Risk pricing practices in finance, insurance and construction

A review of current risk pricing practices in the financial, insurance and construction sectors is conducted through a comprehensive literature review. The purpose was to inform a study on risk and price in the tendering processes of contractors: specifically, how contractors take account of risk when they are calculating their bids for construction work. The reference to mainstream literature was in view of construction management research as a field of application rather than a fundamental academic discipline. Analytical models are used for risk pricing in the financial sector. Certain mathematical laws and principles of insurance are used to price risk in the insurance sector. construction contractors and practitioners are described to traditionally price allowances for project risk using mechanisms such as intuition and experience. Project risk analysis models have proliferated in recent years. However, they are rarely used because of problems practitioners face when confronted with them. A discussion of practices across the three sectors shows that the construction industry does not approach risk according to the sophisticated mechanisms of the two other sectors. This is not a poor situation in itself. However, knowledge transfer from finance and insurance can help construction practitioners. But also, formal risk models for contractors should be informed by the commercial exigencies and unique characteristics of the construction sector.

Subjectively construed identities and discourse: towards a research agenda for construction management

Identity issues are under-explored in construction management. We provide a brief introduction to the organization studies literature on subjectively construed identities, focusing on discourse, agency, relations of power and identity work. The construction management literature is investigated in order to examine identity concerns as they relate to construction managers centred on (1) professionalism; (2) ethics; (3) relational aspects of self-identity; (4) competence, knowledge and tools; and (5) national culture. Identity, we argue, is a key performance issue, and needs to be accounted for in explanations of the success and failure of projects. Our overriding concern is to raise identity issues in order to demonstrate their importance to researchers in construction management and to spark debate. The purpose of this work is not to provide answers or to propose prescriptive models, but to explore ideas, raise awareness and to generate questions for further programmatic research. To this end, we promote empirical work and theorizing by outlining elements of a research agenda which argues that 'identity' is a potentially generative theme for scholars in construction management.

Actors and objects: A socio-technical networks approach for construction management research

We explore the contribution of socio-technical networks approaches to construction management research. These approaches are distinctive for their analysis of actors and objects as mutually constituted within socio-technical networks. They raise questions about the ways in which the content, meaning and use of technology is negotiated in practice, how particular technical configurations are elaborated in response to specific problems and why certain paths or solutions are adopted rather than others. We illustrate this general approach with three case studies: a historical study of the development of reinforced concrete in France, the UK and the US, the recent introduction of 3D-CAD software into four firms and an analysis of the uptake of environmental assessment technologies in the UK since 1990. In each we draw out the ways in which various technologies shaped and were shaped by different socio-technical networks. We conclude with a reflection on the contributions of socio-technical network analysis for more general issues including the study of innovation and analyses of context and power.