Factors affecting contractors' risk attitudes in construction projects: Case study from China

Abstract

Risk-based decision making (RBDM) is critical in successful construction project management, in which decision makers' attitudes towards risks play an important role. Most previous studies in construction project risk management have been focusing on the factors contributing to the success of risk management, but little attention was given to factors significantly affecting decision makers' risk attitudes in construction projects. To improve RBDM, we investigate the critical factors affecting contractors' risk attitudes in construction projects in China in this research. Literatures reviews, interviews and questionnaires are used for the identification of factors affecting contractors' risk attitudes. Statistical methods of ranking analysis and factor analysis are also implemented for verification and further analysis. The results show that the most important three factors are: "consequences of decision making", "engineering experience", and "completeness of project information" Results from factor analysis on the identified critical factors reveal that they can be grouped into four categories, namely: (1) knowledge and experience; (2) contractors' character; (3) personal perception; and (4) economic environment. The significance of this research is that the findings do not only provide decision making support for contractors by deepening their understandings of the factors that affect their risk attitudes, but also serve as a useful reference for further studies under this topic. © 2010 Elsevier Ltd and IPMA.