Identification of Enablers and Constraints of Risk Allocation Using Structuration Theory in the Construction Industry

Abstract

Risk allocation has been a focus of interest in the construction industry for some time because of its effects on disputes, claims, tensions, quality shortfalls, and time and cost overruns. Although various theories have been used, albeit with observable limitations, the social theory of structuration has not been tried, and this study shows its relevance in this regard. In this study, structuration theory (ST) is used to understand constraints and enablers for risk allocation and the improvements that could be gained from applying aspects of the theory. A mixed-method approach is used with 15 semistructured interviews and a questionnaire survey from 198 respondents associated with the Zambian construction industry. The findings from the analysis suggest that facets of structuration theory, namely (1) work and effort; (2) interest and power; (3) agency and creativity; (4) materiality; and (5) knowledge, help to identify simple practices that can improve risk allocation. The structuration theoretical lens explains and helps to understand risk allocation because it combines the interaction between structure and agency. It clarifies some issues influencing risk allocation, decision making, and the management of risk allocation between the contractual parties, making it a valuable theoretical contribution, more so in a developing-country context where several structures are not fully developed. The facets can be agency-related or structure-related and may both enable and/or constrain appropriate risk allocation.