Project risk management in Iranian small construction firms

Nima Amani,Keyvan Safarzadeh

doi:10.1186/s44147-021-00050-8

Nima Amani, Keyvan Safarzadeh

Open Access

https://doi.org/10.1186/s44147-021-00050-8

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Abstract

The objective of this study is to evaluate RM in small projects in Iran using identification of status, barriers, and the impact of RM on project performance. In this study, theoretical foundations and research literature were first developed through library, and then a questionnaire about these variables was designed and distributed among a number of experts in the active construction companies. Data were collected from 40 projects submitted by 25 experts from 5 executive companies. According to the studies, 10 barriers are identified as major obstacles to RM implementation in such projects, prioritized as follows: (1) lack of potential benefits, (2) not economical, (3) lack of time, (4) lack of budget, (5) lack of knowledge, (6) lack of government legislation, (7) lack of manpower, (8) low profit margin, (9) complexity of analytical tools, and (10) competition among SMCs. The findings of this research can provide an in-depth understanding of RM in small projects in Iran and make benefits of RM convincing to the participants of small projects.

Highlights

The annual budget raise of national construction projects is a reason for the key role of country’s construction industry
Status of risk management implementation Company level In this step, the current situation of Risk management (RM) execution was investigated at company level
The RM implementation index (RMII), which describes the extent of RM implementation in a company, can be calculated using the following formula, and the results are shown in Table 6: RMII = no. of projects with RM implementation/total no. of projects in a company × 100%

Summary

Introduction

The annual budget raise of national construction projects is a reason for the key role of country’s construction industry. Small projects make up a majority of projects completed in the industrial sector, planning of these projects varies greatly across the industry [8]. On the other hand, according to the current economic situation of the country (Iran) and its influence on all industries, including the construction and, subsequently, the tendency of major employers and contractors to divide large scale and complex projects into smaller and simpler ones and perform them through subcontractors, the number of small construction projects has been increasing in recent years. As the project risk increases, the management and project control gets difficult [22].

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