Risk Management in Construction Projects

Risk Management in Construction Projects

Risk Management in Construction Projects
Risk Management in Construction Projects
Risk is involved in any construction projects. Management of risk is the key to a successful project. Risk management is useful for both client and contractor. 

Risk management goes into three main processes and they are; 
  1. Risk identification, 
  2. Risk assessment 
  3. Risk response.

Implementation of the process of risk management before the start of any phase of the project will lead to less impact on cost, time and quality of the project. 

Project risk mitigation will reduce disputes between the contractor and the client as well as reduce the risk for both contractor and client. Therefore, a well-prepared contract can list all risks associated with a project and assign suitable mitigation for these risks. 

The objective of this paper to identify all risks that the contractor or client may face during the execution of a project. The risks will be identified and analyzed based on experience and the necessary mitigation for the identified risks will be presented. 
In this paper, project risks are classified into three categories based on project phases which are FEED and tendering risk, execution risk and commissioning and operation risk. 

All the major risks under each category are identified, assessed and mitigations assigned to each of the risks. It should be emphasized that risk management is an excellent tool to manage the risk in each phase of a project. Applying the risk management technique on projects will enhance project performance and efficiency in terms of cost, time and quality for both the client and contractor.
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