A Study On Risk Management Practices In Construction Projects In India

Abstract

Risk is quite common event in all business whereas, it is significant in construction projects why because it is involving various activities in several stages and may be in simultaneous, therefore it may be unpredictable. To anticipate and manage those risks, Risk Management Practice is an effective weapon to limit its negative impacts and unwarranted consequences. This Research paper aims to study the risks and risk management practice adapted in the construction project through various roles from top management to worker level. The questionnaire survey has been prepared and responses were collected with a sample of 132 Professionals / respondents across India. The respondents are requested to provide their opinion based on their expertise through their present & past project experiences. The Construction professionals from various industrial sectors have participated in through online survey. Sixty (60) Major risk captured in this study and ranked within the category also overall ranks of the risks. The results shows (Design error¹) the top ranked in Technical risk, (Pandemic Additional Expenses¹) the top ranked financial risk, (Unsafe incidents & accidents during erection¹) the top ranked construction risk, (Logistic accidents during transit lifting¹) the top ranked procurement risk, (Breach of contract¹) top ranked Legal risk, (Theft of Materials¹) the top ranked other risk in construction projects. Opportunity Action Plan appears most adapted &Tender Contingencies estimation seems the least adapted in construction projects for Risk Management Practice. Procurement risk (27%), Other Risk (21%), Legal risk (20%) is most highly rated risk and Technical risk (17%), Financial Risk (15%) moderately rated by the respondents. The result also indicates the awareness level of risk management is high at middle management level (62%), average at Top Management level (28%) and low level at workers level (10%). Risk management practice has high impacts on Project performance in Quality (60%), timeline (43%) and delivery (49%) and medium impact on cost (45%) in the construction project. Risk Management practice has high impacts on project delivery in time (57%) and medium impacts in cost (73%) & delivery (55%) in the construction projects. The Two-Way ANOVA between the role of respondents and the experience level of respondents significantly shows variance ratio (F value) is 5.150 and 1.393 respectively. However, the above results are limited to the 132 respondents & indicative interpretation of their responses.