Using fuzzy risk assessment to rate cost overrun risk in international construction projects

Date

2007-07-01

Author

Dikmen Toker, İrem
Birgönül, Mustafa Talat

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Determination of an appropriate mark-up while bidding for international construction projects is a critical decision. Level of mark-up is a function of risks associated with a project. Construction companies may benefit from a tool that helps them to assess the level of risk so that they can determine an appropriate mark-up. The aim of this paper is to propose a fuzzy risk assessment methodology for international construction projects and develop a tool to implement the proposed methodology. The proposed methodology uses the influence diagramming method for construction of a risk model and a fuzzy risk assessment approach for estimating a cost overrun risk rating. A computerized system has been developed for an international construction company and applicability of this system during risk assessment at the bidding stage has been tested by using real company and project information. Although the developed tool is company-specific, similar tools may be developed for other companies using the same methodology and expert judgments that reflect different company objectives and risk policies.

Subject Keywords

Management of Technology and Innovation, Business and International Management

URI

https://hdl.handle.net/11511/34664

Journal

INTERNATIONAL JOURNAL OF PROJECT MANAGEMENT

DOI

https://doi.org/10.1016/j.ijproman.2006.12.002

Collections

Department of Civil Engineering, Article

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Citation Formats

İ. Dikmen Toker and M. T. Birgönül, “Using fuzzy risk assessment to rate cost overrun risk in international construction projects,” INTERNATIONAL JOURNAL OF PROJECT MANAGEMENT, pp. 494–505, 2007, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/34664.