Evaluation of the Effective Functioning of Construction Enterprises in the Conditions of Occurrence of Diverse Risk Factors
Abstract
:1. Introduction
- Manageability—the admissibility of a temporary change in the processes of functioning under the influence of managerial factors;
- Flexibility—the ability of the production system to adapt to changing environmental conditions;
- Longevity—the ability of the production system to function for a long time;
- Effectiveness—the ability to obtain an effect, to create the products that the consumer needs;
- Sustainability—a qualitative characteristic manifested in the ability of a production system to maintain the required level of performance.
2. Materials and Methods
- Identification and evaluation of risk factors affecting construction enterprises using a hierarchical analysis model (AHP).
- Development and analysis of the main measures implemented by enterprises in order to limit or reduce the influence of factors using Monte Carlo simulation in the Primavera Risk Analysis PRA program.
- Building a hierarchical structure of groups of main criteria and their parameters (risk factors);
- 3.
- Using factor weights to prioritize after ensuring consistency.
- 4.
- In order to ensure the accuracy of the conducted pairwise comparison and the absence of contradictions in the opinions of experts, the consistency ratio is checked. This is achieved by calculating the value (λmax) [24,25,26,27,28,29,30]. The consistency ratio should not exceed 0.1.
- Risk avoidance. This measure implies risk elimination or complete avoidance [35]. The advantage of this strategy is that it is the most effective way to manage risk. However, risky activities can be very profitable; then, the disadvantage of this measure is that all the benefits of risk are also lost. Therefore, this strategy is best used as a last resort when other strategies have failed to reduce risk.
- Reduction (mitigation) of risks. This approach consists of applying measures that reduce the likelihood of a negative outcome or minimize the consequences of a risk if it does occur. This is probably the most common strategy and it is suitable for a wide range of different risks. This allows to continue the activity while making it less dangerous [13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35].
- Risk transfer. This strategy implies the transfer of risk from one party to another with payment in return. There are two options for implementing this strategy: pay an insurance company to manage the risk (insurance) or pay some other company to manage the risky activity (outsourcing).
- Risk acceptance. When the cost of risk reduction is higher than the likely losses, or when the risky activity brings a large profit, it is better to accept the risk.
- Project risk assessment matrix;
- Scores entered in the highlighted Risk Assessment Matrix (probability and impact chart grid);
- Selected approaches to the Risk Assessment Matrix (highest impact, average impact, average individual impact);
- Probability of the risk occurring.
3. Results
4. Discussion
5. Conclusions
- For the construction sector and urban infrastructure, it is necessary to choose areas located far from military bases;
- All employees must be familiar with the rules of safety and behavior in case of emergencies at work;
- Warning signs should be installed in specially designated places and constant monitoring of the construction site and the surrounding area to prevent undesirable situations;
- It is necessary to control price fluctuations in the construction market and changes in the exchange rate;
- It is necessary to establish a ban on protests and demonstrations of all forms near construction sites.
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Categories | Russia | Iraq |
---|---|---|
Economical | The growth of inflation, changes in exchange rates, an increase in the level of taxation, an increase in prices for materials and products, insolvency of customers, and others [14,15]. | Substitution of public interests by representations of power by private interests (corruption), bankruptcy of contractors of enterprises, changes in exchange rates, inflation and price fluctuations, delay or non-payment of financial contributions to enterprises [16,17]. |
Political and legal | Instability, changes in legal regulations, late receipt of project expertise, refusal of a construction permit, unstable political situation, major changes in the terms of the contract, inadequate technical supervision, bureaucratic costs, non-compliance with regulations of the government of the Russian Federation [13,14,15,16,17,18]. | Changes in the political situation, delay in the arrival of materials and equipment due to military events, injuries to workers as a result of military events, the sudden presence of terrorist groups in the workplace, and damage to some parts of the facility and equipment as a result of military clashes [16,17,19]. |
Organizational | Shortage of qualified workers, errors in design and estimate documentation, change in requirements and terms of the contract by the customer, lack of material resources, failures in the supply of materials, failure to comply with safety regulations, delays in the course of construction and installation works, poor planning of production and financial activities and lack of orders to work [2,13,17,20]. | Changes in the project specification and cost, poor coordination between the customer and the contractor, delay in laboratory tests, lack of human resources, late access to the construction site, incomprehensible way to reduce the damage caused by delays, unexpected events and holidays [19,20,21]. |
Technical | Lack and deterioration of machines and mechanisms, the problem of ensuring the quality of work, inefficiency and inaction of workers [14,17,20,22]. | The absence of specialized mechanisms, the inefficiency and inactivity of workers, the use of faulty or obsolete machinery and equipment, old technologies, strikes and riots [13,14,15,16,17,18,19]. |
Climatic | Snowfall, storm, low temperatures and downpour [13,14]. | High temperature in summer above 50 °C, heavy rain in winter, pollution, natural disasters (earthquakes, floods) [21,22]. |
Numeric Values | Expression in Verbal Variables |
---|---|
1 | Two elements contribute equally to an object (i equals j) |
3 | Element i is three times more important than element j |
5 | Element i is five times more important than element j |
7 | Element i is seven times more important than element j |
9 | Element i is nine times more important than element j |
2, 4, 6, 8 | Averages used between previous weights |
n | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Ri | 0.58 | 0.9 | 1.12 | 1.24 | 1.32 | 1.41 | 1.45 | 1.49 |
Criteria | Organizational | Technical | Economic | Political and Military | Climatic |
---|---|---|---|---|---|
Organizational | X11 | X12 | X13 | X14 | X15 |
Technical | X21 | X22 | X23 | X24 | X25 |
Economic | X31 | X32 | X33 | X34 | X35 |
Political and military | X41 | X42 | X43 | X44 | X45 |
climatic | X51 | X52 | X53 | X54 | X55 |
Criteria (Measures) | Subcriteria |
---|---|
Economic measures | 1. Monitoring of the economic situation (government policy, inflation, tax rate); 2. Controlling exchange rate fluctuations to avoid high prices for materials, equipment and labor; 3. Exclusion of situations related to corruption and bribery. Unacceptability of illegal cooperation schemes; 4. Formation of a reserve in the enterprise budget in case of price increases. |
Organizational and technical measures | 1. Determination of channels of communication and information transfer between the customer and the contractor for the smooth coordination of actions; 2. Establishment of deadlines for the completion of work and sanctions for their violation; 3. Provision of qualified labor force; 4. The use of modern mechanisms and technologies suitable for the construction of multi-story buildings and the reconstruction of buildings; 5. A ban on the use of construction equipment by workers without appropriate qualifications and experience; 6. Determination of the possibility of deviation from the deadlines for the delivery of the project as a result of unforeseen circumstances (without significant damage to the quality of construction products); 7. Additional investments in equipment, materials, personnel and logistics schemes. Review of suppliers of equipment and materials. |
Political and military measures | 1. Maximum monitoring of the situation in the construction region, development of schemes and methods for emergency evacuation of employees in the event of a military attack, explanation of personal security measures; 2. Development of routes for the delivery of workers and equipment to the construction site lying outside the closed roads and the location of checkpoints; 3. Creation of a protective fence around the construction site and organization of round-the-clock security of the construction site by the enterprise; 4. Prevention of protests and political demonstrations near the construction site, as they cause malfunctions. |
Risk management measures | 1. Forecasting the occurrence of risk factors for the purpose of further risk management; 2. Diagnostics of risk sources (RF diagnostics); 3. Monitoring the project, its indicators, monitoring the development of risks and identifying relevant action scenarios for the enterprise during the occurrence of each of the possible risks; 4. Drawing up periodic reports on the risk factor, the likelihood of occurrence of risks, updating the information database for each investment and construction project; 5. Providing the management team at the enterprise with the necessary training: technical knowledge about the construction methods and technologies used in the projects. |
Measures for labor safety | 1. Proper planning, taking into account weather factors, to ensure the most suitable conditions for work; 2. Assessing the conditions in which site crews operate to ensure maximum performance. 3. Construction enterprises must ensure that adequate personal protective equipment is available for workers at all times. 4. Workers receive the necessary training in workplace safety and the need to use protective equipment. |
Rating | Probability Degree | Impact Degree |
---|---|---|
Very low | ≤10% | ≤5% |
Low | >10–30% | 5–10% |
Average | >30–50% | >10–20% |
High | >50–70% | >20–40% |
Very high | >70% | >40% |
Risk | Project Objectives | Very Low (0–10) | Low (>10–30) | Average (>30–50) | High (>50–70) | Very High (>70) |
Cost | The cost increase is not significant | Cost increase <10% | Cost increase 10–20% | Cost increase >20–40% | Cost increase >40% | |
Duration | Increasing the duration is not significant | Increase in duration <5% | Increase in duration 5–10% | Increase in duration 10–20% | Increase in duration >20% | |
Quality | Qualitative degradation is hardly noticeable | Insignificant impact on the quality of activities | Moderate impact on the quality of activities | High impact on the quality of activities | Very obvious impact on the quality of activities |
Impact | ≤5% | 5–10% | >10–20% | >20–40% | >40% | |
---|---|---|---|---|---|---|
Probability | ||||||
≤10% | 5 | 9 | 18 | 36 | 72 | |
>10–30% | 4 | 7 | 14 | 28 | 56 | |
>30–50% | 3 | 5 | 10 | 20 | 40 | |
>50–70% | 2 | 3 | 6 | 12 | 24 | |
>70% | 1 | 1 | 2 | 4 | 8 |
Risk Factors | Organizational | Technical | Economic | Political and Military | Climatic | Geometric Mean | Priorities |
---|---|---|---|---|---|---|---|
Organizational | 1 | 2 | 1/2 | 1/2 | 3 | 1.084472 | 18.46 |
Technical | 1/2 | 1 | 1/3 | 1/3 | 2 | 0.644394 | 10.96 |
Economic | 2 | 3 | 1 | 2 | 4 | 2.168944 | 36.92 |
Political and military | 2 | 3 | 1/2 | 1 | 3 | 1.551846 | 26.42 |
Climatic | 1/3 | 1/2 | 1/4 | 1/3 | 1 | 0.425142 | 7.24 |
Total | 5.83 | 9.50 | 2.58 | 4.17 | 13.00 |
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Abramov, I.; AlZaidi, Z.A.K. Evaluation of the Effective Functioning of Construction Enterprises in the Conditions of Occurrence of Diverse Risk Factors. Buildings 2023, 13, 995. https://doi.org/10.3390/buildings13040995
Abramov I, AlZaidi ZAK. Evaluation of the Effective Functioning of Construction Enterprises in the Conditions of Occurrence of Diverse Risk Factors. Buildings. 2023; 13(4):995. https://doi.org/10.3390/buildings13040995
Chicago/Turabian StyleAbramov, Ivan, and Zaid Ali Kadhim AlZaidi. 2023. "Evaluation of the Effective Functioning of Construction Enterprises in the Conditions of Occurrence of Diverse Risk Factors" Buildings 13, no. 4: 995. https://doi.org/10.3390/buildings13040995