Designing a Structural Model for Managing Production Contract Risks: A Path Towards Global Sustainability

Abstract

  The objective of this study is to identify and mitigate production contract risks within construction industry organizations Towards Global Sustainability. In this topic, several key theories, models, and frameworks provide a solid basis for understanding the investigation. Here are some relevant concepts: Risk Management Theory, Contract Theory, Systems Theory, Sustainable Development Theory, Stakeholder Theory, Supply Chain Management Framework, and Integrated Risk Management Framework. These theories and frameworks form a  comprehensive theoretical foundation for investigating the management of production contract risks, emphasizing the importance of sustainability. A combined quantitative and qualitative methodology was employed to provide a  comprehensive and detailed analysis of the various dimensions of this issue. Initially, a thorough review of existing  literature and expert opinions was conducted to identify prevalent risks within construction production contracts.  The DEMATEL technique was utilized to analyse the interrelationships and influence among these identified risks. The results identified five major risks, ranked in order of significance: fluctuations in demand, delays, substandard quality and non-compliance in construction, unauthorized disclosure of project information, and incompatibility of  components with the overall system. By prioritizing these risks, construction organizations can effectively prevent  the occurrence of adverse events.