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Author: search.filters.author.Gallage, SSubject: search.filters.subject.contracts

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    PublicationOpen Access
    Risk Evaluation of Cost Overruns (COs) in Public Sector Construction Projects: A Fuzzy Synthetic Evaluation
    (MDPI, 2023-04-22) Chadee, A.A; Martin, H.H; Gallage, S; Banerjee, K.S; Roopan, R; Rathnayake, U; Ray, I
    In the Small Island Developing States (SIDS), public sector infrastructure projects (PSIPs) fail to both meet targeted performance metrics and deliver on the intended benefits to society. In terms of the cost performance metric, cost overruns (COs) beyond the initial contract value are more of a norm than a unique occurrence. Therefore, to ensure economic sustainability for SIDS, and value for money on PSIPs, there is a need to investigate and evaluate the risk impacts on COs. The purpose of this research was to identify and evaluate the perceived cost overrun risk factors that are within the primary project stakeholders’ sphere of control, and to reduce the ongoing ambiguities that exist in the prioritization of these risks. This was achieved by extracting critical risk factors from selected comparative studies in developing countries to formulate a closed-ended questionnaire to be administered to construction professionals in Trinidad and Tobago. Thereafter, the process of fuzzy synthetic evaluation (FSE) was used to develop a risk model based on three tiers of risks: 11 critical risk factors, 3 critical risk groupings (CRGs) and an overall risk level (ORL). The results showed that the two highest-ranked critical risks were project funding problems and variations by client. The leading critical risk grouping was client-related risk (5.370), followed by professionalrelated risk (4.815) and physical risk (4.870). The ORL was 5.068. Based on the FSE’s linguistic scaling, the CRGs and the ORL are perceived to be high risks in PSIPs. This research adds to the CO body of knowledge in primarily three ways. Firstly, the study extends the comparative assessment previously undertaken in scholarship into the context of SIDS to build on the generalizability of this context-specific phenomenon. Secondly, the FSE evaluation undertaken provides a practical tool to be promoted for use in SIDS’ construction industry among practitioners to focus and prioritize the critical risks in the planning phases and improve on contemporary risk practices in the execution phases of projects. Finally, this quantitative model approach is recommended to supplement the traditional qualitative risk management practices adopted in SIDS, thus contributing towards the overall improved economic sustainability and viability of PSIPs.
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    PublicationOpen Access
    Minimizing Liability of the COVID-19 Pandemic on Construction Contracts—A Structural Equation Model for Risk Mitigation of Force Majeure Impacts
    (MDPI, 2023-01) Chadee, A. A; Gallage, S; Martin, H. H; Rathnayake, U; Ray, I; Kumar, B; Sihag, P
    A pandemic is a force majeure event, and contracting parties can invoke conditions under force majeure to minimize liability for unforeseen, uncontrollable, and unavoidable circumstances. This study develops a conceptual model to assist in the management of delays and cost overruns due to force majeure events arising from the construction sector in Small Island Developing States (SIDS). A critical case study analysis of past epidemics and pandemics was conducted to develop a survey questionnaire for administration to construction professionals in Trinidad and Tobago. Based on the empirical data of 65 construction professionals, the structural equation model shows that there are strong causal effects from the implications of COVID-19 and force majeure events, which in turn have a dire impact on the construction industry. The leading implication of COVID-19 is the drastic increases in the cost of materials. Also, granting an extension of time to contractors was the main risk variable under the force majeure conditions. From the results, the measurement model verifies that events under force majeure and its perceived implications strongly influence the construction industry, and proposes that force majeure contractual clauses require explicit treatment of the periodic reoccurrence of pandemics to avoid conflicts among contracting parties. This research explores and builds on new avenues from the latest COVID-19 scholarship to better understand existing impacts on the construction industry, and consequently add to the novel body of knowledge on the implications of pandemics on construction contracts. Overall, this research provides a risk-guidance framework for construction professionals and academia to mitigate unforeseen, uncontrollable, and unavoidable risks on construction projects