Assessment of Risk Management Practices in Construction Industry

Abstract

The construction industry is globally known as a risky industry because construction projects usually accompanied with high uncertainty in achieving their final objectives (time, cost and quality). The main purpose of this research is to investigate the current practices and methodologies of risk management for the construction industry in Iraq. A mixed research method that involves both qualitative and quantitative approaches is adopted in this research to collect and analyses the primary data. A comprehensive review of the available literature of risk management at the international and local construction projects is conducted followed by interviewing experts and carrying out a questionnaire survey with construction professionals in Iraq. The assessment focuses on the following levels: Project management team awareness and understanding of risk management tools and techniques, methods used to identify risks, currently used risk analysis and ranking techniques, risk management monitoring and controlling procedures, the status of risk management for each project phase, contractors role in applying risk management process, and the relation between risk management and project success. It has been found that the use of risk management techniques in building construction in Iraq is low. Most of contracting companies in Iraq are applying qualitative methods when identifying and analyzing the risky events over quantitative methods. The absence of the risk management team within the project management culture, weak risk planning, the lack of risk management training and knowledge within the construction firm were found to be the main barriers preventing the execution of effective risk management process.