Risks in the construction industry: Their causes and their effects at the product level

The purpose of this study is to examine construction risks at the project level. It seeks to identify the major risk variables and to examine their primary cause (which it sees as the activities of management) and their effect on project performance, assessed in terms of time, cost and quality. For this purpose it sets out these variables in a system causal model. Eighty-two variables are identified, classified into six risk subsystems and placed in causal relationship.The study had three stages. The first made use of methodologies of system, risk management and causation. The literature was carefully studied to examine the concepts of risk and uncertainty, risk management, management and project management, both in industry in general and in construction in particular.The second stage led to the building of a model. The six risk subsystems were developed into separate causal models and then combined into one, that is a conceptual system causal model.The third stage was concerned with practical testing of the theories put forward and incorporated in the model. This was done by seeking the opinion of construction project managers both in the U.K. and abroad. A detailed questionnaire was devised and sent to a large number of them. There was a very pleasing level of response. The answers were submitted to statistical analysis which is discussed in the thesis. Its most important concern was to assess quantitatively the strength of the causal links in the model.Given that the model is theoretical, literature research represents the core of the study. This is reflected by the over 670 references which have been consulted.It is hoped that the comprehensive model constructed by the study will prove useful in three ways: in assessing the role of a project manager, particularly relating to risk; as a practical guide in the construction industry; and as a basis for further research.