The utilization of project risk monitoring and control practices and their relationship with project success in construction projects

Abstract

Risk monitoring and control is often poorly implemented in construction projects because of a failure to monitor and manage identified risks. Construction companies experience significant losses due to project managers' lack of project risk monitoring and control in construction projects. Most studies have concentrated on risk identification, risk assessment, and risk analysis processes while neglecting crucial risk management processes of risk control, risk monitoring, and risk response. The lack of research on these three crucial processes highlights a gap in the literature concerning how these processes can increase the delivery of successful projects. The purpose of this study was to examine whether the utilization of project risk monitoring and control practices was related to project success in construction projects in the United States. An electronic survey instrument was used to collect data from a sample of 50 construction project managers in the Dallas-Fort Worth area in the state of Texas, in the United States. Spearman rho correlation analysis was used to examine the relationship between project risk monitoring and control practices and project success. The results of this study indicated that all project risk monitoring and control practices, including risk reassessment, risk audits, contingency reserves analysis, and risk status meetings, were significantly and positively related to project success in construction projects. One of the recommendations presented in this study was that future research should conduct the same study in developing countries to see if the study’s findings remain the same and generalizable. The study concluded that construction organizations should regularly consider the importance and usage of project risk monitoring and control practices and apply them to improve the success rate of a project.

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Risk Management Practices and Performance of Mining Projects in Kwale County, Kenya

“…The enterprise risk management (ERM) theory (Hillson, 1997;Lam, 2014;Larson &Gray 2014) advocates for the identification and management of all risks facing a given project environment holistically instead of dealing with each risk independently (Yang, Lou, & Zhao, 2021). Based on the ERM theory, the project risk management frameworks provide a systematic approach for the management of risk by following a risk identification-analysis-response-monitor loop (Obondi, 2022). The ERM theory of managing project risk emphasizes the active involvement of all project stakeholders in the risk management process of identifying, assessing, analyzing and responding to a wide range of project risks (Kabutiei et al, 2022).…”

“…Risk management is an important exercise in order to achieve better performance of projects (Chepkoech & Wairimu, 2023). Project risk management is the art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives (Obondi, 2022). As an integral part of project management, project risk management strives to detect and priorities risks in advance of their occurrence in the project, and to give project management staff with actionable information (Shafiuddin, Durrani, Al-Bulushi, Al-Farsi, & Al-Hosni, 2022).…”

A risk management model for large projects in the construction phase in Egypt

“…There are differences between priority risks in traditional construction and sustainable construction, for example, in traditional construction, modifications have the greatest impact on projects, but on the other hand, poor labor and equipment productivity in sustainable construction, and tight schedule, come at the forefront of risks sustainable construction (Qazi et al, 2021). The use of project risk control practices are essential to the growth and sustainability of construction operations, as there is a positive, statistically significant relationship between risk reassessment and project success (Obondi, 2022). The quantitative method is the most efficient and widely used in risk analysis, as it detects deviations in the budget and schedule using Monte Carlo analysis (Nabawy, M., & Khodeir, 2020).…”