Application of project risk management and performance indices in the construction sector: a case study

Abstract

In the construction sector, proper risk management may contribute effectively to improving decision-making processes. Principals and operators (businesses and professionals) may derive benefits from reducing environmental variability and uncertainty, limiting costsdue to errors and the improper use of resources and significantly improving the quality of information streams. The article illustrates the results of two studies, the first conducted in the United Arab Emirates and the second carried out in Italy, with a similar methodological approach and objectives: verifying the nature of the main risks in construction, identifying to which party (owner or contractor) responsibility for such risks is assigned in practice, representing the circumstances in which responsibility is to be considered shared and emphasising the risks with the greatest probability of occurrence. The classification of identified risks allowsprincipals not so much to prevent occurrences that may have impacts on a project as to limit and contain the events (risk reduction), partly through constant monitoring and control of activities, which is the most important critical factor to success.