A Study on Exploring and Prioritizing Critical Risks in Construction Project Assessment

Abstract

According to Mc Kinsey Report (2015) large construction projects take 20% large time and 80% more budget to get finished. This highlights the importance of Risk Assessment to ensure work safety, cost management and quality construction.The study aims to identify and investigate critical risks in the evaluation of construction projects by utilizing the Principal Component Analysis (PCA) and the Weighted Average Index method. The risk factors for project assessment were identified in the following domains: Budget and Cost Management Risk, Schedule and Time Management Risk, Scope and Planning Risk, Safety and Regulatory Compliance Risk, Resource Management Risk, Communication and Stakeholder Management Risk, and Environmental and Sustainability Risk, through an extensive literature review and expert interviews. A survey was distributed to building operators in Hyderabad, India. The Weighted Average Index technique was used to evaluate 180 completed responses and identify risk indicators. To find underlying patterns, Principal Component Analysis (PCA) was used to gain a better understanding of the connections between these variables. Results identified reliance on essential resources, insufficient risk assessment, cash flow restrictions, and safety issues as top considerations, with currency exchange rate swings and delayed information dissemination ranking lower but still substantial. These insights provide essential advise to stakeholders in order to successfully minimize risks and improve project results. By using systematic risk assessment and management methodologies, building projects in Hyderabad and elsewhere may handle hurdles more effectively, assuring long-term sustainability and resilience.