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http://www.iaeme.com/IJCIET/index.asp 771 [email protected]
International Journal of Civil Engineering and Technology (IJCIET)
Volume 9, Issue 5, May 2018, pp. 771–783, Article ID: IJCIET_09_05_086
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=5
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
© IAEME Publication Scopus Indexed
AN ANALYTICAL APPROACH FOR
IDENTIFICATION OF UNCERTAINTITES AND
PRIORTIZING THE FACTORS CAUSING
UNCERTAINITIES IN CONSTRUCTION
INDUSTRY USING RELATIVE IMPORTANCE
INDEX (RII)
T. Ganesh Anurag
P.G. Student, Department of Civil Engineering, K.L.E.F, Guntur, A.P, India
D. Satish Chandra
Assistant Professor, Department of Civil Engineering, K.L.E.F, Guntur, A. P, India
SS. Asadi
Associate Dean and Professor, Department of Civil Engineering, K.L.E.F, Guntur, A. P, India
ABSTRACT:
Construction sector is considered as a prominent sector in back lifting the Indian
economy next to that of agro-based sectors, not only acts a support in improving the
economic scenario but also a complex sector which comprises lot of risks and complex
processes will also include while executing the projects, Managing all the processes
will be the challenging task for management team of the organisations. As we know
that risk is nothing but an uncertainty or some threat which changes the entire
scenario of project. Sudden occurrence of such risks will show their influence on cost,
quality and duration of the project. In order to prevent such adverse scenarios, each
organisation should develop an individual risk management system on its own in
order to prevent effect of various risks on the project. The prime objective of this
research work is to identify the various risk causing factors in the construction
industry, and a questionnaire survey is conducted by selecting 25 factors on 5 point
scale, and responses were collected from various experts and ranking of those factors
were given through Relative Importance Index (RII).
Keywords: Back lifting, complex processes, ranking, Relative importance index (RII).
An Analytical Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII)
http://www.iaeme.com/IJCIET/index.asp 772 [email protected]
Cite this Article: T. Ganesh Anurag, D. Satish Chandra and SS. Asadi, An Analytical
Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII),
International Journal of Civil Engineering and Technology, 9(5), 2018, pp. 771–783.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=5
1. INTRODUCTION:
Risk can be defined as the event that negatively affects the project objectives such as time,
schedule, cost and quality of work. Any industry or organisation is not risk free, every
industry will have their own uncertainty (risks) depending upon the projects, comparing to
other industries or sectors the construction sector will involve various types of risks at each
and every stage of the project, Although construction sector is 2nd
largest sector in upbringing
the Indian economy, it had very poor track record of in term of managing risks as a result
sometimes it’s become failure in meeting the timeline of the project , quality and scope of the
work. As a result, a lot of suffering is inflicted to the clients and contractors of such projects
and also to the general public. Managing risks is becoming a very tough job for managing
teams in various organisations. As earlier we said that “Risk in the construction adversely
effects the physical objectives of the project, cost and time”, and construction risks may
related to the design, political, environment, financial, and socio- economic risks. In order to
manage these types of risks each and every organisation should develop or implement an
individual risk management system. From the past mid 1980’s many methodologies had been
implemented for risk management system, and risk management is studied as one of the nine
research areas of the project management life cycle process. Risk identification is nothing but
the process of recognising the various types of uncertainties that take place in the organisation
which may cause due to the lack of management skills, stakeholder’s management,
contractor’s or engineering negligence in the site, or any other socio-economic factors in the
construction area. Delay in identification of such risks or uncertainties, may shows huge
impact on quality of the work.
It is main duty of a project manager to identify such uncertainties and to implement a
proper system to eradicate such adverse scenarios. Risk assessment is nothing but estimating
the severity of occurrence of risks and to study their impact on the projects. Both risk
identification and assessment are the integrated parts of the risk management system. Many
researchers, field experts and practisers had suggested many methodologies like PI method,
Severity index to study severity of delay and risks that occurred in the project, Frequency
index method to verify the frequency of occurrence of the risks, and IMPI based on both SI
and FI, Relative Importance Index(RII), Kendall’s coefficient of concordance (W),
Spearman's rank correlation coefficient or Spearman's rho (ρ) or rs, TOPSIS (The Technique
for Order of Preference by Similarity to Ideal Solution), Complex Proportional Assessment
Of Alternatives to Grey relations (COPRAS-G method), and Analytical Hierarchy Processes
(AHP) and various statistical methodologies like AIC, Regression techniques, Fault tree
analysis (FTA) , Analysis of Variances(ANOVA) were suggested to analyse the risk severity
by comparing quality , cost and duration of projects. And project management tools like Gantt
chart, bar chart, CPM, PERT, and software’s like Primavera, MSP are used to check the risk
in project duration (Occurrence of delays in project work). The main intention behind to
choose Relative Importance Index (RII) method, as it is easy to explain / rank the severity of
risk causing factors from the responses that received by using formula.
RII = ∑W/A*N
T. Ganesh Anurag, D. Satish Chandra and SS. Asadi
http://www.iaeme.com/IJCIET/index.asp 773 [email protected]
Relative Importance Index (RII): - ∑W/A*N; Where, W is the weighting given to each
factor by the respondents (ranging from 1 to 5), A represents the highest weight (i.e. 5 in this
case), and N is the total number of respondents that received. By using this method it is easy
to assess the impact of risk on the project, by observing the RII value of that factor. An
organisation is said to be successful, when it achieve the quality in the output of the project
and when it fulfil the customer requirements by constructing the project as per the
specification mentioned in the Indian Standard (IS) codes, and various specifications
recommended by the various field experts.
2. OBJECTIVES:
1. To identify various risks in the construction sector.
2. Identification of relation between risk management and project performance.
3. Ranking of risk causing factors through responses by conducting questionnaire survey.
3. METHODOLOGY:
3.1. Data Collection
In order to perform the questionnaire survey 25 questions had been selected from various
factors which leads to cause of political risks, technical risks, socio-economic risk and
financial risks and 50 responses were collected. And sample question in questionnaire survey
was shown below:
Problems in Acquisition and Land use
Strongly agree (5)
Agree (4)
Disagree (3)
Strongly disagree (2)
Not applicable (1)
And each response in questionnaire survey is analysed by using Relative Importance
Index (RII)
RII = ∑W/A*N
RII= (5n5 + 4n4 +3n3+ 2n2+ 1n1) /A*N
where ∑W = 5n5 + 4n4 +3n3+ 2n2+ 1n1, (1-5) is likert scale values, and (n1, n2, n3, n4, n5 )
are the no. of responses recorded for each opinion in the questionnaire.
3.2. Field data
From the research, the factors which lead to cause of risks like Political risks, financial risks,
Technical risks, Project Management risks, and risks due to Socio- Economic conditions,
were identified.
The factors causing major risks in the construction projects were tabulated as follows:
An Analytical Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII)
http://www.iaeme.com/IJCIET/index.asp 774 [email protected]
Table 1 Various Risk Causing Factors in Construction Industry
Sl.no Factors Causing Risks
1 Problems in Acquisition and Land use
2 Risk due to administrative policies
3 Risk due to technical expertise
4 Risk due to redesign and alterations as required by rating systems
5 Unexpected issues in Transportation & storage of materials
6 Problems in Site Mobilization
7 Delays and Rework due to design alteration
8 Problems with site execution procedures
9 Inadequate duration of activity
10 Delay in identification of Schedule errors of project activities
11 Temporary demand of increase in price of materials
12 Pressure from political parties
13 Non availability of resources
14 Loosing of critical staff at crucial point
15 Impact of weather condition on completion of project
16 Variation of cost from current position to after completion of work
17 Selection of Contractual systems
18 Project manager abilities in handling and management of risks
19 Lack of Co-ordination between PM and Engineer
20 Sudden Change of Financial Situation
21 Financial Capabilities of Management
22 Experience of Project Manager
23 Improper allocation of Risks
24 Lack of proper co-ordination between clients and Project management
25 Hiring of Unskilled labour
3.3. Data Analysis:
Relative Importance Index (RII): Relative Importance Index is calculated for each of the
indicators and ranked accordingly. The RII derived to summarize the importance of each
indicator:
Where, W = weighting as assigned on Likert’s scale by each respondent in a range from 1
to 5 (1- not acceptable, 2- disagree, 3- strongly disagree, 4- agree, 5- strongly agree), where A
= Highest weight (here it is 5); N =Total number in the sample
Formula for RII: - RII = ∑W/A*N; where ∑W = 5n5 + 4n4 +3n3+ 2n2+ 1n1
RII = ∑W/A*N; where ∑W = 5n5 + 4n4 +3n3+ 2n2+ 1n1
RII = (5(15) + 4(33) + 3(1) + 2(1) + 1(0)) / 5*50
= 0.848
T. Ganesh Anurag, D. Satish Chandra and SS. Asadi
http://www.iaeme.com/IJCIET/index.asp 775 [email protected]
3.4. Research Methodology Flow chart:
4. RESULTS AND DISCUSSIONS:
As per survey, response of factors were analysed in detail as follows:
Figure 1 Pie Chart Representing the Expert Response
to the Factor Which Leads To Cause of Risk in Site
Area
Figure 2 Pie Chart Representing Expert Response to
the Factor Which Leads To Cause of Administrative
Risk
Problems in Acquisition and
Land use
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Risk due to administrative
policies
strongly agree Agree
Strongly Disagree Disagree
Not Acceptable
An Analytical Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII)
http://www.iaeme.com/IJCIET/index.asp 776 [email protected]
Figure 3 Pie Chart Representing Expert Response to
the Factor Which Leads To Cause of Risk Due To
Improper Allocation or Recruitment of Unskilled
Employee in Organisation
Figure 4 Pie Chart Representing Expert Response To
The Factor Which Leads To Cause Of Risk Due To
Improper Execution Of Plan And Negligence Of Site
Engineer And Contractor
Figure 5 Pie Chart Representing Expert Response To
The Factor Which Leads To Cause Of Risk Due To
Improper Planning And Improper Resource
Management
Figure 6 Pie Chart Representing Expert Response to
the Factor Which Leads To Cause of Risk Due To
Negligence of Site Engineers and Contractor
Figure 7 Pie Chart Representing Expert Response to
the Factor Which Leads to Cause of Technical Risk
Figure 8 Pie Chart Representing Expert Response to
the Factor Which Leads To Cause of Construction Risk
Risk Due To Technical
Expertise
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Risk due to redesign and
alterations as required by rating
systems
Strongly AgreeAgreeStrongly disagreeDisagreeNot Acceptable
Un expected issues in
transportation and storage of
materials
Strongly agree Agree
Strongly Disagree Disagree
Not Acceptable
Problems in Site Mobilization
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Delays and rework due to
design alterations
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
Problems with site execution
procedures
Strongly agree Agree
Strongly Disagree Disagree
Not Acceptable
T. Ganesh Anurag, D. Satish Chandra and SS. Asadi
http://www.iaeme.com/IJCIET/index.asp 777 [email protected]
Figure 9 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Risk Due to Improper Planning
Figure 10 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Project Management Risk
Figure 11 Pie Chart Representing Expert
Response to The Factor Which Leads to Cause
Of Risk Due to Improper Planning And Cost
Management
Figure 12 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Political Risk
Figure13 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Risk due to Improper Resource Allocation
Figure 14 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Organizational Risk
Inadequate duration of activity
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
Delays and rework due to
design alterations
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
Temporary demand of increase
in price of materials
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
Pressure from political parties
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
Non Availability of resources
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
Loosing of critical Staff at a
critical point
Strongly Agree Agree
Strongly Disagree Disagree
Not Acceptable
An Analytical Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII)
http://www.iaeme.com/IJCIET/index.asp 778 [email protected]
Figure15 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Risk Due To Climatic Conditions
Figure 16 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Project Management Risk
Figure 17 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Organisation Risk
Figure 18 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Project Management Risk
Figure 19 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Project Management Risk
Figure 20 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Financial Risk
Impact of weather condition on
completion of project
Strongly Agree Agree
Strongly disagree Disagree
Not Acceptable
Variation of cost from current
position to after completion of
work
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Selection of Contractual
Systems
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Project Manager abilities in
handling and management of
skills
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Lack of co-ordination between
PM and Engineer
Strongly Agree Agree
Strongly disagree disagree
Not Acceptable
Sudden change of Finanicial
situation
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
T. Ganesh Anurag, D. Satish Chandra and SS. Asadi
http://www.iaeme.com/IJCIET/index.asp 779 [email protected]
Figure 21 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Financial Risk and Organizational Risks
Figure 22 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Project Management Risk
Figure 23 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Organisational Risk
Figure 24 Pie Chart Representing Expert
Response to the Factor Which Leads to Cause of
Project Management Risk
Figure 25 Pie Chart Representing Expert Response to the Factor Which Leads to Cause of Project
Management Risk and Organisation Risk
Financial Capabilities of
Management
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Experience of project manager
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Improper Allocation of Risks
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
Lack of co-ordination between clients
and Project Management
Strongly Agree Agree
Strongly disagree Disagree
Not Acceptable
Hiring of unskilled labour
Strongly agree Agree
Strongly disagree Disagree
Not Acceptable
An Analytical Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII)
http://www.iaeme.com/IJCIET/index.asp 780 [email protected]
As per RII analysing of the survey, results in the given below table has been observed,
from analysis it was identified that risks due to political pressures, financial situation, in
efficiency of project managers, risk due to hiring of unskilled labour, and disturbances in the
organisation, improper resource management and for in case of construction of infrastructure
projects selection of contractual systems will show high impact on the construction of the
projects. Of course change of weather and change of financial scenarios also show high
impact on the quality cost and duration of the project.
Table 2 Relative Importance Index (RII) values for all the factors
S.no Factors causing Risk RII value
1 Problems in Acquisition and Land use 0.848
2 Risk due to administrative policies 0.820
3 Risk due to technical expertise 0.836
4 Risk due to redesign and alterations as required by rating systems 0.816
5 Unexpected issues in Transportation & storage of materials 0.792
6 Problems in Site Mobilization 0.824
7 Delays and Rework due to design alteration 0.564
8 Problems with site execution procedures 0.792
9 Inadequate duration of activity 0.780
10 Delay in identification of Schedule errors of project activities 0.764
11 Temporary demand of increase in price of materials 0.764
12 Pressure from political parties 0.816
13 Non availability of resources 0.860
14 Loosing of critical staff at crucial point 0.860
15 Impact of weather condition on completion of project 0.820
16 Variation of cost from current position to after completion of work 0.760
17 Selection of Contractual systems 0.796
18 Project manager abilities in handling and management of risks 0.880
19 Lack of Co-ordination between PM and Engineer 0.812
20 Sudden Change of Financial Situation 0.892
21 Financial Capabilities of Management 0.872
22 Experience of Project Manager 0.860
23 Improper allocation of Risks 0.852
24 Lack of proper co-ordination between clients and Project management 0.820
25 Hiring of Unskilled labour 0.816
T. Ganesh Anurag, D. Satish Chandra and SS. Asadi
http://www.iaeme.com/IJCIET/index.asp 781 [email protected]
Figure 26 Graph representing RII values of risk causing factor
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1
Problems in Acquisition and Land use
Risk due to administrative policies
Risk due to technical expertise
Risk due to redesign and alterations as required by ratingsystems
Unexpected issues in Transportation & storage of materials
Problems in Site Mobilization
Delays and Rework due to design alteration
Problems with site execution procedures
Inadequate duration of activity
Delay in identification of Schedule errors of project activities
Temporary demand of increase in price of materials
Pressure from political parties
Non availability of resources
Loosing of critical staff at crucial point
Impact of weather condition on completion of project
Variation of cost from current position to after completionof work
Selection of Contractual systems
Project manager abilities in handling and management ofrisks
Lack of Co-ordination between PM and Engineer
Sudden Change of Financial Situation
Financial Capabilities of Management
Experience of Project Manager
Improper allocation of Risks
Lack of proper co-ordination between clients and Projectmanagement
Hiring of Unskilled labour
Risk / Uncertanities causing factors in Construction Industry
An Analytical Approach for Identification of Uncertaintites and Priortizing the Factors Causing
Uncertainities in Construction Industry Using Relative Importance Index (RII)
http://www.iaeme.com/IJCIET/index.asp 782 [email protected]
This research identifies various risk factors which effect the growth of construction and
study on Relative Importance Index (RII) is done in order to rank the major factors leads to
cause of the risk in the construction field. Factors like in ability of project manager, change in
the financial scenario, sudden exit of project manager, improper resource management, and
changes in environment conditions and also in socio-economic conditions shows high impact
on the quality of the project and after observing all these, this paper suggests that a proper risk
management system with various new methodologies and techniques should be arranged in
the organisation, and it is main responsibility of the project manager to monitor the
performance of project regularly for better output and to meet the customer satisfaction,
because of the proper monitoring and controlling only the quality of the project will be
obtained, As successful completion of projects with quality output will help the sector to
sustain for long time and development of nation will also takes place.
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