THE NATURE AND MANAGEMENT OF RISK IN A CONSTRUCTION COMPANY SITES
chapter One
Foreword
1.1 Research background
In recent years, there has been intensive research and development in the area of project risk management. It is widely recognized as one of the most important techniques and skill areas in the field of project management. Voetsch, Cioffi, and Anbari found a statistically significant association between management support for the risk management process and reported project success. However, shortcomings and room for improvement have been identified in this area. Some drawbacks are related to increasingly complex projects. Subcontracting is on the rise as many companies focus only on their core business, resulting in more complex project networks and an increasing number of project stakeholders. A little-explored perspective in the field of project risk management relates to this complexity. Interactions between project stakeholders occur at many levels, but there are not many studies investigating how networks work in preventing or mitigating risk.
Construction projects are characterized as highly complex projects with many sources of uncertainty. Construction projects involve hundreds of stakeholders, making it difficult to survey the entire network. At the same time, these projects also provide an ideal environment for network and risk management research. Moreover, construction projects are widely used in management research and several different tools and techniques have already been developed specifically for these types of projects. However, there are gaps in how construction companies manage risk and their implementation6. This study seeks to find the reason for this gap and reduce it. Special applications for construction projects are discussed in the literature review. This study is based on the assumption that project risk management will be more effective with a better understanding of both the relationships within the project network and the risks associated with the network structure. It has already been recognized that a clear understanding of the risks taken by each participant leads to better risk allocation.
problem
The contribution that Julius Berger Construction Company Nigeria Plc’s products have made to the progress and development of the Nigerian economy cannot be overstated. For this reason, it is very important to examine the processes and procedures the company uses to manage company-specific risks and, where necessary, suggest other ways to remedy the risks in a cost-effective manner. .
However, here are some mistakes that are common in most companies and often lead to all sorts of problems:
1. Can you effectively manage risk within your organization?
2. Are construction companies the only panacea for all risk issues that arise within an organization?
3. Can organizational effectiveness be improved only through effective risk management? 4. Is risk management the responsibility of one person within the organization?
In general, can management take unnecessary risks that insurers can often manage economically without increasing overall premium costs?
Purpose of research
The purpose of the research is
1. Find risk management tools available in your network
2. Make new proposals on how to use these risk management methods.
3. Find ways to manage risk that can be managed most effectively through collaboration among multiple project stakeholders.
4. Identify risks arising from structuring work in increasingly complex project networks. The purpose is to identify project network risks.
5. Find existing methodologies for project risk management in construction project networks by interviewing key stakeholders working on two different construction projects.
6. Examination and explanation of risk management measures in project networks using network governance theory.
research question
This study provides answers to the following research questions:
1. What is project risk management?
2. What is Project Network Governance?
3. What is project risk in the network?
Four. How is risk managed in the project network?
5. What cooperative ways are there to manage risk?
scope of research
The scope of the investigation is limited to informal means of project risk management. Informal refers to all risk management tools other than legally binding contracts. Previous research on construction project risk management has shown that Julius Berger estimates that risk management in the construction industry relies heavily on contracts, with contract clauses increasing project costs by 8-20%. 8. Contract structures are also seen as a major source of inflexibility, which has a significant negative impact on stakeholder relationships. This presents a clear financial justification for investigating informal means as a potential way to reduce additional contract costs and increase flexibility. Contracts are treated only as a risk management instrument in this study and are not analyzed further. This study focuses on the risks associated with project success, so-called operational risks. Interviews are therefore also limited to Network Partners participating in the implementation phase of the project. Respondents are subcontractors, prime contractors and prime contractor representatives. Empirical material is gleaned from his two construction projects, new construction sites in Nigeria. The study focuses on the construction industry, with particular reference to construction firm Juliusberger.
Definition of terms
Risks (in the context of this study):
Uncertain events or conditions resulting from network-style work that affect expectations. Events are at least partially related to other actors in the network.
Risk source:
Anything that could cause deviation from plans or expectations
Project risk management:
It involves maximizing the consequences of positive events and minimizing the consequences of adverse events.
Project network:
A set of relationships in which no single actor has legitimate authority over the entire network. The network is open in the sense that there are no clear standards for identifying and controlling the boundaries of the network; ) will be rebuilt.
actor:
A network member, party, or individual with whom he has one or more connections with another network member. Networks in this study:
Actors who play a role in the implementation phase of the project. That is, prime contractors, clients, and subcontractors.
Network governance:
Network governance includes selected permanent and structured autonomous entities that engage in the development of products or services under implicit and permanent agreements to adapt to environmental risks and coordinate and protect exchanges. includes a group of companies (and not-for-profit organizations). These contracts are socially binding rather than legally binding.
Informal means:
These means of managing project risk are not legally binding. H. Non-Contractual Means. Research organization
This research is mainly divided into his four chapters. First, the concepts of risk and risk management are described, based on literature sources, along with detailed design perspectives. Next, we analyze network governance using network theory. Network governance is also analyzed in terms of its usability and application to construction projects. The literature section concludes by highlighting the most relevant findings relevant to this study, the risks posed by the network and the means of addressing them presented in the literature. Chapter 5 consists of interviews with people involved in two construction projects with the aim of identifying project risks posed by network structures. Respondents were asked to describe their risk management measures in construction projects. The focus is on means of cooperation and cooperation between actors. The aim of Chapter 6 is to combine the results of both empirical studies and literature reviews to identify key findings and their relevance and implications for current risk management practices. Finally, the final chapter highlights the main research contributions.
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