Risk assessment and ranking in the developing countries’ construction industry: the case of Jordan

Abstract

Purpose

Risk impedes the success of construction projects in developing countries due to planning in an unpredictable and poorly resourced environment. Hence, the literature suggests that practitioners are not fully aware of how important the risk identification process is. Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry. Therefore, this study highlights this process and identifies the key risks that affect the Jordanian construction industry.

Design/methodology/approach

This study adopted an exploratory sequential mixed approach, two rounds of face-to-face interviews that were conducted in Jordan among 12 experts followed by a questionnaire randomly distributed to 122 practitioners. This study utilized the relative importance index, coefficient of variation, and Mann–Whitney (U) to analyze the data. Also, the factor analysis technique was used to identify and regroup the risk factors to further understand the correlation among the risks.

Findings

The result revealed an agreement among contractors’ and consultants’ responses toward allocating risks. Furthermore, several risks can be traced back to the project communication management process, highlighting a deficiency in the process. Also, four-factor groups were established, the first group includes the risk of defective design, late decisions making by other project participants and poor coordination with the subcontractor. The second group has only the risk of corruption, including bribery at sites. The third group includes stakeholders’ financial instability and inadequate distribution of responsibilities and risks. The fourth group includes adverse weather conditions and the use of illegal foreign labor.

Originality/value

Some of the prior studies identified risks in developing countries without highlighting how they can be beneficial to the practitioners in the industry.

Citation

Hatamleh, M.T., Moynihan, G.P., Batson, R.G., Alzarrad, A. and Ogunrinde, O. (2023), "Risk assessment and ranking in the developing countries’ construction industry: the case of Jordan", Engineering, Construction and Architectural Management, Vol. 30 No. 4, pp. 1344-1364. https://doi.org/10.1108/ECAM-06-2021-0489