Volume : 2, Issue : 2, SEP 2018

ROLE OF RISK MANAGEMENT IN CONSTRUCTION PROJECT IN AFGHANISTAN

Dr. Amanullah Faqiri, Dr. Adil Rasool

Abstract

Construction is a risky industry and there is no other industry that requires proper application of business practices much as construction industry, managing risks in construction projects has been recognized as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. This research deals with the study of construction projects risk management practices in Afghanistan building construction projects. The objectives of the research were to identify the level of use of construction projects risk management techniques in Afghanistan building projects, to test the level of awareness of different construction projects parties involved in Afghan building construction projects and to study the effect of different areas and causes of risk in meeting project objectives.

 

Different literatures were assessed to show that risk management is a very important management process that helps in making projects successful. Questionnaire survey was performed on different categories of building construction companies in Afghanistan to observe their awareness and how they deal with risks in their projects. Poor Construction management is the major causes of risk which has a high probability of occurrence and a high level of impact on project objectives. It was also observed that most building constructions in Afghanistan are not completed in conformity to their original plan, i.e. they usually sustain delay, cost overrun or quality problems. Majority of the parties involved in Afghanistan building construction projects believe that the effect of risk on project objectives can be greatly minimized if construction contract risk management techniques are used.

 

Data collection was done through a questionnaire survey selected construction industry participants such as International, National construction companies, Government, Donors and consultant. Data were analyzed with the use of SPSS and evaluate by SWOT Analysis model. Risk factors were classified into six categories based on their source: Technical, Design Related, Construction, Social and Political, Financial and Economic, Administrative and environmental risks. The study reveals that these risk factors spread through the whole project life cycle.

 

It is concluded that clients, builders and government bodies must work cooperatively from the feasibility stage onwards to address potential risk in time, and contractors and subcontractors with robust construction and management knowledge must be employed early to make sound preparation for delivery out efficient and quality construction program.

Keywords

Building, Construction, Risk Management, Risk analysis, Project and Objectives.

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