RISK BEHAVIOR IN PRICE UNCERTAINTIES AND PROJECT COST PERFORMANCE: A SYSTEMATIC LITERATURE REVIEW
DOI:
https://doi.org/10.33736/jcest.8995.2026Keywords:
risk behavior, cost project performanceAbstract
Price uncertainties from inflation can lead to the risk of material price escalation, resulting in poor project cost performance. Risk management by the contractor during this time is essential in addressing price uncertainties and depends on their risk behavior. Risk behavior is the willingness of individuals or groups to take risks when making decisions. The research aims to establish the framework of contractor’s risk behavior on price uncertainties to enhance performance of construction project cost. This research examines the different contractors’ risk behaviors in price uncertainties, the factors influencing risk behavior, and their effect on project cost performance. Systematic literature review is the methodology used to commence the research. The research also comprises of a construction of a conceptual framework indicates three different risk behaviors, which are risk averse, risk-seeking and risk-neutral; internal factors indicated, such as organization culture, financial competency, and contractor experience in risk, and external factors comprise of economic environment, the competition level during the tender stage, tendering method, and government policies; and the impacts. The outcome shows the different impacts of risk behaviors during price uncertainties on project cost performance. The result promotes best practices by emphasizing risk behaviors that construction contractors should address in order to accomplish the objectives of the National Construction Policy 2030, which intends to enhance cost efficiency and quality in the construction project performance.
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