Case Study #3: Risks faced by international Korean construction companies

In 2002, the International Contractors Association of Korea identified and published the following risks that resulted in financial damage to the international construction company: Source: Han et al. (2007) cited in Koster(2013)

As a project manager in an international company, you have been involved in the planning phase for future contracts in Korea, how do you manage the above-mentioned risks? Support your answers with examples.

1. As the buyer, the local government might not have ability or willingness to pay for the contract. (3 x 1 points)

2. The local government might have some misunderstandings regarding contract provisions or specifications. (2 x 1points)

3. You as the seller might have miscommunications with local authorities. (3 x1 points)

4. There might be a risk of fluctuation of currency exchange rate. (2 x 1 points)

5. The local government might consider unfair contract clauses in the terms and conditions. (2 x 1 points)

6. Your estimations as the seller for the productivity of the procurement project during the implementation of contract might be lower than actual productivity due to unfavorable climate conditions. (3 x 1 points)

7. You as the seller might have some problems with labor and materials supply. (2 x 1 points)

8. You as the seller might face conflicts between customers, engineers, contractors, and local subcontractors. (3 x 1points)

References

Koster, K. (2013). Interntational Project Management. Sage Publications.

The Payroll Edge. (2021, May 6).5 Tips to manage currency fluctuation adjustments & salaries.The Payroll Edge. https://www.thepayrolledge.com/blog/5-tips-to-manage-currency-fluctuation-adjustments-salaries