An empirical study for ranking risk factors using linear assignment: A case study of road construction

Foroughi, A.; Esfahani, M.

Abstract: Road construction projects are considered as the most important governmental issues since there are normally heavy investments required in such projects. There is also shortage of financial resources in governmental budget, which makes the asset allocation more challenging. One primary step in reducing the cost is to determine different risks associated with execution of such project activities. In this study, we present some important risk factors associated with road construction in two levels for a real-world case study of rail-road industry located between two cities of Esfahan and Deligan. The first group of risk factors includes the probability and the effects for various attributes including cost, time, quality and performance. The second group of risk factors includes socio-economical factors as well as political and managerial aspects. The study finds 21 main risk factors as well as 193 sub risk factors. The factors are ranked using groups decision-making method called linear assignment. The preliminary results indicate that the road construction projects could finish faster with better outcome should we carefully consider risk factors and attempt to reduce their impacts.

How to cite this paper

        APA: Foroughi, A & Esfahani, M. (2002). An empirical study for ranking risk factors using linear assignment: A case study of road construction. Management Science Letters, 2(2), 615-622.
    

        Chicago/Turabian: Foroughi, A & Esfahani, M. 2002. "An empirical study for ranking risk factors using linear assignment: A case study of road construction." Management Science Letters 2, no. 2 (2002): 615-622.
    

        AMA: Foroughi, A & Esfahani, M. An empirical study for ranking risk factors using linear assignment: A case study of road construction. Management Science Letters. 2002;2(2):615-622.
    

References

Baccarini, D., & Archer, R. (2001).The risk ranking of projects: a methodology. International Journal of Project Management, 19(3), 139-145.

Chapman, R. J. (2001). The controlling influences on effective risk identification and assessment for construction design management. International Journal of Project Management, 19(3), 147-160.

Ghosh, S. & Jintanapakanont, J. (2004). Identifying and assessing the critical risk factors in an underground rail project in Thailand: a factor analysis approach. International Journal of Project Management, 22(8), 633-643.

Haimes, Y. (2008). Risk modeling, Assessment, and management. 3rd ed., New York: John Wiley and Sons.

Klein, J.H., & Cork, R. B. (1998). An approach to technical risk assessment. International Journal of Project Management, 16(6), 345-351.

Isaksson, T., & Stille, H. (2005). Model for estimation of time and cost for tunnel projects based on risk evaluation. Rock Mechanic Rock Engineering, 38 (5), 373–398.

Jannadi, O.A. (2008). Risks associated with trenching works in Saudi Arabia. Journal of Building and Environment, 43(5), 776-781.

McDermott, R. E., Mikulak, R. J., & Beauregard, M. R. (1996). The Basics of FMEA, New York: Quality resources.

Ng, A., & Loosemore, M. (2007). Risk allocation in the private provision of public infrastructure. International Journal of Project Management, 25(1), 66-76.

PMI (Project Management Institute) (2004). A Guide to the Project Management Body of Knowledge (PMBOK Guide), Pennsylvania, USA: Newtown Square.

Thevendran, V., & Mawdesley, M.J. (2004). Perception of human risk factors in construction projects: an exploratory study. International Journal of Project Management, 22(2), 131-137.

Xu, L., & Liu, G. (2009). The study of a method of regional environmental risk assessment. Journal of Environmental Management, 90(11), 3290-3296.