RISK-RESPONSIVE STRATEGIES BY LOCAL CONTRACTORS FOR INTERNATIONAL INDUSTRIAL CONSTRUCTION PROJECTS IN VIETNAM

Abstract

Inefficient construction risk management mainly contributes to project delay and cost overrun for Vietnamese construction firms in international construction environments. The main task of Vietnamese contractors is to respond to critical risks appropriately to achieve project goals. This research investigates risk-responsive strategies by Vietnamese contractors of international industrial construction projects (IICPs) in Vietnam. The risks in IICPs are compiled and verified by a group of IICP experts from contractors and consultants through in-depth interviews and questionnaire surveys. The allocation of such risks is identified through analyzing actual IICP contracts. The research examines the risk-responsive strategies for each risk factor by different contractors. A two-round Delphi process is adopted to conclude the contractors' risk-responsive strategies. The results shows that there are 29 risk factors for IICPs. Among them, 25 risk factors are responsible by the contractor, and the other 4 risk factors are borne by the owner. The research also identifies nine major criteria that the contractors consider when choosing appropriate risk-responsive strategies. These results can be used to create risk management systems for ICCPs. Furthermore, based on the proposed criteria contractors can adopt appropriate risk-responsive strategies to achieve project goals.