Patrick X. W. Zou

Understanding and Improving Your Risk Management Capability: Assessment Model for Construction Organizations

Implementing risk management in construction projects and organizations may bring a number of benefits and therefore it is necessary to have risk management as an integral part of a construction organization’s management practice. The aim of this paper is to develop a risk management maturity assessment model for construction organizations. The paper describes the development process of a Web-based RM3 (risk management maturity model), including its contents, its validation and testing, as well as its applications. The RM3 developed has five attributes namely, management, risk culture, ability to identify risk, ability to analyze risk, and application of standardized risk management process/system. These attributes are measured against four levels: initial, repeated, managed, and optimized. It is found that the proposed RM3 was suitable and useful. Using the RM3, it is found that the Australian construction industry’s overall risk management maturity level was relatively low (where 32% rated at Level 2 an...

Comparative Study on the Perception of Construction Safety Risks in China and Australia

Safety is a major concern in the construction industry because fatalities and injuries from construction work bring great losses to individuals, organizations, and societies as a whole. This paper aims to understand how construction personnel perceive safety risks in China as compared with those in Australia. Postal questionnaire surveys were used to collect data on safety risk perceptions from the two nations. The safety risk factors were assessed using a risk significance index based on the likelihood of occurrences and the impacts on safety performance. The survey results revealed that in China the main perception of safety risks came from human-and/or procedure-related issues, with “low/no safety education” paramount, followed by “inadequate fire prevention and electrical prevention procedures,” etc. In contrast, the major safety risks perceived in Australia were related to the environment and physical site conditions with “contamination of land, water and air” ranked first, followed by “unforeseen excavation of soil,” etc. To minimize construction safety risks in China, this paper suggests that the government should develop collective legislation and safety protection procedures, and enforce safety education and training to all site participants. Risks related to environmental and site conditions were generally realized by the Australia construction industry, which were not highly acknowledged in China. This may also bring imminent attention in this regard to the Chinese government.

Political skill for developing construction safety climate

AbstractPolitical skill, which consists of social astuteness, interpersonal influence, networking ability, and apparent sincerity dimensions, is considered as one of the most important skills in general management. However, its importance in construction management, particularly construction safety management, is still not as well known. The aim of this research is to understand the role of political skill in implementing safety management tasks and developing construction safety climate. Quantitative research methodology was adopted to test the theoretical model developed in this research. Data were collected via a web-based online survey and the analysis was done using structural equation modeling (SEM) method. The results of the analysis support the research hypotheses which proposed that project personnel’s political skill positively influences the implementation of safety management tasks and promotes the development of construction safety climate. Apparent sincerity and social astuteness are the pol...

Risk identification and assessment in subway projects: case study of Nanjing Subway Line 2

Underground subways are constructed in major cities across China to overcome the transportation problems in the urbanization process. The aim is to develop a comprehensive risk checklist associated with subway projects and a methodology to assess the risks at the early stage of a project. Based on the analysis of accidents that have happened in previous projects, a review of current literature and the results of interviews, a comprehensive risk checklist was developed, followed by proposing a risk analysis methodology using fuzzy analytical hierarchy process (AHP). Then the Nanjing Subway Line 2 project was analysed using the proposed risk checklist and fuzzy AHP method. The data were obtained through interviews and two rounds of questionnaire surveys with the personnel directly involved in the Nanjing Subway Line 2 project. The results of risk identification and assessment are presented and their managerial implications are discussed. The information presented here should be relevant to both academics and practitioners in the field of subway project management.

Managing Project Risk at the Enterprise Level: Exploratory Case Studies in China

AbstractRisk management is a critical part of construction project management. Most previous studies on construction project risk management (PRM) have focused on the project level rather than the enterprise level. The objective of this study is to explore the role that enterprise-level risk management (ERM) plays in PRM. A case study approach was adopted in which two Chinese international construction firms with different risk management practices and performance were investigated. Data were collected from face-to-face interviews and archival documents. The results indicate that ERM can improve the ability and performance of PRM through controlling project risk at the enterprise level, which is based on four key components: risk management department, risk management procedure, external service, and corporate culture. Both senior management and academics will find the study useful because it improves the understanding of how ERM can influence PRM, with a view to stimulating further research.

Managing risks in green building supply chain

The call for green building development provides the construction supply chain with new business opportunities. However, there are significant risks associated with such opportunities. This research aims at understanding the major risks and their distributions in the supply chain and developing strategies to manage these risks. 250 sets of survey questionnaires were set out to selected industry professionals in Australia and 93 sets were returned with 91 sets valid. The results show that the risks in green building development vary and are unequally distributed throughout the supply chain, but there are common risks with ‘lack of commitment in the supply chain to go green’ and ‘higher investment costs’ as the most important risks overall. The results also show that considerable improvement could be made to green building performance through research and development, training and education, supply chain co-ordination, knowledge and information sharing, experience accumulation and technology application. The research finding suggests that members in the supply chain: record green-related information in a central database; utilize expertise of green building professionals; clearly communicate green building objectives and responsibilities to all supply chain members; invest in green building training and education regarding responsibilities, benefits, technology and solutions; and team up with suppliers and manufacturers for developing green-complied products and materials.

Fostering a Strong Construction Safety Culture

The construction industry has a reputation of being one of the most unsafe industries because of its high rates of injuries and fatalities. To improve safety performance, some construction companies have implemented innovative safety management programs. This paper reviews programs implemented by five construction companies in the United States, Australia, and Hong Kong and reviews the objectives, implementation strategies, and lessons learned from each. Seven program elements emerged in all cases: (1) The programs were focused on shaping employees’ beliefs, attitudes, and commitment to achieve safe behavior on construction sites; (2) programs were based on the belief that all incidents and injuries are preventable and unacceptable; (3) there was a strong commitment to safety among top management; (4) the programs extended safety management issues to the entire supply chain and involved all stakeholders; (5) safety risk management systems were in place to identify, assess, and respond to on-site hazards, ...

Output‐based specifications for PPP projects: lessons for facilities management from Australia

Purpose – The purpose of this paper is to focus on the challenges faced by the public and private sectors in developing output specifications for Australian public private partnership (PPP) projects. In particular, this study aims to examine how the stakeholders (including facilities managers) should cater for future changes in output specifications and make them flexible enough to meet the evolving project objectives.Design/methodology/approach – The research is based on 19 semi‐structured interviews with key stakeholders from the public and private sectors in three States of Australia where PPP procurement has been used, including New South Wales (NSW), Queensland and Victoria. The results are triangulated with relevant literature for supports and contrasts.Findings – For PPP projects, a good set of output specifications is conducive to the achievement of value for money, innovation, risk transfer, whole life asset performance through a clear abatement regime and an effective linkage of performance crit...

An overview of the Chinese construction market and construction management practice

Purpose – This paper aims to provide useful information and suggestions for future improvement in relation to Chinas construction industry and market. With Chinas rapid economical development and its entry to the World Trade Organization (WTO), much attention has been paid to the China construction business opportunities. However, not much information is available on the history, practices and business cultures of the Chinese construction industry.Design/methodology/approach – Through literature review and interviews with industry professionals, this paper discusses the Chinese construction industry in terms of its market and management practice with a focus on tendering processes, contract management, project on‐site supervision and occupational health and safety (OHS) issues. It also discusses the challenges that face the Chinese construction industry.Findings – China has gone over a long way in construction tendering, contract management and OHS. Its current practice is in the right direction. Howeve...

Case Studies on Risk and Opportunity at Design Stage of Building Projects in Australia: Focus on Safety

Abstract The aim of this paper is to gain a better understanding of the context, practice, benefits and critical success factors in assessing safety risks and opportunities at the design stage of building projects in Australia. Through case studies and interviews, it is found that the assessment and management of risks and opportunities at the design stage of building projects in relation to safety issues could be effectively implemented with a number of benefits including safety performance improvement through the ‘think tank’ processes (safety knowledge sharing and application), buildability check, value management and quality improvement. It is suggested that this method could be promoted to the construction industry.