Construction Project Risk Management with Linguistic Data: A Case of a Construction Project in Kunming, the People’s Republic of China

Abstract

Most risk assessment tools are cumbersome, especially for a complex system like a construction project. They need skilled staff and experienced management in construction projects to determine. However, in practice, the risk management team is scarce. This study proposes a practical risk assessment tool available for mid-level management. Accordingly, it can be deployed without a doubt.

Furthermore, the proposed risk assessment tool includes linguistic data determined by triangular fuzzy numbers. It allows an assessor to make a decision barely. A sample construction project in Kunming shows that financing investment risk is the most critical, with RPN = 0.275. The second one is construction phase risk, with RPN = 0.253. Management must focus on supervision in the construction phase and be aware of the economic instability in China.

The proposed risk assessment procedure also proposed a logic of selecting risk mitigation strategies by deploying Pareto rule and the sample construction project disclosed some risk mitigation scheme in this report.

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