ROLE OF GOVERNMENT ACTS, LAWS AND POLICIES BETWEEN EFFECTIVE COMMUNICATION AND CONSTRUCTION RISK MANAGEMENT

Abstract

Ineffective risk management by contractors in construction projects causes delays, total desertion in activities, cost and time overrun in activities and events. In construction projects, risks are inherent with uncertainty of quality, cost and completion time. Effective communication acts as a silent component in project accomplishment. An important distinctive of project success is information flow of top-down and bottom-up management as it enhances decision-making process, reduces clashes and improves project team performance. This study is grounded on Organization Control Theory which employed quantitative approach. The impact of effective communication on management of construction risks is discussed among 303 large construction companies (with more than 250 employees) with moderator variable government Acts, laws and policies in the Kingdom of Saudi Arabia using SmartPLS. Results depict that effective communication has positive influence on management of construction risks along with positive moderation effect of government Acts, laws and policies. Building conditions for improving the effective communication skills among employees within an organization result in reduction of risk occurrence.