Risks and Challenges Involved in a Construction Project

Risks are very common in construction sector. It is also a fact that risk management in construction projects is still very ineffective and the main cause of this situation is the lack of knowledge. Many construction projects fail because project companies assume that all the projects would succeed and they therefore do not identify, analyze, and provide solutions to the risk elements involved in the project. One of the major roles undertaken by a project manager is the management of the risk of a project. However, this duty is complex and inefficient if good risk management has not been done from the beginning of the project. A proper and systematic methodology is required for an effective and efficient risk management approach and, more importantly, knowledge and experience. Project managers are being pressurized to minimize the chance of project failure. This increasing pressure for performance suggests that it is essential for anyone involved in a project to be concerned about the associated risks and how they can be effectively managed. Basically, Performance of a project is analyzed on the criteria of quality, budget and time of completion. This paper aims at enlisting various risks and challenges involved in construction project and various risk management techniques which can be used for the successful completion of project.