An Assessment of Risk Factors Impacting the Cost of Contractor-Led Design and Build Projects

Henry Odeyinka, Keren Larkin, Robert Eadie, Gervase Cunningham

Research output: Chapter in Book/Report/Conference proceedingConference contribution

95 Downloads (Pure)

Abstract

Procurement in use surveys have confirmed a steady increase in the use of design and build procurement method. However, there was also a criticism that the out turn cost of design and build procurement method makes it more expensive than the traditional procurement method. The conjecture in this study is that risk factors inherent in design and build projects are responsible for the observed variance between the contract sum and the out turn cost. Using a set of 37 risk factors, the study utilized an online survey of UK-based construction professionals to evaluate risk impacts on the variance between contract sum and final account in contractor-led design and build projects. Survey responses were analyzed using mean ranking analysis and oneway analysis of variance (ANOVA). Result showed that ‘scope changes’, ‘ambiguous client brief’, ‘scope creep’, ‘insufficient design completion during tender’, and ‘change in employer’s requirement’ are top risk factors impacting the variance between contract sum and final account. The implication of this finding is that it alerts the design and build contractors to specific risk factors they need to pay attention to in their delivery of design and build projects and to devise a proactive approach to their management so as to avoid significant cost overrun.
Original languageEnglish
Title of host publicationUnknown Host Publication
PublisherRoyal Institution of Chartered Surveyors
Number of pages9
ISBN (Print)978-1-78321-160-9
Publication statusPublished - 20 Sep 2016
EventThe Construction, Building and Real Estate Research Conference of the Royal Institution of Chartered Surveyors - George Brown College, Toronto, Canada
Duration: 20 Sep 2016 → …

Conference

ConferenceThe Construction, Building and Real Estate Research Conference of the Royal Institution of Chartered Surveyors
Period20/09/16 → …

Keywords

  • contract sum
  • cost overrun
  • design and build
  • final account
  • risk factors.

Fingerprint Dive into the research topics of 'An Assessment of Risk Factors Impacting the Cost of Contractor-Led Design and Build Projects'. Together they form a unique fingerprint.

  • Cite this

    Odeyinka, H., Larkin, K., Eadie, R., & Cunningham, G. (2016). An Assessment of Risk Factors Impacting the Cost of Contractor-Led Design and Build Projects. In Unknown Host Publication Royal Institution of Chartered Surveyors.