Literature Review of Similar Studies
Wang el al (2000) conducted a study for evaluation and management of foreign exchange and revenue risks in China’s BOT projects. The study was initiated by conducting unstructured interviews to filter the risks collected from the literature. This step was followed by a survey via a questionnaire in order to evaluate the criticality of risks. The study identified and proposed responses for about fifty (50) risks associated with BOT power projects in China.
Bing et al (1999) conducted a research to investigate the critical factors in International Construction Joint Ventures (ICJV) in East Asian countries and the most common and effective measures that the industry participants adopted for risk management. The research ranked a total of fifty-eight (58) risks categorized in three (3) main groups.
Smith and Bohn (1999) performed an investigation into the use of contingency in small construction firms. The main conclusion suggests that these firms assume proportionally greater business risk that suggested in the literature on contingency.
In their evaluation of Florida general contractors’ risk management practices, Ahmed et al. (2002), via a questionnaire survey and in-depth interviews, evaluated the practices of risk analysis and management adopted by the general contractors in Florida construction industry and presented a comparison with four other US states considered to have highly profitable and modernized construction industry. The results revealed that in the Florida construction industry, risk analysis and management techniques are rarely used by the general contractors due to lack of knowledge coupled with doubts on the suitability of these techniques for the construction industry.