An Analysis on Usability of Risk Management Processes in the Construction Projects: A Review | Original Article

ABSTRACT:

Risk management is a concept which becomes very popular in a number of businesses. Many companies often establish a risk management procedure in their projects for improving the performance and increase the profits. Projects undertaken in the construction sector are widely complex and have often significant budgets, and thus reducing risks associated should be a priority for each project manager. This master thesis presents an application of risk management in the early stage of a project life cycle of a construction project. In order to examine how risk and risk management process is perceived a case study of a school project was chosen. Moreover, based on the conducted interviews, the research presents how risks change during a project life cycle. All analyses are based on a theoretical background regarding risk, risk management process and project life cycle approach in the construction sector. Construction projects are characterized as very complex projects, where uncertainty comes from various sources. Construction projects gather together hundreds of stakeholders, which makes it difficult to study a network as a whole. But at the same time, these projects offer an ideal environment for network and risk management research. Additionally, construction projects are frequently used in management research, and several different tools and techniques have already been developed and especially for this type of project. However, there is a gap between risk management techniques and their practical application by construction contractor. This paper deals with the identification of risk by different methods, types of risks associated with construction project and different risk mitigation techniques.