Project Risk Management In Road Construction

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Construction projects are usually characterized by many and varying risks. Being able to manage risks across all phases in the construction process is an important and central element preventing unwanted consequences, not least exposure of the client to financial or other losses and quality failures. Many different actors are involved in a construction project and often they have no or limited experience of earlier collaboration with each other (Atkin & Borgbrant, 2010). The objective of the thesis is to identify project risk factors and analyze their impact on project objectives of road construction projects. The particular case of road construction projects is given closer examination to understand the extent to which systematic risk management…show more content…
These goals are interrelated where each of them is affecting and affected by the others. 2.4 RISK MANAGEMENT IN CONSTRUCTION PROJECTS A project is defined (ISO 9000:2005) as “A unique process consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including constraints of time, cost and resources”. The definition of Project Risk Management in (PMI, 2008): “Project Risk Management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project.” (ISOGuide73:2009) defined risk management as coordinated activities to direct and control an organization with regard to…show more content…
The international standard “Project risk management – Application guidelines” has offered a model with four steps: risk identification, risk assessment, risk treatment, and risk review and monitoring. According Practice Standard for Project Risk Management (PMI, 2008), it includes the processes of conducting risk management planning, identification, analysis (quantitative, qualitative), response planning, monitoring and control on a project. Risk Management Process proposed by Tah and Carr (2000) comprises five processes-identify risk, assess risk, analyze risk, handle risk and monitor risk. ISO31000:2009 sets out five steps for risk management – establish the context, identify the risks, analyze the risks, evaluate the risks, and treat the risks. Risk management process consists of three main phases, i.e. risk identification, risk analysis and response planning and control (Li, Wang and Yuan 2014). Nieto-Morote (2011) summarizes an effective risk management into four phases: identification, assessment, response and monitoring and

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