IDEAS home Printed from https://ideas.repec.org/a/gam/jrisks/v7y2019i1p24-d208853.html
   My bibliography  Save this article

An Innovative Framework for Risk Management in Construction Projects in Developing Countries: Evidence from Pakistan

Author

Listed:
  • Ahsan Nawaz

    (Department of Project Management, Bahria University Islamabad (Lahore Campus), Punjab 54770, Pakistan)

  • Ahsan Waqar

    (Department of Civil Engineering, Pakistan Institute of Engineering and Technology, Multan 66000, Pakistan)

  • Syyed Adnan Raheel Shah

    (Department of Civil Engineering, Pakistan Institute of Engineering and Technology, Multan 66000, Pakistan)

  • Muhammad Sajid

    (Department of Engineering Management, University of Engineering and Technology, Taxila 47050, Pakistan)

  • Muhammad Irslan Khalid

    (Department of Civil Engineering, University of Engineering and Technology, Taxila 47050, Pakistan)

Abstract

Risk management is a comparatively new field and there is no core system of risk management in the construction industries of developing countries. In Pakistan, construction is an extremely risk-seeking industry lacking a good reputation for handling risk. However, it is gradually giving it more importance as a result of increased competition and construction activities. For this purpose, a survey-based study has been conducted which aims to investigate the risk management practices used in construction projects in Pakistan. To achieve the objective, data was collected from 22 contractor firms working on 100 diverse projects. The analysis indicates that risk management has been implemented at a low level in the local environment. The results also disclose that there is a higher degree of correlation between effective risk management and project success. The findings reveal the importance of risk management techniques, their usage, implication, and the effect of these techniques on the success of construction projects from the contractor’s perspective, thus convincing the key participants of projects about the use of risk management.

Suggested Citation

  • Ahsan Nawaz & Ahsan Waqar & Syyed Adnan Raheel Shah & Muhammad Sajid & Muhammad Irslan Khalid, 2019. "An Innovative Framework for Risk Management in Construction Projects in Developing Countries: Evidence from Pakistan," Risks, MDPI, vol. 7(1), pages 1-10, February.
  • Handle: RePEc:gam:jrisks:v:7:y:2019:i:1:p:24-:d:208853
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-9091/7/1/24/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-9091/7/1/24/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shou Qing Wang & Mohammed Fadhil Dulaimi & Muhammad Yousuf Aguria, 2004. "Risk management framework for construction projects in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 22(3), pages 237-252.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahsan Nawaz & Xing Su & Qaiser Mohi Ud Din & Muhammad Irslan Khalid & Muhammad Bilal & Syyed Adnan Raheel Shah, 2020. "Identification of the H&S (Health and Safety Factors) Involved in Infrastructure Projects in Developing Countries-A Sequential Mixed Method Approach of OLMT-Project," IJERPH, MDPI, vol. 17(2), pages 1-18, January.
    2. 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.
    3. Nicholas Thom & Andrew Dawson, 2019. "Sustainable Road Design: Promoting Recycling and Non-Conventional Materials," Sustainability, MDPI, vol. 11(21), pages 1-12, November.
    4. Liaqat Ali & Ahsan Nawaz & Shahid Iqbal & Muhammad Aamir Basheer & Javaria Hameed & Gadah Albasher & Syyed Adnan Raheel Shah & Yong Bai, 2021. "Dynamics of Transit Oriented Development, Role of Greenhouse Gases and Urban Environment: A Study for Management and Policy," Sustainability, MDPI, vol. 13(5), pages 1-14, February.
    5. Chien-Liang Lin & Bey-Kun Chen, 2021. "Research for Risk Management of Construction Projects in Taiwan," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    6. Murat Gunduz & Hamza M. A. Lutfi, 2021. "Go/No-Go Decision Model for Owners Using Exhaustive CHAID and QUEST Decision Tree Algorithms," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    7. Hsu-Shih Shih & I-Fei Chen & Nolberto Munier & Zena Alcide, 2023. "Investigating Risk-Constraint Nexus of Construction Projects in Caribbean Small Island Developing States," SAGE Open, , vol. 13(1), pages 21582440231, March.
    8. Ji, Chenyi & Su, Xing & Qin, Zhongfu & Nawaz, Ahsan, 2022. "Probability Analysis of Construction Risk based on Noisy-or Gate Bayesian Networks," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    9. Guiliang Su & Rana Khallaf, 2022. "Research on the Influence of Risk on Construction Project Performance: A Systematic Review," Sustainability, MDPI, vol. 14(11), pages 1-19, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahsan Nawaz & Xing Su & Qaiser Mohi Ud Din & Muhammad Irslan Khalid & Muhammad Bilal & Syyed Adnan Raheel Shah, 2020. "Identification of the H&S (Health and Safety Factors) Involved in Infrastructure Projects in Developing Countries-A Sequential Mixed Method Approach of OLMT-Project," IJERPH, MDPI, vol. 17(2), pages 1-18, January.
    2. Akbari Ahmadabadi, Ali & Heravi, Gholamreza, 2019. "Risk assessment framework of PPP-megaprojects focusing on risk interaction and project success," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 169-188.
    3. Hande Aladağ, 2023. "Assessing the Accuracy of ChatGPT Use for Risk Management in Construction Projects," Sustainability, MDPI, vol. 15(22), pages 1-27, November.
    4. Anuja Shaktawat & Shelly Vadhera, 2021. "Risk management of hydropower projects for sustainable development: a review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 45-76, January.
    5. Edwin Thomas Banobi & Wooyong Jung, 2019. "Causes and Mitigation Strategies of Delay in Power Construction Projects: Gaps between Owners and Contractors in Successful and Unsuccessful Projects," Sustainability, MDPI, vol. 11(21), pages 1-16, October.
    6. Keonhyeong Lee & Liyuan Wang, 2023. "Chinese High-Tech Export Performance: Effects of Intellectual Capital Mediated by Dynamic and Risk Management Capabilities," SAGE Open, , vol. 13(1), pages 21582440231, February.
    7. Gholamreza Dehdasht & Rosli Mohamad Zin & M. Salim Ferwati & Mu’azu Mohammed Abdullahi & Ali Keyvanfar & Ronald McCaffer, 2017. "DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects," Sustainability, MDPI, vol. 9(8), pages 1-24, August.
    8. Jin Woo Won & Wooyong Jung & Seung Heon Han & Sungmin Yun & Bonsang Koo, 2019. "What Enables a High-Risk Project to Yield High Return from a Construction Contractor’s Perspective?," Sustainability, MDPI, vol. 11(21), pages 1-17, October.
    9. Mónika Garai-Fodor & Tibor Pál Szemere & Ágnes Csiszárik-Kocsir, 2022. "Investor Segments by Perceived Project Risk and Their Characteristics Based on Primary Research Results," Risks, MDPI, vol. 10(8), pages 1-13, August.
    10. Weddy Bernadi Sudirman & Sarwono Hardjomuljadi, 2011. "Project Risk Management in Hydropower Plant Projects," Journal of Infrastructure Development, India Development Foundation, vol. 3(2), pages 171-186, December.
    11. Irem Dikmen & M. Talat Birgonul, 2006. "A review of international construction research: Ranko Bon's contribution," Construction Management and Economics, Taylor & Francis Journals, vol. 24(7), pages 725-733.
    12. Ing.Jakub Blatak, 2016. "Potential of Using Design-Build in Public Procurement," Applied Finance and Accounting, Redfame publishing, vol. 2(2), pages 77-85, August.
    13. Palaco, Ileana & Park, Min Jae & Kim, Suk Kyoung & Rho, Jae Jeung, 2019. "Public–private partnerships for e-government in developing countries: An early stage assessment framework," Evaluation and Program Planning, Elsevier, vol. 72(C), pages 205-218.
    14. A. Garcia-Bernabeu & F. Mayor-Vitoria & F. Mas-Verdu, 2015. "Project Finance Recent Applications and Future Trends: The State of the Art," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 14(2), pages 159-178, December.
    15. John Malu Nzioki & Dr. Mary Nyawira Mwenda, 2021. "Enhancing Performance of the Building Construction Industry through Quantitative Risk Analysis and Risk Response: A Case of Exchequer Funded Building Construction Projects in Machakos County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(3), pages 31-39, March.
    16. Xiaoyan Jiang & Kun Lu & Bo Xia & Yong Liu & Caiyun Cui, 2019. "Identifying Significant Risks and Analyzing Risk Relationship for Construction PPP Projects in China Using Integrated FISM-MICMAC Approach," Sustainability, MDPI, vol. 11(19), pages 1-31, September.
    17. Agnieszka Leśniak & Filip Janowiec, 2019. "Risk Assessment of Additional Works in Railway Construction Investments Using the Bayes Network," Sustainability, MDPI, vol. 11(19), pages 1-15, September.
    18. Philip-Mark Spanidis & Christos Roumpos & Francis Pavloudakis, 2021. "A Fuzzy-AHP Methodology for Planning the Risk Management of Natural Hazards in Surface Mining Projects," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    19. Cunbin Li & Yunqi Liu & Shuke Li, 2016. "Risk Evaluation of Qinghai–Tibet Power Grid Interconnection Project for Sustainability," Sustainability, MDPI, vol. 8(1), pages 1-19, January.
    20. Matej Špak & Tomáš Mandičák & Marcela Spišáková & Dominik Verčimák, 2023. "Risk Management on Concrete Structures as a Tool for the Control of Construction Efficiency," Sustainability, MDPI, vol. 15(12), pages 1-15, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jrisks:v:7:y:2019:i:1:p:24-:d:208853. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.