The Importance and Use of Risk Management in Various Stages of Construction Projects Life Cycle (PLC)

Abstract

Risk management is a step to make construction projects more efficient and practical such that uncertainties should be identified before occurring and changing into crisis and a balance should be made between threats and opportunities. Accordingly, construction industry is one of the most important and job creating industries in all countries. Compared to other economic-industrial sectors, construction management is highly influenced by the perception and employment of risk management concept. Additionally, there are abundant risks in such activities since Construction projects activities are very complex and various. Hence, it seems necessary to evaluate the proper use of risk management in various stages of Construction projects life cycle. In this regard, the present study attempts to describe Construction projects life cycle step by step and analyze the way of using risk management from designing stage to reviewing and supporting stage. The final objective of the study is to describe the process of using project management and its tools to create an optimal status in terms of risk and return balance in order to reach main objectives in construction projects.