Risk Rating Analysis of Residential Building Construction

This review emphasizes on understanding the risk, risk management and risk rating concept with all its applications to concerned real estate industry. Construction projects are initiated in complex and dynamic environments resulting in circumstances of high uncertainty and risk, which are compounded by demanding time constraints. The construction industry has changed significantly over the past several years. It is an industry driven primarily by private investors; the presence of securitized real estate has increased considerably. It is vulnerable to the numerous technical & business risks that often represent greater exposures than those that are traditional. Thus the risk assessment need arises. Risk assessment is a tool to identify those risks in a project and manage it accordingly with proper treatment. Risk assessment is defined in this study as a technique that aims to identify and estimate risks to personnel and property impacted upon by a project. The general methodology of this study relies largely on the survey questionnaire which is collected from the local building contractors of different sizes by mail or by mail or by personnel meeting. This review identifies the risk factors that affect the performance of the construction industry as a whole. Also the survey questionnaires are help to probe the cross- sectional behavioral pattern of construction risks of the construction industry, which will help for the pilot survey in the area of construction risk management. Thus the response rate can be identified which is considered a probable response in this type of survey. This review seeks to identify and assess the risks and to develop a risk management framework for the developers/contractors and risk rating for the investors to insure good returns from investment.