assessment using structural equation modeling for small-to-medium sized construction companies and builders in urban areas. International Journal of Construction Management, 25(9), pp. 1058-1071. ISSN 1562-3599
Abstract
The housing sector is a vital contributor to Pakistan's economy, yet its disorganization creates uncertainty. This study aimed to analyze risks and devise strategies for small-to-medium-sized construction firms and builders. Risk factors were identified through literature review and depicted in a fishbone diagram. Semi-structured interviews with three industry experts validated these factors, based on consensus mechanism. A questionnaire survey, targeting companies recognized by the Pakistan Engineering Council and Association of Builders and Developers (categories C2 to C6) in Karachi, garnered a 42% response rate from 70 out of 160 potential respondents. Principal component analysis condensed factors into components, informing structural equation models testing the relationship between housing sector uncertainty and STEEP (social, technical, environmental, economic, political) risk factors. Eight key risk factors emerged, notably social and environmental concerns. Policy solutions such as labor certifications, anti-corruption measures, streamlined operations, and a real estate regulatory authority were recommended. Technical solutions included enhanced communication, awareness, and training for effective risk management. This research underscores the sector's challenges and offers insights crucial for policy makers and industry stakeholders aiming to stabilize and grow Pakistan's housing sector.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | housing construction sector; principal component analysis; risk register; steep risk factors; structural equation modeling |
| Index terms: | environmental concern, testing, principal component analysis, real estate, risk assessment, residential construction, risk management, risk factor, structural equation model, literature review, risk register, structural equation modelling, strategy, builder, construction firm, construction company, survey, interview, certification, housing, Pakistan, urban area, questionnaire, corruption |
| Subjects: | construction integration, management, statistical analysis, administrative processes, risk assessment, data collection methods, data analysis and analytics, real estate economics, financial risk, Geography, urban form and morphology, environmental hazards, professional ethics, practitioner, environmental issues, organization, construction type, professional practice |
| Topics: | Legal Issues, Risk Management, Sustainability, Geographical Context, Engineering Principles, Contract Administration, Urban Studies, Roles and Professions, Construction Technology, Cost Management, Business Strategy, Research Practice |
| Descriptive scope: | 4 PCEA |
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