This paper presents a risk assessment model for construction projects.
There are a number of problems in the construction industry in India that are
attributed to various factors. The focus of the present research is to identify
factors that influence the smooth completion of a project and develop a risk
assessment model. The experience and successful in the construction industry nowadays depends not only on the traditional civil engineering programs. Project management, over the last 25-30 years, has developed
into a methodological and systematic way of dealing with all aspects of construction projects. The wide range of topics that are now representing the domain of construction management is more than emphasis on scheduling, cost control and resource management. They include,
but are not limited to, engineering project management concepts, quality management system, environmental management system and techniques for analysis the potential success factors.
A questionnaire was prepared on the basic of a literature review and was
filled by contractors, project management experts, having more than 20 years of
experience in the construction field in India.
This paper presents
the results of a study carried out to identify some of the core issues in construction management which are mentioned above as a skeleton of integrated project management system for construction industry, and highlights the significance of studying
several techniques to explain the strength and weakness for this knowledge area. It is planned that this study will continued to model the integrated project management system and develop an expert system
for purpose of education and training to better equip middle and top level managers in the construction industry with the state-of-the-art tools, techniques and methodologies of project
Project, management, quality, risk,
integrated system, construction
Significant changes in the global economy have
resulted in increased business opportunities for architectural , engineering,
and construction (A/E/C) firms throughout the world. Making the decision to
expand operation in a new market, it is important for A/E/C firms to analyze
the risks, benefits, and future market potential of the target country(Hastak
et al.1994; Nielsen 1997; Sloan and Weisberg 1997; Tucker 1997;Wang et al.1998)
is critical to the organization success of any field. It is group of activities result in new or changed products, services, environments, processes and organizations. Projects increase sales, reduce costs, improve quality and customer satisfaction, enhance the work environment, and result in many other benefits.
As organizations have recognized the criticality of projects to their success, project
management has become
a focal point of improvement efforts.
More and more organizations have embraced project management as a key strategy
for remaining competitive in today’s highly competitive business environment. Project management centers, training
programs, and organizations change programs to improve project management practices are increasingly common parts of strategic
plans to improve organizational effectiveness.
Some organizations are just getting started with project management. Others have reached a level of maturity
whereby project management has become a way of life. In the leading
management is aligned with and integrated into the company’s business goals and objectives. No longer, the individual responsibility of the project manager, top management is taking more responsibility for driving the company’s project management strategies.
Project management definition
There are more than one definition for project management,it is the application of collection of tools and techniques to direct the use of divers resources toward the accomplishment of a unique,
complex, one-time task within time, cost and quality constraints. Each task requires a particular
mix of these tools and techniques structured to fit
The task environment and lifecycle of the task (Oisen, 1971). In the other hand, the British Standard for project management defined
project management as “the
planning, monitoring and control
of all aspects of a project
and the motivation of all those involved in it to achieve the project objectives on time and to the specified cost, quality and performance” (BS6079, 1996). The UK association of project management (APM) also defines
the project management in the UK Body of Knowledge (BOK) as
“the planning, organization, monitoring and control of all aspect of a project and the motivation
of all involved to achieve the project objective safely and within agreed time, cost and performance criteria. The project manager is the single point of responsibility for achieve this” (APM, 1993). Other definitions have been offered, “the project management is a human activity
that achieves a clear objective
against time scale” (Reiss, 1993). Turner suggests that project management could be described as “the art and science of converting vision into reality” (Turner, 1996).
Principles of traditional project management
within the principles of management usually associated with the management of people. The management of people includes defining what the business unit will do, planning for the number and type of staff who will do it, organizing the staff, monitoring their performance of the tasks assigned
them, and finally
bringing a close to their
Those same principles also apply to projects. Robert and Rudd define the Project Management as a method and a set of techniques based on the accepted principles of management used for planning, estimating, and controlling work activities to reach a desired end result on time-within budget and according to specification. Figure-1 shows these process phases of a project
(Robert and Rudd, 2003).
phases of a project
(Robert and Rudd, 2003)
Concepts in project management
direction in project management was developed during 1990s. Project management began to mature in virtually all types of organizations, including those firms that were project-driven, those that were non-project- driven, and hybrids. Knowledge concerning the benefits project management offered now permeated all levels of management. Firman mentioned, “There
need to fundamentally change the project management philosophy of the industry. Rather than each party maintaining a project
management system, there needs to be a single,
integrated project-based system” (Firman, 2002). Figure-2 shows the main knowledge areas that be considered by
project manager. These areas include identification process such as scope management, implementation processes as time, cost, quality, resources and communication management. Beside these areas there are other processes as project management, risk management and integration management can be considered as leadership processes.
Figure-2. Project management knowledge areas.
The focus of this survey was experienced project managers,
site engineers and quality control engineers in the Middle East construction industry. The questionnaire list developed depending on the requirements of ISO 9000:2000
and ISO 1006:2003. First form distributed on sample of 20 questionnaires to determine and measure the reasonability of questions
and if they are easy to answered by questionnaires. The average number
of years that the questionnaires had held their position
was more than 7 years. The questionnaire was divided into two sections. The first asked about the effect
of the risk around each element QMS and PMS on the project
cost, the second was for assessment
the occurrence of risks probability
for each element.
For risk effect around the element, the questionnaire was designed
to gauge the degree of risk effect
on project cost. The respondents were asked to indicate their response by noting any number from 1-10, with 1 being least effect and 5 very effect.
For probability of occurrence, the participants were asked to respond
by noting a number from 1-10, with 1 low probability and 5 high probability. Table-1 shows the quality requirements and project management functions used for purpose of this