Risk Management Practices In Construction

Introduction and Objectives of the study

Risk management is recognized as an important exercise in order to achieve better performance of construction projects. Success in construction project is indicated by its performance in the achievement of project time, cost, quality, safety and environmental sustainability objectives. Construction projects in L & T and generally in the region and the world run a high risk of being well over budget and significantly late. My clear objectives of this research are: The general objective is to determine the effect of project planning risk management practices on construction project performance in L & T. 1. To identify the level of importance attached to risk identification practices during planning stage

Various theories and models have been advanced on the subject of risk and decision making under uncertainty. Risk in construction has been the object of attention because of time and cost overruns associated with construction projects. This chapter reviews the literature concerning theories of decision making under uncertainty, some of the risks faced in the construction industry, some risk analysis techniques and risk response practices. The chapter further reviews literature related to the independent and dependent variables in the research. Success in construction project is indicated by its performance in the achievement of project time, cost, quality, safety and environmental sustainability objectives (Zhou, Zhang, & Wang, 2007). Despite the efforts by all players in the construction industry, many construction projects in L & T and generally in the region and the world run a high risk poor performance by being well over budget and significantly late. The construction industry generally has poor cost and schedule performance. The industry has a reputation for time and cost overruns. One of the reasons of the bad performance is that the construction industry is one of riskiest of all business types (Clough, Sears, & Sears, 2005). While some degree of poor cost and time schedule performance is inevitable in construction projects, it is possible to

The research will be both descriptive and explanatory. The research is descriptive as it attempts to answer the question of what risk management practices should be included in construction projects planning phase. The research is explanatory as it seeks to show why such risk management practices affect the project performance. The research will attempts to predict, correlate a risk management practices at planning stage with project performance. The research has a cross sectional design, which involves getting views of respondents or informants at one point in time. The research is probabilistic rather than deterministic. Methodology This proposed study is suppose to be designed to obtain views from consulting architects, engineers, project managers, quantity surveyors and contractors in regard to risk management and cost and schedule performance in construction projects. The research sample for the interview will be selected on a purposive basis, according to the judgment of the researcher as to who could provide the best information to achieve the objectives of the study (Kumar, 2005) . The target populations that will be interviewed or surveyed will related to a specific project. In order to gather necessary technical data, respondents will be included construction professionals such as architects, project managers or senior site engineers etc. Sampling Frame The sampling frame will include