Advanced Risk Management of construction projects - Part 1

In recent years, intensive research and development has been done in the area of construction Projects Risk Management (PRM). It is widely recognized as one of the most critical procedures and capability areas in the field of project management (Klemetti, 2006). Failures in risk management in construction are often seen as spectacular structural collapses or serious accidents, however, the project risk management covers a wider field than that of human and structural safety.
A significant number of construction failures and collapses occur during the construction phase and in most of the cases these failures involve the temporary structures and equipment which are used during the construction process (Mehdizadeh et al., 2013). However, failure of projects is not limited to these kinds of accidents and collapses. Cost overruns are not uncommon, especially in complex projects. Also the problem of delay is a global phenomenon and a project is considered 'successful' if it is completed on time, within budget and to the specified quality standards. After examining more than 1,000 site-based projects from over 100 different manufacturing sites around the world by IPA (© Independent Project Analysis), the study found that, on average, only 37 percent of the projects at a site meet the success criteria, including schedule, safety, operability and final cost of the project (IPA, 2011).