Evaluation and classification of risk from multi-party stakeholders of the construction industry

The presence of risk events in the construction industry is considered high among multiple industries. Furthermore, it results in construction projects having cost overruns with no precise mechanism to deal with it. Thus, this study focuses on the identification, assessment, and classification of su...

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Bibliographic Details
Main Authors: Syed Muhammad Yasir Ashrafi, Wesam Salah Alaloul, Rizwan-Ul-Haq Farooqui, Muhammad Saqib, Rana Rabnawaz Ahmed, Abdul Mateen Khan
Format: Article
Language:English
Published: Taylor & Francis Group 2025-05-01
Series:Journal of Asian Architecture and Building Engineering
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Online Access:http://dx.doi.org/10.1080/13467581.2025.2507863
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Summary:The presence of risk events in the construction industry is considered high among multiple industries. Furthermore, it results in construction projects having cost overruns with no precise mechanism to deal with it. Thus, this study focuses on the identification, assessment, and classification of such critical risk events as an essential substance for causing project cost overruns. The study identified 150 risk events, and assessed the refined 40 major risk events, adopted multi-party stakeholders’ perception evaluation surveys for the identification, and assessment based on the Relative Importance Index (RII), Kendall’s concordance (W), Cronbach’s alpha, Corrected Item-Total Correlation, and Validity test, the values were found to be statistically adequate. Classification relied on Principal Component Analysis (PCA). RII reveals that inaccurate material estimation got the highest rank among all other risk events, followed by financial difficulties faced by contractors. (PCA) classified 40 risk events into nine components with contractual and on-site risk components having higher risk factors. Furthermore, the study output may be used for better decision-making, as a result of assessed and classified risk events.
ISSN:1347-2852