The Study On The Influential Factors Of Construction Project Manager’s Risk Preference

Risk decision-making is the core of the project risk management. Reasonably andpracticable risk decisions can reduce project uncertainty, guarantee the smoothimplementation of projects and improve the project benefits. A lot of research hasbeen done to explore how to make reasonable risk management decisions. Most ofthese research is carried out based on the rational man theory, loss values theory andthe utility value theory. However, with the rise of behavioral economics, manyexperimental studies have been carried out and find out that risk preference is one ofthe important influencing factors of risk decisions, which has not been concernedabout in the previous studies.Afterwards, many studies have explored the influencing factors on the riskpreference and focused attention on personal characteristics factors (such as: gender,age, work experience etc.). However, the framing effect theory suggests that the riskpreference will change during the different environment, the external environmentalcharacteristics factors can affect risk preference, but less research have paid attentionto this problem, especially lack the research based on the background of constructionproject risk management.Hence, we intend to systematically identify and analyze the influencing factors,and analyze the impact of different factors on the risk preference of the projectmanagers. By this way, the formation mechanism of risk preference can be clear.During the research process, firstly, the influencing factors are identified fromface-to-face interviews. Then a risk preference metric scale and impact factorsevaluation scale of the actual situation were designed, based on this a questionnairefor data collection was designed. At last, the data were analyzed by the SPSS18. Theresearch result suggests that, on a macro level, the construction project managers’ riskpreference is mainly affected by the project, enterprise and environmentalcharacteristic factors. However, the correlation relationship between the individualcharacteristics factors and the managers risk preference is weak. Specifically, themain factors that affecting the risk preferences of the manager include: the riskscontractor need to take based on contract, the profitability goal of project, the contract amount, the relationship between the contractor and the owner, the technical standardsof the project, the risk preference of the executives, etc.