A DATA-DRIVEN APPROACH TO IDENTIFY-QUANTIFY-ANALYSE CONSTRUCTION RISK FOR HONG KONG NEC PROJECTS

This study focuses on dispute avoidance in construction contracts, specifically through the implementation of the NEC (New Engineering Contract) system. The objective is to explore how the collaborative framework of NEC, which includes elements such as mutual trust, proactive communication, early warnings, and structured risk registers, and good faith clauses, can enhance project efficiency and reduce disputes. The methodology involves a qualitative analysis of existing literature, comparing the NEC system with Nepal’s traditional procurement laws, which are often less structured and prone to disputes. The findings suggest that NEC’s proactive approach significantly reduces conflicts by fostering clear communication and equitable risk distribution. Additionally, the emphasis on early warning systems and risk management allows for better conflict resolution before issues escalate. The study highlights that the adoption of the NEC system would align the Nepalese construction industry with international standards, leading to cost reductions and improved project outcomes. The implications of the study recommend the integration of NEC methodologies in Nepal’s public procurement system to ensure smoother project execution, reduce legal disputes, and increase overall industry efficiency. The research advocates for a shift towards more structured and collaborative contract frameworks to enhance the construction sector’s competitiveness and global integration.

Keywords BIRMINGHAM UNIVERSITY CONTRACTS, NEC, NEW, ENGINEERING, PRACTICE, PROJECTS, RESEARCH, CONSTRUCTION, MANAGEMENT, STRATEGIES, DOCUMENTATION, TENDERING, COSTS, CONTRACTORS, EMPLOYEES, COMMUNICATION, COMPENSATION... Show All

The construction industry is renowned for spending vast sums in the resolution of disputes, but never in the prevention. The purpose of this paper is to analyze the New Engineering Contract (NEC) to determine whether or not adjudication has become misaligned with the contract’s objective of promoting effective management. In doing so, the paper examines dispute review boards in order to ascertain if they could be a viable alternative to adjudication. A sequential mixed methodology is adopted including a detailed literature review and eight semistructured interviews, culminating in the circulation and analysis of a questionnaire, to record the significance of the factors identified. The research concludes that the majority of individuals agree that dispute review boards would be more aligned with the NEC. The familiarity of members, the potential to curb rogue behavior of parties, and the proactive nature of the board are flagged as positive features, however the cost aspect requires further invest...

There is an several kind of risk occurrence due to increasing of construction projects which leads to excessive effects in time and cost basis. It is based on identification, evaluation and management of risk in construction project. Finally, we provide the suggestion to avoid risk and how to rectify the following risk occurrence. That’s why we collected the data in Gantt chart from construction officials and also to receive the information about construction project by questionnaire. From that we analyses the risk by using software like primavera. The data collection is based on two suspects as government and private organization. Apart from that, we referred number of journals which gave some ideas to manage the risk and provide the solution to avoid risk during construction work and also provide kind of solutions for construction risk sector. Risk assessment is a tool to identify those risks in a project and manage it accordingly with proper treatment. Risk assessment is defined in this study as a technique that aims to identify and estimate risks to personnel and property impacted upon by a project. The aim of this project report is to make aware of risk that occur during construction work and give some reasonable solution in construction project with procedures. A brief discussion on application of risk management, hence, somewhat better outcome, avoid risk and value of constructor and client were studied.

Occupational safety and health (K3 - Keselamatan dan Kesehatan Kerja)) is an important element that should not be ignored in the implementation of construction projects. This is due to the high level of risk in the construction industry, which is influenced by a dynamic work environment full of various activities. This research aims to evaluate the potential occupational safety hazards in construction projects using a specific approach. JSA serves as a systematic method for identifying hazards at each work stage, while Hierarchy of Control provides a structured framework for determining risk mitigation priorities based on control effectiveness levels, starting from elimination, substitution, engineering controls, administrative controls, to personal protective equipment (PPE). The research methodology uses a quantitative descriptive approach with the help of questionnaire instruments and field data. Data were analyzed using descriptive analysis, validity and reliability tests, correlation, and regression. The results of the research show that occupational safety risks in projects are relatively high, with several potential main hazards such as falling from height, being hit by materials, and contact with high temperatures. Of the 43 risk variables analyzed, 12 risks (27.91%) were included in the high-risk category and 25 risks (58.14%) were in the moderate-risk category. control is carried out through PPE and engineering control. The implementation of JSA and Hierarchy of Control has proven to be effective in identifying and lowering work risks. The conclusion of this research can be the basis for improving the K3 management system in a more measurable and sustainable direction.

Risk prediction is a vital aspect of construction project management. It involves identifying, assessing and managing potential risks that may arise during a project’s lifecycle. Construction projects are often impacted by exterior factors and unforeseen events that are beyond the regulator of project managers. These can comprise, economic downturns, natural disasters, supply chain disruptions and changes in government regulations. The key challenges in managing a construction project is predicting and mitigating potential risks. The dynamic and unpredictable nature of the construction industry presents significant limitations to accurate risk prediction in projects. They are influenced by multitude of external factors such as weather conditions, economic changes and political instability. Predicting risks in construction projects is often time-consuming and costly process. It requires substantial quantity of capitals comprising skilled personnel, phase and financial investment. Inherent nature of construction projects, lack of comprehensive data, human factor and traditional reactive approach to risk management are some of the primary limitations. To overcome these limitations, there is a need for collective and data-driven method to risk assessment and administration. Forthcoming of predicting risks in construction projects is moving towards a more proactive, data-driven and collaborative approach. The use of technologies based on Artificial Intelligence (AI), Building Information Modelling (BIM) and drones will play a significant role in identifying and mitigating risks. By harnessing the power of AI, ML, BIM, drones, data analytics and virtual and augmented reality, project managers can accurately assess threats and advance operative strategies of mitigation.

This study aims to evaluate the relationship between the size of the construction business and the location of the risk with the risks that arise in construction projects in Indonesia. The method used is two-way anova analysis by sampling 90 construction projects in Indonesia. The independent variable in this study is the size of the construction business and the location of the risk, while the dependent variable is the risk on the construction project. The results showed that there is a significant relationship between the size of the construction business and the risks of construction projects in Indonesia. In addition, there is also a significant relationship between the location of risks and risks in construction projects in Indonesia. However, there was no significant interaction between the size of the construction business and the location of risk to risk in construction projects in Indonesia. This research contributes to the construction industry in Indonesia in evaluating the factors that affect risk in construction projects. By knowing the relationship between the size of the construction business and the location of the risk with the risk on the construction project, the contractor company can improve the risk management strategy to minimize the risk to the construction project in the future. Future research may consider other variables such as contractor experience and expertise as well as external factors such as market and political conditions to better understand the factors that influence risk in construction projects in Indonesia.

This paper combines various concepts related to (i) project risk management, (ii) Monte Carlo simulation, (iii) project contingency cost estimation, and (iv) the relationship between project and programme risks, to illustrate that the contingency requirements are lower when simulating all the risks in the programme when comparing it with the individual project contingency requirement. A case study organisation provided 86 quantified risk registers related to port and rail capital projects. For each of these risk registers, the project contingency was estimated using a prescribed risk register template and Monte Carlo simulation software. The same 86 quantified risk registers were then used to simulate the programme contingency. The simulation results indicated that the programme contingency requirement was approximately 8% points lower than that of the sum of the individual projects. The first implication of this research result is that, should borrowed capital be used to fund the projects, the interest bill would be higher when calculating project contingency on a project-by-project basis. The second is that regularly appearing low probability, high impact risks, should be identified and these risks should be quantified not in the projects themselves, but in a centrally managed, programme cost contingency fund.

Risks in construction projects can be defined as the probability of an event that impairs the viability of the project. This probability, perhaps, is higher than in other industries. In the construction sector, as elsewhere, various risks that affectbusiness can be identified. This paper aims to identify, classify and analyze the most significant risks inherent in large engineering or construction projects, with particular attention to the group of economic risks and developing finally a conclusion in this regard. The results showed that construction projects are exposed to many risk sources, internal and external, being one of the most important, the financial risks such as inflation, fluctuation of the currency, lack of solvency, etc. Construction is a complex area involving many factors that can affect the final outcome, and being a teamwork process whose common goal is the completion of the project, the risks are essentially due to the uncertainty affecting the various participants in it. Key words: Risk allocation, financial risks, construction projects, infrastructures.

This paper aims to study the humanitarian risks in construction projects that affect the objectives of the project from time, cost and quality, and to identify, analyze and develop the appropriate strategy, monitor and control and specifically the risk of factors affecting construction projects. A questionnaire was designed to collect data and identify risks in construction projects and then distributed to several public and private sector companies registered with the Organizing Council for engineering works contractors in Sudan, and after the risks facing the construction projects were identified through the questionnaire and telephone interviews with The engineers and managers of these companies, these risks were analyzed by Google Form. The results of the questionnaire showed that inflation, increased prices of materials in the market, weak site management, delayed payments from the contractor and awarding the design to unqualified designers, that is the most important factors affecting the objectives of construction projects in Sudan, and the contractor is the most vulnerable among the parties to the project.

Environmentally assisted crack growth

Proposing a new function for evaluation of the financial risk of construction projects using Monte Carlo method: Application on Iranian construction industry

This article was developed with the purpose of generating new knowledge about the use of unmanned aerial vehicles (drones) in the identification of occupational risks in construction projects in Peru. This work seeks to demonstrate the importance of unmanned aerial vehicles in preventive management, generating privileged aerial information from various work areas in reduced time and producing added value in occupational risk management compared to traditional methods. The unmanned aerial vehicle generates valuable information that allows different work areas to be examined in real time and to promptly detect substandard acts and conditions that may affect workers. Currently in Peru, there is little information on the use of unmanned aerial vehicles in occupational risk management; Therefore, this study has revealed favorable results on the relationship that exists between the unmanned aerial vehicle and risk identification. This correlation is supported by the statistical tests carried out, which establish that autonomous flight, panoramic views and Field inspections carried out by the drone are essential to identify occupational risks in construction projects.

A hybrid method based on the structural equation model (SEM) and a fuzzy cognitive map (FCM) was developed to study the influences of the construction safety risks (CSR) of metro tunnels constructed by the mining method on the project risk (PR). An SEM was used to identify and verify the correlations between the CSR and PR. An FCM was developed adopting the verified standardized causality and path coefficient in the SEM. On this basis, predictive reasoning and diagnostic reasoning were performed in the framework of an FCM to simulate the CSR and PR. The feasibility of the developed method was validated based on the construction project of a metro tunnel in Wuhan City, China. The results show that (1) the cause concept node C2 (tunnel excavation) shows the strongest positive correlation with the target concept node CT (PR). According to their risks, the construction stages are ranked in descending order as C2 (tunnel excavation), C1 (advanced support), C6 (auxiliary measures), C4 (structure waterproofing), C3 (primary support), and C5 (secondary lining). (2) The target concept node CT is most sensitive to changes in the cause concept nodes C2 and C1. (3) Close attention should be paid to key risks, such as X9 (over-excavation and under-excavation) and X8 (unreasonable determination of excavation footage and sequence) in stage C2. Originality and significance: (1) A hybrid method that can simulate the dynamic interaction between the CSR and PR is proposed. (2) A new perspective for the dynamic evaluation of a PR is provided. (3) The method can be used as a decision-making tool for controlling the PR.

Although many studies were carried out to identify the range of risky events in construction projects and the recommended response and precautionary strategies, little has addressed the means of making such decisions in an optimal way. Unfortunately, complex projects are marred with numerous interconnected causes and effects, which make project dynamics rather difficult to understand and control. A research was undertaken to optimize risk treatment in construction projects, where costs and benefits are balanced out at the project level. Study employs ant colony optimization (ACO) and dynamic risk maps (DRM) to achieve the sought research goal. This paper focuses on presenting the mechanics of the research approach via a real life case study. The construction project into consideration was executed by a well-known contractor in the Middle East. The paper first describes the case details. After the identification of project risk events, the risk inter-dependencies were modelled using a DRM, which made use of the professional knowledge of industry professionals and archived project records as well. Furthermore, ACO is utilized for the balanced selection of risk treatment strategies and to help reduce the project's overall risk severity at the minimum cost possible. Paper ends with useful insights into the research approach and outcomes of case study application.