Guidelines to Aid Project Managers in Conceptualising and Implementing Risk Management in Building Projects

Abstract

Risk management has become a critical issue as a result of globalisation and the continued quest for greater returns. Construction organisations most especially in developing countries, approach risk management in building construction projects by using a set of practices that are normally insufficient, produce poor results often, and turn profitable building construction projects into loosing ventures. An integrated risk management approach allows construction organisations to consistently deliver superior performance while proactively managing risk. To address this gap, this paper offers a consolidated risk management system for building projects and provides project managers with guidelines for its proper implementation. In addition to helping project managers in improving risk management capability in building projects, the guideline profiled in this paper may also be of use to practitioners in other project risk management settings.