Risk Identification and Management in Construction Projects: Literature Review

Abstract

: The significance of risk management has increased in the last few years, and the Critical Risk Factors (CRFs) have attained more attention from the construction industry practitioners. Huge and complicated construction projects contain a lot of risk factors, and the completion of these projects relies on the proper management of the main risks. This paper identifies the critical risk factors associated with construction projects along with the most commonly used risk identification techniques and methods of classifying risks. For this study, a total of sixty-seven risk factors were identified through an in-depth content analysis of the literature. The method used for ranking critical risks, risk identification techniques, and classifying risk was based on the number of articles considering that particular risk, technique, and method. The top five identified risks were unavailability of funds, design errors & poor engineering, poor site management & supervision, contractual risks, change in laws and regulations. The most commonly used risk identification technique and method of classifying risk was the questionnaire survey and nature of the risk. The research findings are helpful to engineers, supervisors, project managers, and construction practitioners for early assessment and proper management of risks present in construction projects. of risk in the construction projects. The assessment was done on multi-attribute decision-making methods. In this paper, the risk was divided into three groups- external, project, internal. Only those risk attributes were selected that affect the construction and real estate industry. TOPIS grey and COPRAS-G methods were used for ranking and determining the optimality of different attributes. The proposed model can be used for avoiding negative impacts and increasing the chances of positive outcomes. Decision making has an significant role in construction management. The results of the research show different levels of construction projects and if a risk assessment is done properly, loses can be minimized.