Analysing Risk Management Assignment Sample

WORKING TITLE OF YOUR DISSERTATION:

Analysing risk management in procurement options in construction industry..

AIM OF THE PROJECT:

One of the key aim of this research is to assess the impact of the chosen procurement option on the risk management process in construction projects,

which is the focus of this article. Design-bid-build and design-build contracts are the primary emphasis of this article, as is the collaborative form of partnership, which is covered in more depth further down. The results of the research were based on a questionnaire survey and a series of interviews with construction project participants who were involved in nine building projects that were recently finished in Sweden, according to the findings.

Synopsis

Sweden’s construction expenditures have risen in recent years, but productivity has dropped, and there have been reports of quality difficulties and project delays in the industry (SOU 2002). A vital and basic component of avoiding unintended effects throughout the construction process is the ability to manage risks throughout the project’s duration, which is complicated by the fact that construction projects are beset with many and varied uncertainties. To achieve a high-quality final product while maintaining within budget restrictions, effective risk management is also essential. As a result of the procurement technique chosen for a construction project as well as the content of contract agreements entered into for the project, the risk allocation in the project is significantly affected (Siraj2019). As shown by the different forms of contracts, diverse degrees of responsibility for various components of the project are assumed. As a consequence, selecting the most appropriate procurement option for the project is a crucial decision for the project manager. Design-bid-build contracts and design-build contracts are the two forms of procurement options that are most often used in Sweden. Design-bid-build contracts are the most common type of procurement alternative in Sweden. Alternatively, traditional contractual frameworks have been criticized for failing to enable effective collaboration in construction projects, according to some critics (Kaefer’s 2004). After having had positive experiences with collaborative types of partnership in the United States, the United Kingdom, Norway, and Denmark, the Swedish government decided to accept the notion of partnering as a whole (Gao2020).

Outline

In order for a construction project to be successful, competent risk management and intelligent risk sharing among the project’s stakeholders must be implemented and maintained. Instead of contract formulations that are extremely specific, the Swedish construction sector is more interested in how risk management may be improved by relying on greater transparency, trust, and cooperation rather than contract formulations that are highly specific. According to the research’s objectives, it is necessary to assess the influence that the procurement strategy used has on the risk management of construction projects. This article explores three forms of contracts: design-bid-build contracts, design-build contracts, and collaboration via partnerships, all of which are variations on the theme of cooperation. A questionnaire survey and interviews with customers, contractors, and consultants from nine distinct building projects resulted in the following findings (Wuni2020)

Program of work

The research’s most important finding is that the selection of a procurement technique and risk management in building projects are inexorably linked to one another. Traditional risk management approaches have been shown to be less effective than risk management forms that encourage early engagement of stakeholders throughout the course of a project and open lines of communication and cooperation (Johnson2020).

References

Gao, Q., Guo, S., Liu, X., Manogaran, G., Chilamkurti, N. and Kadry, S., 2020. Simulation analysis of supply chain risk management system based on IoT information platform. Enterprise Information Systems, 14(9-10), pp.1354-1378.

Johnson, R.M. and Babu, R.I.I., 2020. Time and cost overruns in the UAE construction industry: a critical analysis. International Journal of Construction Management, 20(5), pp.402-411.

Siraj, N.B. and Fayek, A.R., 2019. Risk identification and common risks in construction: Literature review and content analysis. Journal of Construction Engineering and Management, 145(9), p.03119004.

Wuni, I.Y. and Shen, G.Q., 2020. Critical success factors for modular integrated construction projects: a review. Building research & information, 48(7), pp.763-784.

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