ASPECTS OF RISKS IN PETRO-CHEMICAL CONSTRUCTION PROJECTS

摘要

Which construction projects are more "riskier" when comparing projects executed in the petrochemical environment and projects executed in general, in South Africa? What makes this question difficult to answer is that in previous research, typical risk categories has been identified for construction projects executed worldwide, but from a literature review conducted, it was found that no standard risk categories exist, thus making it difficult to compare the two industries. In this paper we compare construction project risks faced within the petro-chemical environment with construction project risks faced in general and then determine which industry is inherently a more "riskier" construction project environment, in South Africa. A Qualitative survey-type research was conducted whereby secondary data was collected through an in-depth literature review and primary data collected primarily through electronic surveys, interviews were conducted were practical and through participant observation. Two hypotheses were formulated in order to statistically test primary data collected. Hypothesis 1 follows; Construction related risks faced for projects executed in the petro-chemical environment in RSA are similar to projects executed in general and Hypothesis 2; Construction related risks for projects executed in the petro-chemical environment in RSA are higher than projects executed in general. Some of the key findings from the research concluded that the risk management process is clearly defined and accepted as the norm, but no standard risk categories exist in current theory. Hypotheses testing conducted, resulted in the acceptance of both Hypothesis 1 and 2, which in turn met the set research objectives. This paper is of particular relevance to project and risk management disciplines, contributing towards globalization of standard risk categories as well as giving insight into estimating and pricing for risk within the construction project environments. Benefits from this paper include proposed standardized risk categories to be used as a risk management tool for identifying risks, methods of pricing/estimating for risk and a rare insight into the average percentage of contingency allowance allowed for, for construction projects executed in both the petro-chemical environment and in general in South Africa.