RISK AND ITS MANAGEMENT IN CONSTRUCTION PROJECTS.

Abstract

The paper presents the concept of risk management within the context of the management of construction projects. It is concerned with financial risk rather than hazard. The main emphasis is on the contribution which can be made to the avoidance of cost and time overruns commonly associated with major projects. The three main stages of risk management-identification, analysis, and response - are discussed, and relevant theory is briefly described or referenced. Risk management is particularly appropriate during three phases of a project life - pre-sanction, development of contract strategy, and tender preparation - and its application to each of these stages is illustrated. Two examples of project studies are given.