A Dynamic Model of Procurement Risk Element Transmission in Construction Projects

Li Cunbin (), Liu Yunqi () and Li Shuke ()
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Li Cunbin: School of Economics and Management, North China Electric Power University, Beijing, 102206, China
Liu Yunqi: School of Economics and Management, North China Electric Power University, Beijing, 102206, China
Li Shuke: School of Economics and Management, North China Electric Power University, Beijing, 102206, China

Journal of Systems Science and Information, 2015, vol. 3, issue 2, 133-144

Abstract: The cost of materials is the largest proportion of a construction project’s total budget. If the materials cannot be delivered to the construction site on time, completely and with acceptable quality, the project’s duration and cost will be greatly affected. Based on the generalized project risk element transmission theory and system dynamics, a system dynamics model was developed to capture dynamics of procurement risk elements transmission during construction projects and how various procurement risk elements affect the project’s duration and cost by simulation. In this paper, procurement risk element is considered as the uncertain factors in procurement. Based on these results, it is concluded that the developed model can provide important information for risk managers and project managers addressing procurement risk.

Keywords: procurement risk; risk management; risk element transmission; construction project; system dynamic (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:jossai:v:3:y:2015:i:2:p:133-144:n:3

DOI: 10.1515/JSSI-2015-0133

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