Risk management is not only important for successfully completing the production process in construction industry, but also for achieving sustainability. Since, beginning with unpredictable site conditions and demand volatility, construction process bring high level of risk, a careful management of risks is very important in construction. Construction products not only takes long time to produce, but also produced and coordinated on-site and this requires different schedules, programs and temporary solutions for each project. Characteristics of products changes project to project. The products of the construction industry are immobile, unique, heavy and large, complex, durable and expensive. Loosely organized firms do non-repetitive work with handcraft methods, and use a contract system involving a serious of subcontractors. In the second section, the focus of the study is the evaluation of risk management studies in construction with a broad literature review of previous researches.Ĭonstruction industry is a sector, which, in many ways, different from all others fields of economic endeavor. Secondly, the importance of risk management evaluated. In the first section, characteristics of construction industry defined in detail. This study consists of two main sections. Construction insurance, surety bonds, contracts and subcontracting are the main affective solutions for the risk management. Because of this, risk management is very important in construction. Unpredictable site conditions and demand volatility bring high level of risk. Because of this, demand for a construction project is volatile. Construction projects usually executed over a long period and have large budgets. Weather conditions constitute the most important and unpredictable handicap for the production process of construction. Site conditions in a construction project can be unpredictable and unexpected natural events can negatively affect construction programs and schedules. Construction industry have several different sectors producing heterogeneous products, which are immobile, unique, heavy and large, complex, durable and costly.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |