RISK MANAGEMENT

Managing risks in construction projects has been recognized as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. However, until now most research has focused on some aspects of construction risk management rather than using a systematic and holistic approach to identify risks and analyse the likelihood of occurrence and impacts of these risks. This post aims to identify and analyse the risks associated with the development of construction projects from project stakeholder and life cycle perspectives. Based on a comprehensive assessment of the likelihood of occurrence and their impacts on the project objectives, this post identifies some major risk factors. 

Researchers found that these risks are mainly related to contractors, clients and designers, with few related to government bodies, subcontractors/suppliers and external issues. Among them, “tight project schedule” is recognized to influence all project objectives maximally, whereas “design variations”, “excessive approval procedures in administrative government departments”, “high performance/quality expectation”, “unsuitable construction program planning”, as well as “variations of construction program” are deemed to impact at least four aspects of project objectives. Researchers also found that these risks spread through the whole project life cycle and many risks occur at more than one phase, with the construction stage as the most risky phase, followed by the feasibility stage. It is concluded that clients, designers and government bodies must work cooperatively from the feasibility phase onward to address potential risks in time, and contractors and subcontractors with robust construction and management knowledge must be employed early to make sound preparation for carrying out safe, efficient and quality construction activities.

Risk Management Techniques 

• Risk Simulations and Analysis
• CPM Schedule Analysis
• Quantifying Expected Values and Modelling Risk Profiles
• Decreasing Risk Aversion
• Due Diligence

Risk Management Assessments

• Contract and Specification Requirements
• Constructability Review
• Budgetary and Final Project Costs
• Schedule Acceleration
• Change Order Identification and Approval
• Request for Information (RFI) Assessment
• Construction Methodology
• Delays and Disruptions
• Damages Assessment

As the most common and typical project types, construction projects have several characteristics such as specific objects time limit financial constraints and economic requirements, special organizational and legal conditions, complexity and systematic characteristics, For that each investment project itself is a complex system. Especially for the construction projects, there are many risk facets and complicated relations, which will influence it. The complicated relations include direct, indirect, obvious, implicit or unpredictable, What's more, the various risk factors will cause different severity of the consequences. If you do not consider these risk factors, or ignore the major factors, they all will cause damage because of decision-making errors. Quality targets, time targets, cost targets are the three objectives of project management. Especially in the construction project, the time objective is closely and inseparably related to the cost objective. Therefore, risk management of construction period is a key part in the risk management of construction

This post tells us what risks will occur during construction period. These risks have an effect on the cost and schedule of construction projects. I make my study and description mainly on the schedule. Then presenting what are the major and common risks influencing construction period that I choose from numerous factors. In the end, I got the answers like how to ensure as soon as possible how to make reasonable analysis and how to have a good control of these risks.