Perera, H P; Perera, B A K S and Palihakkara, A D (2023) Financial and economic risk management in coastal land reclamation projects. Construction Innovation, 23(4), pp. 878-897. ISSN 1471-4175
Abstract
Purpose: Coastal land reclamation (CLR) projects have become an effective solution for population growth while creating new market areas and expanding revenue streams. Although a few studies have been conducted on risk management in CLR projects, they had very little prioritisation on financial and economic risk management. Thus, this study aims to manage the financial and economic risks of CLR projects. Design/methodology/approach: A quantitative research approach consisting of three Delphi rounds was adopted for this study. The findings of this study were analysed and validated using statistical tools. Findings: This study identified 13 significant financial and economic risk factors in CLR projects, among which poor quality of the sand and soil, delays in making payments, unpredictability of the safety and security of the country and high dredging volumes were the most significant. Most of these risks have to be borne by the client and the contractor. Conducting environmental impact studies, following quality control procedures and increasing social awareness are significant strategies to handle the financial and economic risks of CLR projects. Originality/value: This study addresses the literature gap pertaining to financial and economic risk management in CLR projects by identifying its overall process, including the identification of significant financial and economic risks based on the severity levels; risk allocation among the client, contractor and consultant; and suitable risk handling strategies for each significant financial and economic risk factor. Moreover, the findings of this study can be used to effectively deal with financial and economic risks in CLR projects while raising society’s awareness.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | coastal land reclamation; financial and economic risk factors; risk allocation; risk management |
| Index terms: | land reclamation, environmental impact, methodology, population, stream, dredging, revenue, strategy, society, quality control, sand, risk allocation, risk factor, risk management, quantitative research |
| Subjects: | financial risk, water management, research methods, management, environmental engineering, environmental hazards, communities and social development, demography, environmental impact, risk assessment, economic analysis, project delivery, data analysis and analytics, building materials |
| Topics: | Research Practice, Engineering Principles, Cost Management, Business Strategy, Sustainability, Stakeholder Management, Risk Management, Quality Management, Urban Studies |
| Descriptive scope: | 4 PCTA |
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