Analytical Review of Risk Triggers in the Design Phase of D&B Contracts

Document Type : Research Article

Authors

1 Associate Professor, University of Shahid Beheshti/School of Architecture,tehran,iran

2 University of Tehran/ School of Architecture

3 Project management and constructions, civil engineering, mehralborz higher education institute,Tehran, Iran

Abstract

Nowadays, improvement of the project management knowledge and developing the management methods, decrease the probability of the failure of the project. One of the most important processes that affect project goals is project risk management. Identifying and managing the risk triggers is an effective method in project risk management. Many years have passed since this concept was introduced but its application is so limited yet. This research endeavors to develop and make a better understanding of this concept as the main goal. Recognition and managing of this phenomenon help the project risk management process. It makes the best decision for having the right time to adopt a strategy and ultimately it reduced the negative impact of risk-taking on the project. Moreover, the type of contract always plays an important role in the raising of the risk. Therefore, in this study, it is selected to develop a concept of risk trigger phenomenon, in D&B contract which has many benefits and client's tendency. To explain the status and importance of risk triggers, its relationship with several important risks has been qualitatively analyzed. For this purpose, through library studies and existing sources, common risks of these types of contracts and their indicators have been identified and compiled. Moreover, by interviews with experts on risk and risk triggers, some important risks are identified and validated. Finally, a functional table of risk triggers is presented that is a great help to stakeholders in being prepared to respond to the risk triggers.

Keywords

Main Subjects


[1] S. Haji-kazemki, B. Anderson, H.P. Krane, A Review on Possible Approaches for Detecting Early Warning Signs in Projects, Project Management Journal,,  (2013) Vol. 44, No. 45, 55–69.
[2] H.I. Ansoff, Managing Strategic surpriseby response to weak signal, California management review,  (1975) 21-23.
[3] I.O. Nikander, Project management by early warnings, International Journal of Project Management,  (2001) 385–399.
[4] OGC, MoR, TSO (The Stationery Office), United Kingdom, 2010
[5] A guide to the project management body of knowledge (PMBOK guide) Project Management Institute, Inc., Pennsylvania, 2017.
[6] M. Darabi, E. Shakeri, M. Parchami jalal, Risk Allocation in Different Types of Executive Approaches to Engineering-Procurement-Construction (EPC) Contracts, in:  6th International Project Management Conference, Ariana Research Group, Tehran, 1389.
[7] A. Andi, The importance and allocation of risks in Indonesian construction projects, Construction Management and Economics, (2006) 69-80.
[8] L. Edwards, Practical risk management in the construction industry, Thomas Telford, London, UK,, 1995
[9] J.N. Smith, T. Merna, P. Jobling, Managing risk in construction projects, Blackwell Science, United Kingdom, 1999.
[10] H. Adnan, Risk Management in Design and Builds on Construction Projects in Malaysia, ICCBT 2008,  (2008) 39-50.
[11] A. Bidi, Risk management of construction projects by applying contractual considerations, in:  4th International Conference on Project Management, Ariana Research Group, Tehran, 1387, pp. 9.
[12] O.E. Ogunsanmi, Risk Classification Model for Design and Build Projects, Covenant Journal of Research in the Built Environment (CJRBE),  (2015) 54-76.
[13] M. Parchami jalal, M. Adl parvar, Reviewing the general terms of the Design and Construction Treaty and the Fidicie Turnkey Agreement and their use in various projects, in:  Third International Conference on Project Management, Ariana Research Group, Tehran, 1386.
[14] CDC, Services, U.S. Department of Health and Human, Washington, D.C., 2019
[15] S. Haji-Kazemia, B. Andersenb, H. Petter Identification of Early Warning Signs in Front-End Stage of Projects, an Aid to Effective Decision Making, Procedia - Social and Behavioural Sciences,  (2013) 212 – 222.
[16] T. Williams, O.J. Klakegg, D.H.T. Walker, B. Andersen, O.M. Magnussen, Identifying and Acting on Early Warning Signs in Complex Projects, Project Management Journal,  (2012) 37-53.
[17] I.O. Nikander, Early Warnings, a Phenomenon in Project Management, in:  Project Management Association Finland, Helsinki University of Technology, Finland, 2002.
[18] S. Haji-kazemi, The Early Warning Procedure in Projects Foundations, Approaches and Challenges, in:  Thesis for the degree of Philosophiae Doctor, Norwegian University of Science and Technology, Trondheim, Norwegian, 2015.
[19] S. Haji-Kazemi, B. Andersen , O. Jonn, Barriers against effective responses to early warning signs in projects, international journal of project management,,  (2015) 1065-1083.
[20] R. Bali, M.R. Apte, Risk Management in EPC Contract - Risk Identification, IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE),  (2014) 07-12.
[21] e. KMolenaar, J.A. Vanegas, H. Martinez, Appropriate Risk Allocation in Design-Build RFPs, in:  Construction Congress VI, 2000 American Society of Civil Engineers, Orlando, Florida, 2000.
[22] O. Taylana, A.O. Bafail, R.M.S. Abdulaala, M.R. Kablia, Construction projects selection and risk assessment by fuzzy AHP and fuzzy TOPSIS methodologies, Applied Soft Computing 17,  (2014) 105-116.
[23] R.J. Chapman, The controlling in¯uences on e€ective risk identi®cation and assessment for construction design management, International Journal of Project Management 19,  (2001) 147-160.
[24] K. Eldash, E. Abd-Raboh, Z. El-Dars, RISK MANAGEMENT IN THE DESIGN PHASE OF LARGE-SCALE CONSTRUCTION PROJECT, in:  20th IPMA World Congress on Project Management, shanghai - China, 2006.
[25] G.C. Banik, F. Hannan, Specialty Contractors’ Perspectives on Risk Importance and Allocation of Design-Build Contracts, 2008.
[26] Y. Xu , J.F.Y. Yeung, A.P.C. Chan, D.W.M. Chan, S.Q. Wang, Y. Ke, Developing a risk assessment model for PPP projects in China — A fuzzy synthetic evaluation approach, Automation in Construction 19,  (2010) 929–943.
[27] A. Oztas, O. Okmen, Riskanalysis in fixed-price design–build construction projects, Building and Environment 39,  (2004) 229-237
[28] M. Khanzadi, M. Abedi, Investigating the Risk Assignment from the Employer's Perspective and Analyzing the Assignment Criteria, in:  9th International Conference on Project Management, Ariana Research Group, Tehran, 1390.
[29] D. Skorupka, Identification and Initial Risk Assessment of Construction Projects in Poland, JOURNAL OF MANAGEMENT IN ENGINEERING,  (2008) 120-127.
[30] M. Hamidi esfahani, Identify the agent, cause and plan for responding to significant risks, in:  9th International Conference on Project Management, Ariana Research Group, Tehran, 1392.
[31] M. Parchami jalal, e. Taghi zadeh, B. Asghi, Investigating the contractual allocation of risks in the general terms of three-factor contracting in construction projects, honar haye ziba (1390) 39-50.
[32] K. Stephen, Cusick, , T.W. Alexander, Commercial aviation safety, McGraw-Hill Professional, New York, NY, 2012.
[33] E. Bradley, Reliability engineering : a life cycle approach, Boca Raton : CRC Press, , 2016.
[34] S. Haji-kazemia, B. Andersena, R. Ele, The Early Warning Procedure in an International Context, Procedia - Social and Behavioral Sciences,  (2015) 85-95.
[35] in:  www.EnfocusSolutions.com, 2014.