Research for Risk Management of Construction Projects in Taiwan

Chien-Liang Lin and Bey-Kun Chen
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Chien-Liang Lin: Department of Construction Engineering, National Kaohsiung University of Science and Technology, Kaohsiung 824, Taiwan
Bey-Kun Chen: Institute of Engineering Science and Technology, National Kaohsiung University of Science and Technology, Kaohsiung 824, Taiwan

Sustainability, 2021, vol. 13, issue 4, 1-15

Abstract: Risks inevitably exist in all stages of a project. In a construction project, which is highly dynamic and complex, risk factors affect the expected achievement rates of the three main performance goals, namely schedule, cost, and quality. A comprehensive risk management procedure requires three crucial steps: risk confirmation, analysis, and treatment. Risk analysis is the core of risk management. Through structural equation modeling, this study developed a risk analysis model that takes a different perspective and considered the occurrence probability of risk events and the extent to which these events affect a project. The contractor dimension was discovered to exert the strongest influence on an overall project, followed by the subcontractor and design dimensions. This paper proposes a novel construction project risk analysis model, which considers the entire project. The proposed model can be used as a reference for risk managers to make decisions about project risks, so as to achieve the ultimate goal of saving resources and the sustainable operation of the construction project.

Keywords: project; risk management; construction project; structure equation model (SEM); construction project risk management (CPRM) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:13:y:2021:i:4:p:2034-:d:498954

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