pISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 5 Mei 2024 http://jist.publikasiindonesia.id/
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2130
Analysis of Barrier and Driver Factors to Risk Monitoring
and Control Implementation in Construction Projects
Almutahir
1*
, I Putu Artama Wiguna
2
Institut Teknologi Sepuluh Nopember, Indonesia
*Correspondence
ABSTRACT
Keywords: Barriers
Factors, Factor Analysis,
Risk Monitoring and
Control.
Construction projects inherently involve risks. If proper risk
management practices are employed, the likelihood of cost
overruns can reach up to 80%. Risk monitoring and control
are essential processes in risk management; however, their
implementation needs to be improved in construction
projects. This research analysed the main barriers and
drivers for implementing risk monitoring and control in
construction projects. A questionnaire survey was conducted
using a Likert scale to measure respondents' perceptions.
Data were collected from 71 respondents: top management,
project managers, project risk managers, and risk officers.
This study employs descriptive analysis and factor analysis
to achieve the objectives. The results indicate that the 19
identified barriers to risk monitoring and control were
categorised into four main factors: lack of practice, lack of
risk awareness, lack of incentives and difficulty finding
methods, and misperceptions about risk monitoring and
control. Meanwhile, the 21 drivers were categorised into five
main factors: management support, tools and information
technology, organisational structure and communication,
external environment, assigning responsibility, and
contingency reserve.
Introduction
The construction industry is characterised by varying levels of complexity and
dynamic nature, making it prone to uncertainty. These uncertain events yield negative
and positive consequences for project performance, commonly called risks (PMI, 2017).
Risks may arise during the life cycle of a construction project, potentially leading to a
decrease in project performance (Obondi, 2022). Unmonitored or uncontrolled risks can
result in cost overruns, scheduling delays, diminished project performance, and failure
(Khan & Gul, 2017). If proper risk management practices are employed, the likelihood
of cost overruns can reach up to 80%. To mitigate the adverse effects of risks on project
objectives, the practice of managing risks is implemented, commonly known as risk
management (Tessema et al., 2022).
Analysis of Barrier and Driver Factors to Risk Monitoring and Control Implementation in
Construction Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2131
The construction industry has implemented project risk management for over seven
decades (Senesi et al., 2015). Monitoring and controlling risks is an integral part of the
risk management process. There appeared to be a strong, positive, and significant
correlation between project success and the application of project risk monitoring and
control practices (Obondi, 2022). Nevertheless, implementing risk monitoring and control
strategies could be more effective. A recent report from the Centre for Excellence in ERM
at St. John's University highlighted that organisations rank risk monitoring among the top
five areas needing improvement. Furthermore, findings from the 2019 State of Risk
Oversight report by NC State indicate dissatisfaction with implementing risk monitoring
and control (Strategic Decision Solutions, 2019). The challenge of insufficient project
risk monitoring and control arises from a deficit in risk management capabilities and
knowledge, a failure to promptly respond, monitor, and control identified risks, and a
tendency for project managers to inadequately consider risks (Obondi, 2022).
Moreover, most research focuses solely on risk identification, assessment, and
analysis, neglecting other crucial aspects of risk management, including risk monitoring
and control (Cakmak & Tezel, 2019). The barrier and driver variables for implementing
risk monitoring and control were obtained from a small amount of literature. The barrier
variables include : lack of intermediate management support (Cakmak & Tezel, 2019)
lack of disaster planning and recovery (Edwards, Serra, & Edwards, 2020); perception
that risk monitoring increases costs and administration; lack of understanding of
perceived value or benefits (Zhao, Hwang, & Low, 2015); insufficient resources
(Chileshe & Kikwasi, 2013; Zhao et al., 2015); lack of knowledge (Hwang, Zhao, & Toh,
2014; Shibani et al., 2022); lack of expertise (Chileshe & Kikwasi, 2013); lack of
education and training (Tummala, Leung, Mok, Burchett, & Leung, 1997; Zhao et al.,
2015); lack of risk-based meetings (Obondi, 2022); lack of risk information (Chileshe &
Kikwasi, 2013); ineffective risk reporting (Tang, Qiang, Duffield, Young, & Lu, 2007);
ineffective coordination (Chileshe & Kikwasi, 2013); difficulty in interpreting the
standards used (Tummala et al., 1997); difficulty in determining appropriate risk control
tools and techniques (El-Sayegh, 2015); no incentives (Shibani et al., 2022); the
irregularity in monitoring (Edwards et al., 2020); and lack of risk audits (Obondi, 2022).
While, the driver variables to risk monitoring and control include commitment and
support from top management; leadership style (Chileshe & Kikwasi, 2014); risk
monitoring and control procedures (Edwards et al., 2020); organizational culture (Na
Ranong & Phuenngam, 2009; Zhao, Hwang, & Low, 2013); integration of risk control
and project control (PMI, 2009); monitoring schedule (Cretu, Stewart, & Berends, 2011);
organizational structure and size (Kwaik, Sweis, Allan, & Sweis, 2023); effective
resource allocation (Zhao et al., 2015); communication behavior (Zhao et al., 2015);
contingency fund (Obondi, 2022); the existence of risk management plan (PMI, 2017);
the existence of a project risk document (Larson & Gray, 2011; PMI, 2017); teamwork
(Chileshe & Kikwasi, 2014); technology and information infrastructure support (Kwaik
et al., 2023; Zhao et al., 2015); standards and guidelines (ISO31000, 2018; PMI, 2017);
better decision making (Zhao et al., 2015); risk reassessment (Obondi, 2022); effective
Almutahir, I Putu Artama Wiguna
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2132
methods and tools (Chileshe & Kikwasi, 2014); legal and regulatory compliance
requirements (Kikwasi, 2018; Zhao et al., 2015); customer needs (Chileshe & Kikwasi,
2014); and assignment of responsibilities (Cretu et al., 2011; Larson & Gray, 2011).
Research Methods
This research is exploratory. A questionnaire survey was conducted to analyse the
central barrier and driver factors to implementing risk monitoring and control in
construction projects. The survey consisted of a preliminary survey and a primary survey.
An initial survey was conducted to verify the measurement variables and ensure their
relevance to research purposes. Respondents in the initial survey were project managers
who knew risk management and had more than 12 years of experience in construction
projects (Chileshe et al., 2016). The questionnaire employed in this preliminary survey
was semi-closed. Respondents were to select relevant variables and add some variables
not listed in the questionnaire. The primary survey uses relevant variables resulting from
the preliminary survey. The questionnaire used in this central survey is a closed type,
where respondents provide only one answer selected as correct. The questionnaire used
for this research comprises two sections. The first section gathers the respondents'
background, while the second explores the central barrier and driver factors.
Respondents were given the task of rating using a five-point Likert scale (1 =
strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = strongly agree). The
population comprises all construction practitioners with extensive experience in risk
management. The sample size in this study was determined using non-probability
sampling, where the exact number of respondents was uncertain. The sampling technique
is purposive sampling, wherein samples are selected based on specific criteria. The
distribution of questionnaires is conducted online and offline. The respondents are top
management, project managers, project risk managers, and risk officers.
This study employs descriptive analysis and factor analysis to achieve the objective.
The collected data undergoes descriptive analysis to facilitate straightforward
interpretation. The function of descriptive statistics is to describe an overview of the
object under study using sample or population data. Factor analysis is used to analyse a
relatively small number of factors capable of explaining many interconnected variables.
The factor analysis process includes the following stages: (1) the variable feasibility test,
which uses the KMO-MSA (Kaiser et al. of Sampling Adequacy) and Bartlett's test of
sphericity; (2) extraction of a set of variables to generate a concise number of factors, (3)
clarifies the variables associated with each formed factor, and (4) assigning a name to the
formed factor that is deemed representative of the variable.
Results and Discussion
A total of 71 completed questionnaires were received from the primary survey. The
profile of the respondents is listed in Table 1. In terms of gender, there were 60 men
(85%) and 11 women (15%). Respondents had a master's educational background of 19
people (27%), 45 bachelor's degrees (63%), and seven others (10%). Respondents based
Analysis of Barrier and Driver Factors to Risk Monitoring and Control Implementation in
Construction Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2133
on position, 9 (13%), 7 (10%), 24 (34%), 15 (21%), and 16 (22%), of the respondents
held positions in top management, project manager, project engineering/risk manager,
risk officer, others, respectively. Meanwhile, 28 respondents (39%) have experience for
less than five years, 24 respondents (34%) have 5-10 years of work experience, six
respondents (8%) have 10-15 years of work experience, and 13 respondents (18%) have
work experience for more than 15 years.
Table 1
Profile of Respondents
Category
Classification
Number
Per
cent
Gender
Man
60
85
Woman
11
15
Education
Masters
19
27
Undergraduate
45
63
Other
7
10
Position
Top Management
9
13
Project Manager
7
10
Project Risk
Manager
24
34
Risk officer
15
21
Other
16
22
Work
experience
< 5 years
28
39
5-10 Years
24
34
10-15 Years
6
8
>15 Years
13
18
The research sample has fulfilled the minimum requirements for the factor analysis.
Furthermore, the selected respondents represent construction practitioners with extensive
knowledge and experience in construction project risk management.
Grouping of Barriers to Risk Monitoring and Control
Several assumption tests were conducted to evaluate the suitability of the variables
before proceeding with factor analysis. The feasibility of a variable is assessed through
the Kaiser Meyer Olkin (KMO) and the Measures of Sampling Adequacy (MSA) value.
This research obtained a KMO value of 0.855, while all variables exhibited an MSA value
exceeding 0.5. The KMO-MSA value should exceed 0.5 for a good result. If a variable
has an MSA value below 0.5, it is advisable to exclude and reanalyse the data to achieve
MSA values for all variables greater than 0.5 (Hair et al., 2010). The Bartlett test of
sphericity resulted in a value of 1272.952 with a significance level of 0.000. The Bartlett
test of sphericity (Sig.) value should be less than 0.05 for better analysis, indicating that
the matrix was not an identity matrix. Consequently, the collected data were deemed
suitable for factor analysis (Hair, Black, Babin, & Anderson, 2010).
Following the feasibility of a variable, factor extraction was continued. This process
groups several variables that are similar into concise factors. The extraction method
employed is Principal Component Analysis (PCA). The number of factors formed can be
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2134
seen from the components with an eigenvalue greater than 1. The extraction results show
that the number of elements that have a total eigenvalue greater than 1 is four components.
Thus, the 19 identified barriers were categorised into four factors (Table 2)the four
factors contributed to 74.211% of the total variance. Factor 1 accounted for 55.247% of
the total variance, factor 2 accounted for 7.574%, factor 3 accounted for 6.107%, and
factor 4 accounted for 5.282%. In addition, considering the commonalities value indicates
the extent to which the formed factors can explain variance in a variable. All barriers
exhibit commonalities values exceeding 0.5. Practical considerations suggest that a
minimum communalities value of 0.5 is advisable. Furthermore, it clarifies the factor
formed with the rotation factor. In this study, factor rotation uses the varimax, an
orthogonal rotation technique, to minimise the number of indicators with high factor
loadings on each factor.
Table 2
Result of Barrier Factors to Risk Monitoring and Control Implementation
1
2
3
4
Factor 1: Lack of practice
Ineffective risk reporting
0.792
Lack of risk-based meetings
0.784
Lack of intermediate management support
0.724
The irregularity in monitoring
0.707
Lack of risk information
0.705
Lack of disaster planning and recovery.
0.682
Lack of risk audits
0.665
Resistance to change
0.597
Ineffective coordination
0.593
Factor 2: Lack of risk awareness
Lack of knowledge
0.811
Lack of expertise
0.810
Lack of risk awareness
0.786
Lack of education and training
0.712
Factor 3: No incentives and Having difficulty finding
a method
No incentives
0.835
Difficulty in determining appropriate risk
control tools and techniques
0.705
Difficulty in interpreting the standards used
0.600
Insufficient resources
Factor 4 Misperceptions
The perception that risk monitoring increases
costs and administration
0.788
Analysis of Barrier and Driver Factors to Risk Monitoring and Control Implementation in
Construction Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2135
1
2
3
4
Lack of understanding of perceived value or
benefits
0.777
Eigenvalue
10.497
1.439
1.160
1.004
Variance (%)
55.247
7.574
6.107
5.282
Cumulative variance (%)
55.247
62.821
68.928
74.211
In Tabel 2, barrier variables will be grouped into certain factors based on the most
significant factor loading. Loadings factor greater than 0.5 are considered practically
significant. In Table 2, factor loadings below 0.5 are hidden. The results indicate that
factor 1 comprised nine variables and was interpreted as a lack of practice. Factor 2
consisted of four variables and was construed as needing more risk awareness. Factor 3
involved three variables and was interpreted as a lack of incentives and difficulty finding
suitable methods. Factor 4 included two variables and was interpreted as misperceptions
about risk monitoring and control.
The first barrier factor, lack of practice, consists of nine variables: ineffective risk
reporting, lack of risk-based meetings, lack of intermediate management support,
irregularity in monitoring, lack of risk information, lack of disaster planning and recovery,
lack of risk audits, resistance to change, and ineffective coordination. Project risk
monitoring and control practices, such as risk-based meetings, risk audits, and risk
reporting, have been correlated with project success in construction projects. Although
verbal risk reporting is considered the most direct and realistic method, it is also the least
reliable and most inconsistent. Considering the various barriers to effective verbal
communication, promptly following up such reports with more formal reporting methods
is advisable. Lack of risk information stands as one of the obstacles faced by stakeholders
in the construction industry. Additionally, there exists a reluctance among individuals to
share risk information (Zhao et al., 2015). Which in turn can hinder effective risk
monitoring and control.
The second barrier factor, lack of risk awareness, comprises four variables: lack of
knowledge, lack of expertise, lack of risk awareness, and lack of education and training.
Awareness of the risk management process and lack of experience are the most significant
barriers that project stakeholders need to overcome. Implementing effective risk
management involves fostering risk awareness and facilitating risk communication across
the enterprise, providing decision-makers with comprehensive information.
The third barrier factor is the need for incentives and finding a method. This factor
comprises three variables: no incentives, difficulty determining appropriate risk control
tools and techniques, and difficulty interpreting the standards used. The need for
incentives for improved risk management remains a significant obstacle in construction
management in Lebanon (Shibani et al., 2022). Companies must provide training to staff
and managers to increase their understanding of risk monitoring and control techniques.
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2136
The fourth barrier factor is misperceptions about risk monitoring and control. This
factor consists of two variables: the perception that risk monitoring increases costs and
administration and a lack of understanding of perceived value or benefits. Risk
monitoring increases costs, and administration is deemed a biased perception or a
misunderstanding of the implementation of risk management, including risk monitoring
and control process, due to the difficulty in demonstrating real value or benefits.
Grouping of Drivers to Risk Monitoring and Control
Various tests were administered to assess the appropriateness of the variables before
embarking on factor analysis. From the analysis results, the Bartlett Test of Sphericity
value was 980.863 with a significance of 0.000. Thus, it meets the requirements because
it is below 0.05. The Kaiser-Meyer-Olkin (KMO) value was 0.834; it meets the
requirements because it is greater than 0.5. All MSA values are more significant than 0.5,
so it meets the requirements. The number of factors was determined by examining the
eigenvalues. According to the calculation results in Table 3, five components have
eigenvalues greater than 1, resulting in five factors formed. The percentages of variation
are explained by each of the five factors (44.408%, 9.489%, 7.374%, 5.960%, and
4.879%, respectively). The five factors formed were able to explain 72.109% of the
variation. This is considered sufficient in terms of the total explained variation. The
communalities value for all variables is more significant than 0.5.
Most researchers agree that leaving factors unrotated is insufficient. The rotation
process is undertaken to resolve ambiguities among factors. Similar variables are grouped
into a single factor, with the grouping determined by the most significant factor loading.
Each grouping is named by considering the variables with high factor loadings and
identifying commonalities among them. Factor 1 is called management support and
comprises seven variables. Factor 2 is named tools and information technology, and it
includes six variables. Factor 3, designated as organisational structure and
communication, consists of three variables. Factor 4 is identified as the external
environment and comprises two variables. Factor 5, named responsibility and
contingency reserve, involves three variables.
Table 3
Result of Driver Factor to Risk Monitoring and Control Implementation
Driver Grouping
1
2
3
4
5
Factor 1 Management Support
Commitment and support from top
management
0.777
Organisational culture
0.760
Monitoring Schedule
0.716
Integration of Risk Control and Project
Control
0.704
Leadership style
0.700
Analysis of Barrier and Driver Factors to Risk Monitoring and Control Implementation in
Construction Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2137
Driver Grouping
1
2
3
4
5
Risk Monitoring and Control Procedures
0.651
Teamwork
0.523
Factor 2 Tools and information technology
Standards and guidelines
0.809
Risk reassessment
0.788
Technology and information infrastructure
0.699
Better decision making
0.663
Effective methods and tools
0.574
The existence of a project risk document
0.555
Factor 3 Organizational Structure and Communication
Organisational structure and size
0.817
Effective Resource allocation
0.747
Communication behavior
0.59
Factor 4 External Environment
Legal and regulatory compliance
requirements
0.847
Customer needs
0.847
The existence of a risk management plan
Factor 5 Responsibility and Contingency Reserve
Assignment of Responsibilities
0.693
Contingency fund
0.647
Eigenvalue
9.326
1.993
1.548
1.251
1.025
Variance (%)
44.408
9.489
7.374
5.960
4.879
Cumulative variance (%)
44.408
53.897
61.271
67.230
72.109
Management support comprises seven variables: commitment and support from top
management, organisational culture, monitoring schedule, integration of risk control and
project control, leadership style, risk monitoring and control procedures, and teamwork.
Top management support is vital in successfully implementing risk management in the
construction industry. Stakeholders in Tanzania also acknowledge the importance of an
appropriate management style that facilitates the formation of project risk management
teams in both organisational and project environments.
Tools and information technology encompasses six variables: standards and
guidelines, risk reassessment, technological and information infrastructure, better
decision-making, practical methods and tools, and project risk documents. Standards,
guidelines, and risk registers are integral inputs and tools for implementing risk
monitoring and control (PMI, 2013). Emphasising the importance of a project risk
document, particularly the risk register, this variable is the backbone of risk monitoring
and control. There were positive and significant correlations between project success and
using risk monitoring and control practice tools, such as risk reassessment. Furthermore,
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2138
within this factor, the support of technological infrastructure underscores the role of
advancements in information technology in facilitating effective risk management.
Organisational structure and communication have three variables: structure and
size, reasonable resource allocation, and communication behaviour. Organisational
structure and communication influence successful risk management implementation.
Organisational size significantly impacts risk management implementation (Bohnert et
al., 2019).
External environment reserve encompasses two variables: legal and regulatory
compliance requirements, as well as customer needs. Literature across various industries
suggests that the adoption of risk management is often motivated by a series of legal
compliance and corporate governance requirements. Customer needs emerge as a critical
success factor but in low ratings.
Responsibility and contingency reserve comprises two variables: assignment of
responsibilities and contingency fund. Risk monitoring and control effectively
necessitates assigning specific individual duties and ensuring accountability. A key aspect
of controlling risk is the documentation of responsibilities. The recommended approach
is to have responsible personnel approve using budget reserve funds and monitor their
usage levelsmanagement reserves established to cover unidentified risks.
Conclusion
The results indicate that the 19 identified barriers to risk monitoring and control
implementation in construction projects were categorised into four factors: lack of
practice, lack of risk awareness, lack of incentives and difficulty finding a method, and
misperceptions about risk monitoring and control. The 21 identified drivers were
categorised into five factors: management support, tools and information technology,
organisational structure and communication, external environment, and assigning
responsibility and contingency reserve.
Analysis of Barrier and Driver Factors to Risk Monitoring and Control Implementation in
Construction Projects
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 5, Mei 2024 2139
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