Review on construction risk and development of risk management procedural index – A case study from Chennai construction sector

Abstract

Abstract Construction risk management plays an important role in the area of buying and selling irrespective of measure, activity and organisation. Risk management is a field of ideology and uncertainty which depends on significant projects which vary from nation to nation. It is essential to decrease the losses faced by the firm and to increase the profit, which can be done to forecast and calculate the risk factors relevant to the construction practices on time. Therefore, the research aims to identify and categorise the types of risk factors associated in the Chennai construction industry by developing a cumulative value using Risk management procedural index. The methodology of the study is to examine and rank the types of risk factors disturbing the construction projects by distributing a questionnaire survey administered to participants such as consultant, contractors and client/developers in the major parts of Chennai. In the result, the proposed RMPI method gives a cumulative value which shows the percentage of risks contributed by the various factors and they are ranked in order of the weighted value. The conclusion of this paper gives a clear forecast to reduce the cost and times overrun, which improves the quality of the construction project. The top three risk factors identified by the RMPI for the Chennai sector are listed as management (∼15%), financial (∼12), and environmental (10%).