Risk management: Looming the modus operandi among construction contractors in Malaysia

Abstract

Construction projects are commonly afflicted by risk due to their uncertainty and complexity in nature. Thus this requires the contractor to have an effective risk management approach. Previous studies revealed that there was no formal risk management being used by the contractors in Malaysia. Hence, the study concentrated on the types of risk involves during construction project, the application of risk management by contractors in Malaysian construction industry and the strategy taken by them to mitigate risks. The research conducted surveys to the contractors registered with the Construction Industry Development Board, Malaysia (CIDB). The finding shows that there is a lack of standardization in the practice of risk management. Risk management has been mandated by the company and that the application has improved project performance. Besides formal approach and educating the people to conduct risk management, it is recommended that a standardized guideline of risk management is needed to improve the application of risk management among contractors in Malaysia.

A Review Strategies Integrating MS Iso 31000:2010 Risk Management Process Into Project Lifecycle for Malaysia Landscape Project Organisation

“…This will continue on by frequent rising of risks during the construction stage of a project. Hence, risks should be forecasted and managed at an early stage to enable the organisation to take necessary actions to avoid it from happening or reduce the risk consequences (Mohamed et al, 2014). Under traditional procurement direction, the landscape architect that taking roles as lead designer in landscaping project has to ensure that all risks related to design works are properly managed and controlled.…”

“…Risk monitoring and review also involves managing residual risk; that includes unidentified risk and retaining it (ISO Guide 73:2009) that emerged after the risk treatment process (MS ISO 31000:2010, 2010). All residual risks that emerges must be managed the same way by going through the RMP (Abd Mohamed et al, 2014), thus the process is continuous until the very end of PLC.…”

“…Several studies of PRM benefits by Abdul-Rahman, Wang, & Sheik Mohamad (2015); Jusoff, Yusuwan, Adnan, & Omar (2008); Kang, Fazlie, Goh, Song, & Zhang (2015); Mills (2007); PMI (2017); and provide an understanding of the risk management application in projects have been reviewed to improve chances of reaching project performance objectives and provide better control over the future outcome of the project. However, further study is carried out by Adnan (2008); Goh & Abdul-Rahman (2013); Hamzah Abdul-Rahman, Chen Wang (2015); Jusoff, Yusuwan, et al (2008); Kang et al (2015); and Mohamed, Abd-Karim, Roslan, Mohd Danuri, & Zakaria (2014) in the attempt to guide towards understanding and practicing PRM in Malaysia in the context of construction. Furthermore, studies' observation revealed that in Malaysia, there is seldom to no formal risk management applied in landscape project even when there is a risk management standard like Malaysia Standard MS ISO 31000:2010.…”

A Guide for Risk Management in Construction Projects: Present Knowledge and Future Directions

“…Risk monitoring and control process is the process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks and evaluating risk process effectiveness throughout the project [2]. This step ensures that all information generated by risk management process is captured, used and maintained throughout the construction period [31].…”

Managing Conflicts in Joint Venture Projects

“…Established in 1994, CIDB is a statutory body enacted under the Laws of Malaysia (Act 520) which coordinates and maintains the registration of all contractors. Contractors are entitled to be registered in particular categories of construction works such as civil engineering, building and mechanical and electrical works (Mohamed et al, 2014). There are seven specified registration grades, G1 to G7 with differing tendering capacity as shown in Table 1.…”