Abstract: Managing risks in construction projects has been perceived as a very important management process so as to accomplish the undertaking goals as far as time, cost, quality, safety and environmental sustainability. Projects have become shared effort of multiple parties and construction industry is a good example of an area, where the project outcome is delivered in an extremely complex actor network. By adopting risk management, savings’ potentials can be realized in construction projects. For this reason, consideration of the risk management process is worthwhile for project managers as well as real estate developers. The implementation of risk management system in construction projects must be oriented towards the progress of the project and pervade all areas, functions and processes of the project. For analyzing the levels of various risk factors in construction industry, questionnaire surveys were used to collect data. Based on a comprehensive assessment of the likelihood of occurrence of various risks and their impacts on the project objectives, this paper identifies twenty major risk factors. This research found that these risks are mainly related to (in ranking) contractors, clients and designers, with a few related to government bodies, subcontractors/suppliers and external issues. Among them, “Financial Risk” is recognized to influence all project destinations maximally, whereas working in hot areas, closure, defective design and delayed payments on contract are also some important risk factors. This research also found that the risks spread through the whole project life cycle and many risks occur in more than one phase, with the construction stage as the most risky phase, followed by the feasibility stage. It is concluded that clients, designers and government bodies must work cooperatively from the feasibility phase onwards to address potential risks in time. Also contractors and subcontractors with robust construction and management knowledge should be employed early to make sound preparation for carrying out safe, efficient and quality construction activities. The aim of this research is to identify and evaluate current risks and uncertainties in the construction industry through extensive literature survey. It also intends to make a basis for future studies for development of a risk management structure to be adopted by prospective investors, developers and contractors in Developing countries.
Keywords: risk, risk management, risk analysis, construction projects.
Title: Risk Management: Identifying Key Risks in Construction Projects
Author: Divya Gupta, Manoj sharma, Dr. Ashutosh Shankar Trivedi
International Journal of Civil and Structural Engineering Research
ISSN 2348-7607 (Online)
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