Practical Application of SWOT Analysis in the Management of a Construction Project

Abstract

This analysis shows strengths, weaknesses, opportunities, and threats SWOT from both the investor's and the contractor's point of view in the planning, contracting, and construction phases of a project. With the current market economy, and when private interests provide significant financing, construction within time and budget limits is very important. To identify potential risks for both the investor and the contractor, it is desirable to conduct a SWOT analysis. A decision maker must then decide which risks are worthwhile in order to realize the expected investment benefits. A n analysis of strengths, weaknesses, opportunities, and threats SWOT implies an analysis of the internal possibilities strengths and weaknesses of a project and its external environment opportunities and threats that might be faced during project management. Since risk is present in all aspects of our lives, risk analysis and consideration, as well as risk management, is a universal activity based on common sense, relevant cognition, experience, and application of appropriate procedures. We can understand risk management as a need to recognize and eliminate or at least reduceuncertainty usingcontrolactivities. RESEARCH PROCESS Information about the project environment, together with knowledge of the project's possibilities, enable a team to determine the critical success factors that will satisfy the demands of end product buyers. The analysis, as a rule, includes the team firm managing the construction. Using the analysis, the so-called strategic holes should be discovered , and a clear plan for filling them in should be adopted Fig. 1; Hepworth 1998. It is important to continually evaluate the factors that influence the project's goals-for example, construction time limits, prearranged costs, and quality standards-so they can be addressed by the contractor or by the project manager. After defining the goals, internal and external possibilities for 78 A P R I L 2 0 1 0 Leadership and Management in Engineering Leadership Manage. Eng.