Abstract:
Risk is an inescapable dimension of construction projects, particularly in road construction,
which makes effective risk management crucial in the achievement of project goals with risk
identification, analysis and handling as important steps in this process. The present study
aims to identify the severe risk factors and the strategies for handling them at each stage of
the project life cycle in road construction projects via a three-round comprehensive Delphi
survey. It also introduces alternatives to the present risk response measures adopted in road
construction projects in Sri Lanka, while attempting to develop a risk management model for
road construction.
The findings of the study reveal that although risks are spread throughout the whole project
life cycle, the construction phase is the most risky phase followed by the design phase.
Delays in payment by the client were found to be the most critical risk factor in the
construction stage while errors in estimated cost and construction period were the most
critical risk factor in the design stage. The study revealed that the most commonly used risk
response measures by the owner/consultant and contractor were the allocation of
contingency plans and claims for damages. It was also found that the lack of joint risk
management mechanisms by parties and shortage of knowledge on risk management were
the most common barriers to risk management. A consideration of the life cycle of a project
makes it clear that critical risks at the conceptual and design stages are mostly apportioned to
the owner or consultant while at the construction stage a high percentage of critical risk is
allocated to contractors. Shared responsibility is more the norm in the operational stage
although, at all stages, some portion of risk is shared by the other party. Based on data from
three rounds of the Delphi survey, the study finally proposes a risk management model
which has the potential to enhance the identification, allocation and handling of severe risks
throughout the project life cycle. The study concludes that risk management should be a
shared responsibility among parties to the contract, and education on risk management is
needed to ensure quality construction activities at all phases of the project life cycle.
