Risk management practice in a construction project

Abstract

This chapter comprises of the detail of a case study, which investigates how risks have been managed by public sector clients and the potential cost impact of risks identified towards the case study should they occur in the actual project. Each key compulsory activity involved in risk management, except risk monitoring and control, is thoroughly examined through the tools and techniques used by the public sector clients. Brainstorming is the key technique used in both risk identification and qualitative risk analysis that estimates the probability occurrence of a particular risk in the case study project. Thirteen risks have been identified as critical ones for the case study based on their probability of occurrence estimates if the case study project were to be procured using public procurement. Four of the critical risks are found to be sensitive to any economic changes or error in their probability of occurrence estimates. Although not all of the tools and techniques identified from risk management best practices have been applied, the three key risk management processes have been carried out extensively through appropriate identification, analyses and mitigation of the critical risks in order to ensure a successful delivery of the case study project.