Liisa Lehtiranta

Relational Risk Management in Construction Projects: Modeling the Complexity

Relational risk management (RM) in multiorganizational construction projects addresses uncertainty about collaborative working performance. Relational risk constitutes a multifaceted management problem that substantially influences the project’s success. Pragmatic approaches, such as relational contracting and stakeholder management, guide relational RM in construction projects. Yet the theoretical explication of the fundamental nature and processes of relational risk and relational RM is insufficient for capturing the full potential of these management approaches. This paper describes research intended to provide a conceptual model for relational RM in collaboration-intense construction management projects that is based on grounded theory analysis of interviews and a review of theory bases (lenses). Relational RM is uncovered within communication channels on multiple organizational levels and serves the main functions of learning and incentivizing. The results of this research promote a flexible, multile...

The role of multi-firm satisfaction in construction project success

Construction project success depends on the multi-firm project organizations involved working together satisfactorily. Yet, satisfaction within multi-firm relationships has rarely been examined as a determinant of construction project success. A pioneering study is carried out to evaluate the extent to which construction project participants’ perception of each other’s performance reflects on the owner’s perception of project success. The data represent 580 performance evaluations carried out among the project owners, project consultants, main contractors and designers. The owner-evaluated performance factors related to the project goals form a dependent variable called Project Success. Dependencies between Project Success and the various performance factors are identified based on Pearson’s correlation coefficients. Dependencies were discovered between Project Success and all owner-related relationships and all but one of the non-owner-related relationships. Preliminary sets of discipline-specific and evaluator-specific success factors are identified. The results support the proposition that satisfaction within both owner-related and non-owner-related relationships is reflected on success. Therefore, researchers and practitioners are encouraged to consider project success in terms of multi-firm satisfaction and to engage with multi-firm performance measurement to better understand the heterogeneous performance factors contributing to multi-firm project success.

Collaborative risk management processes: a constructive case study

Risk management (RM) has been identified as an essential factor for success in complex construction projects in which it needs to be based on collaboration and coordination between participant organizations. The complexity approach to project management suggests basing management processes on integration and communication between organizations. However, the literature is scarce on both complexity-based and collaborative applications of RM. Herein, a constructive case study approach is applied to propose, test and analyse three processes for collaborative RM in a Finnish shopping centre construction project. The constructs include (1) a risk workshop, (2) a process for involving the contractors in RM and (3) a process of utilizing performance feedback for RM. The findings suggest that the constructs usefully complement single-organization-focused RM approaches. Researchers and practitioners are encouraged to take advantage of the complexity approach to project RM and advance the standard frameworks to meet...

Evaluation framework for green procurement in road construction

Purpose – Most barriers and enablers of sustainable projects are related to procurement. The purpose of this paper is to propose a framework for evaluating green procurement practices throughout the lifecycle of road construction projects and demonstrates its application through an Australian case study. Design/methodology/approach – The study is based on linking the phases of road construction with incentive mechanisms for proactively motivating behavioural change. A holistic view on utilised and potential incentives is attempted with a literature review and a state-of-practice review. The latter is based on interviews and 90 policy and procurement documents across five Australian states. Findings – An evaluation framework with seven procurement stages is suggested to describe current state green procurement incentives throughout the delivery lifecycle of road construction projects. The Australian case study was found to provide useful data to identify gaps and strong points of the different states regar...

Use of contract models to improve environmental outcomes in transport infrastructure construction

The type of contract model may have a significant influence on achieving project objectives, including environmental and climate change goals. This research investigates non-standard contract models impacting greenhouse gas emissions (GHG) in transport infrastructure construction in Australia. The research is based on the analysis of two case studies: an Early Contractor Involvement (ECI) contract and a Design and Construct (D&C) contract with GHG reduction requirements embedded in the contractor selection. Main findings support the use of ECIs for better integrating decisions made during the planning phase with the construction activities, and improve environmental outcomes while achieving financial and time savings.

Stretching risk management standards: multi-organizational perspectives

Purpose – Standard frameworks for project risk management (RM) are currently mostly focussed on single-firm organizations, whereas in practice, construction project RM involves multiple organizations. The purpose of this paper is to identify and systematically maps practical processes that bridge the gap between single-organizational RM standards and multi-organizational RM (MORM) needs. Design/methodology/approach – This case study covers three large construction management (CM) projects in Finland. The 35 interviews with project owners, project management consultants, design groups, and contractors identify the participants’ positions on RM roles, integration within organizations, and further development requests. Findings – Most (16 of 21) of the identified RM practices are multi-organizational; i.e. they involve two or more organizations. Compared to single-organizational standards, MORM practices involve less emphasis on detailed risk analysis processes but highlight both participant selection and ma...