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MANAGEMENT METHODS FOR MINIMIZING THE RISKS OF INVESTMENT AND CONSTRUCTION PROJECTS UNDER UNCERTAINTY

https://doi.org/10.24411/2225-8264-2020-10067

Abstract

The article is devoted to the assessment of risks created by uncertainty in project activities in the field of construction. The aim of the work is to offer management methods to minimize the negative impact of risks based on identifying uncertainty factors of an investment and construction project. The object of the research is a construction organization - a contractor, as an example of a design organization in the field of construction. The methodological basis of the study was made up of key provisions of management theory, systems theory, content analysis of regulatory legal acts and standards for assessing, as well as general scientific methods of analysis, synthesis, comparison and classification. As a result of the study, approaches to assessing the cost of a project in conditions of uncertainty based on Russian Federal Valuation Standards, British Royal Institution of Chartered Surveyors, and The European Group of Valuers Associations were considered; Clarified the concept of 'uncertainty conditions', which is understood as a set of risks, the probability and / or strength of the impact of which cannot be determined in advance on the basis of existing economic and mathematical models; The factors of uncertainty of the investment and construction project are systematized and the corresponding methods for minimizing risks are proposed. Added to the existing uncertainties is a new 'government authorities' imposition of temporary restrictions on the activities of companies and the movement of labor.' The practical results of the study are proposals for the use of a set of financial, organizational and legal measures that can reduce the negative impact of uncertainty on the implementation of projects in the construction sector, as well as formulations for concluding construction contracts that limit losses in the event of risky events.

About the Authors

V. S. Markin
Omsk State Technical University
Russian Federation


M. S. Mizya
Omsk State Technical University
Russian Federation


References

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Review

For citations:


Markin V.S., Mizya M.S. MANAGEMENT METHODS FOR MINIMIZING THE RISKS OF INVESTMENT AND CONSTRUCTION PROJECTS UNDER UNCERTAINTY. Herald of Siberian Institute of Business and Information Technologies. 2020;(4):52-57. (In Russ.) https://doi.org/10.24411/2225-8264-2020-10067

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ISSN 2225-8264 (Print)