Essay On Construction Risk Management

CHAPTER 1

INTRODUCTION

1.1 Research Background

Construction risk means probability of loss through the stages of construction projects. According to (Perry, 1985) , construction risk is an exposure to economic loss or gain due to participation in the process of construction. Construction industry been explored to risks, which may result in financial loss, overflow of budget, project delay, workers’ injuries and others. Risk management been practiced in Malaysia construction industry. Risk management is a practice which aims to avoid, reduce and control risks. It is a discipline that allows organizations to face uncertainty of project by taking steps to protect its essential assets and resources. (Rahiman, 2006) .Risk management involved process such as identifying risk, analyzing risk, assessing risks, controlling risks, monitoring risks and controlling goals. (Schieg, 2006). Apart from that, the risk could be managed through method such as risk elimination, risk mitigation, risk transformation, risk sharing and risk retention.

After collect all data, evaluate and interpret it into paragraph.

1.6.2 Questionnaire

Questionnaire is a list of questions that listed in a form, then distribute to the contactors, quantity surveyors, project manager who working under G5, G6, G7 Contractors and insurance representatives. The purpose of questionnaire shall mainly focus on construction insurance according to the objectives of this research.

1.6.3 Interview

Interview conducted with the project manager / contractor / quantity surveyor / insurance representatives to discuss detailed information regarding construction insurance.

1.7 Structure of Chapters

This thesis shall divide into 5