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THE MODERATING EFFECT OF PROJECT RISK RESPONSE-RELATED MEASURES ON THE RELATIONSHIP BETWEEN PROJECT-RELATED DELAY FACTORS AND CONSTRUCTION PROJECT PERFORMANCE
Corresponding Author(s) : Priyadatchini Karunakaran
Humanities & Social Sciences Reviews,
Vol. 8 No. 2 (2020): March
Abstract
Purpose of the study: This conceptual paper is based on a review of delay issues, risk response management and project performance in the Malaysian construction industry. The study also involved the evaluation of latent relationships among project-related delay factors, project risk response-related measures and project performance in terms of time and cost.
Methodology: Literature in light of recent studies was reviewed and a thematic review approach was also conducted. The themes summarized delay issues, risk response measures, and project performance. Subsequently, the synthesized literature review aided the development of the conceptual framework for the delay mitigation model.
Main Findings: The authors presented a model where project-related delay factors have a negative effect on project performance, project risk response-related measures have a positive effect on project performance and project risk response-related measures positively moderate the relationship between project-related delay factors and project performance.
Applications of this study: This study will enable the construction practitioners to understand better ways to mitigate delay issues in the construction industry.
Novelty/Originality of this study: This work offers a conceptual perspective on the enhancement of project performance in terms of cost and time by addressing the issues of project delay factors managed using project risk response-related measures.
Keywords
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- Abdul-Rahman, H., Berawi, M., Berawi, A., Mohamed, O., Othman, M., & Yahya, I. (2006). Delay mitigation in the Malaysian construction industry. Journal of Construction Engineering and Management, 132(2), 125-133. https://doi.org/10.1061/(ASCE)0733-9364(2006)132:2(125) DOI: https://doi.org/10.1061/(ASCE)0733-9364(2006)132:2(125)
- Aibinu, A. A. (2009).Avoiding and mitigating delay and disruption claims conflict: the role of precontract negotiation. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 1(1), 47-58. https://doi.org/10.1061/(ASCE)1943-4162(2009)1:1(47) DOI: https://doi.org/10.1061/(ASCE)1943-4162(2009)1:1(47)
- Aibinu, A. A. and Jagboro, G. O. (2002).The effects of construction delays on project delivery.International Journal of Project Management, 20, 593-599. https://doi.org/10.1016/S0263-7863(02)00028-5 DOI: https://doi.org/10.1016/S0263-7863(02)00028-5
- Ajanlekoko, J. O. (1987).Controlling cost in the construction industry. Lagos QS Digest, 1(1), 8-12.
- Alaghbari, W. E., Kadir, M. R. A., Salim, A. and Ernawati (2007). The significant factors causing delay of building construction projects in Malaysia. Engineering, Construction and Architectural Management, 14(2), 192-206. https://doi.org/10.1108/09699980710731308 DOI: https://doi.org/10.1108/09699980710731308
- Arain, F.M. and Pheng, L.S. (2005). The potential effects of variation orders on institutional building projects. Facilities, 23(11/12), 496-510. https://doi.org/10.1108/02632770510618462 DOI: https://doi.org/10.1108/02632770510618462
- Asiedu, R. O., Adaku, E. and Owusu-Manu, D.-G. (2017). Beyond the causes – rethinking mitigating measures to avert cost and time overruns in construction projects. Construction Innovation, 17(3), 363-380. https://doi.org/10.1108/CI-01-2016-0003 DOI: https://doi.org/10.1108/CI-01-2016-0003
- Assaf, S. A. and Al-Hejji, S. (2006). Causes of delay in large construction projects. International Journal of Project Management, 24(4), 349-357. https://doi.org/10.1016/j.ijproman.2005.11.010 DOI: https://doi.org/10.1016/j.ijproman.2005.11.010
- Asnawi, A., Awang, Z., Afthanorhan, A., Mohamad, M., & Karim, F. (2019). The influence of hospital image and service quality on patients’ satisfaction and loyalty. Management Science Letters, 9(6), 911-920. https://doi.org/10.5267/j.msl.2019.2.011 DOI: https://doi.org/10.5267/j.msl.2019.2.011
- Belassi, W. and Tukel, O. I. (1996).A new framework for determining critical success/failure factors in projects. International Journal of Project Management, 14(3), 141-151. https://doi.org/10.1016/0263-7863(95)00064-X DOI: https://doi.org/10.1016/0263-7863(95)00064-X
- Chai, C. S., Yusof, M. A. and Habil, H. (2015).Mitigation in the Malaysian housing industry: A structural equation modelling approach. Journal of Construction in Developing Countries, 20(1), 65-83.
- Coase (1937). The nature of the firm. Economica, 4(16), 18-33. https://doi.org/10.1111/j.1468-0335.1937.tb00002.x DOI: https://doi.org/10.1111/j.1468-0335.1937.tb00002.x
- Doloi, H. (2013). Cost overruns and failure in project management: understanding the roles of key stakeholders in construction projects. Journal of Construction Engineering and Management, 139(3), 267-279. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000621 DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0000621
- Enshassi, A., Al-Najjar, J. and Kumaraswamy, M. (2009). Delays and cost overruns in the construction projects in the Gaza Strip. Journal of Financial Management of Property and Construction, 14(2), 126-151. https://doi.org/10.1108/13664380910977592 DOI: https://doi.org/10.1108/13664380910977592
- Frimpong, Y., Oluwoye, J. and Crawford, L. (2003).Causes of delay and cost overruns in construction of groundwater projects in a developing countries: Ghana as a case study. International Journal of Project Management, 21, 321-326. https://doi.org/10.1016/S0263-7863(02)00055-8 DOI: https://doi.org/10.1016/S0263-7863(02)00055-8
- Hwang, B.-g., Shan, M. and Supa at, N. N. (2017). Green commercial building projects in Singapore: Critical risk factors factors and mitigation measures. Sustainable Cities and Society, 30, 237–247. https://doi.org/10.1016/j.scs.2017.01.020 DOI: https://doi.org/10.1016/j.scs.2017.01.020
- Jung, W. and Han, S. H. (2017).Which risk management is most crucial for controlling project cost?. Journal of Management in Engineering, 33(5), 1-13. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000547 DOI: https://doi.org/10.1061/(ASCE)ME.1943-5479.0000547
- Latham, M. (1994). Constructing the Team: Final Report of the Government/Industry Review of Procurement and Contractual Arrangements in the UK Construction Industry. Technical report, HMSO, United Kingdom.
- Majid, N. A., Zainol, F. A., Wan Daud, W. N., & Afthanorhan, A. (2019). Cooperative entrepreneurship in Malaysian secondary schools: A review of current practices. Journal of Social Sciences Research, 5(3), 812-818. https://doi.org/10.32861/jssr.53.812.818 DOI: https://doi.org/10.32861/jssr.53.812.818
- Malone, T. and Crowston, K. (1994).The interdisciplinary study of coordination. ACM Computing Surveys, 26(1), 87-119. https://doi.org/10.1145/174666.174668 DOI: https://doi.org/10.1145/174666.174668
- Mbachu, J. (2011).Sources of contractor’s payment risks and cash flow problems in the New Zealand construction industry: project team’s perceptions of the risks and mitigation measures. Construction Management and Economics, 29, 1027-1041. ttps://doi.org/10.1080/01446193.2011.623708 DOI: https://doi.org/10.1080/01446193.2011.623708
- McGrew, J. F. and Bilotta, J. G. (2000). The effectiveness of risk management: measuring what didn't happen. Management Decision, 38(4), 293-301. https://doi.org/10.1108/00251740010326342 DOI: https://doi.org/10.1108/00251740010326342
- Memon, A. H., Rahman, I. A., Azis, A. A. A. and Abdullah, N. H. (2012).Using structural equation modelling to assess effects of construction resource related factors on cost overrun. World Applied Sciences Journal (Mathematical Applications in Engineering), 21, 6-15.
- Miles, M. B. and Huberman, A. M. (1984). Qualitative data analysis. A sourcebook of New Methods, London: Sage
- Nagaraju, S., Reddy, B. S. and Chauduri, A. R. (2012). Resource management in construction projects – a case study. Engineering Science and Technology: An International Journal, 2(4), 660–665.
- Olawale, Y. A. and Sun, M. (2010).Cost and time control of construction projects: inhibiting factors and mitigating measures in practice. Construction Management and Economics, 28(5), 509-526. https://doi.org/10.1080/01446191003674519 DOI: https://doi.org/10.1080/01446191003674519
- Olawale, Y. A. and Sun, M. (2015).Construction project control in the UK: Current practice, existing problems and recommendations for future improvement. International Journal of Project Management, 33, 623–637. https://doi.org/10.1016/j.ijproman.2014.10.003 DOI: https://doi.org/10.1016/j.ijproman.2014.10.003
- Prasad, K. V., Vasugi, V., Venkatesan, R. and Bhat, N. S. (2019). Critical causes of time overrun in Indian construction projects and mitigation measures. International Journal of Construction Education and Research, 15(3), 216-238. https://doi.org/10.1080/15578771.2018.1499569 DOI: https://doi.org/10.1080/15578771.2018.1499569
- Ropponen, J. and Lyytinen, K. (1997).Can software risk management improve system development: an exploratory study. European Journal of Information Systems, 6(1), 41-50. ttps://doi.org/10.1057/palgrave.ejis.3000253 DOI: https://doi.org/10.1057/palgrave.ejis.3000253
- Roslan, N., Noor, Y., Zainun, N. Y. and Memon, A. H. (2015).Relevancy of factors and mitigation measures in controlling time and cost overrun towards Malaysian environment. Applied Mechanics and Materials, 773-774, 1007-1011. https://doi.org/10.4028/www.scientific.net/AMM.773-774.1007 DOI: https://doi.org/10.4028/www.scientific.net/AMM.773-774.1007
- Sambasivan, M., Deepak, T. J., Salim, A. N. and Ponniah, V. (2017).Analysis of delays in Tanzanian construction industry: Transaction Cost Economics (TCE) and Structural Equation Modeling (SEM) approach. Engineering, Construction and Architectural Management, 24(2), 308-325. https://doi.org/10.1108/ECAM-09-2015-0145 DOI: https://doi.org/10.1108/ECAM-09-2015-0145
- Sambasivan, M. and Soon, Y. W. (2007). Causes and effects of delays in Malaysian construction industry. International Journal of Project Management, 25(5), 517-526. https://doi.org/10.1016/j.ijproman.2006.11.007 DOI: https://doi.org/10.1016/j.ijproman.2006.11.007
- Sekar, G., Viswanathan, K. and Sambasivan, M. (2018).Effects of project-related and organizational-related factors on five dimensions of project performance: A study across the construction sectors in Malaysia. Engineering Management Journal, 30(4), 247-261. https://doi.org/10.1080/10429247.2018.1485000 DOI: https://doi.org/10.1080/10429247.2018.1485000
- Wang, S. Q., Dulaimi, M. F., & Aguria, M. Y. (2004). Risk management framework for construction projects in developing countries. Construction Management and Economics, 22(3), 237-252. https://doi.org/10.1080/0144619032000124689 DOI: https://doi.org/10.1080/0144619032000124689
- Williamson, O.E. (1975). Markets and hierarchies. New York: Free Press
- Yap, J. B. H., Abdul-Rahman, H. and Wang, C. (2018). Preventive mitigation of overruns with project communication management and continuous learning: PLS-SEM approach. Journal of Construction Engineering and Management, 144(5), 1-10. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001456 DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0001456
- Zailani, S., Md. Ariffin, H. A., Iranmanesh, M., Moeinzahed, S., & Iranmanesh, M. (2016). The moderating effect of project risk mitigation strategies on the relationship between delay factors and construction project performance. Journal of Science and Technology Policy Management, 7(3), 346-368. https://doi.org/10.1108/JSTPM-12-2015-0041 DOI: https://doi.org/10.1108/JSTPM-12-2015-0041
References
Abdul-Rahman, H., Berawi, M., Berawi, A., Mohamed, O., Othman, M., & Yahya, I. (2006). Delay mitigation in the Malaysian construction industry. Journal of Construction Engineering and Management, 132(2), 125-133. https://doi.org/10.1061/(ASCE)0733-9364(2006)132:2(125) DOI: https://doi.org/10.1061/(ASCE)0733-9364(2006)132:2(125)
Aibinu, A. A. (2009).Avoiding and mitigating delay and disruption claims conflict: the role of precontract negotiation. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 1(1), 47-58. https://doi.org/10.1061/(ASCE)1943-4162(2009)1:1(47) DOI: https://doi.org/10.1061/(ASCE)1943-4162(2009)1:1(47)
Aibinu, A. A. and Jagboro, G. O. (2002).The effects of construction delays on project delivery.International Journal of Project Management, 20, 593-599. https://doi.org/10.1016/S0263-7863(02)00028-5 DOI: https://doi.org/10.1016/S0263-7863(02)00028-5
Ajanlekoko, J. O. (1987).Controlling cost in the construction industry. Lagos QS Digest, 1(1), 8-12.
Alaghbari, W. E., Kadir, M. R. A., Salim, A. and Ernawati (2007). The significant factors causing delay of building construction projects in Malaysia. Engineering, Construction and Architectural Management, 14(2), 192-206. https://doi.org/10.1108/09699980710731308 DOI: https://doi.org/10.1108/09699980710731308
Arain, F.M. and Pheng, L.S. (2005). The potential effects of variation orders on institutional building projects. Facilities, 23(11/12), 496-510. https://doi.org/10.1108/02632770510618462 DOI: https://doi.org/10.1108/02632770510618462
Asiedu, R. O., Adaku, E. and Owusu-Manu, D.-G. (2017). Beyond the causes – rethinking mitigating measures to avert cost and time overruns in construction projects. Construction Innovation, 17(3), 363-380. https://doi.org/10.1108/CI-01-2016-0003 DOI: https://doi.org/10.1108/CI-01-2016-0003
Assaf, S. A. and Al-Hejji, S. (2006). Causes of delay in large construction projects. International Journal of Project Management, 24(4), 349-357. https://doi.org/10.1016/j.ijproman.2005.11.010 DOI: https://doi.org/10.1016/j.ijproman.2005.11.010
Asnawi, A., Awang, Z., Afthanorhan, A., Mohamad, M., & Karim, F. (2019). The influence of hospital image and service quality on patients’ satisfaction and loyalty. Management Science Letters, 9(6), 911-920. https://doi.org/10.5267/j.msl.2019.2.011 DOI: https://doi.org/10.5267/j.msl.2019.2.011
Belassi, W. and Tukel, O. I. (1996).A new framework for determining critical success/failure factors in projects. International Journal of Project Management, 14(3), 141-151. https://doi.org/10.1016/0263-7863(95)00064-X DOI: https://doi.org/10.1016/0263-7863(95)00064-X
Chai, C. S., Yusof, M. A. and Habil, H. (2015).Mitigation in the Malaysian housing industry: A structural equation modelling approach. Journal of Construction in Developing Countries, 20(1), 65-83.
Coase (1937). The nature of the firm. Economica, 4(16), 18-33. https://doi.org/10.1111/j.1468-0335.1937.tb00002.x DOI: https://doi.org/10.1111/j.1468-0335.1937.tb00002.x
Doloi, H. (2013). Cost overruns and failure in project management: understanding the roles of key stakeholders in construction projects. Journal of Construction Engineering and Management, 139(3), 267-279. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000621 DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0000621
Enshassi, A., Al-Najjar, J. and Kumaraswamy, M. (2009). Delays and cost overruns in the construction projects in the Gaza Strip. Journal of Financial Management of Property and Construction, 14(2), 126-151. https://doi.org/10.1108/13664380910977592 DOI: https://doi.org/10.1108/13664380910977592
Frimpong, Y., Oluwoye, J. and Crawford, L. (2003).Causes of delay and cost overruns in construction of groundwater projects in a developing countries: Ghana as a case study. International Journal of Project Management, 21, 321-326. https://doi.org/10.1016/S0263-7863(02)00055-8 DOI: https://doi.org/10.1016/S0263-7863(02)00055-8
Hwang, B.-g., Shan, M. and Supa at, N. N. (2017). Green commercial building projects in Singapore: Critical risk factors factors and mitigation measures. Sustainable Cities and Society, 30, 237–247. https://doi.org/10.1016/j.scs.2017.01.020 DOI: https://doi.org/10.1016/j.scs.2017.01.020
Jung, W. and Han, S. H. (2017).Which risk management is most crucial for controlling project cost?. Journal of Management in Engineering, 33(5), 1-13. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000547 DOI: https://doi.org/10.1061/(ASCE)ME.1943-5479.0000547
Latham, M. (1994). Constructing the Team: Final Report of the Government/Industry Review of Procurement and Contractual Arrangements in the UK Construction Industry. Technical report, HMSO, United Kingdom.
Majid, N. A., Zainol, F. A., Wan Daud, W. N., & Afthanorhan, A. (2019). Cooperative entrepreneurship in Malaysian secondary schools: A review of current practices. Journal of Social Sciences Research, 5(3), 812-818. https://doi.org/10.32861/jssr.53.812.818 DOI: https://doi.org/10.32861/jssr.53.812.818
Malone, T. and Crowston, K. (1994).The interdisciplinary study of coordination. ACM Computing Surveys, 26(1), 87-119. https://doi.org/10.1145/174666.174668 DOI: https://doi.org/10.1145/174666.174668
Mbachu, J. (2011).Sources of contractor’s payment risks and cash flow problems in the New Zealand construction industry: project team’s perceptions of the risks and mitigation measures. Construction Management and Economics, 29, 1027-1041. ttps://doi.org/10.1080/01446193.2011.623708 DOI: https://doi.org/10.1080/01446193.2011.623708
McGrew, J. F. and Bilotta, J. G. (2000). The effectiveness of risk management: measuring what didn't happen. Management Decision, 38(4), 293-301. https://doi.org/10.1108/00251740010326342 DOI: https://doi.org/10.1108/00251740010326342
Memon, A. H., Rahman, I. A., Azis, A. A. A. and Abdullah, N. H. (2012).Using structural equation modelling to assess effects of construction resource related factors on cost overrun. World Applied Sciences Journal (Mathematical Applications in Engineering), 21, 6-15.
Miles, M. B. and Huberman, A. M. (1984). Qualitative data analysis. A sourcebook of New Methods, London: Sage
Nagaraju, S., Reddy, B. S. and Chauduri, A. R. (2012). Resource management in construction projects – a case study. Engineering Science and Technology: An International Journal, 2(4), 660–665.
Olawale, Y. A. and Sun, M. (2010).Cost and time control of construction projects: inhibiting factors and mitigating measures in practice. Construction Management and Economics, 28(5), 509-526. https://doi.org/10.1080/01446191003674519 DOI: https://doi.org/10.1080/01446191003674519
Olawale, Y. A. and Sun, M. (2015).Construction project control in the UK: Current practice, existing problems and recommendations for future improvement. International Journal of Project Management, 33, 623–637. https://doi.org/10.1016/j.ijproman.2014.10.003 DOI: https://doi.org/10.1016/j.ijproman.2014.10.003
Prasad, K. V., Vasugi, V., Venkatesan, R. and Bhat, N. S. (2019). Critical causes of time overrun in Indian construction projects and mitigation measures. International Journal of Construction Education and Research, 15(3), 216-238. https://doi.org/10.1080/15578771.2018.1499569 DOI: https://doi.org/10.1080/15578771.2018.1499569
Ropponen, J. and Lyytinen, K. (1997).Can software risk management improve system development: an exploratory study. European Journal of Information Systems, 6(1), 41-50. ttps://doi.org/10.1057/palgrave.ejis.3000253 DOI: https://doi.org/10.1057/palgrave.ejis.3000253
Roslan, N., Noor, Y., Zainun, N. Y. and Memon, A. H. (2015).Relevancy of factors and mitigation measures in controlling time and cost overrun towards Malaysian environment. Applied Mechanics and Materials, 773-774, 1007-1011. https://doi.org/10.4028/www.scientific.net/AMM.773-774.1007 DOI: https://doi.org/10.4028/www.scientific.net/AMM.773-774.1007
Sambasivan, M., Deepak, T. J., Salim, A. N. and Ponniah, V. (2017).Analysis of delays in Tanzanian construction industry: Transaction Cost Economics (TCE) and Structural Equation Modeling (SEM) approach. Engineering, Construction and Architectural Management, 24(2), 308-325. https://doi.org/10.1108/ECAM-09-2015-0145 DOI: https://doi.org/10.1108/ECAM-09-2015-0145
Sambasivan, M. and Soon, Y. W. (2007). Causes and effects of delays in Malaysian construction industry. International Journal of Project Management, 25(5), 517-526. https://doi.org/10.1016/j.ijproman.2006.11.007 DOI: https://doi.org/10.1016/j.ijproman.2006.11.007
Sekar, G., Viswanathan, K. and Sambasivan, M. (2018).Effects of project-related and organizational-related factors on five dimensions of project performance: A study across the construction sectors in Malaysia. Engineering Management Journal, 30(4), 247-261. https://doi.org/10.1080/10429247.2018.1485000 DOI: https://doi.org/10.1080/10429247.2018.1485000
Wang, S. Q., Dulaimi, M. F., & Aguria, M. Y. (2004). Risk management framework for construction projects in developing countries. Construction Management and Economics, 22(3), 237-252. https://doi.org/10.1080/0144619032000124689 DOI: https://doi.org/10.1080/0144619032000124689
Williamson, O.E. (1975). Markets and hierarchies. New York: Free Press
Yap, J. B. H., Abdul-Rahman, H. and Wang, C. (2018). Preventive mitigation of overruns with project communication management and continuous learning: PLS-SEM approach. Journal of Construction Engineering and Management, 144(5), 1-10. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001456 DOI: https://doi.org/10.1061/(ASCE)CO.1943-7862.0001456
Zailani, S., Md. Ariffin, H. A., Iranmanesh, M., Moeinzahed, S., & Iranmanesh, M. (2016). The moderating effect of project risk mitigation strategies on the relationship between delay factors and construction project performance. Journal of Science and Technology Policy Management, 7(3), 346-368. https://doi.org/10.1108/JSTPM-12-2015-0041 DOI: https://doi.org/10.1108/JSTPM-12-2015-0041