Risk Management in Construction Projects - amazonia.fiocruz.br

Risk Management in Construction Projects - discuss

Risk Management - Current Issues and Challenges. The GDP of Lithuania grew slightly in , in contrast to a decrease of Annual GDP growth decreased from its highest point of 6. Some industries, such as construction; trade, transport and communications; and the industry sectors were most affected by the crisis. In , the gross value added within the construction sector decreased by In , a positive change in the gross value added was observed in all groups of economic activities. A reduced demand and shortage of orders dramatically increased a competition between companies of the construction sector. This increased pressure to improve quality, productivity and reduce costs, and the need for project strategies and management that can appropriately and effectively manage project risk. Risk management is one of the nine knowledge areas propagated by the Project Management Institute [ 4 ].

Risk Management in Construction Projects - all became

. Risk Management in Construction Projects

Risk Management in Construction Projects Video

Construction Project Risk Analysis: Lessons Learned From Engineering and Construction Industry

Scientific Research An Academic Publisher. Risk Management in Construction Projects both developed and developing countries, the construction industry is regarded as an economic investment activity without forgetting its significant relationship with national economic development due to its great contributions to the national gross domestic product GDP of the country.

But even though the construction industry is more important to the country especially in development perspective, it is known that the success of the project can only be achieved when the project management is effectively delivered from the conceptual stage to the project completion stage, and the application of knowledge, skills, tools, and techniques to the project responsibilities meet the necessity of the project.

Indeed, those outcomes all depend largely on the inherent characteristics of the construction industry such as quite complex, powerful dynamics, fragile engineering environment, compact schedule, large project scale, and volume of the projects [2] [3]. According to Feng Wan [4], if those barriers or risks are not effectively prevented, they may block the smooth realization of project targets and may cause serious effects. In finding out how these serious problems can be solved, most expert persons in the construction industry believe that to complete the project delivery, the participants of the project must deal with any factors that may lead to cost overruns, project delays, poor delivery quality and high changes [5].

Therefore, the construction project management tools must be established in project management to satisfy all parties Risk Management in Construction Projects in the project and it should run through the whole project life cycle for My At The Restaurant the effect of the opportunities and positive events while reducing the probability and effect of negative events to meet the objectives of the project.

The most suitable construction project management tools are risk management and value engineering tools, because both of them are believed to be powerful project problem-solving tools; for identifying and managing risks, the risk management provides a systematic process to take actions when risks occur.

1. Introduction

It helps to determine the different project goals, improve project control, increase chances for success, improve communication between all project participants, and facilitate decision-making and priority activities [6]. In other words, it is successful because it Risk Management in Construction Projects chances, eliminates unnecessary costs, and ensures quality, reliability, performance, and other key factors that meet customer expectations.

Thus, based on the vital role of both risk management and value engineering tools provide in Projjects projects process, undoubtedly, they article source a huge impact on the successful delivery of the project without causing any trouble in terms of quality, reliability, safety and improving the performance of the entire life cycle of the project.

This review work is comparatively and collectively focus on assessing the role of risk management and value engineering tools for project successful delivery.

It studies the points of difference and common features of the two aspects in terms of construction project delivery. It includes maximizing the opportunity and effect of positive events and reducing the possibility and effect of negative events to achieve project objectives [10]. Risk management involves defining the origin of uncertainty risk identificationestimating the effects of uncertain events risk analysisgiving reply schemes based on waited results, and finally based on actual results and emerging risk feedback, executing identification, analysis and response generation steps during the life cycle of a project to assure that project goals are met [11]. The theme of RM has existed for hundreds or even thousands of Risk Management in Construction Projects [12]. However, Dallas [12] said that all RM concepts began with gambling.

Furthermore, archaeologists have evidence that gambling took place many years ago [13]. However, many years ago risk management was utilized in the construction sector [17]. In the s, RM emerged as an independent new field in the industry of construction [18].

On the other hand, According to W. Chen et al. VE has been widely used in the construction industry and has become an indispensable part of many project developments.

chapter and author info

The results of VE practices usually ameliorate the value of any project without affecting the design function of the project [20]. The value engineering technique began in the Second World War when General Electric Company GEC faced a serious problem of shortage of materials in which they were unable to meet the needs of war equipment. To defeat that critical problem, GEC had to replace scarce materials with other alternative materials that are cheaper, more beneficial, and better in performance [1].

InLawrence D. He proposed many ideas and techniques to choose alternative materials to be utilized to find value in products and he developed a function-based approach that has been successfully validated. The new method was more productive so that VE was a way to produce high production and operation efficiency at the lowest production cost. Inthe value engineering procedure was widely recognized around the world [21]. Since its first adoption in the s, Value Engineering has become a standard exercise for many government agencies and private engineering companies and contractors.

It is widely used in construction projects and has become an indispensable part of developing most of the civil infrastructural projects. In the construction projects, value engineering has been implemented for half a century in aiming to provide Risk Management in Construction Projects ideas and answers for improving project value [20].]