Investigation of critical success factors (CSFs) for the deployment of construction risk management practices in Sri Lanka

Abstract

Risk is an uncertain occurrence that, if befalls, has direct and indirect effects on project objectives. In particular, construction projects in developing countries are likely to face wide range of uncertainties. Risk management is a positive approach to control the level of risk. The evidence available for the effective implementation of risk management practices in developing countries is very little. The existing studies on risk management in developing countries have generally concentrated on identifying and evaluating risks rather than applying risk management systems. This research was aimed to answer the question “how the risk management practices could be promoted and enhanced in Sri Lankan construction industry?” The study applied Delphi technique and the study was conducted in three different rounds. The Delphi panel was comprised of fifteen construction industry experts with vast experience and knowledge to make judgments on risk management systems. The findings of the study reasonably disclose that the construction professionals in Sri Lanka are not conscious enough of the available sophisticated techniques for construction risk management. It is also established that the cost incurred for implementing risk management systems, poor awareness of risk management systems among construction professionals, and unavailability of risk management consultants or experts in the country are the major barriers for implementing risk management systems. The study further explored that „Including the costs within project‟s budgets for IRMS‟ and „Request for Implementation of Risk Management Systems (IRMS) on projects by clients and end users‟ are considered as exceedingly imperative Critical Success Factors (CSFs). In the meantime „Attempting to deliver projects systematically on time and within project‟s budget‟, „Inclusion of risk management systems in engineering education and training modules of construction practitioners‟, and „Awareness of risk management systems among stakeholders‟ are regarded as important CSFs for IRMS. The study also revealed that a substantial alignment is not found between the current findings of the research and the previous findings of similar studies in developing world with regard to CSFs.