The Influence of Risk Management on Construction Project Performance: A Case Study

Mazurina Mohd Ali, Sakinah Zahra Norman, Erlane K. Ghani* and Noor Hasniza Haron
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Mazurina Mohd Ali: Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia
Sakinah Zahra Norman: Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia
Erlane K. Ghani*: Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia
Noor Hasniza Haron: Faculty of Accountancy, Universiti Teknologi MARA, Selangor, Malaysia

The Journal of Social Sciences Research, 2018, 936-942 Special Issue: 5

Abstract: Risk Management is recognized as an important exercise that creates value to a project and improves project performance. Time, cost and quality are the primary measures of a project performance in this industry. The success or failure in any construction project can be monitored through the attainment of these primary measures. Notably, Malaysian construction industry is considered as one of the important industries that positively contribute to the increase of Gross Domestic Product and subsequently the growth of the country’s economic development. Unfortunately, this industry suffers poor performance in which it leads to failure in accomplishing effective time, cost and quality performance. Most construction projects face a schedule delay, cost overrun and are poor in product quality. Thus, the aim of this study is to determine the influence of risk management on construction project performance of Malaysian companies based on these three primary measures. The degree of diffusion of risk management practice in the chosen construction project in Malaysia is also examined. The methodological approach exploited in this study is a case study approach involving analysis of documented data and face-to-face interviews with key players that hold different roles and responsibilities. They include a director, project managers, finance managers, contract managers and quantity surveyor managers. The results demonstrate that adopting effective risk management practices positively impacts project performance thus leading to project success. Nevertheless, the lack of knowledge and poor communication of risk management practices in construction projects contribute to the weak implementation of an effective and systematic risk management practices in Malaysia.

Keywords: Risk management; Construction project; Project performance. (search for similar items in EconPapers)
Date: 2018
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