RISK IDENTIFICATION AND MANAGEMENT IN CONSTRUCTION PROJECTS

Md Sarwar Ali, Masoom Reza

Abstract: No construction project is risk free whether if it is building projects, or any other type of construction projects. For successful completion of the project, managing of risks factor is mandatory. It is very difficult to remove all the risks by managers but this risk can be minimized by monitoring regularly. Main aim of this study to identify that effects cost, time, delay and quality of the projects, to evaluate the rating of risk and also to evaluate the significant risk factors among all other risk factors. In this study, an approach of qualitative method is used. Thirty risk factors are established after studying different research paper and subsequently Risk analysis sheets are circulated among the twenty project of a Construction company out of which twelve project of a construction company has responded. Rate of response is 60%, which may be considered to be fair for data analysis. While for data analysis, the methods used are: Survey response are analyzed using Probability/impact risk rating matrix in which Risk analyze as ‘low’, ‘medium’, ‘high’ and ‘extreme’ by colour coding; Risk significance index (RSI) matrix; Risk Index Score method and Pareto analysis. This result identify twenty major factors in which extreme risk factors inherent in construction project are financial risk followed by late approval of drawing, communication gap in top to lower management, non availability of skilled worker, increase labour cost and material prize. Pareto chart (80-20 Rule) focus on the major risk factors which poses extreme risk level involved in construction project. The result shows that 80% risk manage by mitigating twenty risk factors involved in construction project. These twenty risk factors are responsible for negative impact associated to cost, time, delay and poor quality of work.

Keywords: Risk management, Risk factors, Risk identification, Risk analysis, Risk index score and Pareto analysis

DOI: https://doi.org/10.15623/ijret.2017.0605010