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Relating risk to project performance in Indonesian building contracts

Author

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  • I Putu Artama Wiguna
  • Stephen Scott

Abstract

A construction project is unique, specific and dynamic, and therefore projects have different levels and combinations of risks, different responses are taken to minimise those risks and different consequences affect project performance. The primary aim of this study was to analyse the impacts of perceived project risk on project performance. A path model was developed and path analysis was used to determine the relationships between risk and performance. The main survey was predominantly based on a series of interviews with project managers. A total of 22 building projects under construction were surveyed; however, only 13 projects used an 'S' curve to monitor their project performance. The study focused on these 13 projects and found that perceived project risk had a direct negative effect on monthly progress achievement, while monthly progress had a direct positive impact on schedule performance. Although project risk had no direct effect on schedule performance, this was influenced indirectly with monthly progress as the mediator between them. These findings indicate that the higher the project risk in a project, the greater the negative impact on monthly progress, and consequently the worse the schedule performance will be.

Suggested Citation

  • I Putu Artama Wiguna & Stephen Scott, 2006. "Relating risk to project performance in Indonesian building contracts," Construction Management and Economics, Taylor & Francis Journals, vol. 24(11), pages 1125-1135.
  • Handle: RePEc:taf:conmgt:v:24:y:2006:i:11:p:1125-1135
    DOI: 10.1080/01446190600799760
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    Cited by:

    1. Hung Duy Nguyen & Laura Macchion, 2023. "Risk management in green building: a review of the current state of research and future directions," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2136-2172, March.
    2. Guiliang Su & Rana Khallaf, 2022. "Research on the Influence of Risk on Construction Project Performance: A Systematic Review," Sustainability, MDPI, vol. 14(11), pages 1-19, May.

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