Construction Risk Management Case Studies
The construction industry is well-known for being full of projects that were completed with significant cost overruns .
It has been reported that many construction projects have exceeded their initial budgets with cost increase in the range of 50–100% and sometimes beyond 100% .
The construction project is overwhelmed by many predictable and unpredictable risks due to different sources of uncertainty, which include the performance of construction parties, resources availability, environmental conditions, involvement of other parties, and contractual relations.
The main objectives of risk management in a construction project include completing the project within the specified cost and time and within the required quality, safety, and environmental limits .
(2007), "Risk management practices of contractors: A case study of power station projects in Egypt", Journal of Financial Management of Property and Construction, Vol.
https://doi.org/10.1108/13664380780001102 Download as .
There are three main processes in risk management which are risk identification, risk analysis, and risk response [1, 9–11].
It should be borne in mind that the main principle of risk management is not about eliminating the whole risks but to control them properly .
The data were obtained from four case studies in Kuala Lumpur, Malaysia, through semistructured interviews.
This industry is different from other industries due to its unique and complex features.
The factors of type, size, duration, diversity, players, and location would contribute to such differences which are the reasons for construction industry being exposed to many risks.
Moreover, due to insufficiency of relevant data, most of the Malaysian construction firms still do not apply risk management in their construction projects .
Given that risks can have major impacts on the outcomes of the construction projects, the objectives of this study are to identify the current tools and techniques used in risk management during the construction and to determine the effects of risk management implementation on the performance of the construction projects in terms of time and cost.