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The Evaluation of the Contractor’s Risk in Implementing the Investment Projects in Construction by Using the Verbal Analysis Methods

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  • Galina Shevchenko

    (Department of Finance Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Sauletekio ave.11, LT-10223 Vilnius, Lithuania)

  • Leonas Ustinovichius

    (Department of Construction Management and Real Estate, Faculty of Civil Engineering, Vilnius Gediminas Technical University, Sauletekio ave.11, LT-10223 Vilnius, Lithuania)

  • Dariusz Walasek

    (Institute of Building Engineering, Faculty of Civil Engineering, Warsaw Technical University, Armii Ludowej 16, 00-637 Warsaw, Poland)

Abstract

The growth of the company’s investment potential is closely associated with the evaluation of the attendant risks of the process, various influencing factors, and the expected results. Therefore, the analysis of a number of qualitative and quantitative criteria of the projects and risks, as well as the potential profit-making opportunities in the investment decision making is required. This paper analyzes a decision-making strategy based on qualitative estimates obtained by investigating the risks posed, the management methods used, and the application of the proposed methods for assessing the contractor’s risk in construction companies.

Suggested Citation

  • Galina Shevchenko & Leonas Ustinovichius & Dariusz Walasek, 2019. "The Evaluation of the Contractor’s Risk in Implementing the Investment Projects in Construction by Using the Verbal Analysis Methods," Sustainability, MDPI, vol. 11(9), pages 1-18, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:9:p:2660-:d:229735
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    References listed on IDEAS

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    1. Martin Schieg, 2006. "Risk management in construction project management," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 7(2), pages 77-83.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Ole Jonny Klakegg, 2016. "Project Risk Management: Challenge Established Practice," Administrative Sciences, MDPI, vol. 6(4), pages 1-3, December.
    4. Nerija Banaitiene & Audrius Banaitis, 2012. "Risk Management in Construction Projects," Chapters, in: Nerija Banaitiene (ed.), Risk Management - Current Issues and Challenges, IntechOpen.
    5. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    6. Aven, Terje, 2016. "Risk assessment and risk management: Review of recent advances on their foundation," European Journal of Operational Research, Elsevier, vol. 253(1), pages 1-13.
    7. Larichev, O. I. & Olson, D. L. & Moshkovich, H. M. & Mechitov, A. J., 1995. "Numerical vs Cardinal Measurements in Multiattribute Decision Making: How Exact Is Enough?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 64(1), pages 9-21, October.
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    Cited by:

    1. Vladimir Zhuravlyov & Tatyana Khudyakova & Natalia Varkova & Sergei Aliukov & Svetlana Shmidt, 2019. "Improving the Strategic Management of Investment Activities of Industrial Enterprises as a Factor for Sustainable Development in a Crisis," Sustainability, MDPI, vol. 11(23), pages 1-20, November.

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