Assessment of Risk Management Maturity of Construction Organisations in Joint Venture Projects

Abstract

For organizations to be successful, they should be committed in managing risk proactively and consistently throughout the project and equally important is the determination of the Risk Management Maturity (RMM) of organizations because it is the commencing point in the review of the current RM systems, practices, and culture of construction organisations. It was reported that construction organisations lack the knowledge of their capability to manage risk and as a result, JV projects continue to fail. Studies have identified, categorised and assessed risk associated with JV projects in their local and international context but no study has assessed the RMM of construction organisations in JV projects. Therefore, this study assessed the RMM of construction organisations in JV projects. The attributes and dimensions used to assess the RMM of construction organisations were identified from literature and used in the survey to collect data from respondents and subsequently analysed using the Fuzzy synthetic evaluation technique. Findings revealed that construction organisations undertaking JV projects are at the "defined maturity level"which means that these organisations only practice informal risk management and uses only qualitative risk assessment technique. The study recommends that further studies should focus on how to improve and move from the current RMM level of construction organisations to the next maturity level (managed and optimised).