Risk Assessment in Construction Businesses

Abstract

AbstractThe South African construction industry is growing, where new contracting businesses are rapidly emerging. However, statistics show that some of these emerging businesses seem to fail on a more rapid rate. Studies have shown that adequate risk management has a huge impact on sustaining and increasing both productivity and profitability in construction businesses. The rise of the 4th industrial revolution has brought about automated technology and, it is moving the industry forward, simplifying tasks and changing the construction industry as a way of assessing and managing risk. This study aimed to determine the effects of risk and the effective ways of conducting risk assessment in construction businesses. This exercise may help to establish efficiency in construction business functional areas in order to maximise productivity. The study further highlights on the importance of using BIM (AI) as a tool to assess risks in improving construction business efficiency. Quantitative methodology is used to conduct the study where questionnaires were administered to receive field data from respondents. The study is analysed based on the perspective of the various construction contractors in small and medium sized construction businesses in Port Elizabeth, Republic of South Africa. The purpose is to create an understanding on why most of the construction businesses fail in their operations and establish whether the solution could be the effective implementation of BIM as risk assessment tool.KeywordsBusinessConstructionManagement and Risk