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An Innovative Framework for Risk Management in Construction Projects in Developing Countries: Evidence from Pakistan

Author

Listed:
  • Ahsan Nawaz

    (Department of Project Management, Bahria University Islamabad (Lahore Campus), Punjab 54770, Pakistan)

  • Ahsan Waqar

    (Department of Civil Engineering, Pakistan Institute of Engineering and Technology, Multan 66000, Pakistan)

  • Syyed Adnan Raheel Shah

    (Department of Civil Engineering, Pakistan Institute of Engineering and Technology, Multan 66000, Pakistan)

  • Muhammad Sajid

    (Department of Engineering Management, University of Engineering and Technology, Taxila 47050, Pakistan)

  • Muhammad Irslan Khalid

    (Department of Civil Engineering, University of Engineering and Technology, Taxila 47050, Pakistan)

Abstract

Risk management is a comparatively new field and there is no core system of risk management in the construction industries of developing countries. In Pakistan, construction is an extremely risk-seeking industry lacking a good reputation for handling risk. However, it is gradually giving it more importance as a result of increased competition and construction activities. For this purpose, a survey-based study has been conducted which aims to investigate the risk management practices used in construction projects in Pakistan. To achieve the objective, data was collected from 22 contractor firms working on 100 diverse projects. The analysis indicates that risk management has been implemented at a low level in the local environment. The results also disclose that there is a higher degree of correlation between effective risk management and project success. The findings reveal the importance of risk management techniques, their usage, implication, and the effect of these techniques on the success of construction projects from the contractor’s perspective, thus convincing the key participants of projects about the use of risk management.

Suggested Citation

  • Ahsan Nawaz & Ahsan Waqar & Syyed Adnan Raheel Shah & Muhammad Sajid & Muhammad Irslan Khalid, 2019. "An Innovative Framework for Risk Management in Construction Projects in Developing Countries: Evidence from Pakistan," Risks, MDPI, vol. 7(1), pages 1-10, February.
    • Handle: RePEc:gam:jrisks:v:7:y:2019:i:1:p:24-:d:208853
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    References listed on IDEAS

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    1. Shou Qing Wang & Mohammed Fadhil Dulaimi & Muhammad Yousuf Aguria, 2004. "Risk management framework for construction projects in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 22(3), pages 237-252.
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    Cited by:

    1. Ahsan Nawaz & Xing Su & Qaiser Mohi Ud Din & Muhammad Irslan Khalid & Muhammad Bilal & Syyed Adnan Raheel Shah, 2020. "Identification of the H&S (Health and Safety Factors) Involved in Infrastructure Projects in Developing Countries-A Sequential Mixed Method Approach of OLMT-Project," IJERPH, MDPI, vol. 17(2), pages 1-18, January.
    2. Hui-Ping Tserng & I-Cheng Cho & Chun-Hung Chen & Yu-Fan Liu, 2021. "Developing a Risk Management Process for Infrastructure Projects Using IDEF0," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    3. Nicholas Thom & Andrew Dawson, 2019. "Sustainable Road Design: Promoting Recycling and Non-Conventional Materials," Sustainability, MDPI, vol. 11(21), pages 1-12, November.
    4. Liaqat Ali & Ahsan Nawaz & Shahid Iqbal & Muhammad Aamir Basheer & Javaria Hameed & Gadah Albasher & Syyed Adnan Raheel Shah & Yong Bai, 2021. "Dynamics of Transit Oriented Development, Role of Greenhouse Gases and Urban Environment: A Study for Management and Policy," Sustainability, MDPI, vol. 13(5), pages 1-14, February.
    5. Chien-Liang Lin & Bey-Kun Chen, 2021. "Research for Risk Management of Construction Projects in Taiwan," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    6. Murat Gunduz & Hamza M. A. Lutfi, 2021. "Go/No-Go Decision Model for Owners Using Exhaustive CHAID and QUEST Decision Tree Algorithms," Sustainability, MDPI, vol. 13(2), pages 1-24, January.
    7. Hsu-Shih Shih & I-Fei Chen & Nolberto Munier & Zena Alcide, 2023. "Investigating Risk-Constraint Nexus of Construction Projects in Caribbean Small Island Developing States," SAGE Open, , vol. 13(1), pages 21582440231, March.
    8. Ji, Chenyi & Su, Xing & Qin, Zhongfu & Nawaz, Ahsan, 2022. "Probability Analysis of Construction Risk based on Noisy-or Gate Bayesian Networks," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    9. Guiliang Su & Rana Khallaf, 2022. "Research on the Influence of Risk on Construction Project Performance: A Systematic Review," Sustainability, MDPI, vol. 14(11), pages 1-19, May.

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