An analysis of contractors' approaches to risk identification in New South Wales, Australia

D. Bajaj, J. Oluwoye and D. Lenard

Construction Management and Economics, 1997, vol. 15, issue 4, 363-369

Abstract: This study addresses the process of risk identification at the tendering and estimating stage, which is the first stage of the risk management process, and for the risk management process be of benefit and for the project objectives to be achieved, the risk identification stage should be very detailed and thorough. The aim of this study is to identify, investigate and evaluate the process of risk identification at the tendering and estimating stage for construction contractors in the NSW region. The data for this were collected during the months of December '94 and January '95 using a sample survey of a cross-section of 19 construction contractors, and the results were analysed using frequency distribution. The results show that the most frequently used methods of risk identification are the top-down approach techniques, where the project is analysed from an overall point of view. Techniques based on top-down approach lead to guesswork in terms of contingency for risks accepted by the construction contractors. Bottom-up risk identification techniques are not popular except for a questionnaire and check-list approach. Also, it was unlikely that the contractors would discuss risk allocation with the clients. All the contractors interviewed agreed that when a risk identification process is followed it improves the accuracy of their estimates.

Keywords: Risk Identification; Estimating; Tendering; Contractor (search for similar items in EconPapers)
Date: 1997
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/014461997372917 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:conmgt:v:15:y:1997:i:4:p:363-369

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RCME20

DOI: 10.1080/014461997372917

Access Statistics for this article

Construction Management and Economics is currently edited by Will Hughes

More articles in Construction Management and Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().