Construction project risk management in Singapore: Resources, effectiveness, impact, and understanding

Abstract

While previous studies have focused on the need for Project Risk Management (PRM), highlighting its potential benefits, resources invested in PRM have been rarely identified. This study aims to investigate the resource allocation, effectiveness, impact and understanding of construction PRM in Singapore. To achieve the objectives, a questionnaire survey was conducted with professionals and 43 complete questionnaires were returned. The results revealed that higher proportion of costs was invested in PRM than time and labor resources, and that more resources invested would not necessarily lead to a higher level of PRM effectiveness and greater assurance with the achievement of project objectives. Also, the results showed the low-level understanding of PRM in the survey firms and suggested that the overall impact of PRM on project outcomes differed according to levels of understanding. Despite the low-level understanding, all the nine PRM principles and guidelines were significantly agreed. Hence, this study provides a clear picture of PRM in the Singapore construction industry. The findings of this study can help practitioners to better implement PRM and assure the achievement of project outcomes. © 2014 Korean Society of Civil Engineers and Springer-Verlag Berlin Heidelberg.