Assessment of Risk Management Capability in Construction Projects

This report delves into the critical aspects of risk management within the construction industry. It begins by outlining the significance of risk management capability, highlighting its impact on project success and the challenges faced, such as lack of skilled labor and high insurance costs. The report focuses on the best value procurement method as a key strategy for enhancing project performance, discussing evaluation criteria and the importance of risk assessment. It examines the findings of research, emphasizing factors like quality of workmanship, contractor efficiency, and customer satisfaction. Furthermore, the report underscores the importance of evaluating contractor risk maturity to improve project outcomes and address the industry's complexities. Through case study analysis and empirical evidence, the report provides a comprehensive understanding of how effective risk management and procurement strategies can contribute to the successful completion of construction projects.

Running head: RISK-MANAGEMENT CAPABILITY
Risk-Management Capability

RISK-MANAGEMENT CAPABILITY
Table of Contents
1. Introduction..................................................................................................................................3
2. Outline of the discussion.............................................................................................................3
3. Intention and content of the article..............................................................................................3
4. Research method used in the selected article..............................................................................4
5. Findings of the research...............................................................................................................4
6. Issues highlighted by the authors.................................................................................................4
7. Discussion of the conclusion of the article..................................................................................4
8. Relevancy of the article...............................................................................................................5
9. Conclusion...................................................................................................................................5
10. References..................................................................................................................................6

RISK-MANAGEMENT CAPABILITY
Article: Using Best-Value Procurement to Measure the Impact of Initial Risk-Management
Capability on Qualitative Construction Performance
1. Introduction
There are diverse categories of challenges related to the construction industry such as
lack of communication, lack of skilled workers, high insurance cost and documentation
management (Shen et al. 2017). Thus the risk management capability of a risk manager is very
much significant for the efficacious accomplishment of the construction projects (Bizon-Górecka
and Górecki 2017).
2. Outline of the discussion
This article outlined the significance of the evaluation criteria which can be considered
by the risk manager of construction projects (Perrenoud et al. 2017). The article also helped in
understanding that the quality of the final outcome of the construction project and procurement
procedure of the materials which are used in the construction projects can be improved with the
help of best value model.
3. Intention and content of the article
The prime purpose of the article is to focus on the best value method which has to be
considered in the risk management plan which is usually created by the project contractors. The
article evaluates the effectiveness of best value selection model, significance of the risk
assessment procedure in construction projects, and a case study analysis suggesting the ways to
improve the project performance of the construction industry.

RISK-MANAGEMENT CAPABILITY
4. Research method used in the selected article
Average RMP Scores and a closeout survey was conducted by the researchers of this
article. This article contains both case study analysis which highlights the significance of the best
value selection model (Perrenoud et al. 2017. The discussions of this article is supported with the
help of empirical evidence as well.
5. Findings
The research is useful for the readers to understand the factors which have to be
considered for the procurement process of construction projects such as the prices of the products
and invoice approval payment. The research found out that quality of workmanship,
professionalism and management ability of the risk manager, maintaining customer satisfaction,
addressing the risks associated with the construction projects can play a huge role to maintain the
quality of a construction project.
6. Issues
The researchers of the article highlighted that the efficiency of the contractors could play
a leading role to maintain the quality of the final outcome of the construction projects.
7. Conclusion of the article
Evaluating contractors risk maturity is very much significant to maintain the quality of
the construction project (Zhong, Qin and Li 2018). The risk management process adopted by the
construction agencies must be improved to deal with the challenges of construction projects.

RISK-MANAGEMENT CAPABILITY
8. Relevancy
The article comprehends the procedure by which the procurement process and risk
management process can have a significant impact on the final outcome of the construction
projects.
9. Conclusion
Challenges faced in the construction industry such as lack of skilled labour, higher
insurance cost and document management can be solved with the help of best value selection
model. The efficiency of the contractors plays a huge role to maintain the quality of the final
outcome of construction projects. Factors such as prices of the products and invoice approval
payment has to be considered in the procurement process in order to address the risks of the
construction project and deal with the complications of this industry.

RISK-MANAGEMENT CAPABILITY
10. References
Bizon-Górecka, J. and Górecki, J., 2017. Tasks of risk manager in the construction enterprise.
Acta Scientiarum Polonorum. Architectura, 16(2).
Perrenoud, A., Lines, B.C., Savicky, J. and Sullivan, K.T., 2017. Using best-value procurement
to measure the impact of initial risk-management capability on qualitative construction
performance. Journal of Management in Engineering, 33(5), p.04017019.
Shen, W., Tang, W., Wang, S., Duffield, C.F., Hui, F.K.P. and You, R., 2017. Enhancing trust-
based interface management in international engineering-procurement-construction projects.
Journal of Construction Engineering and Management, 143(9), p.04017061.
Zhong, W., Qin, S. and Li, X., 2018. Addressing Challenges in Construction Project
Management Process. International Journal of Innovation, Management and Technology, 9(1).