Abstract
Large and complex construction projects face risk from various sources and the successful completion of such projects depends on effective risk management. This study investigates the risk faced by Chinese firms participating in constructing AP1000 nuclear power plants in China. AP1000 nuclear reactors are new, Generation III+ reactors designed by Westinghouse and to be built first in China. The semi-structured interview approach is used to elicit information from experts involved in the AP1000 projects in China. Based on the interviews, various sources of risk are identified. In addition to general risks that megaprojects normally face, there are unique risks that arise from various sources such as technological, political, organizational, and individual personnel risks. Risk management strategies are proposed to manage general and unique risks identified in the study. The findings of this study would be helpful for Chinese companies involved in the construction of AP1000 nuclear power plants to mitigate the risks associated with the projects.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Barber, R.B. (2005). Understanding internally generated risks in projects. International Journal of Project Management, 23(8): 584–590
Bing, L., Akintoye, A., Edwards, P.J. & Hardcastle, C. (2005). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1): 25–35
Carr, V. & Tah, J.H.M. (2001). A fuzzy approach to construct project risk assessment and analysis: construction project risk management system. Advances in Engineering Software, 32(10–11): 847–857
Chapman, C. & Ward, S. (1997). Project Risk Management: Processes, Techniques and Insights, First Edition. Wiley, UK
Chen, D. & Sha, Y. (2007). More market players needed if China is to meet nuclear power target-experts. In: An Industry Conference on Renewable Energy in Beijing, 1: 1–2, Beijing, May 18, 2007, Interfax-China
Cohen, B.L. (1990). The Nuclear Energy Option. Plenum Press, Pittsburgh, PA, USA
Cooke, N.J. (1994). Varieties of knowledge elicitation techniques. International Journal of Human Computer Studies, 41(6): 801–849
Corradini, M.L. (2003). Nuclear power: prospects in the 21st century. In: Rohsenow Symposium on Future Trends in Heat Transfer, Massachusetts Institute of Technology, Cambridge, MA
Cullen, J. & Bryman, A. (1988). The knowledge acquisition bottleneck: a time for reassessment? Expert Systems, 5(3): 216–225
Dixon, H.J., Doores, J.W., Joshi, L. & Sinclair, F.L. (2001). Agroecological Knowledge Toolkit for Windows: Methodological Guidelines, Computer Software and Manual for AKT5. School of Agricultural and Forest Sciences, University of Wales, Bangor, UK
Drury, C.G. (1990). Methods for direct observation of performance. In: Wilson, J.R., Corlett, E.N. (eds.), Evaluation of Human Work: A Practical Ergonomics Methodology, pp. 35–57. Taylor and Francis
Dvir, D., Sadeh, A. & Malach-Pines, A. (2006). Projects and project managers: the relationship between project managers, personality, project types, and project success. Project Management Journal, 37(5): 36–48
Edwards, P.J. & Bowen, P.A. (1998). Risk and risk management in construction: a review and future directions for research. Engineering, Construction and Architectural Management, 5(4): 339–349
Evans, A.W., Jentsch, F., Hitt, J.M., Bowers, C., & Salas, E. (2001). Mental model assessments: is there convergence among different methods? In: Proceedings of the Human Factors and Ergonomics Society 45th Annual Meeting, 293–296
Flyvbjerg, B., Bruzelius, N. & Rothengatter, W. (2003). Megaprojects and Risk: An Anatomy of Ambition. Cambridge University Press, Cambridge, UK
Flyvbjerg, B. (2006). From Nobel Prize to project management: getting risks right. Project Management Journal, 37(3): 5–15
Ghosh, S. & Jintanapakanont, J. (2004). Identifying and assessing the critical risk factors in an underground rail project in Thailand: a factor analysis approach. International Journal of Project Management, 22(8): 633–643
Hoffman, R.R., Shadbolt, N.R., Burton, A.M. & Klein, G. (1995). Eliciting knowledge from experts: a methodological analysis. Organizational Behavior and Human Decision Processes, 62(2): 129–158
Hyvari, I. (2006). Success of projects in different organizational conditions. Project Management Journal, 37(4): 31–41
IAEA. (2003). People’s Republic of China, IAEA Energy and Economic Database and Country Information, 210–230. Available via DIALOG. http://www-pub.iaea.org/MTCD/publications/PDF/cnpp2003/CNPP_Webpage/PDF/2002/Documents/Documents/China%20PR%202002.pdf. Cited September 6, 2010
Kutsch, E. & Hall, M. (2005). Intervening conditions on the management of project risk: dealing with uncertainty in information technology projects. International Journal of Project Management, 23(8): 591–599
Madachy, R.J. (1997). Heuristic risk assessment using cost factors. IEEE Software, 14(3): 51–59
Medda, F. (2007). A game theory approach for the allocation of risks in transport public private partnerships. International Journal of Project Management, 25(3): 213–218
Nogueira, J.C. & Raz, T. (2006). Structure and flexibility of project teams under turbulent environments: an application of agent-based simulation. Project Management Journal, 37(2): 5–10
Ou, Y. (2007). The development tendency of nuclear power technologies in the world and position of the third generation nuclear power technologies. In: Conference on the Third Generation Nuclear Power Technologies, 1: 4–9, Shanghai, China, April 25, 2007
Project Management Institute. (2009). A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th Edition. Project Management Institute, Newtown Square, PA, USA
Sasse, M.A. (1991). How to t(r)ap users’ mental models. In: Tauber, M.J., Ackermann, D. (eds.), Mental Models and Human-computer Interaction 2, pp. 59–79. Elsevier
Schulz, T.L. (2006). Westinghouse AP1000 advanced passive plant. Nuclear Engineering and Design, 236(14–16): 1547–1557
Schvaneveldt, R.W. (1990). Pathfinder Associative Networks: Studies in Knowledge Organization. Ablex Publishing, Norwood, NJ, USA
Shadbolt, N. & Burton, M. (1990). Knowledge elicitation. In: Wilson, J.R., Corlett, E.N. (eds.), Evaluation of Human Work: A Practical Ergonomics Methodology, pp. 321–345. Taylor and Francis
Shaw, M.L.G. & Woodward, J.B. (1990). Modeling expert knowledge. Knowledge Acquisition, 2(3): 179–206
Sundstrom, G.A. (1991). Process tracing of decision making: an approach for analysis of human-machine interactions in dynamic environments. International Journal of Man-machine Studies, 35(6): 843–858
Taylor, H. (2006). Risk management and problem resolution strategies for IT projects: prescription and practice. Project Management Journal, 37(5): 49–63
Turner, J.R. (2005). The role of pilot studies in reducing risk on projects and programmes. International Journal of Project Management, 23(1): 1–6
Westinghouse Electric Company. (2007). AP1000 design control document, APP-GW-GL-700, Revision 16. Pittsburgh, PA, USA
World Nuclear Association. (2007). Nuclear power in China. Available via DIALOG. http://www.world-nuclear.org/info/inf63.html. Cited November 2007
Xiaoliang, D. (2007). Program on self-reliance construction of AP1000. In: Conference on the Third Generation Nuclear Power Technologies, 1: 34–38, Shanghai, China, April 25, 2007
Xie, G., Zhang, J. & Lai, K.K. (2006). Risks avoidance in bidding for software project based on life cycle management theory. International Journal of Project Management, 24(6): 516–521
Zhang, H. (2007a). The third generation nuclear power technologies and the development of China’s nuclear energy industry. In: Conference on the Third Generation Nuclear Power Technologies, 1: 19–21, Shanghai, China, April 25, 2007
Zhang, L. (2007b). The role of the third generation nuclear power technology in China’s nuclear power development. In: Conference on the Third Generation Nuclear Power Technologies, 1: 51–54, Shanghai, China, April 25, 2007
Author information
Authors and Affiliations
Corresponding author
Additional information
Shufeng Wang is a Senior Engineer with China Nuclear Fifth Construction Co., Ltd., Shanghai, China. From 1993 to 1996, he worked in the Pakistan Chashma Nuclear Power Project as a pipe engineer. From 1998 to 2003, Mr. Wang worked in the Second Phase of Qinshang Nucler Power Project as a manager of engineering department. He was a visiting scholar in the Department of Mechanical and Industrial Engineering, Ryerson University, Canada, from 2007 to 2008. Currently he works as a general construction manager and containment vessel project manager in the AP1000 Haiyang project. His professional interests are in the areas of project management and project risk management. He has published a number of journal and conference papers. He received the B.Eng degree in Chemical Engineering from Chengdu University of Science and Technology, Chengdu, Sichuan, China, in 1992, and the MBA degree from Ocean University of China, Qingdao, Shandong, China, in 2010. He received the 2002–2007 Excellence Award from China Nuclear Fifth Construction Co., Ltd.
M.I.M. Wahab is an Assistant Professor of Mechanical and Industrial Engineering at Ryerson University, Toronto, Ontario, Canada. His research involves in the areas of supply chain management, service management, manufacturing system, and intersections between operations research and finance. He has published several journal and conference papers and a book chapter. He received the B.Sc.Eng. degree in Mechanical Engineering from the University of Moratuwa, Sri Lanka, in 1995, the M.Eng. degree in Industrial Engineering from Asian Institute of Technology, Bangkok, Thailand, in 1999, and Ph.D. degree in Industrial Engineering from the University of Toronto, Canada, in 2006. Dr. Wahab is a Registered Professional Engineer in the Province of Ontario, Canada.
Liping Fang is a Professor and Chair of Mechanical and Industrial Engineering with Ryerson University, Toronto, Ontario, Canada, and an Adjunct Professor with the Department of Systems Design Engineering, University of Waterloo, Waterloo, Ontario, Canada. He has actively carried out research and consulting activities in the areas of industrial engineering, systems engineering, engineering management, and decision making, particularly in interactive decision making, multiple criteria decision making, and decision support systems. He has published widely, including two books, an edited book, and numerous journal and conference papers. He received the B.Eng. degree in electrical engineering from Tianjin University, Tianjin, China, in 1982, and the M.A.Sc. and Ph.D. degrees in systems design engineering from the University of Waterloo, in 1985 and 1989, respectively. Dr. Fang is a Registered Professional Engineer in the Province of Ontario, Canada, and a Fellow of the Engineering Institute of Canada (EIC) and Canadian Society for Mechanical Engineering (CSME). He was the recipient of the 2008 Ryerson-Sarwan Sahota Distinguished Scholar Award from Ryerson University and the 2006 Research Excellence Award from the Faculty of Engineering, Architecture and Science, Ryerson University. He is an Associate Editor or Member of the Editorial Board of four international journals, including the IEEE Transactions on Systems, Man, and Cybernetics — Part A, Systems and Humans.
Rights and permissions
About this article
Cite this article
Wang, S., Wahab, M.I.M. & Fang, L. Managing construction risks of AP1000 nuclear power plants in China. J. Syst. Sci. Syst. Eng. 20, 43–69 (2011). https://doi.org/10.1007/s11518-011-5157-y
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11518-011-5157-y