Contingency release during project execution: the contractor’s decision-making dilemma

Ayub, Bilal and Thaheem, Muhammad Jamaluddin and Ullah, Fahim ORCID: https://orcid.org/0000-0002-6221-1175 (2019) Contingency release during project execution: the contractor’s decision-making dilemma. Project Management Journal, 50 (6). pp. 734-748. ISSN 8756-9728


Abstract

Risk is inherent in construction projects and managed through contingency. Dynamic management of contingency escrow accounts during project execution poses decision-making challenges. Project managers use key performance indicators (KPIs) for contingency release decisions. However, their subjective mental models influence risk perception, exacerbating the decision-making dilemma. This research integrates project KPIs with future risk perception to develop a mathematical model for facilitating such decision making. Results suggest timely completion, project cost, stakeholder satisfaction, quality and safety as top KPIs, and the influence of managerial pressure as a significant decision contributor. The proposed model helps project managers in dynamic decision making for cost contingency.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 02 Aug 2021 04:42
Last Modified: 01 Sep 2021 01:41
Uncontrolled Keywords: contingency management, contingency release, key performance indicators, mathematical model
Fields of Research (2008): 12 Built Environment and Design > 1202 Building > 120201 Building Construction Management and Project Planning
Fields of Research (2020): 33 BUILT ENVIRONMENT AND DESIGN > 3302 Building > 330202 Building construction management and project planning
Identification Number or DOI: https://doi.org/10.1177/8756972819848250
URI: http://eprints.usq.edu.au/id/eprint/42560

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