Cognitive Biases in Decision-Making in the New Zealand Construction Industry
Angelo Bien R. Aguas1, Mahesh Babu Purushothaman1
- Auckland University of Technology
Published in Proceedings of the International Conference on Smart and Sustainable Built Environment (SASBE 2024), edited by Ali GhaffarianHoseini, Amirhosein GhaffarianHoseini, Farzad Rahimian and Mahesh Babu Purushothaman. Springer Nature, Lecture Notes in Civil Engineering, volume 591, 2025, pages 496 to 505. DOI 10.1007/978-981-96-4051-5_48.
Abstract
In construction management, it is crucial to grasp the profound influence of cognitive biases on decision-making processes within the New Zealand construction sector. While there is a common belief that the basic principles of construction practices are “well-known,” there is still a misunderstanding about the necessary processes and critical elements for successful project implementation. Cognitive biases, intrinsic to human decision-making, significantly affect decisions within the construction industry. This study delved into the cognitive environment of the New Zealand construction industry. It used a qualitative analysis approach, employing narrative and theoretical analysis to examine the data. A systematic literature review following PRISMA guidelines found 33 relevant journal articles from various databases. The co-occurrence of the keywords used in the systematic literature review was presented using a VOSViewer image that highlighted the most relevant keywords. The review identified 67 cognitive biases in both construction and non-construction industries. Then, the following interview of five industry professionals in New Zealand confirmed 16 of the biases and identified three more. Additionally, the study revealed seven interrelationship loops among these biases, which were visualised using Vensim software. The study concluded that the five critical cognitive biases affecting decision-making in the New Zealand construction industry are confirmation bias, status quo bias, overconfidence, framing effect, and anchoring bias.
Keywords
Session
Presented in Track B, Friday 8 November 2024, 11:00 to 13:00, room WA 224 B, Auckland University of Technology. Session chair Assoc. Prof. Pernille Christensen.
How to Cite
Aguas, A. B. R., & Purushothaman, M. B. (2025). Cognitive Biases in Decision-Making in the New Zealand Construction Industry. In A. GhaffarianHoseini, A. GhaffarianHoseini, F. Rahimian, & M. B. Purushothaman (Eds.), Proceedings of the International Conference on Smart and Sustainable Built Environment (SASBE 2024) (Lecture Notes in Civil Engineering, Vol. 591, pp. 496–505). Springer Nature Singapore. https://doi.org/10.1007/978-981-96-4051-5_48
About the Conference
Presented at SASBE 2024, the International Conference on Smart and Sustainable Built Environment, held in Auckland from 7 to 9 November 2024 and chaired by Professors Ali and Amirhosein GhaffarianHoseini, founders of GDI Academy. The version of record is published by Springer Nature; this page is the conference archive record kept by GDI Academy.