Risk Analysis in International Construction Projects: A Look at the Prefabricated Wood Construction Sector in the Province of Quebec
Abstract
:1. Introduction
2. Literature Review
2.1. Risk
2.2. Risk Management
3. Methods
4. Results and Discussion
4.1. Case Study
4.2. Characterization of Respondents
4.3. Risk Measurement
4.3.1. Operational Risks
4.3.2. Financial Risks
4.4. Managerial Insights and Recommendations
5. Conclusions
Author Contributions
Funding
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Category | Operational Risk | Authors |
---|---|---|
Design | Design error | [4,39,40,41,42,43,44,45] |
Ill-defined project | [4,36,37,42,45,46] | |
Design changes | [36,37,39,43,44,45,46,47,48,49,50,51,52] | |
Standards | Different construction standards | [4,43,44,45,46] |
Amendments to laws and regulations | [37,39,45,48,50] | |
Different measurement systems | [44] | |
Strict safety and health requirements | [4,46] | |
Strict quality requirements | [4] | |
Strict environmental regulations | [4,39,42] | |
Quality control difficulty | [4,10,45,51] | |
Coordination | Damage caused by human error | [4,39] |
Late possession of construction site | [4] | |
Ineffective communication and coordination | [4,37,40] | |
Tight project schedules | [45,52] | |
Unforeseen ground conditions | [4,45,49] | |
Lack of proper construction techniques | [4,41,44] | |
Resources | Lack of subcontractors | [4,41,45,52] |
Unavailability of labor | [4,10,37,43,45] | |
Defective materials | [4,40,45] | |
Unavailability of materials | [4,36,37,40,42,43,45,49] | |
Unavailability of equipment | [4,10,37,40,42,45] |
Category | Financial Risk | Authors |
---|---|---|
Internal | Lack of capital to finance export | [4,37,41,42,45,52,53] |
Lower-than-expected project revenue | [40] | |
Partner | Breach of contract | [36] |
Imprecision regarding the distribution of risks | [41,44,46,47,48] | |
Bankruptcy of the project partner | [36,38,49] | |
Partner in financial difficulty | [46,48] | |
Client | Bankruptcy of the client | [36,37,43,44] |
Late payment by the client | [36,37,39,40,41,42,43,44,45,46,48] | |
Market | Excessive costs of transporting goods to a foreign market | [46,51,53] |
Rising fuel prices | [38,50] | |
Material price fluctuation | [4,37,44,45] | |
Inflation rate fluctuation | [4,5,10,36,38,39,40,43,44,45,46,47,48,54] | |
Interest rate fluctuation | [4,5,10,36,38,44,45,47,48] | |
Currency exchange rate fluctuation | [4,5,10,36,38,39,44,45,46,47,48,51,52,53,54,55] | |
Insurance risk | [4,36,38] |
Probability of Occurrence (PO), % | Magnitude of the Impact (MI) | |||
---|---|---|---|---|
1 | Rarely | <20 | 1 | Very small |
2 | Somewhat likely | 20–40 | 2 | Small |
3 | Likely | 40–60 | 3 | Medium |
4 | Very likely | 60–80 | 4 | Large |
5 | Almost definite | >80 | 5 | Very large |
Category | Operational Risk | Prefabricated Wood Structure | Glued Laminated Timber | Wood Wall Panel | Modular | Kit Home |
---|---|---|---|---|---|---|
Design | Design error | |||||
Ill-defined project | ||||||
Design changes | ||||||
Standards | Different construction standards | |||||
Amendments to laws and regulations | ||||||
Different measurement systems | ||||||
Strict safety and health requirements | ||||||
Strict quality requirements | ||||||
Strict environmental regulations | ||||||
Quality control difficulty | ||||||
Coordination | Damage caused by human error | |||||
Late possession of construction site | ||||||
Ineffective communication and coordination | ||||||
Tight project schedules | ||||||
Unforeseen ground conditions | ||||||
Lack of proper construction techniques | ||||||
Resources | Lack of subcontractors | |||||
Unavailability of labor | ||||||
Defective materials | ||||||
Unavailability of materials | ||||||
Unavailability of equipment |
Category | Financial Risk | Prefabricated Wood Structure | Glued Laminated Timber | Wood Wall Panel | Modular | Kit Home |
---|---|---|---|---|---|---|
Internal | Lack of capital to finance export | |||||
Lower-than-expected project revenue | ||||||
Partner | Breach of contract | |||||
Imprecision regarding the distribution of risks | ||||||
Bankruptcy of the project partner | ||||||
Partner in financial difficulty | ||||||
Client | Bankruptcy of the client | |||||
Late payment by the client | ||||||
Market | Excessive costs of transporting goods to a foreign market | |||||
Rising fuel prices | ||||||
Material price fluctuation | ||||||
Inflation rate fluctuation | ||||||
Interest rate fluctuation | ||||||
Currency exchange rate fluctuation | ||||||
Insurance risk |
High Criticality | Moderate Criticality | Low Criticality |
---|---|---|
Ineffective communication and coordination 78% Tight project schedules 59% Damage caused by human error 48% Unavailability of labor 40% | Amendments to laws and regulations 58% Strict quality requirements 53% Design changes 51% Design error 51% Late possession of the site 51% Different construction standards 50% Strict environmental regulations 50% Unforeseen ground conditions 47% Ill-defined project 45% | Different measurement systems 69% Strict safety and health requirements 57% Defective materials 57% Unavailability of equipment 53% Lack of subcontractors 47% Quality control difficulty 46% Lack of proper construction techniques 45% Unavailability of materials 43% |
High Criticality | Moderate Criticality | Low Criticality |
---|---|---|
Material price fluctuation 92% Late payment by the client 57% Lack of capital to finance export 49% Imprecision regarding the distribution of risks 49% | Insurance risk 65% Breach of contract 55% Inflation rate fluctuation 54% Bankruptcy of the project partner 51% Bankruptcy of the client 49% Partner in financial difficulty 47% Rising fuel prices 46% Currency exchange rate fluctuation 45% Interest rate fluctuation 43% | Lower-than-expected project revenue 46% Excessive costs of transporting goods to a foreign market 39% |
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Guimarães, L.G.d.A.; Blanchet, P.; Cimon, Y. Risk Analysis in International Construction Projects: A Look at the Prefabricated Wood Construction Sector in the Province of Quebec. Buildings 2024, 14, 2563. https://doi.org/10.3390/buildings14082563
Guimarães LGdA, Blanchet P, Cimon Y. Risk Analysis in International Construction Projects: A Look at the Prefabricated Wood Construction Sector in the Province of Quebec. Buildings. 2024; 14(8):2563. https://doi.org/10.3390/buildings14082563
Chicago/Turabian StyleGuimarães, Luciana Gondim de A., Pierre Blanchet, and Yan Cimon. 2024. "Risk Analysis in International Construction Projects: A Look at the Prefabricated Wood Construction Sector in the Province of Quebec" Buildings 14, no. 8: 2563. https://doi.org/10.3390/buildings14082563