Risk Management in Construction

Abstract

Construction industry have several different sectors producing heterogeneous products, which are immobile, unique, heavy and large, complex, durable and costly. Site conditions in a construction project can be unpredictable and unexpected natural events can negatively affect construction programs and schedules. Weather conditions constitute the most important and unpredictable handicap for the production process of construction. Construction projects usually executed over a long period and have large budgets. Because of this, demand for a construction project is volatile. Unpredictable site conditions and demand volatility bring high level of risk. Because of this, risk management is very important in construction. Construction insurance, surety bonds, contracts and subcontracting are the main affective solutions for the risk management. This study consists of two main sections. In the first section, characteristics of construction industry defined in detail. Secondly, the importance of risk management evaluated. In the second section, the focus of the study is the evaluation of risk management studies in construction with a broad literature review of previous researches.

Risks of Implementing Sustainable Construction Practices in the Nigerian Building Industry

“…Available literature has focused on the risk management in construction projects (Wang, Dulami and Agar, 2004;Banaitiene and Banaitis, 2012;Kasapoğlu, 2018;Bahamid, Doh and Al-Sharaf, 2019), risk assessment and prioritisation techniques (Qin, Mo and Jing, 2016;Zhao, Hwang and Gao, 2016; Zou and Couani, 2012;Gurgun, Arditi and Casals Vilar, 2016;Qin, Mo and Jing, 2016;Zhao, Hwang and Gao, 2016 Table 1. continued Tong et al, 2018;Yuan et al, 2018;Ribas et al, 2019;Guan, Abbasi and Ryan, 2020;Qazi, et al, 2021), managing risks in green building (Zou and Couani, 2012), risks in green building projects (Durmus-Pedini and Ashuri, 2010; Xiang and Shu, 2018), impact of green building (Gurgun, Arditi and Casals Vilar, 2016), risk perception (Wu et al, 2019b).…”

“…Construction risk is, therefore, multifaceted (Wang, Dulami and Agar, 2004) and uncertain event or condition (Hilson and Simon, 2020). It is the likelihood of the occurrence of combination of events/factors or a definite event/factor, which occur during the whole process of construction to the detriment of the project (Kasapoğlu, 2018).…”

“…Meanwhile, risk in the construction project may result to substantial cost and time overruns that are detrimental to the project objectives, and inherent in any construction project. Adverse effect of risks in the construction project could lead to losses not only to the project owners, contractors or society, but also to the professionals who are engaged in the project (Kasapoğlu, 2018). However, sustainability specific risks are unique because they are generally not reflected on the risk checklists and risk matrices, unlike traditional risks related to the short-term project performance measures (Qazi, et al, 2021).…”

“…The unpredictability of construction site conditions, multiple stakeholders' involvement and volatile demand of construction projects make the sustainable construction process riskier (Kasapoğlu, 2018). Apine and Valdés (2017) opine that risks in sustainable construction practices are growing with increasing utilisation of new materials and technology in the field.…”

Factors Influencing Clients’ Commitment to Sustainable Construction Practices

“…Code Sources Factors CCP1 [12,21,39,41,45] End-user/client perception and preference CCP2 [11,12,19,21,23,41,42,[46][47][48][49][50] Client knowledge and awareness CCP3 [41,[51][52][53] Level of stress and uncertainty CCP4 [19,51,54,55] Economic value and return on investment CCP5 [19,21,23,12,54,56] Cost implication and mechanism of financial involvement CCP6 [57][58][59][60][61][62][63] Health and safety implications CCP7 [21,34,41,46,64] Availability of resources CCP8 [41,54,56,65] Prevailing economic and political condition CCP9 [66]…”