Implementation of risk management in Malaysian construction industry

Abstract

Applying risk management techniques to projects will improve project performance and efficiency in terms of cost, time and quality for both clients and contractors. Risks are involved in any construction project. Risk management is key to a successful project. Risk management is useful for both clients and contractors. Risk management includes three main processes and they are risk identification, Risk assessment and Risk response. Implementation of the risk management process before the start of any phase of the project will lead to less impact on the cost, time and quality of the project. Project risk reduction will reduce disputes between contractors and clients and reduce risk for both contractors and clients. Therefore, a well-drafted contract can list all the risks associated with the project and establish appropriate mitigations for these risks. The objective of this paper is to identify the level of risk management acceptance and consequences of improvement after appling risk management faced by the contractor. The construction industry is a very important industry for the economic development of the country. However, the industry has faced a serious problem of failure to complete projects within the stipulated time and cost. Thus, the purpose of this study is to assess the risk of various factors that cause excess time and cost throughout the life cycle of a construction project in Malaysia. Factors identified from previous studies. Risk management is a useful technique for the contractor to identify risks when designing new concept