The Impact of Risk Management Practices on the Performance of Construction Projects

Abstract

Construction performance and risk management has been widely discussed in the literature from various perspectives. The main objective of performing risk management in construction industry is to ensure timely delivery of good construction within sepecific budget. However, the failure of many construction projects in meeting deadlines, cost and quality targets is continuously on the rise and there are signs of accentuating year after year suffering significant financial losses of construciton works in Oman. Therefore, there is a need for empirical evidences to explain the relationship between risk management and project performance. This study applied quantitative methods to examine this relationship. Construciton companies from grade excellent to grade second in Oman haven included in the survey. The result revealed that practicing risk managementimprove the performance of construciton project significantly. Based on this result it is essential to hire qualified project managers who has sufficient knowledge in risk managmeent and its main activities.

Risk Management Practices and Performance of Road Construction Projects in Kilifi County, Kenya

“…The main objective of performing risk management in construction industry is to ensure timely delivery of good construction within specific budget (ALSaadi & Norhayatizakuan, 2021). However, the failure of many construction projects in meeting deadlines, cost and quality targets is continuously on the rise and there are signs of accentuating year after year suffering significant financial losses of construction works in Kenya.…”

“…However, the effective implementation of risk management practices has been overlooked in developing nations (Shayan, Pyung Kim, & Tam, 2022). Although risk management and project performance has been widely discussed in the literature from various perspectives (ALSaadi & Norhayatizakuan, 2021), the existing empirical literature has provided mixed findings or inconclusive results (Jahan et al, 2022). The majority of these studies have focused on developed countries with a paucity of studies within the developing countries (Yeung, Chan, Chan, & Lok, 2022).…”

“…Risk management and project performance has been widely discussed in the literature from various perspectives (ALSaadi & Norhayatizakuan, 2021;Kallow, Bodla, Ejaz, & Ishaq, 2022). However, the majority of these studies have focused on developed countries with a paucity of studies within the developing countries (Yeung, Chan, Chan, & Lok, 2022).…”

“…The construction industry plays an essential role in the development of any country (Nguyen & Macchion, 2022;Kabutiei, Nyang'au, & Muchelule, 2022). However, the failure of many construction projects in meeting deadlines, cost and quality targets is continuously on the rise (ALSaadi & Norhayatizakuan, 2021). Despite the government's continued investment in road construction, the road construction delays have had a negative influence on Kenya's social and economic gains that would have accrued if the projects had been completed on time (Kipchirchir, 2022).…”

Role of Governmental Regulatory Controlling Procedures Between Political Hazards and Risk Management

“…The significance, impact, potency and success of the adoption of the risk management system have been observed in projects in developing and under-developing countries, such as the research of Netzel et al (2021) in Germany, Nabawy et al (2021) in Egypt, Al Malki and Alam (2021) in Bahrain, AlQubaisi and Emran (2022) in UAE, Dixit (2021) in India, Prateepasen and Aumpiem (2021) in Thailand, Nasser and Norhayatizakuan (2021) in Oman, Butt et al (2021) in Pakistan, Erfan et al (2021) in the Netherlands and Xiao et al (2021) in China.…”