Relating risk to project performance in Indonesian building contracts

I. Putu Artama Wiguna, Stephen Scott*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

28 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)1125-1135
Number of pages11
JournalConstruction Management and Economics
Volume24
Issue number11
DOIs
Publication statusPublished - Nov 2006
Externally publishedYes

Keywords

  • Building project
  • Path analysis
  • Project delay
  • Project performance
  • Risk management

Fingerprint

Dive into the research topics of 'Relating risk to project performance in Indonesian building contracts'. Together they form a unique fingerprint.

Cite this