Matching Items (2)
Description
The construction industry has accepted the uncertainty that is included with every project that is initiated. Because of the existing uncertainty, best practices with risk management are commonly recommended and educated to industry participants. However, the current status of the construction industry's ability to manage risk was found to be limited, unstructured, and inadequate. Furthermore, many barriers block organizations from implementing and improving risk management practices. A significant barrier with improving risk management methods is the lack of evidence that clearly demonstrates the need to improve risk management practices. Logical explanations of the benefits of risk management doesn't provide the necessary justification or motivation needed for many organizations to dedicate resources towards improving risk management.
Nevertheless, some organizations understand the importance of risk management practices and have begun to measure their risk maturity in order to identify weaknesses and improve risk management practices. Risk maturity measures the organization's ability and perceptions towards risk management. It is possible that many of the barriers to improving risk management would not exist if increased risk maturity was found to have a positive correlation with successful project performance.
The comprehensive hypothesis of the research is that increased risk maturity improves project performance. An exploratory study was conducted on data collected to identify measurable benefits with risk management. Quantitative and qualitative data was collected on 266 construction projects over a seven year period. Multiple statistical analyses were performed on the data and found a positive correlations between risk maturity and project performance. A positive correlations was found between customer satisfaction and contractors risk maturity. Additional findings from the recorded data included the increased ability to predict risks during construction projects within an organization. These findings provide clear reasoning for organizations to devote additional resources in which improve their risk management practices.
Nevertheless, some organizations understand the importance of risk management practices and have begun to measure their risk maturity in order to identify weaknesses and improve risk management practices. Risk maturity measures the organization's ability and perceptions towards risk management. It is possible that many of the barriers to improving risk management would not exist if increased risk maturity was found to have a positive correlation with successful project performance.
The comprehensive hypothesis of the research is that increased risk maturity improves project performance. An exploratory study was conducted on data collected to identify measurable benefits with risk management. Quantitative and qualitative data was collected on 266 construction projects over a seven year period. Multiple statistical analyses were performed on the data and found a positive correlations between risk maturity and project performance. A positive correlations was found between customer satisfaction and contractors risk maturity. Additional findings from the recorded data included the increased ability to predict risks during construction projects within an organization. These findings provide clear reasoning for organizations to devote additional resources in which improve their risk management practices.
ContributorsPerrenoud, Anthony (Author) / Sullivan, Kenneth T. (Thesis advisor) / Weizel, Avi (Committee member) / Badger, William (Committee member) / Arizona State University (Publisher)
Created2014
Description
The price based marketplace has dominated the construction industry. The majority of owners use price based practices of management (expectation and decision making, control, direction, and inspection.) The price based/management and control paradigm has not worked. Clients have now been moving toward the best value environment (hire contractors who know what they are doing, who preplan, and manage and minimize risk and deviation.) Owners are trying to move from client direction and control to hiring an expert and allowing them to do the quality control/risk management. The movement of environments changes the paradigm for the contractors from a reactive to a proactive, from a bureaucratic
on-accountable to an accountable position, from a relationship based
on-measuring to a measuring entity, and to a contractor who manages and minimizes the risk that they do not control. Years of price based practices have caused poor quality and low performance in the construction industry. This research identifies what is a best value contractor or vendor, what factors make up a best value vendor, and the methodology to transform a vendor to a best value vendor. It will use deductive logic, a case study to confirm the logic and the proposed methodology.
on-accountable to an accountable position, from a relationship based
on-measuring to a measuring entity, and to a contractor who manages and minimizes the risk that they do not control. Years of price based practices have caused poor quality and low performance in the construction industry. This research identifies what is a best value contractor or vendor, what factors make up a best value vendor, and the methodology to transform a vendor to a best value vendor. It will use deductive logic, a case study to confirm the logic and the proposed methodology.
ContributorsPauli, Michele (Author) / Kashiwagi, Dean (Thesis advisor) / Sullivan, Kenneth (Committee member) / Badger, William (Committee member) / Arizona State University (Publisher)
Created2011