Strategic Risk Management Practice in Urban Road Construction Project of Nepal

Risk management effectiveness assures project success. The overall objective of this research is to analyze the risk management practice in an urban road construction project with a case of Shiddharthanagar Municipality, Rupandehi, Nepal from contractor’s and client’s perspective. This research is based on a scheduled questionnaire survey to collect the primary data using convenient sampling of the partially or fully completed project. Contractors are quite aware of risk management and the percentage of awareness is even higher among the clients. The feedback from a similar project was used as the main method to identify the potential risk of the project from both contractor’s and client’s perspective. Direct judgment method is used maximum to the analyzed risk of the project from the contractor’s perspective as well as scenario analysis from the client’s perspective. Monitor the risk and prepare a contingency plan is used mostly for risk response of the project from both contractor’s and client’s perspective. An alternative plan, subjective judgment, close supervision, increment of resources and change in construction methods were applied as a preventive and remedial strategy. Risk should be managed by the one who is capable of managing the particular risk by managing contractual obligation with proper contract administration practices for ensuring the project objectives. There should be a risk register at the site and a frequent meeting should be conducted to identify the risks. These identified risks should be documented properly to ensure expertise for future projects.