RELATIONSHIP BETWEEN RISK MANAGEMENT AND PROJECT NETWORK IN THE SINGAPORE CONSTRUCTION INDUSTRY

Abstract

Due to more stringent requirement of clients in the construction industry, the construction project network has expanded over the years, involving more stakeholders from different multi-disciplinary fields. Experts in this industry often neglect the effect which an expanded network can bring about. The expansion can cause complexity in the relationships among various stakeholders, resulting in interaction and coordination difficulties and uncertainties. Ultimately, these uncertainties would have high probability in transforming into project network risks if management for the network and risks is not undertaken. The interrelationship and interaction among these stakeholders is a vital determinant on the overall performance of the construction project. The literature review conducted indicates that an in-depth study on this area of research topic in the Singapore construction industry is still scarce. Hence, it is meaningful to investigate in detail on this research problem.

The objectives established for this study are mainly to ensure that occurrence of project network risks is kept at a lower probability. The top ten common network risks pertaining to the Singapore construction industry have been identified to allow stakeholders to understand the risks that they might encounter. Effective management tools are also examined to aid in the efficient mitigation of detrimental risks.

Survey questionnaire was used to collect information on the current status of network and risk management application in Singapore. The results collated indicate a negative standpoint that stakeholders have towards network and risk management, in terms of their level of knowledge and attitude towards project network risks. In addition, it is found that risks mainly arose from the contractors.

This study concludes that the mismanagement of stakeholders, which results in network risk, often occurred and should not be neglected so that resources will not be spent unnecessarily. In addition, it helps to promote a healthy working relationship among stakeholders, which facilitate collaboration among one another in the subsequent construction projects.