Risk Factors Affecting Equipment Management in Construction Firms*

Abstract

Mechanization and automation constitute an essential stage in the production and operation of any company, as one of the determinants of increase in labor productivity and decrease in product price, while signifcantly contributing to shortening of the lead time. Businesses are, therefore, able to quickly put projects into operation, improving economic efciency, quality, and aesthetics, which speeds up the national economic growth. For the construction industry to be the most efective, modern construction equipment is a necessity. It is one of the fve main resources of a construction project. Thus, efective construction equipment management contributes to the success of a project and benefts the relevant construction companies economically. This paper presents the critical risk factors afecting equipment management and proposes suitable solutions. The questionnaire-based survey with experienced experts in the construction sector on the management of the likelihood and consequence of risk factors revealed thirty-two risks for equipment management in construction companies. These factors fell into six groups: (i) site organization-related risks; (ii) management-related risks; (iii) owner-related risks; (iv) supplier-related risks; (v) legal risks, and (vi) site condition-related and external risks. The results showed that management-related factors contributed to the most signifcant risks and problems for equipment management in construction companies.