Project Risk Management for Sustainable Restoration of Immovable Cultural Heritage: Lessons from Construction Industry and Formulation of a Customized PRM Model

The purpose of this research is to introduce and develop a knowledge base for restoration industry aimed at understanding and dealing with risks arising in restoration projects of built and architectural cultural heritage. These projects face a number of risks and are viewed unfavorably from a number of sustainability perspectives. The research study, therefore, is expected to generate interest and debate among the professional and researcher community in the arena of restoration of built cultural heritage for formally applying Project Management (PM) and Project Risk management (PRM) theories and practices. The research method consists of reviewing published literature and analyzing the dynamics of restoration industry (both from academic and practitioner point of view) in order to propose an application framework. Owing to a number of striking similarities between construction and restoration projects (and more so with building renovation and maintenance), an attempt is made in order to align this study nearest to the construction sector, incorporating the lessons learnt in that area. Building upon and taking inspiration from the fundamentals of Construction Management, this thesis proposes a framework which is supposed to methodically apply risk management within the proposed project management stages. Research results seem to have confirmed that the restoration industry has not yet exposed to formal PM and PRM theories and practices to a greater level. Thus there is enormous impetus and ensuing incentive with the incorporation of formal theories and customized tools as proposed by this research, which attempts to target the exceedingly important area of cultural heritage restoration and the missing aspect of PM and PRM. Further, the proposed framework is an attempt at bridging communication gaps between management and restoration experts. Thus, it highlights the importance of scientifically and effectively managing restoration projects. Nevertheless, this uniting attempt has its own risks in terms of terminologies, technical language, and the understanding of risk and its management which may be a practical limitations as in the field of engineering also, the foundation of PM and PRM areas of knowledge finds its traces in Construction Management - which is further an application of management in construction engineering - it's rather challenging to reconcile knowledge from different areas. Further, the study explores issues concerning sustainability of restoration projects based on their use of PM and PRM. Results are expected to help stakeholders of restoration projects understand and apply the proposed PRM framework. This study is also aimed at developing a foundation for dissemination of PM and PRM knowledge in restoration industry, and provides impetus for future studies to examine how restoration projects can deal with risky situations. Based on the emphasis on sustainable development aspects of restoration projects for facilitating the stakeholders of built cultural heritage in taking critical decisions (because if not managed properly, the risks in a restoration project may either cause project failure or damage the historical buildings), it can be stated that this study has some potential sustainability implications. Therefore, from society's sustainability perspective, it is imperative that stakeholders identify, analyze, control and manage risks before commencing the restoration activities. The study is an original effort in examining the penetration of PM and PRM practices in restoration industry. Based on it, the study proposes an original framework for application of formal PRM for restoration projects. Results are of relevance in today's world where risks hinder and sustainability guides the decision makin

Risk Analysis in Construction Projects: A Practical Selection Methodology

Project Risk Management (PRM) is gaining attention from researchers and practitioners in the form of sophisticated tools and techniques to help construction managers perform risk management. However, the large variety of techniques has made selecting an appropriate solution a complex and risky task in itself. Accordingly, this study proposes a practical framework methodology to assist construction project managers and practitioners in choosing a suitable risk analysis technique based on select project drivers. Additionally, the methodology transforms the traditional triple constraints by broadening the focus from the project to a combination of the project and PM organization. Scale harmonization is achieved by dividing the selected project drivers and risk analysis categories into four levels. The applicability and efficiency of the methodology is demonstrated in two actual construction projects by creating a radar chart and performing their ex-post risk analysis with the help of the developed technique. The study contributes to the existing body of knowledge on PRM as a practical tool that helps project managers select suitable risk analysis techniques under given project characteristic

A Survey on Usage and Diffusion of Project Risk Management Techniques and Software Tools in the Construction Industry

The area of Project Risk Management (PRM) has been extensively researched, and the utilization of various tools and techniques for managing risk in several industries has been sufficiently reported. Formal and systematic PRM practices have been made available for the construction industry. Based on such body of knowledge, this paper tries to find out the global picture of PRM practices and approaches with the help of a survey to look into the usage of PRM techniques and diffusion of software tools, their level of maturity, and their usefulness in the construction sector. Results show that, despite existing techniques and tools, their usage is limited: software tools are used only by a minority of respondents and their cost is one of the largest hurdles in adoption. Finally, the paper provides some important guidelines for future research regarding quantitative risk analysis techniques and suggestions for PRM software tools development and improvement

Project Risk Management for Sustainable Building Repair & Maintenance in Developing Countries

Building repair & maintenance (R&M) are inevitable: building omponents deteriorate with time due to aging, constant use - causing wear and tear, possible design and construction defects, and the consequences of environmental agents and vulnerabilities. The situation worsens in developing countries where large number of externalities dictates the R&M decisions: lack of budget, enforcing regulation and building standards to name a few. These and other inherent uncertainties grow to be considerable risks of peculiar nature, which demand an active and customized management. The need to manage risk of R&M projects is paramount: starting from affective identification to seamless analysis, and suitable response planning to meticulous monitoring and control, a custom-structured project risk management (PRM) framework - a combination of specialized tools and techniques - will greatly help by considering how risky these undertakings are, dealing with apparent threats and converting them into opportunities. To this end, this paper, after reviewing the R&M state of affairs in developing countries, proposes a functional PRM framework to manage R&M ris

Risk-Adjusted Contingency Management in Construction Projects

Successful project management (PM) aims at achieving the triple-constraint (time, cost and quality), respecting the elasticity between the three main drivers. To facilitate this, PM activities are supported by project risk management (PRM) in foresight and earned value management (EVM) in hindsight. Both PRM and EVM, being industry standards, facilitate to plan, and afterwards monitor and control the project cost. However, the two fields do not necessarily interact with each other which, in turn, hinders critical managerial decision making of releasing contingency reserves if demanded by the client since the money can be used as capital for other projects. Also, when inquired at any given point in time (corresponding to partial project completion), the project managers (PMs) find it tricky and challenging to confidently declare the adequacy of existing reserves till the project completion This provides research impetus for potential EVM-PRM integration and managing the contingency adjusted due to risk in the project. There is hardly any literature on this integration, resulting in lack of any viable framework to facilitate critical decision making. With objective to formulate a framework - coupled with necessary tools and techniques - this paper proposes the incorporation of EVM and PRM which aims at not only expanding the body of knowledge in the field of ‘project control'1 but also assist the PMs in securely and successfully steering the project to close out. The research is still in progress and no conclusive details are furnished as ye

Construction Risk Taxonomy: An International Convergence of Academic and Industry Perspectives

Risk management is a topic heavily researched and important for industry professionals. Both academic and industry perspectives are critical to advancing this field, especially in risk identification and taxonomy. A unique comparison and convergence of these perspectives is developed in order to understand the most relevant risks for projects and to ensure they are addressed in the risk management process. This comparison is created via a content analysis of the relevant literature and a survey to industry professionals. The differences and similarities among risks are analyzed, revealing that both perspectives emphasize financial/economic risks. The literature tends to focus on political; acts of God classified risks, whereas the industry places emphasis on regulatory risks. An elaboration of variations is performed aiming to improve the literature-based taxonomy taking into account the industry perspective to ensure its risk management process responds to these risks and provides a clearer focus towards future research

Dynamic Management of Risk Contingency in Complex Design-Build Projects

Contingency budgets are commonly used by managers to respond to uncertainty and control the project within the original cost and schedule targets. However, a variety of project participants with conflicting interests creates tensions when it comes to managing the risk contingency escrow account during the project development, and divergences often arise over the need for either retaining the unspent contingencies (for future risk and improved facility) or releasing it as a profit. With the purpose of studying the dynamics and main influences involved in the risk contingency management process of a design-build (DB) project, a system dynamics (SD) contingency management model is proposed to simulate the decision-making scenarios, under different project conditions and behavioral pressures of senior managers and owners. The model suggests that an aggressive proactive risk management practice might be an effective policy for managing the contingency budget in a complex engineering, procurement, and construction (EPC) projec

Risk-Adjusted Contingency Management in Construction Projects

Successful project management (PM) aims at achieving the triple-constraint (time, cost and quality), respecting the elasticity between the three main drivers. To facilitate this, PM activities are supported by project risk management (PRM) in foresight and earned value management (EVM) in hindsight. Both PRM and EVM, being industry standards, facilitate to plan, and afterwards monitor and control the project cost. However, the two fields do not necessarily interact with each other which, in turn, hinders critical managerial decision making of releasing contingency reserves if demanded by the client since the money can be used as capital for other projects. Also, when inquired at any given point in time (corresponding to partial project completion), the project managers (PMs) find it tricky and challenging to confidently declare the adequacy of existing reserves till the project completion This provides research impetus for potential EVM-PRM integration and managing the contingency adjusted due to risk in the project. There is hardly any literature on this integration, resulting in lack of any viable framework to facilitate critical decision making. With objective to formulate a framework - coupled with necessary tools and techniques - this paper proposes the incorporation of EVM and PRM which aims at not only expanding the body of knowledge in the field of ‘project control’1 but also assist the PMs in securely and successfully steering the project to close out. The research is still in progress and no conclusive details are furnished as yet

Labor Productivity Assessment Using Activity Analysis on Semi High-Rise Building Projects in Pakistan

Construction organizations strive to increase their competitiveness by reducing the project costs especially labor cost. Optimizing labor productivity will ensure value for money. In the face of no guidelines available for local construction industry, research must be directed to benchmark construction labor productivity in building projects of Pakistan. Based on a thorough review of established productivity assessment methods, Activity Analysis is performed on five local semi high-rise building projects. Statistical analysis is carried out to identify labor productivity trends in seven standard areas. Further, sensitivity analysis is carried out to characterize the positive and negative influencers. It is revealed that labor spends a little more than one-third of working time in direct and support activities each, and one-quarter in delay activities. Furthermore, delay and support activities are correlated with direct work. Direct work is observed at its peak during midday hours, and lowest during the start and end of workday. The study is an original effort in benchmarking the labor productivity in construction projects of Pakistan. Based on the findings, productivity improvement strategies are proposed from which projects can benefit in the form of optimized costs and schedules. Results are of relevance towards understanding the labor productivity in developing countries