Impact of Design Risk on the Performance of Design-Build Projects

Abstract

Design risk can greatly affect the success or otherwise of design-build projects. This study presents the identification of design risk factors in design-build projects and an analysis of their impact on project performance. A total of 23 design risk factors were identified, comprising 17 factors obtained from an exhaustive literature review and 6 factors arising from in-depth interviews with 5 experienced construction practitioners. These design risk factors formed the focus of a questionnaire survey of 500 construction practitioners, which used a five-point Likert scale as the response format. This yielded 150 valid responses for data analysis. Exploratory factor analysis showed that these factors could be categorized into six groupings: risk of improper design team, risk of designer’s lack of responsibility, risk of designer’s lack of experience, risk of inaccuracy or delay of third-party information, risk of improper design scheme, and risk of design change and employer review. Confirmative factor analysis revealed that the risk of an improper design scheme is significantly associated with the risk of designers’ lack of responsibility and experience, as well as inaccuracy and delay of third-party information, which has a significant and negative impact on project performance. The findings contribute to the body of knowledge in design-build risk analysis, and, more fundamentally, the findings enhance design-build contractors’ understanding of how to achieve better project results through improved design risk management.