Abstract
Project management is critical to the success of projects, especially as projects get larger and utilize more complex technologies. Project management often assumes a certain degree of certainty in project planning and execution which introduces the need for risk management. Project risk management forms an important part of project management in order to determine the uncertainties or risks inherent in project assumptions, estimates and plans. Various studies and research has shown that the development of efficient risk management practices results in the greater success of projects.
A KPMG survey in 2013 found that risk management practices around the world had progressed significantly in the construction industry, however a large percentage of projects are still underperforming.
South Africa, in recent years, has embarked on a number of large megaprojects and has experienced a number of underperforming projects. The aim of this research was therefore to determine if construction companies in Southern Africa have begun incorporating risk management into existing project management structures as well as to identify the most frequently utilized risk analysis techniques. Effectively managing project risk or uncertainty through a structured risk management plan will increase investor confidence and result in greater investments in construction projects within the country.
Research data was obtained from questionnaires which were completed by employees of some of Southern Africa’s largest and most prominent companies with involvement in the construction industry.
Reponses were obtained largely from the building, energy and mining sectors of the construction industry. The highest responses were from consultants and contractors and individuals appointed as project managers and engineers. Most of the companies were greater than 10 years old and had recently executed projects with a capital value of greater than USD 1 million.
Three quarters of respondents believed that their company’s initial view of risk is first to analyse the risk before avoiding it altogether. The remaining quarter however still avoid risk which shows...
M.Ing. (Engineering Management)