Analysis of Risk in Construction Projects

Abstract

The construction industry is subject to more risk and uncertainty than any other industry. Most of the participants experience risks in cost and time over runs and many times fail to meet quality standards and operational requirements. Therefore, the need to increase the understanding of risk management. In this project, the qualitative analysis of all types of risks except financial and economical risks in the construction projects is done by ‘Risk factor and priority model’. The industry has shifted from risk transfer to risk reduction, current risk management systems are inadequate to manage project risks, and lack of joint risk management mechanisms is the key barrier to adequate risk management. SPSS (Statistical Package for Social Sciences) software is used for statistical analysis of the data collected from respondents. The general methodology of this study relies largely on the survey questionnaire which was collected from the local building contractors of different sizes by mail or by personnel meeting. A thorough literature review is initially conducted to identify the risk factors that affect the performance of construction industry as a whole. The survey questionnaire is designed to problem the cross-sectional behavioral pattern of construction risks in construction industry.