Iyer, K C; Kumar, R and Singh, S P (2020) Understanding the role of contractor capability in risk management: A comparative case study of two similar projects. Construction Management and Economics, 38(3), pp. 223-238. ISSN 01446193
Abstract
In the construction industry, contractor prequalification is used for measuring contractor capability and selecting capable contractors for the successful execution of projects. Research emphasizes that contractor capability and risk management are critical for project success and have a correlation. However, observations suggest that risks are not considered during prequalification and even prequalified contractors perform poorly causing project failures. Such observations indicate a research gap for which this research explores the role of contractor capability in risk management at the project level. The analysis uses a comparative case study of risk management in two similar ongoing projects having different contractors. It reveals that the contractor capability assessed during prequalification is an attribute of an organization; while the capability required to mitigate risks and execute work is an attribute of a project. When risks materialize, the capability of a contractor may reduce and the capability required to mitigate risks in a project may increase. This will create a deficit of resources resulting in poor performance by the contractor. Therefore, criteria for prequalification must be decided considering risks scenarios for projects and contractors to screen out marginally qualified contractors and increase chances of project success.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | case study; construction project; contractor capability; contractor prequalification; risk management |
| Index terms: | construction project, risk management, construction industry, case study, project success, project failure |
| Subjects: | risk assessment, data collection methods, project completion, industry analysis, production management, project management theory and practice |
| Topics: | Risk Management, Research Practice, Project Management |
| Descriptive scope: | 4 PCTE |
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