There has been an increase in research on risk management practice in the construction industry. However, little research has been conducted to systematically investigate the overall aspects of risk management on the perspectives of various project participants. This paper reports the findings of an empirical Chinese industry survey on the importance of project risks, application of risk management techniques, status of the risk management system, and the barriers to risk management, which were perceived by the main project participants. The risk management strategies adopted in the Three Gorges Project were also studied. The study reveals that: Most project risks are commonly of concern to project participants; the industry has shifted from risk transfer to risk reduction; current risk management systems are inadequate to manage project risks; and lack of joint risk management mechanisms is the key barrier to adequate risk management. Future studies should be conducted to systematically improve the risk ...

Empirical research comparing projects procured as public–private partnerships (PPPs) with other methods of procurement is important because Australian governments plan to spend $320 billion on infrastructure over the next decade and PPPs are perceived to be an appropriate form of delivery. Estimating cost and risks in Australian capital projects is often characterized by optimism bias—the tendency to be overly optimistic about planned actions—and is too often based on insufficient historical data on which to make decisions. Given this broad context it is important to begin to understand in detail how PPPs have performed against other forms of procurement. To achieve this, a detailed study has been undertaken to compare the project time and cost outcomes observed in the Australian PPP market with those projects delivered by governments via traditional procurement methods. Two sets or pools of projects were compared based on a detailed analysis of publicly available data for a sample of 21 PPP projects and 33 traditional projects. This selection was based on a consideration of previous studies, time and cost metrics, project size and the relative complexity of different project types. In comparing the two sets PPPs demonstrated superior cost efficiency over traditional procurement, which ranged from 30.8% when measured from project inception, to 11.4% when measured from contractual commitment to the final outcome. Between the signing of the final contract and project completion, PPPs were found to be completed 3.4% ahead of time on average, while traditional projects were completed 23.5% behind time. The overall conclusion is that PPPs provide superior performance in both the cost and time dimensions, and that the PPP advantage increases (in absolute terms) with the size and complexity of projects.

Partnering and its principles have increasingly been introduced to the construction industry to improve the efficiency of project delivery. However, little research outlines the mechanism behind its application. This paper presents the findings of a study that was conducted to develop and test a partnering model that reveals the relationships between the critical success factors (CSFs) of partnering and demonstrates their importance to construction. With support of data collected from the Chinese construction industry, this study has revealed strong correlations among partnering CSFs, risk management, total quality management (TQM), use of incentives, and project performance. It is concluded that project success is the outcome of the interaction between a variety of techniques, and that partnering, associated with incentives, is a basic management method through which risk management and TQM can be strongly improved.

Engineering-Procurement-Construction (EPC) method has increasingly been applied in international markets. In this research, the causes of contractors’ claims in international EPC projects are modeled and empirically tested with industry survey, structural equation modeling and case studies from the perspective of Chinese contractors. The estab­lished model outlines the causes of contractors’ claims as: external risk (sociopolitical risks, economic risks, and natural hazards), clients’ organizational behavior (untimely payment, change orders, and inefficient processing), and project definition in contract (unclear scope of works, and unclear technical specification). The structural equation modelling validates that these causes have direct influences on claim respectively. Besides, clients’ organizational behavior acts as a partial mediation between external risk and claim, demonstrating that external risk can also exert influence on claim through affecting clients’ organizational behavior. Seven case studies further confirmed and interpreted the substantive meaning of these relationships. This study establishes interdisciplinary linkages among knowledge areas of contracting, risk management, organizational behavior, and international EPC project delivery, which has important primary contri­butions in both theory and practice. Understanding how the fundamental factors interactively lead to claims can help contracting parties to develop effective claim strategies, proactively mitigate project risks, and ultimately improve EPC project performance.