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Enhancing Risk Management by Partnering in International EPC Projects: Perspective from Evolutionary Game in Chinese Construction Companies

Author

Listed:
  • Yujing Yang

    (Department of Civil Engineering, Shanxi University, Taiyuan 030006, China
    Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

  • Wenzhe Tang

    (Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

  • Wenxin Shen

    (Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

  • Tengfei Wang

    (Institute of Project Management and Construction Technology, State Key Laboratory of Hydroscience and Engineering, Tsinghua University, Beijing 10084, China)

Abstract

Research on risk management in Engineering–Procurement–Construction (EPC) projects has received increasing attention. It is essential to integrate the resources of all participants into the risk management process optimally from the perspective of evolutionary games. The conceptual risk management model in the delivery of international EPC projects is developed in the study. Based on the data from an industry survey, the model has been validated. The path analysis shows that partnering not only directly contributes to interface management and risk management, thereby improving project outcomes, but also has a positive impact on risk management through enhanced interface management. The case study illustrates how partnering has a close linkage with interface management and risk management to achieve superior project performance, confirming the analysis of evolutionary game. The results suggest that contractors’ success in applying partnership can play an exemplary role for other contractors, and governments can create a favorable environment to stimulate participants using win–win philosophy for better infrastructure development.

Suggested Citation

  • Yujing Yang & Wenzhe Tang & Wenxin Shen & Tengfei Wang, 2019. "Enhancing Risk Management by Partnering in International EPC Projects: Perspective from Evolutionary Game in Chinese Construction Companies," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:19:p:5332-:d:271237
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    References listed on IDEAS

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    1. Corkin, Lucy, 2012. "Chinese construction companies in Angola: A local linkages perspective," Resources Policy, Elsevier, vol. 37(4), pages 475-483.
    2. Chen Chen & Garud Iyengar & Ciamac C. Moallemi, 2013. "An Axiomatic Approach to Systemic Risk," Management Science, INFORMS, vol. 59(6), pages 1373-1388, June.
    3. Stefan Christoffer Gottlieb & Kim Haugb?lle, 2013. "Contradictions and collaboration: partnering in-between systems of production, values and interests," Construction Management and Economics, Taylor & Francis Journals, vol. 31(2), pages 119-134, February.
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    Cited by:

    1. Hui-Ping Tserng & I-Cheng Cho & Chun-Hung Chen & Yu-Fan Liu, 2021. "Developing a Risk Management Process for Infrastructure Projects Using IDEF0," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    2. Manman Xia & Lemeng Zhao & Li Zhao, 2022. "A Comprehensive Risk-Assessment Method for Prefabricated Buildings Using EPC: A Case Study from China," Sustainability, MDPI, vol. 14(3), pages 1-28, February.
    3. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad Sepasgozar, 2021. "Engineering Procurement Construction in the Context of Belt and Road Infrastructure Projects in West Asia: A SWOT Analysis," JRFM, MDPI, vol. 14(3), pages 1-17, February.
    4. Carlos Araújo-Rey & Miguel A. Sebastián, 2021. "An Approach to the Analysis of Causes of Delays in Industrial Construction Projects through Planning and Statistical Computing," Sustainability, MDPI, vol. 13(7), pages 1-21, April.
    5. Ole Jonny Klakegg & Julien Pollack & Lynn Crawford, 2020. "Preparing for Successful Collaborative Contracts," Sustainability, MDPI, vol. 13(1), pages 1-18, December.
    6. Jiabao Jing & Xiaomei Deng & Rashid Maqbool & Yahya Rashid & Saleha Ashfaq, 2020. "Default Behaviors of Contractors under Surety Bond in Construction Industry Based on Evolutionary Game Model," Sustainability, MDPI, vol. 12(21), pages 1-28, November.
    7. Ahmad Soltanzadeh & Mohsen Mahdinia & Alireza Omidi Oskouei & Ehsan Jafarinia & Esmaeil Zarei & Mohsen Sadeghi-Yarandi, 2022. "Analyzing Health, Safety, and Environmental Risks of Construction Projects Using the Fuzzy Analytic Hierarchy Process: A Field Study Based on a Project Management Body of Knowledge," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    8. Jarosław Górecki & Manuel Díaz-Madroñero, 2020. "Who Risks and Wins?—Simulated Cost Variance in Sustainable Construction Projects," Sustainability, MDPI, vol. 12(8), pages 1-31, April.

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