Risk Management in the Chinese Construction Industry
Publication: Journal of Construction Engineering and Management
Volume 133, Issue 12
Abstract
There has been an increase in research on risk management practice in the construction industry. However, little research has been conducted to systematically investigate the overall aspects of risk management on the perspectives of various project participants. This paper reports the findings of an empirical Chinese industry survey on the importance of project risks, application of risk management techniques, status of the risk management system, and the barriers to risk management, which were perceived by the main project participants. The risk management strategies adopted in the Three Gorges Project were also studied. The study reveals that: Most project risks are commonly of concern to project participants; the industry has shifted from risk transfer to risk reduction; current risk management systems are inadequate to manage project risks; and lack of joint risk management mechanisms is the key barrier to adequate risk management. Future studies should be conducted to systematically improve the risk management in construction by different approaches that facilitate equitable sharing of rewards through effective risk management among participants. Such studies should also consider the establishment of an open communication risk management process to permit the corporate experience of all participants, as well as their personal knowledge and judgment, to be effectively utilized.
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Acknowledgments
Many thanks are given to the National Natural Science Foundation of China (Grant Nos. NNSFC50539130 and NNSFC70671058), the Chinese Postdoctoral Science Foundation (Grant No. 2005037370), SRF for ROCS of the State Education Ministry, the MIRS, and MIFRS of the University of Melbourne for financial support. Special thanks are also given to Ertan Hydropower Development Company Ltd. and those respondents for their generous contributions during the survey.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 133 • Issue 12 • December 2007
Pages: 944 - 956
Copyright
© 2007 ASCE.
History
Received: Jun 14, 2006
Accepted: Jun 1, 2007
Published online: Dec 1, 2007
Published in print: Dec 2007
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