Abstract

This study is a research of key risk elements in a construction project. Although this study is concentrated on Guangdong, China, but this study is a comprehensive research of finding the key risk elements in construction projects all around the world. A number of key risk elements are identified in this study. Also, ways have been devised in order to mitigate those risks altogether.

The measures of this study’s results are both quantitative and qualitative. Questionnaire technique has been used in order to collect the data. Questions in the questionnaire are closed ended and open ended questions. Likert scale and dichotomous questions with answers yes and no have been used in the questionnaire. This technique has been used because deciding the key risks related to construction projects needs a lot of opinions. So, in order to make a firm and reliable view about the risks both closed and open ended questionnaires are used in the questionnaire in order to collect many views. The sample chosen for this study is 100. 100 questionnaires have been distributed among employees of construction projects in Guangdong, China.

Studies have been conducted in order to find the risks in construction projects, but usually their scope has been restricted to one market. This is a comprehensive study relating the key risks of construction projects generally. Results that have been yielded can be generally applied to all the construction projects in the whole world. Numerous key risks have been identified that are being faced by the construction projects in Guangdong, China. Finally, in the conclusion portion some recommendations have been made in order to mitigate the effect of the identified risks. With the help of these recommendations, either these risks can be completely eliminated or their effects can be reduced to minimal impact.

Chapter One

Introduction

1.1.Background

  With the rapid development of science and human lifestyle the social environment has become volatile. This volatility is not confined to the day to day transactions but effects every walk of life. In this research study the effect of more and more uncertainties in the construction industry are reviewed. The construction industry has to face a lot of risk in today’s world. Construction of a specific project is a complex process, which comprises of various steps. Construction projects always have to face high risks because of the nature of characteristics it possess (Yi, 2011). Construction quality and risk management needs to be focused upon as there has been a drastic improvement in the living standard of general public. Now the consumers are informed and have a know-how about their rights and responsibilities. The construction projects require usually need big investment and are lengthy cyclic activities which exposes the projects to many uncertain factors. That is the reason the construction projects are always faced with high risks. The managers are required to pay great attention to the risk factors and strengthen the consciousness of construction risk so the overall process can be improved and the level of risk is mitigated. The risk management in the construction project needs to be focused upon. This additional aspect has been laid stress upon because it will ensures the quality of construction project, ensures the project runs successfully and finishes on time. This improvement in the project can benefit the whole enterprise and meet the requirements of the market. So the risk of construction project is very necessary to study.

With the rapid development of the modernized industrial technology in Guangdong, a lot of building projects have been started into the Guangdong market with the rapid development of real estate in recent years. But there are many problem and risk in the Guangdong construction projects as the market is extremely volatile and dynamic. In 2012, Guangdong had the highest accident rates in construction projects in China, this has added a negative mark on the construction industry. They also have had some financial risks because of which frills from all the projects had to be cut, and some even did not get completed on time. This financial risks were the effect of global financial crisis (CIC, 2013). In Guangdong like any other place in the world, construction projects are significantly affected by policy development, low level of legal awareness of people, complicated and important relationships, lack of corresponding institutes and so on. These are the particular issues the construction industry especially in Guangdong have to face. Considering these factors, this study on the analysis of risk factors during the construction projects in Guangdong is being stu