Theoretical and Methodological Rationale for Risk Management Related to the Total Cost of Construction Investment

Abstract

Aim: To explain the theoretical and methodological foundations of risk management design that contributes to a reduction of the breach between estimation and execution of the total cost of investment in construction.

Methods: The study relied on theoretical and empirical methods; the former included analysis-synthesis and induction-deduction to analyze the theory about the object of research of different concrete historical conditions, demonstrate the internal logic of development, and identify the bases of risk management design in the total cost of the specific conditions when executing investment in construction. The latter included statistical methods, such as bivariate correlation to analyze the relation between the concepts of risk management models, characterize it, and discover the trends of this relation.

Results: The articulation of theoretical and methodological components of economic risk management and the total cost of investment in construction, in a suggested procedure whose implementation is viable, according to experts.

Conclusions: A theoretical and methodological rationale for risk management in the total cost of construction investment.