Risk Management of the Pandemic COVID-19’s Impact on Abandoned Housing Projects in Malaysia: A Literature Review

Abstract

The possibility is the uncertainty of the probability of the occurrence of an activity or event that can have a positive or negative effect is a risk. Risks to construction projects can result in losses in terms of cost and time for the construction projects involved. The impact of this risk involves the performance and loss of an organization such as housing developers, contractors or losses to certain individuals such as home buyers. The COVID-19 pandemic that has hit around the world has also had a negative impact on construction projects in Malaysia. The effects of the COVID-19 Pandemic have indirectly caused housing construction projects to be abandoned and also not to be completed within the stipulated time as in the contract. This results in the buyers not being able to occupy their homes according to the time period that has been signed in the sale and purchase agreement with the developer. This research aims to look at the risks in the management of abandoned housing projects in Malaysia and the existing risk management guidelines during the COVID-19 pandemic era in Malaysia. The scope of this study is based on a literature review, current news of the COVID-19 pandemic, as well as a document-based review of project management guidelines and project risk management guidelines that have been issued by government departments. This study identifies two main types of risks in the management of housing construction projects, namely from the internal and external aspects. Internal risk involves five matters relating to clients, consultants, main contractors, subcontractors and distributors of building materials. Meanwhile, risks from external aspects involve the physical, economic, political, legal and site context. Risk management strategies are used for housing construction projects for risk management to prevent the occurrence of abandoned housing projects such as retain, reduce, relocate and avoid. A review of the literature found that risk management is important for determining, evaluating and prioritizing risks by monitoring, controlling, and using proper resource management in the current economic situation in order to reduce the likelihood of adverse events and maximize project achievement. In addition, this study concludes that risk management is necessary in addressing the problem of abandoned projects during the COVID-19 pandemic.