IMPLEMENTATION STATUS OF RISK MANAGEMENT PLAN IN THE CONSTRUCTION INDUSTRY: RESOURCES, RESULTS AND RECOMMENDATIONS

Abstract

Risk management is a critical component in the project management cycle. Literary works and research have focused on the need for risk management, including the presentation of potential benefits to be harnessed from effective risk management plans. However, few works have given accounts or investigated on the amount of resources to be invested in terms of Cost, Duration and Labour to devise effective Risk Management Plans (RMP). Thus, this Dissertation aimed to address the problem of budgeting for an effective RMP through looking at the implementation status of RMP in construction. Literature Review and preliminary studies with a construction company were conducted to develop the survey questionnaire, which looked at the Technical and Social aspects of risk management (RM) and administered to construction professionals. For the Technical aspect of RM, most projects set aside six to ten percent of their total project resources in terms of Cost, Duration and Labour in formulating the RMP. The top three risks managed by the RMP were Contractual risks, Procurement risks and Safety and Health risks. Thereafter, investigations were also made with regards to the amount of resources set aside to manage these risks. The social aspects of RM, such as awareness for risk management training/consultancy firms were also explored. It was found that most employees did not have a good understanding of RM in their work processes. Finally, recommendations based on the survey results were made, for example, to pursue further graduate studies in RM to enhance RM knowledge.