The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase

The aim of the paper is to research and analyze the impact of the type of failure on economic risks in the bidding phase, as the most important part in the management of construction projects. The survey included the impact of risk on the process of determining unit prices from the perspective of a...

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Main Author: Milan Mirkovic
Format: Article
Language:English
Published: Wiley 2018-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2018/5041803
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author Milan Mirkovic
author_facet Milan Mirkovic
author_sort Milan Mirkovic
collection DOAJ
description The aim of the paper is to research and analyze the impact of the type of failure on economic risks in the bidding phase, as the most important part in the management of construction projects. The survey included the impact of risk on the process of determining unit prices from the perspective of a potential contractor. Also, the failure rate and repair rate of the 34 machines from the machine park of the company for road construction were researched. On the basis of obtained parameters and depreciation periods, the operational availability of components of construction production systems was determined. The proposed methodology for estimating impact of the availability function is a modified method of the frequency balancing. It has been tested on a concrete project from the practice in the process of harmonizing construction norms of time that preceded the final adoption of the unit prices. Differences in prices are results of the system failure of construction machinery and plants and have justified a hypothesis of obtaining more realistic costs that can occur in the projects.
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spelling doaj-art-c64516ae59af4e0f8387679e737d5bbe2025-08-20T02:19:15ZengWileyComplexity1076-27871099-05262018-01-01201810.1155/2018/50418035041803The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding PhaseMilan Mirkovic0Consulting Experts System, Takovska 69a, 23000 Zrenjanin, SerbiaThe aim of the paper is to research and analyze the impact of the type of failure on economic risks in the bidding phase, as the most important part in the management of construction projects. The survey included the impact of risk on the process of determining unit prices from the perspective of a potential contractor. Also, the failure rate and repair rate of the 34 machines from the machine park of the company for road construction were researched. On the basis of obtained parameters and depreciation periods, the operational availability of components of construction production systems was determined. The proposed methodology for estimating impact of the availability function is a modified method of the frequency balancing. It has been tested on a concrete project from the practice in the process of harmonizing construction norms of time that preceded the final adoption of the unit prices. Differences in prices are results of the system failure of construction machinery and plants and have justified a hypothesis of obtaining more realistic costs that can occur in the projects.http://dx.doi.org/10.1155/2018/5041803
spellingShingle Milan Mirkovic
The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase
Complexity
title The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase
title_full The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase
title_fullStr The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase
title_full_unstemmed The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase
title_short The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase
title_sort impact of failure types in construction production systems on economic risk assessments in the bidding phase
url http://dx.doi.org/10.1155/2018/5041803
work_keys_str_mv AT milanmirkovic theimpactoffailuretypesinconstructionproductionsystemsoneconomicriskassessmentsinthebiddingphase
AT milanmirkovic impactoffailuretypesinconstructionproductionsystemsoneconomicriskassessmentsinthebiddingphase