Risks in Construction Projects

6644 WordsJun 12, 201327 Pages
Identifying Key Risks in Construction Projects: Life Cycle and Stakeholder Perspectives Dr Patrick. X.W. Zou1 , Dr Guomin Zhang2 and Professor Jia-Yuan Wang3 1 and 2: Faculty of Built Environment, University of New South Wales, Sydney 2052, Australia; 3: College of Architecture and Civil Engineering, Shenzhen University, Shenzhen, P.R. China E-mail addresses: 1 p.zou@unsw.edu.au, 2 guominz@fbe.unsw.edu.au, 3 wangjy@szu.edu.cn Abstract Managing risks in construction projects has been recognised as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. However, until now most research has focused on some aspects of construction risk…show more content…
Previous research has mainly focused on examining the impacts of risks on one aspect of project strategies with respect to cost (Chen et al., 2000), time (Shen, 1997) and safety (Tam et al., 2004). Some researchers investigated risk management for construction projects in the context of a particular project phase, such as conceptual/feasibility phase (Uher and Toakley, 1999), design phase (Chapman, 2001), construction phase (Abdou, 1996), rather than from the perspective of a project life cycle. Moreover, little research has probed risks from the perspectives of project stakeholders. As part of a much larger project aiming to articulate and manage key risks associated with construction projects, this paper presents the results of a questionnaire survey and seeks to identify the potential key risks from the perspectives of stakeholders and project life cycle. Related Past Research and Risk Classification Substantive research has been done in the field of risk management for construction projects, a significant outcome of which is the identification of many risks that may influence the construction project delivery. Chen et al. (2004) proposed 15 risks concerned with project cost and divided them into three groups: resources factors, management factors and parent factors. Through a case study on the West Rail Project of Hong Kong, Chen found that “price escalatio n of material” pertaining to resource factors, “inaccurate cost budget” and “supplier
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