Risks Borne by Foreign Contractors Doing Business in Turkey

Date

2001-09-07

Author

Birgönül, Mustafa Talat
Dikmen Toker, İrem

Metadata

Show full item record

Item Usage Stats

208
views

0
downloads

In parallel to the increased demand for infrastructure projects, the number of foreign construction companies working in the Turkish construction market has increased considerably starting from the 1990s. Although Turkish construction market is known to be among the markets that have the highest growth potential, Turkey’s high risk rating shadows its attractiveness for foreign investors. As well as the necessity of foreign contractors to effectively manage the country risks, they also face with the challenging task of designing organizational solutions and managerial approaches that are necessary to adapt to market conditions. The objective of this research has been to identify risks faced by foreign contractors that had worked and/or have been working in Turkey and analyse the impact of these risks on the project success. For this purpose, a questionnaire has been designed which is answered by 39 foreign contractors. Within the context of this paper, risk assessments of foreign contractors on the project success will be presented in the light of the survey results. Results demonstrate that, construction-related, financial and legal problems have the highest impact on the project success. Poor communication, organizational and cultural differences with local partners, delays in progress payments, poor dispute resolution mechanism and political instability are among the major difficulties faced by foreign contractors. Majority of the defined risks are impossible to eliminate but impacts can be decreased by effective risk transfer strategies which can be possible mainly by forming successful joint ventures and collaborations during different stages of the construction value chain.

Subject Keywords

Construction market, Project success, Risk, Risk impact

URI

https://hdl.handle.net/11511/72990
https://www.arcom.ac.uk/-docs/proceedings/ar2001-845-853_Birgonul_and_Dikmen.pdf

Conference Name

17th Annual ARCOM Conference (5-7 September 2001)

Collections

Department of Civil Engineering, Conference / Seminar

Suggestions

OpenMETU
Core

Risk Identification in Public Private Partnership Projects Saeed, Kamali; Birgönül, Mustafa Talat; Dikmen Toker, İrem (2018-11-18) Nowadays, investment in building technical infrastructure in Da Nang city has increased rapidly in terms of scale and scope with the broad participation of the whole society. The unstable effects of the surrounding environment and the internal adjustment of the project lead to many fundamental changes that were initially planned and changed the effectiveness of the project. This is the existence of the risk of Public Private Partnerships (PPP) project in investerment of technical infrastructure in Da Nang. ...
A Study on the price escalation system in public construction contracts in Turkey Ercan, Muhammed; Dikmen Toker, İrem; Birgönül, Mustafa Talat; Department of Civil Engineering (2017) The construction industry has a major role in the development of Turkish economy. The construction sector contributes 6-8 % of the gross domestic product of Turkey. At the same time, public investments comprise an important portion in the Turkish construction sector. Medium to large construction projects generally take over a year for completion and cost of materials and labor that are used as resources in construction projects often increase during implementation of construction projects. On the other hand...
Competitiveness of Turkish Contractors in International Markets Birgönül, Mustafa Talat; Dikmen Toker, İrem (2000-09-08) After 1990, there has been a huge growth in the volume of international construction services of Turkish contractors which may be explained by the serious recession in the domestic construction market. As of 2000, Turkish contractors have been working in 49 countries in 4 continents. The aim of this paper is to present findings of a survey conducted to investigate mainly, the sources of competitive advantage and globalisation strategies of Turkish contractors in international markets. 61 construction compan...
The route map of turkish international contracting services – lessons learnt and recommendations for the Sakın, Aydın; Birgönül, Mustafa Talat; Dikmen Toker, İrem; Department of Civil Engineering (2011) International contracting services of the Turkish construction companies started at the beginning of 1970s have great importance on Turkish construction sector and Turkish economy. With increasing and decreasing annual amounts from 1970s to the present date due to several economic, political and social factors; international contracting services showed a tremendous increase compared to the 1972 level. In the 38-years period between 1972 and 2010, Turkish contractors completed a lot of projects in different ...
Development of an IT-based tool for portfolio assessment and management for construction companies Bilgin, Gözde; Dikmen Toker, İrem; Özorhon Orakçal, Beliz; Department of Civil Engineering (2019) Development in the construction industry has leaded most of the construction companies to undertake more complex projects than before, which are generally executed concurrently. Therefore, project management routines of the companies may not support effective management of multi-projects. Project portfolio management approach has been suggested to meet requirements for coordinating multi-projects to meet strategic objectives under limited resources. Since project portfolio management requires a comprehensiv...

Citation Formats

M. T. Birgönül and İ. Dikmen Toker, “Risks Borne by Foreign Contractors Doing Business in Turkey,” University of Salford, 2001, vol. 1, p. 845, Accessed: 00, 2021. [Online]. Available: https://hdl.handle.net/11511/72990.