Factors influencing financial risk management in construction projects

Abstract

The infrastructural and economic development of a country merely depends on the construction industry and its growth. There are many risk factors involved with the construction industry during planning, execution and commissioning of the projects. Dealing with the risk factors in construction industry have been known as a crucial management process in order to achieve the overall objectives of the industry in terms of cost, time, safety, quality and environmental sustainability. This report is related with the financial aspects which directly take part in the industry for which studies have been conducted with various engineers, contractors and labors in and around north-western districts of Tamilnadu. The perspectives at different levels of management have been concluded with the standard questionnaire format that has been investigated and their results are analyzed based on the current scenario. With the help of these surveys and data analysis by Relative Importance Index (RII), the most related factors among the identified factors were found to be labour risk, material risk, credit risk, planning risk, execution and environmental related factors. The suggestions and recommendations have been expressed to overcome those risk moderations.