• International conference on construction engineering and project management
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• 2011.02a
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• pp.162-167
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• 2011

Construction projects are full of risks. This is particularly the case in civil construction projects that are often featured with large scale, complexity and involving a large number of participating parties. The eventuation of risks typically results in extended project durations leading to an increase in the total project budget. The consequence can be amplified considering the significant impacts of civil construction projects on the society, from economical, environmental and social perspectives. This research investigates the significance of risks within civil construction projects and approaches to deal with risks. Semi-structured interviews were undertaken with local industry practitioners in South Australia on this matter. It is found that the industry is fairly aware of risks associated with civil construction projects and subsequently has procedures in place to attempt to minimize the impacts of these risks on the project outcomes. The interview results also indicate that there is limited utilization of software for the risk management purpose from the cost estimation perspective.

• Journal of Construction Engineering and Project Management
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• v.7 no.3
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• pp.15-25
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• 2017

The existence of material price volatility in construction projects puts forward substantial risks for all parties involved. Depending on the parties involved in the project, type of contracts, and state of the market various risk management strategies are practiced by contracting parties to manage project risks related to price volatility. Unfortunately, in many cases companies fail to select an adequate approach to better manage volatilities of material prices due to the lack of a decision support system to aid in the selection of an appropriate strategy based on the project characteristics. The aim of this study is to identify critical project factors and align them to documented strategies to manage price volatility based on an extensive literature review and industry interviews. This study found Integrated Project Delivery (IPD) as the ideal strategy with respect to project duration; quantitative risk management methods with respect to the cost; and Price Adjustment Clauses (PAC) with respect to the risk allocation, as the top price volatility management strategies.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2006.05a
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• pp.125-128
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• 2006

Since the diversification, complication of the construction industry, construction conflicts have been increased these days. Expansion of scale of construction has brought conflict treatment cost increase. Thus, needs of the study on construction conflict risk factors and its management is getting important. But the existing studies about construction conflicts and risk factors that need to be cared to decrease construction cost are almost focused on analysis of number of conflict proposed. It means those studies can be helpful when want to know how many conflict have been instituted, however, they do not contain a close examination between types of conflict and cost of conflict treatment. The purpose of this study, therefore, is an extraction of conflict causes based on the conflict treatment cost and the choice of significant risk factors to be managed to prevent conflict and its treatment cost, which enables reducing the conflict treatment colt on control the risk factors.

• International conference on construction engineering and project management
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• 2011.02a
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• pp.534-541
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• 2011

Risk evaluation approaches for bidding on international construction projects are typically partitioned into three stages: country selection, project classification, and bid-cost evaluation. However, previous studies are frequently under attack in that they have several crucial limitations: 1) a dearth of studies about country selection risk tailored for the overseas construction market at a corporate level; 2) no consideration of uncertainties for input variable per se; 3) less probabilistic approaches in estimating a range of cost variance; and 4) less inclusion of covariance impacts. This study thus suggests a three-staged risk evaluation model to resolve these inherent problems. In the first stage, a country portfolio model that maximizes the expected construction market growth rate and profit rate while decreasing market uncertainty is formulated using multi-objective genetic analysis. Following this, probabilistic approaches for screening bad projects are suggested through applying various data mining methods such as discriminant logistic regression, neural network, C5.0, and support vector machine. For the last stage, the cost overrun prediction model is simulated for determining a reasonable bid cost, while considering non-parametric distribution, effects of systematic risks, and the firm's specific capability accrued in a given country. Through the three consecutive models, this study verifies that international construction risk can be allocated, reduced, and projected to some degree, thereby contributing to sustaining stable profits and revenues in both the short-term and the long-term perspective.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.35
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• pp.179-219
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• 2007

Cross-border supply chains undergone complexity in the global trade process, unpredictability and continually evolving regulations and information requirements. Under these circumstances, longer lead time inhibiting quick response to market demands, unanticipated supply chain costs eroding product cost savings, compliance and documentation errors causing delays and fines are challenging global trade companies when they execute global business. These problems are mainly caused by unautomated, unintegrated process which lead to longer and more unpredictable lead times, slower cash flow, cost overruns, and ultimately lower profits and less satisfied customers. Complex and unpredictable global trade environment requires global trade companies of global trade management functions to automate and control this complex environment for driving out cost, time and risk from their business. Global trade management allows cost savings, supply chain efficiencies and improved compliance through improving global supply chain visibility, facilitating cash flow by supply chain financing, enhancing supply chain security and risk management.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.1591-1598
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• 2009

Recently, the researches on the urban regeneration projects have been performed very actively. It is a part of the effort that solves some social and economical problems occurred by deteriorated buildings and degraded infrastructures through new urban regeneration projects or redevelopment projects. However, the urban regeneration projects show the characteristics that can not guarantee in the project performance because the projects have various and complex stakeholders related to these projects and are exposed to lots of risks due to its huge scale. This study proposed the risk performance index method to improve the efficiency of the overall performance measurement for a mega-project by extending from the traditional cost/schedule based performance measurement system. The risk performance index method proposed in this study has a similar system to the EVMS, and makes possible to perform a three dimensional integrated performance measurement in cost/schedule/risk through 18 different indexes that compose the risk performance index.

• Journal of the Korean Operations Research and Management Science Society
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• v.28 no.4
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• pp.115-129
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• 2003

This paper suggests that the profit sharing contract can be Pareto optimal for both supplier and the purchaser. It is shown that Pareto optimal risk sharing contract can be obtained even though the decisions are made in a decentralized manner. The effect of risk attitude of the members of the supply chain is discussed. We examined various aspects of the risk sharing contract such as risk altitude, bargaining power, and cost of information system. The different risk attitude changes the optimal parameters and decision variables. Especially, we proved that, when both the supplier and the purchaser are risk averse, the purchaser orders less quantity than when the one is risk neutral and the other is risk averse. If the fixed cost for the information system is big enough to satisfy a certain condition, it is Pareto optimal not to share the profit and the purchaser takes all the risk even though he is risk averse.

• Journal of Korean Society for Quality Management
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• v.33 no.3
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• pp.135-148
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• 2005

This paper considers a six sigma project for reducing the project costs through project risk management. The project follows a disciplined process of five phases: define, measure, analyze, improve, and control. A risk management process map is used to identify process input and output variables. Seven key process input variables are selected by using C&E diagram and X-Y matrix and finally four vital few input variables are selected by the related statistical analysis. The optimum alternatives of the vital few input variables are obtained by the method of PUGH matrix. The process is running on control plan and we obtained substantial project cost reductions in early stage of the control phase.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.4
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• pp.72-79
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• 2015

A number of plating companies have been exposed to the risk of fire due to unexpected temperature increasing of water in a plating bath. Since the companies are not able to forecast the unexpected temperature increasing of water and most of raw materials in the plating process have low ignition temperature, it is easy to be exposed to the risk of fire. Thus, the companies have to notice the changes immediately to prevent the risk of fire from plating process. Due to this reason, an agile and systematic temperature monitoring system is required for the plating companies. Unfortunately, in case of small size companies, it is hard to purchase a systematic solution and be offered consulting from one of the risk management consulting companies due to an expensive cost. In addition, most of the companies have insufficient research and development (R&D) experts to autonomously develop the risk management solution. In this article, we developed a real time remote temperature monitoring system which is easy to operate with a lower cost. The system is constructed by using Raspberry Pi single board computer and Android application to release an economic issue for the small sized plating manufacturing companies. The derived system is able to monitor the temperature continuously with tracking the temperature in the batch in a short time and transmit a push-alarm to a target-device located in a remoted area when the temperature exceeds a certain hazardous-temperature level. Therefore, the target small plating company achieves a risk management system with a small cost.

• Proceedings of the KSR Conference
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• 2008.06a
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• pp.796-805
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• 2008

Safety Management of Korean railway industry has been rapidly changed into a risk-based approach adopted by developed countries since Railway Safety Act 2004, Rolling Stock Risk Assessment Guidance and its following regulations came into force. The fundamental requirements for the risk-based safety management is to carry out a systematic hazard identification and quantified risk analyses including cost-benefit analyses, but there has been rare a serious discussion over risk acceptance criteria and value of life in order to be able to judge the results of risk analyses and carry out cost-benefit analyses. This study presents the results of a review of risk acceptance criteria and value of life which may be adoped to Korean railway industry through the analyses with comparison of risk accepatnce principles and risk accepatnce criteria which have been already applied to other countries or other railway operators.