Risk management in construction projects: a study on the state-of-practice

Abstract

Construction, a key economic activity worldwide, is vulnerable to several risks, which compromise the successful completion of construction projects, and call for the implementation of risk management activities. Within this context, it is the aim of the study presented in this paper to investigate the current state of risk management practice in construction projects along with the factors that affect it, and the relationship of risk management with projects' success. To this end, a questionnaire survey was undertaken among professionals of medium and large construction companies active in the regions of Greece and Middle East, and data were analysed with statistical techniques. The analysis results indicate that construction companies, irrespective of size and region, get engaged in, but do not systematically implement, risk management activities during the whole lifecycle of their projects, a fact that influences projects' successful completion in terms of compliance to budget, time schedule, and specifications and standards.