Final Dissertation

FACULTY OF APPLIED SCIENCES
DEPARTMENT OF ENGINEERING MANAGEMENT
A project dissertation submitted in partial fulfilment of the

regulations governing the award of the degree of
MSc Engineering Management, University of Sunderland
December, 2014
Development of preliminary risk

management plan for Saraya Construction
Company
Project Supervisor: Dr. Alan Wheatley
Student Name: Mohamed Omron Ben Abeed
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Mohamed Omran Ben Abeed
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I.
Abstract:
The construction industry is considered one of the most important industries in real world due
to construction of commercial, industrial, engineering, and other projects. The construction
industry had grown rapidly in last three decades due to competition to construct either
worlds largest building or other attractive projects. There were many incidents and accidents
in past that affected the prestige of construction industry. The analysis of these accidents
showed existence of different types of risks in construction projects. These risk factors are
affecting the performance of construction projects by modifying design, delays, and over
budgeting projects. This dissertation was adopting questionnaire based methodology to
analyse the existing risk management process of Saraya Construction Company. There were
different types of risks identified in Saraya Construction Company such as market risks (sub
contractor and customer risks), financial risks (foreign currency fluctuation and country
inflation), technical risks (modification in design), management risks (lack of
communication), and environmental risks (terrorism and political instability). Also, it was
identified that risk management process is mostly applied during planning stage of
construction project. The information was also collected to confirm the best risk identification
techniques, whereas majority of respondents considered brainstorming and PRINCE 2. The
information was also collected to confirm the best risk analysis technique, whereas majority
of respondents considered impact and probability grid analysis technique. Beside these
techniques, there are different factors affecting the adoption and acceptance of risk
management process in construction project such as lack of experts and improper designer
trainings. Also, qualitative comments showed suggestion for adopting lean philosophy,
transformational leadership approach and alliances with other construction companies. This
dissertation also proposed a new risk management plan to Saraya Construction Company by
considering project objectives, formation of risk management team, risk identification, risk
analysis, risk response and continuous monitoring of risks.
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Table of Contents
Acknowledgement:............................................................................................................................2
I.
Abstract:....................................................................................................................................3
II.
Table of Contents.......................................................................................................................4
III.
List of Figures:.......................................................................................................................8
IV.
List of Tables:........................................................................................................................9
Chapter 1: Introduction....................................................................................................................10
1.1 Overview:..................................................................................................................................10
1.2 Overview of Saraya Construction Company:.............................................................................11
1.3 Research aims:...........................................................................................................................12
1.4 Research Scope:.........................................................................................................................12
1.5 Project outcome:........................................................................................................................13
1.6 Chapter Summary:.....................................................................................................................13
Chapter 2: Literature Review...........................................................................................................15
2.1 Overview:..................................................................................................................................15
2.2 Risk management:.....................................................................................................................15
2.3 Interrelation between risk management and project management:.............................................16
2.4 Significance of Risk Management:............................................................................................17
2.5 Process of risk management in developing countries:................................................................18
2.6 Classification of risks in construction projects:..........................................................................20
2.6.1 Sources of natural risks:..........................................................................................................21
2.6.2 Sources of human risks:..........................................................................................................21
2.6.2.1 Political risks:......................................................................................................................21
2.6.2.2 Social and cultural diversity risks:.......................................................................................21
2.6.2.3 Economical and financial risks:...........................................................................................21
2.6.2.4 Legal risks:..........................................................................................................................22
2.6.2.5 Management risks:...............................................................................................................22
2.6.2.6 Technical risks:....................................................................................................................22
2.6.3 Factors causing internal risks:.................................................................................................24
2.6.4 Factors causing external risks:................................................................................................24
2.7 Techniques used with risk management process:.......................................................................24
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2.7.1 Identification of risks:.............................................................................................................24

2.7.2 Analysis of risks:.....................................................................................................................25
2.7.3 Risk response:.........................................................................................................................25
2.8 Risk identification techniques:...................................................................................................26
2.8.1 Projects in Controlled Environment (PRINCE) 2:..................................................................26
2.8.2 SWOT technique:...................................................................................................................27
2.8.3 Influence diagram:..................................................................................................................27
2.8.4 Checklists...............................................................................................................................29
2.8.5 Delphi technique:....................................................................................................................29
2.8.6 Brain storming:.......................................................................................................................30
2.9 Risk analysis techniques:...........................................................................................................30
2.9.1 Decision tree:..........................................................................................................................31
2.9.2 Probability impact grid analysis:.............................................................................................31
2.9.3 Monte Carlo simulation technique:.........................................................................................32
2.10 Risk response techniques.........................................................................................................33
2.10.1 Risk acceptance:...................................................................................................................33
2.10.2 Risk reduction:......................................................................................................................33
2.10.3 Risk transfer:.........................................................................................................................33
2.10.4 Risk avoidance:.....................................................................................................................34
2.11 Summary..................................................................................................................................34
Chapter 3: Research Methodology...................................................................................................35
3.1 Introduction:..............................................................................................................................35
3.2 Research Question:....................................................................................................................35
3.3 Research Approach:...................................................................................................................36
3.4 Sources of research data:...........................................................................................................36
3.4.1 Primary research:....................................................................................................................36
3.4.2 Secondary Research:...............................................................................................................37
3.5 Data Collection Methods:..........................................................................................................37
3.5.1 Quantitative data collection methods:.....................................................................................37
3.5.2 Qualitative data collection methods:.......................................................................................37
3.5.3 Mixed data collection methods:..............................................................................................38
3.6 Selection of research methodology:...........................................................................................38
3.7 Selection of questionnaire respondents:.....................................................................................38
3.8 Questionnaire Design:................................................................................................................39
3.9 Pilot Test of Questionnaire:........................................................................................................40
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3.10 Questionnaire Distribution:......................................................................................................41

Chapter 4: Results and Analysis Chapter:........................................................................................42
4.1 Introduction:..............................................................................................................................42
4.2 Analysis of questionnaire response:...........................................................................................42
4.3 Experience of respondents:........................................................................................................43
4.4 Knowledge of risk management process:...................................................................................44
4.5 Size of department:....................................................................................................................45
4.6 Relevance of project nature with risk management:..................................................................46
4.7 Adoption level of risk management process:.............................................................................47
4.8 Implication of risk management at different project stages:.......................................................48
4.9 Impact and probability of different types of risks:.....................................................................49
4.9.1 Market risks:...........................................................................................................................49
4.9.2 Financial risks:........................................................................................................................51
4.9.3 Technical risks:.......................................................................................................................52
4.9.4 Management risks:..................................................................................................................54
4.9.5 Environmental risks:...............................................................................................................55
4.10 Techniques for identification of risks:......................................................................................57
4.11 Techniques for analysis of risks:..............................................................................................58
4.12 Factors affecting the risk management process:.......................................................................59
4.13 Factor affecting quality of construction projects:.....................................................................60
4.14 Qualitative comments:.............................................................................................................61
4.15 Summary:................................................................................................................................61
Chapter 5: Risk Management Plan Chapter:....................................................................................63
5.1 Background Summary:..............................................................................................................63
5.2 Risk Management Plan:.............................................................................................................64
5.2.1 Step 1: Project objectives:.......................................................................................................65
5.2.2 Step 2: Risk management team:..............................................................................................66
5.2.3 Step 3: Risk identification process:.........................................................................................66
5.2.4 Step 4: Risk analysis process:.................................................................................................67
5.2.5 Step 5: Risk response process:................................................................................................67
5.2.6 Step 6: Monitoring risks:........................................................................................................67
5.3 Recommendations:....................................................................................................................69
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Chapter 6: Evaluation of dissertation:..............................................................................................70

6.1 Critical evaluation of research objectives:.................................................................................70
Chapter 7: Conclusion:....................................................................................................................75
7.1 Overall Conclusion:...................................................................................................................75
7.2 Recommendations:....................................................................................................................76
References:......................................................................................................................................78
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II.
List of Figures:
Figure 2.1: Planning strategies at different project phases

Figure 2.2: Classification of risks in construction projects
Figure 2.3: Categorisation of risks into internal and external risks
Figure 2.4: Techniques used in risk management process
Figure 2.5: PRINCE 2 technique and its principles
Figure 2.6: Key factors analysed through SWOT analysis
Figure 2.7: Illustration of risks by using influence diagram in construction projects
Figure 2.8: Decision tree analysis for a new building project.
Figure 2.9: Impact and Probability Matrix
Figure 4.1: Percentage of respondents with their designation in Saraya Construction
Company
Figure 4.2: Total percentage of respondents with their work experience
Figure 4.3: Knowledge of respondents about risk management process
Figure 4.4: Capability of respondents to manage large workforce
Figure 4.5: Responses about usage of risk management system in different types of
construction projects
Figure 4.6: Acceptance level of risk management in organisational policies
Figure 4.7: Risk management process at different construction project stages
Figure 4.8: Impact and probability level of market risks
Figure 4.9: Impact and probability levels of financial risks
Figure 4.10: Impact and probability levels of technical risks
Figure 4.11: Impact and probability level of management risks
Figure 4.12: Impact and probability level of environmental risks
Figure 4.13: Best risk identification technique in construction projects
Figure 4.14: Responses regarding the risk analysis techniques
Figure 4.15: Different types of factors affecting the process of risk management
Figure 4.16: Factors affecting quality of construction projects
Figure 5.1: Proposed Risk Management Plan for Saraya Construction Company
Figure 5.2: Coloured implementation of risk management steps in structure of Saraya
Construction Company
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III.
List of Tables:
Table 2.1: Example of checklist table used in construction projects

Table 6.1: Lesson learnt and completion evidence of research objectives
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Chapter 1: Introduction
1.1 Overview:
There are different types of organisations operating all around the world for improving the
living standards of human kind through efficient products and services. There are different
operational industries operating to enhance the living experience of societies such as
construction industry, transportation industry, food industry and others. The construction
industry is considered the most essential industry among all other industries for building
different structures and projects for their customers such as residential, official, transportation
routes and others. There are different operations and management involved in construction
industry, whereas these operations are managed through out each stage of construction
project. There are different activities and analysis approaches adopted for continuously
improving these construction projects such as quality management, risk management,
performance management, human resource management and others. (Zou et al., 2007).
The risk factors can only be minimised from construction projects, whereas it is impossible to
completely remove risks from construction project. The risk management plays vital role for
construction industry by protecting the major assets from destruction such as success,
reputation, money, time and workforce. There are five major stages of construction projects,
whereas risks can affect any stage of construction project. The companies considering risks
management during their construction project are capable of completing their projects well on
time. The complex nature of construction industry is causing more risk factors, whereas risk
management becomes more difficult due to large number of activities involved in
construction industry. (Smith, 2013). The prediction of budget and schedule of construction
project is important, whereas risk factors can severely modify these two elements in
construction projects. Many construction industries are aware about importance of risk
management system, whereas operational performance is directly linked with assessment of
different risks at their early stages.
The construction companies from developed countries are facing less risk as compare to
construction companies from developing countries. Libya is also considered as developing
country with existence of different types of political, environmental, social and technological
issues. The Libyan construction companies are facing more risks due to unplanned
management for assessing different types of risks. The project managers and civil engineers
are responsible for considering all kinds of risks during feasibility stage of construction
project. The knowledge about different risk factors is important for construction projects,
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whereas lack of expertise and knowledge can severely affect these construction projects. The
project managers are required to consider different aspects for assessing these risks such as
risk management strategies, risk analysis methods, risk identification methods and risk
management plan. All construction companies are required to interlink different risks
identification and analysis techniques to adopt sustainable strategies required for efficient risk
management plan. (Shehu and Akintoye, 2010).
Therefore, this dissertation is adopting survey based questionnaire methodology to analyse
the existing risk management plan of Saraya Construction Company and proposing the new
risk management plan. As a result of implementing an effective risk management plan,
adverse events and their effective ought to be minimised. Because of this the construction
project should be improved in terms of scheduling and cost. The survey questionnaire was
conducted by considering the literature based information about different risk factors, risk
identification techniques, risk analysis techniques and risk management strategies. The team
participation and efficient communication is the key for minimising risks during projects. (ElSayegh, 2007). The new risk management plan also considered employees from all
departments of Saraya Construction Company to participate for improving the risk
management plan. There are many techniques for identifying the risk in construction projects
such as expert opinions, brainstorming, and past histories. Also, different risk assessment
techniques are discussed such as probability impact grid analysis and Monte Carlos
simulation technique. This dissertation is analysing different types of risks in Saraya
Construction Company by using impact probability grid analysis technique. The new risk
management plan is helping Saraya Construction Company to remove different types of risks
at their early stages.
1.2 Overview of Saraya Construction Company:
Saraya Construction Company was established by three brothers Imad Abu Keraza, Osama
Abu Keraza and Hadi Abu Keraza during the year 2002 in the capital of Libya. The company
was established with an aim to provide high quality construction services in developing
Libyan market, whereas major focus is made for projects such as residential developments,
road renovations, building additions, project design and road constructions. The company has
made great investments with an initial capital of 30 million Libyan Dinars to provide chance
to Libyan Companies to prove their skills and capabilities for showing high performance
during implementation and designing phases of developments. The company had achieved
good recognition in very short period of time through their experience and expertise for
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delivering wide range of construction services in Tripoli, Libya. The company is hoping to
continue their efficient services for expanding the benefits for Libyan society in upcoming
years.
There are many projects under progress for Saraya Company including housing and paving
projects such as 320 housing units and its general facilities, 400 housing units in Tripoli City,
112 housing units in Al-Aziziyah City, maintenance and reconstruction of Aljalaa Road,
Tobacco Factory Road execution and design, Znata rapid road execution, 2000 building units
in Tripoli and Al-Azzizya/Nalout double road execution and design. The company has a large
work force for completing projects and they are concerned about different types of risks
involved during the completion of these projects. There have been different incidents and
accidents during previous projects that raised alarm for Saraya Construction Company.
Therefore, they decided to conduct research to minimise these project risks.
1.3 Research aims:
This dissertation aims to analyse the existing risk management plan of Saraya Construction
Company by conducting questionnaire based methodology. The data collected from
questionnaire methodology was helping to analyse the actual risk factors in Saraya
Construction Company. This dissertation also proposes a new risk management plan to
improve construction projects in terms of cost and schedule. The major aim is to increase the
knowledge and participation of employees for reducing different types of risks in Saraya
Construction Company. This dissertation was considering different types of risk identification
techniques such as brain storming, risk histories, checklists and Delphi technique. Also,
different types of risk analysis techniques are considered such as Impact Probability Grid
analysis and Monte Carlo technique. The major aim of this dissertation is to propose a new
risk management plan by interlinking these risk identification and analysis techniques with
efficient participation and knowledge of employees in Saraya Construction Company.
1.4 Research Scope:
There are different types of factors involved with risk management plan, whereas efficient
risk management plan can be proposed by considering key objectives. The success of any
project is depending on selection of key objectives and their completion within planned time
period. This dissertation also considered five major objectives to complete all the
requirements of M.Sc dissertation and client.
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Literature information based on evaluating different types of strategies for risk

management system and investigating the effectiveness of different risk management
techniques.
To critically evaluate the risk management system of Saraya Construction Company
by using questionnaire based methodology and analysing the factors affecting their
risk management system.

To recommend a new risk management considering different methods and techniques
to minimise risk factors in Saraya Construction Company.

To measure success by producing a critical evaluation of the work against the terms of
reference objectives.
To write complete dissertation satisfying the necessary academic and client
requirements.
1.5 Project outcome:

All the requirements of Saraya Construction Company and University of Sunderland were
completed after writing a written report considering following aspects.
To critically evaluate the literature sources to properly assess different types of risks
in construction projects.
To critically evaluate different types of risk management techniques, in order to

identify, analyse, respond, monitor these risks at their early stages.
Compiling literature and analysis key findings to recommend a new risk management
plan for Saraya Construction Company.
1.6 Chapter Summary:
There are seven chapters in this dissertation for completing all the requirements of client and
University of Sunderland for completing M.Sc dissertation. The summary of these chapters is
as given below:
Introduction chapter: This chapter is providing general information about whole

project, whereas major information is provided about requirement of research,
overview of Saraya Construction Company, research aims, project objectives, and
final product to be delivered to client.

Literature review chapter: This chapter is considering different secondary data
sources for critically evaluating the risk management in construction industry. The
information was selected to analyse different types of risk sources, whereas different
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methods, tools and techniques were discussed to minimise these risks in construction
industry. Also, discussion is made for different types of risk identification, risk
analysis, and risk response techniques.

Methodology Chapter: This chapter is providing information about methodology of
this dissertation. The key aspects of research methodology are discussed such as
research approach, research question/hypothesis, data collection method, and research
ethics. Also, designing of questionnaire with its complete distribution and response
collection method is defined in this chapter.

Analysis Chapter: This chapter is providing information about collected data from
questionnaire methodology, whereas discussion is made by considering different
theories and researches related with risk management in construction industry.

Risk Management Plan Chapter: This chapter is recommending different strategies
and techniques after analysing the data collected from questionnaire methodology.
Also, new risk management plan is discussed in detail with all its stages and
implementation in Saraya Construction Company.

Critical Evaluation Chapter: This chapter is critically evaluating all the research
objectives with evidence of their successful completion in this dissertation.

Conclusion: This chapter is concluding all the information of dissertation and
recommending key findings of dissertation to all other construction companies and
future researchers.
Chapter 2: Literature Review

2.1 Overview:
This chapter is considering all types of applications and processes involved in construction
projects for managing risk factors. There are different types of risks involved in construction
projects, whereas these risks can be categorised on the basis of their impacts on construction
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projects. This chapter is considering the key problems faced by Saraya Construction
Company for managing risks. This chapter is also confirming the relevance and feasibility of
different risk techniques with risk management plan of Saraya Construction Company. Also,
different previous research studies are used for assessing the success rate of different
techniques in construction projects, whereas recommendations can be made on the basis of
literature information. This chapter is categorising risks in terms of human and natural risks.
The human risks are further categorised into internal and external risks. This chapter is also
considering different types of risk identification, analysis and response techniques. The
discussion is helping to recommend best techniques for identifying, analysing and responding
to different types of risks in Saraya Construction Company.
2.2 Risk management:
There are different types of risks involved during the construction project and are capable of
negatively affecting the project objectives of construction projects. There are five major
stages of construction projects, whereas these risks can arise at any stage of construction
project. The risks are considered as unexpected and unwanted event during construction
project causing severe loss of time, resources, workforce and financial assets. (Azari et al.,
2010). Therefore, there is always a system required for minimising these risks in construction
projects. In addition Tang et al. (2010) defined risk management process in terms of
identification of risks at their early stages, analysis of their impact, planning of risk response
and successful achievement of project objectives. There are different varieties of risks arising
during construction projects, whereas following these essential elements of risk management
process can help in minimising the impact of these risks. The process of risk management
requires proper techniques for identifying, analysing, responding and minimising these risks
in construction projects.
2.3 Interrelation between risk management and project management:

There is very strong relationship between risk management and projects management in
terms of different activities and procedures. The risk management is commonly based on
procedures and processes based on identifying, analysing and minimising the risks from
construction project. Similarly, project management is also using processes and procedures
for monitoring, organising and controlling all the activities in construction project. (Kwak &
Anbari, 2009). Both types of management are considering procedures and processes for
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monitoring and controlling unexpected and unwanted events from construction project. Also,
both management types are preventing projects from negative impact of risks. The risk
management in construction industry is considering different plans based on tasks and actions
to monitor different types of risks during whole project lifecycle. These actions and tasks are
based on strategies to formulate, analyse and recognise different types of anti project events
for efficiently achieving the objectives and goals of project. There are many differences and
similarities between projects but project teams can face same type of risks during all types of
projects. (Dikmen et al., 2008). The past histories of project can help in counter measuring
these risks from project, whereas consideration for wrong decisions in past and lesson learnt
from project can help in developing sustainable risk management system.
The risk management is also known as uncertainty management due to involvement of
different policies and strategies for managing different uncertain events in projects. There are
many uncertainties involved with construction projects and nobody is able to predict the
actual budget and time required for completing the project. The stakeholders are also causing
different uncertainties in construction project due to different modifications and demands.
The effective planning can help in minimising these uncertainties from construction projects.
(Zayed et al., 2008). In contrast, Zwikael and Sadeh (2007) argued that prediction of risks is
very difficult due to unstable occurrence of risks during all stages of construction project. The
planning is essential for assessing these risks but efficient contingency plan should be defined
to cope up with risks at their early stages. These contingency plans can prevent project from
disappointing and unsatisfactory results, whereas valuable assets and resources of project can
be protected from destruction and losses.
These risks can be diminished, transferred or managed in construction project but there are
different less harmful risks that can be accepted during construction projects. The acceptance
of risks doesnt mean that ignoring them at any stage, but there are priorities and impact
values that helps in accepting the risks during construction projects. There are also many
evidences available for transferring of risks to other stakeholders in construction projects
such as designers, engineers, contractors and others. Therefore, risks should be efficiently
handled to minimise their impacts from construction projects. All kinds of risks should not be
ignored at any stage, whereas priorities should be made depending on impact of these risks in
construction projects. (Lam et al., 2007).
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2.4 Significance of Risk Management:

There are many problems faced during the management of construction projects due to
involvement of multifaceted activities. The transfer of information is considered important
during construction projects. According to Tserng et al. (2009), efficient transfer of
information should be made through out the life cycle of construction projects. There are five
different phases of construction project, whereas different parties are involved for managing
these phases of construction project. The construction work is completed through
collaborative efforts of these parties, whereas regular interactions are made between these
parties throughout the project. The conflicts between these parties can severely affect the
completion of construction project. Besides management of conflicts, strong communication
between these parties is also important. The smallest modification without strong
communication can lead to severe confusions and damages in construction projects. The
major modifications in projects are causing delays that directly affect the schedule, time,
resources and workforce in construction projects. The adverse events and risks in
construction projects are always causing delays due to modification of project plan.
(Meredith and Mantel, 2011).
There are different types of risks faced during construction projects such as flaws in
contracts, defective bidding process, lack of communication, changes in design, lack of
management skills, inexperienced contractors, terrorism, political instability, extreme weather
conditions, and inflation of foreign currency and taxes. All the construction companies should
be well aware about these risks, whereas sufficient tools should always be available to
mitigate these risks. (Ling and Hoi, 2006). All the professions are considering risks
depending on their own understanding such as business personnel will consider it as loss of
finance, IT professional will consider it as loss of data, and health professional will consider
it as diseases and mortality. (Kwak & Anbari, 2009). Beside these concepts about risk,
construction companies consider it for affecting their schedule, cost and resources of project.
The variety of opinion about risks in different fields is depending on the field experience of
professionals. This is the reason that different approaches are adopted in different fields for
assessing concerned type of risks.
Beside the variety of risks, the impact of these risks may vary depending on different
conditions of construction project. There are different risks with high impacts, whereas there
are few risks with low impacts on construction project. The project managers and risk
management team is responsible for prioritising these risks depending on their impact and
probability in construction project. The priority of risks is providing efficient ways to address
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more harmful risks first, whereas other risks must not be neglected in construction project.
Majority of projects are delayed due to neglecting of severe risks and preferring less
significance risks during construction projects. (Anthony, 2008). All the stakeholders are
investing construction projects for profit, whereas construction companies are required to
secure these investments from different types of risks and threats. These risks can affect the
prestige and existence of any construction company by generating unreliable perception
among stakeholders. Also, future investments can be stopped due to insecurity of investment.
Therefore, construction companies are required to satisfy their customers and stakeholders by
adopting efficient risk management system.
The organisations with extensive experience in construction industry are keeping some
portion of their budget for managing these unforeseeable events. (Loch et al., 2011). The
reserved budget can help in preventing delays and failures during construction projects. The
client is always looking for contractors that are capable of managing projects within allocated
time and cost. They can lose confidence due to severe delays and higher cost in projects. The
proper quantification of risks is providing enhanced understanding to project managers for
efficiently executing the project. The efficient use of risk management is creating different
types of opportunities that can help in achieving the purpose and objectives of project.
Therefore, construction companies should focus on these opportunities to complete their
project well in time and budget.
2.5 Process of risk management in developing countries:
The developing countries are facing more issues during the construction project, whereas
these issues are very complicated, grave and difficult to control during construction projects.
The majority of issues are arising due to different factors such as material quality, lack of
technology, lack of advanced machinery, lack of trained labour, lack of skilled management
and geographical conditions. The lack of knowledge is considered as major factor due to
frequent use of formal techniques for management and analysis of risks. Many construction
companies in developing countries are not aware about latest risk management techniques
and their benefits. (Zavadskas et al., 2010). The risk management is essential for projects in
developing countries due to additional types of risks as compare to developed countries such
as usage of outdated equipment, fluctuation of taxes, vague governmental policies, terrorism
and political instability. The companies that are not properly managing these risks are facing
severe consequences.
According to Haponava and Al-Jibouri (2009), efficient risk
management process is always considering the pre-project planning called as feasibility stage
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of construction project. These pre-project planning at early stage of construction project can
provide control over these unforeseeable risks. The given below figure 2.1 is showing the
planning strategies at different stages of construction project.
Figure 2.1: Planning strategies at different project phases (Haponava & Al-Jibouri, 2009)
The projects that are not managing time and cost are facing severe delays and budget
problems during their projects. The most essential instrument of project management is
related with their capabilities to control the time frame of construction project, whereas
different future risks can be avoided by controlling the time frame of project. Also, cost
control system is essential for companies operating in developing countries. (Azhar et al.,
2008). The companies are required to resolve all issues related with sub contractors, whereas
cost and time risks should be considered during all types of contracts. Also, imperfect design
of project can also lead to severe delays due to regular modifications and changes. The
contractors and project group can face severe problems due to defective project design. These
issues are commonly faced by construction companies in Libya such as problems with
schedule, weal structure of budget, lack of coordination, regular modifications and changes in
project design, limited funds, lack of risk expertise, lack of commitment, and inappropriate
project planning. (Tumi, 2009).
Therefore, it is highly recommended for construction companies from developing countries to
keep record of their previous projects for avoiding future risks. This can help in
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understanding the frequency, probability and impact of all kind of risks in their projects well
in advance. All the project managers should be provided suitable trainings for implementing
and understanding risk management techniques in their projects. This can help in achieving
the organisational objectives by minimising all kind of risks from project.
2.6 Classification of risks in construction projects:
There are different types of risks involved in construction projects but major classification of
these risks can be done into natural and human risks. These are the two major types of risk
factors that cause severe uncertain events during construction projects. (Ling and Hoi, 2006).
The given below figure 2.2 is showing the classification of risks during construction projects.
The natural risks are categorised into geological and weather risks. The human risks are
categorised into political, economical, technological, social, legal, cultural, technical and
managerial risks.
Figure 2.2: Classification of risks in construction projects (Ling and Hoi, 2006).
2.6.1 Sources of natural risks:
The natural risks are occurring due to extreme weather conditions or geological conditions
such as acts of god. These risks are severely affecting the construction project in terms of
financial losses, accidents, destruction of structure and stoppage of work. These natural risks
are also depending on geographical condition of different countries, whereas weather
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conditions are different all around the world. These risks cannot be stopped or minimised
through any strategy, but pre-planning can help in protecting the construction project from
these risks. The project managers should always consider the geological conditions of site
before commencing any construction project.
2.6.2 Sources of human risks:
These types of risks are occurring due to different types of human activities during the
construction project. These human risks can be minimised efficiently by adopting sustainable
strategies in construction projects. The human risks can be categorised into political risks,
economical risks, legal risks, technical risks, managerial risks, social risks and financial risks.
2.6.2.1 Political risks:
These risks are arising due to weak political framework of any country such as multiple
governments or dictator ruling the country. The political instability can result in severe
interference by government, massive taxes, civil chaos and strikes. (Zhang & Wei, 2012).
These political risks can be minimised through complete cooperation with government and
using company influence to get extra support from government for commencing construction
projects.
2.6.2.2 Social and cultural diversity risks:
The social risks are directly linked with employees and stakeholders of construction industry,
whereas risks arise due to diversity of multiple cultures, languages, religion, and societies.
The social risks are occurring due to dissatisfaction of individuals or group of individuals in
terms of work environment, project objectives, leaders and motivational factors. The diversity
factor can result in different types of conflicts between employees. These risks can be
minimised by adopting effective team strategy, whereas team leaders should be considering
all types of social factors. (Smith, 2013).
2.6.2.3 Economical and financial risks:
These risks are arising due to different factors such as increased tax rates, increased interest
rates, fluctuation of foreign currency, and crisis in local market. These risks are directly
related with budget of construction projects, whereas financial and economical risks can
result in shortage of labour, shortage of material, reduction of profit and delays. (Aisen and
Veiga, 2013). These risks are inevitable and arising due to influence of external sources.
These financial risks can directly affect the quality of project, whereas many factors can
results in financial risks such as need of heavy machinery, procurement conflicts, sub
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contractor demands, need of skilled workforce, and increase in material price. These
economical and financial risks can be managed by keeping reserve budget for these issues,
whereas project managers are required to make efficient contingency plans to tackle these
issues during construction projects.
2.6.2.4 Legal risks:
There are different legal procedures involved in construction projects, whereas companies are
required to comply with regulations and policies defined by government. Also, construction
companies are required to comply with terms and conditions defined in their legal agreement
with client, contractors and suppliers. The companies ignoring these legal risks are facing
severe penalties from local government. Also, disagreement with terms and conditions
defined in contracts can lead to massive compensation or stoppage of payments from client.
Therefore, these legal risks should be considered in construction projects and companies must
comply with all the standards and regulations defined by government for construction
projects. (Kent & Becerik-Gerber, 2010).
2.6.2.5 Management risks:
The construction project requires efficient management of employees, resources and
stakeholders. The project managers are integrating the whole process for managing all these
entities in construction project. The management risks are arising due to incompetency of
managers to deal with workers and other stakeholders. The negotiation and motivation of
employees is considered key capabilities of efficient project managers. Also, project
managers should have capabilities of task integration in project. There are different factors
that cause management risks such as output of project, supplier and contractor problems,
human resource management, quality issues and technical factors. (Winch, 2010).
2.6.2.6 Technical risks:
The technology is considered the most essential element in construction projects, whereas
construction companies equipped with advanced machinery and mechanism are capable of
getting competitive advantage in global market. There are different factors that cause
technical risks in construction project such as defective design, incompetent workforce, non
compliance with procedures and lack of advance machinery. (Smith et al., 2013). The project
managers must have complete knowledge about all technical factors, whereas alternative
approaches can be adopted with complete knowledge of technical aspects. Also, majority of
project managers in developing countries are not aware with technical tools for analysing risk
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management process. Therefore, appropriate training and mentoring sessions can help in
minimising these technical risks from construction projects. The given below figure 2.3 is
categorising different types of risks in construction project. But, majority of these risks are
categorised into internal and external risks.
Figure 2.3: Categorisation of risks into internal and external risks (EL-Sayegh, 2008).
2.6.3 Factors causing internal risks:
There are different factors involved that cause internal risks such as low quality material by
suppliers, incompetency of contractors, delays from sub contractors, defective design by
designers, modification of design, tough delivery schedule, non payments to contractors and
incompetent workforce. All these risks are associated with internal members of construction
project. (EL-Sayegh, 2008). These internal risks can directly affect the cost and schedule of
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construction project, whereas lack of contribution from any single stakeholder can affect the
performance of other stakeholders. These risks can generate more difficulties due to
collective contribution from stakeholders during construction projects.
2.6.4 Factors causing external risks:
Besides internal risks, there are different types of external risks arising from external
environment such as extreme weather conditions, scarcity of material and labour, foreign
currency fluctuation, inflation, cultural risks, modifications in rules, issues with labour union,
war, terrorism and political instability. These risks are not interrelated with each other and
different strategies can be adopted to minimise these external factors from construction
project. (EL-Sayegh, 2008). The project managers must have complete knowledge about all
these external risks, whereas complete awareness can help in risk reduction by adopting
sustainable risk identification, analysis, and response techniques.
2.7 Techniques used with risk management process:
The risk management process is consisting of three major techniques such as identification,
analysis and response techniques. The research work conducted by Pritchard (2010)
confirmed that risk evaluation, risk estimation and risk identification are the three major steps
used for risks management. In addition, Fan et al. (2008) recommended five major steps for
risk management process such as identification, assessment, measurement, evaluation and
controlling. These techniques can help in efficiently minimise the impact of different types of
risks in construction project.
2.7.1 Identification of risks:
The identification of risks is considered the initial step of risk management process, whereas
identification of risks at their early stages can help to design appropriate strategies to counter
measures these risks in construction project. The risk management is considered complex
process, but efficient risk identification can ease the process of risk management. (Zavadskas
et al., 2010).
2.7.2 Analysis of risks:
After successfully identifying the risks, risk management process is following the process of
analysing risks in construction projects by confirming the probabilities and impacts. The
frequency of risk occurrence and severity of these risks in construction project is helping to
analyse each type of risk. (Makui et al., 2010). The analysis is helping project managers to
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adopt priority for these risks, whereas resources are allocated on the basis of probability and
impact of risks.
2.7.3 Risk response:
After successfully identifying and analysing risks in construction projects, the project
managers can make decision based on actions to handle these risks. All the three techniques
are linked with each other and efficient results can be obtained with systematic follow up of
these three activities. The risk response technique can be further divided into different
categories such as risk transfer, risk avoidance, risk reduction and risk acceptance. The risk
response can be made efficient with reserved budget and contingency plan in construction
project. (Zavadskas et al., 2010). The given below figure 2.4 is showing different techniques
used in risk management process.
Figure 2.4: Techniques used in risk management process (Zavadskas et al., 2010).
Beside these techniques of risk management process, monitoring of risks at all stages is very
important in construction project. The risks can arise at any stage of project and proper
monitoring will help in identifying, analysing and responding to these risks. (Dikmen et al.,
2008). Therefore, it is highly recommended for project managers of Saraya Construction
Company to monitor risks at all stages of their construction project. This will help them in
taking early preventive actions for reducing the impact of risks from their construction
project.
2.8 Risk identification techniques:
There are different types of risk identification techniques available in all kind of projects such
as Brain storming, Delphi technique, checklists, cause and effect diagram, influence diagram,
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SWOT analysis and PRINCE 2. The summary about these risk identification techniques is as
given below.
2.8.1 Projects in Controlled Environment (PRINCE) 2:
There are two major constraints of construction projects such as budget and time, whereas
proper methodology is required for completing project within proposed budget and allocated
time. The IT based technique called Projects in Controlled Environment (PRINCE) 2 can
be efficiently used for identifying risks, whereas it can provide complete control over all
resources and commitment of staff in construction projects. (Williams, 2008). There are seven
different types of themes and principles of PRINCE 2 technique such as continued business
justification, learn from experience, clearly defined responsibilities and roles, focus on
quality, managing projects in stages, suitability of project environment, and managing the
exception. This technique is helping in identifying different risks and manages smooth
running of construction projects. This technique is useful at any stage of construction project
for providing perfect start till successful execution of project. The given below figure 2.5 is
showing the seven principles of PRINCE 2 technique.
Figure 2.5: PRINCE 2 technique and its principles (Williams, 2008).

2.8.2 SWOT technique:
This technique is providing information about strength, weakness, opportunities and threats
in construction project. There are many construction companies that are not aware about
different opportunities and threats involved during their construction operations. The
identification of risks can be done by considering the weaknesses and threats in construction
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project. These weaknesses and threats can be identified at any stage or level of construction
project such as company level, delivery level, market level, strategic level and product
development level. The SWOT analysis provides evaluation of internal and external
environments of organisation. There are five key factors analysed through efficient SWOT
analysis in construction project such as environment, people, production, finance and market.
(Lu et al., 2009). This technique provides complete awareness about different risks and
hazards, whereas sustainable strategies can be adopted by using the knowledge of threats and
weaknesses of company. The given below figure 2.6 shows key factors identified with SWOT
analysis in construction projects.
Figure 2.6: Key factors analysed through SWOT analysis (Lu et al., 2009).
2.8.3 Influence diagram:
This risk identification technique is classifying all necessary elements in construction project
such as decision, aims, doubts and their influence. This technique is helping in efficient
decision making for any problem, whereas three major nodes are comprised during
construction projects such as chance, decision and value nodes. This technique is capable of
providing results for unpredictable problems in construction projects. (Dikmen et al., 2007).
The figure 2.7 shows the illustration of risks by using influence diagram.
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Figure 2.7: Illustration of risks by using influence diagram in construction projects (Dikmen
et al., 2007).
2.8.4 Checklists
The checklist technique is commonly used for identifying the risks by confirming the
availability of resources in construction project. This technique is commonly used for
confirming the successful completion of different activities in construction project. These
checklists are confirming the estimation of budget on the basis of different tasks in
construction project. This risk identification technique is not much beneficial as compare to
other techniques; therefore researchers recommend using other risk management techniques
with checklist technique. (Lock, 2007). The given below table 2.1 shows an example of
checklist technique used in construction project.
Table 2.1: Example of checklist table used in construction projects (Lock, 2007).
2.8.5 Delphi technique:
This risk identification technique is commonly used for dealing with complex issue in
construction project, whereas expert opinions are taken for ongoing problems by using
interactive tools. This technique can use questionnaire or interview methodology during the
consecutive phases, whereas opinions are analysed to identify the solution for different types
of risk problems in construction projects. All the responses are dealt separately to collect their
opinion about ongoing problem. The collection of information is done regularly until an
improved opinion is obtained. (Vidal et al., 2010). The opinion of experts is considered
trustworthy and individual responses are analysed to identify the common opinion about risk
management. This risk identification technique is beneficial for construction companies, but
mostly researchers consider it as time consuming technique as compare to other risk
identification techniques.
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2.8.6 Brain storming:

This technique is using collective efforts of employees for managing risks in construction
projects, whereas group of employees can be formed by selecting different participants from
different departments of organisation. This technique is using discussion technique between
participants for providing their opinion about risk management in construction project. This
technique should always consider less than 12 participants to avoid confusion, whereas an
evaluation panel must be monitoring the discussion of these participants under an efficient
leadership. The leaders are responsible for managing quality of discussion by removing
criticism and discrimination during discussions. The brainstorming method can provide
innovative ideas in organisation for efficiently managing risks. The final conclusion and
selection of idea is done by evaluation panel by evaluating the best idea provided by
participants. This technique can also help some group member to influence other participants.
(Kivrak et al., 2008).
All the above discussed risk identification techniques have different merits and demerits,
whereas these techniques are suitable depending on nature of construction project. Many
researchers used different types of risk identification technique, but all these techniques were
depending on geographical conditions, type of construction project, budget and schedule of
construction project. Many researchers had also recommended for using multiple risk
identification techniques in construction project. This can help in efficiently identifying the
risks in construction project. The above discussion was compared with conditions of
construction projects conducted by Saraya Construction. There are two key technique that can
benefit Saraya Construction Company for identifying risks in their construction projects such
as brainstorming and PRINCE 2 technique. These two techniques will improve the
collaborative efforts of employees by using technological approach to detect risks in their
organisation.
2.9 Risk analysis techniques:
There are different types of technique that can be used for forecasting the unfavourable
impact of risks in construction projects. (Harris and McCaffer, 2013). The analysis of risks
can be done by confirming the probability and impact of risks in construction project. The
summary of different risk analysis techniques is as given below.
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2.9.1 Decision tree:

This technique is commonly used for selecting best strategy on the basis of different cons and
pros involved with each action in construction project. The decision tree is only capable of
providing the analysis based on information available for risks and actions, whereas
interrelated risks are not considered with this type of analysis technique. This technique can
help in reducing the unpredictability in term of resources, budget and schedule of
construction project. This analytical technique is benefiting the decision making of project
managers and provides alternative ways to assess the losses attached with different types of
risks. (Sarka et al., 2008). This technique is using two nodes for analysing the risks such as
chance and decision nodes. The given below figure 2.8 shows an example of decision tree
analysis for a new building project. The example is explaining the procedure followed in
decision tree for analysing the risks and alternative actions.
Figure 2.8: Decision tree analysis for a new building project. (Sarka et al., 2008)
2.9.2 Probability impact grid analysis:
This technique is commonly used for analysing the probability and impact of different risks
in construction project. This technique is commonly using the past histories to confirm the
probability and impact of all kind of risks. The grid analysis of risks is representing the
impact on one axis and probability on another axis. This technique is providing ways to
project managers for prioritising different types of risks on the basis of their probability and
impact. The project managers using this technique can give priority to high impact risks,
whereas low risks can be addressed later in construction project. This technique is
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categorising risks in terms of low, medium and high values of their impact and probability.
(Dey, 2010). The given below figure 2.9 shows the categorisation of risks in terms of their
impact and probability in construction project.
Figure 2.9: Impact and Probability Matrix (Dey, 2010).

2.9.3 Monte Carlo simulation technique:
This analysis technique is providing estimated values of performance in construction project.
This technique is providing estimated probabilities of expected events by analysing random
variable of construction project. This technique is capable of quickly solving the complicated
mathematical problems, whereas values are presented in the form of column chart (called as
histogram) to present the future risks in construction project. There are many critics about
this analytical technique due to complexity of system and excessive usage of information
technology. (Loizou and French, 2012). This technique is capable of producing large number
of scenarios and modelling of correlations. The risks in construction project can be minimised
by considering the alternative decisions recommended through this technique.
The discussion about these techniques showed that analysis of risks is very important in
construction project. There are different analytical technique available for assessment of
risks, whereas selection of analysis technique depends on nature of construction project. Also,
the skill level of organisaion is also depending on selection of risk analysis technique. The
organisations are selecting these analytical techniques on the basis of their comfort zone, but
they must consider the applicability of these analysis techniques with their construction
project. The most recommended technique for Saraya Construction Company is Impact and
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Probability grid analysis technique. This technique is more suitable to my client due to
availability of past histories about risks, whereas this technique requires less technical
competency for analysing risks in terms of their impact and probability in construction
project.
2.10 Risk response techniques
After successfully identifying and analysing risks in construction projects, there are different
strategies adopted to respond these risks in construction project. The project managers can
adopt strategies for handling these quantified and identified risks in construction project.
(Kerzner, 2009). The response strategies can be categorised into four different types such as
risk reduction, risk transfer, risk avoidance and risk acceptance.
2.10.1 Risk acceptance:
This type of risk response strategy is adopted for accepting the risks in projects, whereas no
major changes are made in design and scheme of project. The organisations are aware about
different types of risks and monitor these risks throughout the life cycle of project. There are
different control and mitigation plans defined in construction project for accepted risks.
(Love et al., 2010).
2.10.2 Risk reduction:
This type of response strategy is considering collaborative efforts of all stakeholders in their
project to reduce different types of risks. The combined effort from all parties is helping to
reduce the magnitude of risks, whereas organisation uses their effectiveness with risk
reduction strategy. This strategy is efficiently inspecting the risk aspects to minimise its
impact and occurrence in projects.
2.10.3 Risk transfer:
This type of response strategy is transferring risks between different parties in projects,
whereas these strategies are adopted to shift responsibilities from one party to another party.
The risks are commonly transferred from client to contractors, whereas these contractors are
transferring these risks to suppliers and sub contractors. Also, construction companies are
transferring their risks on insurance companies to avoid major losses in their projects. (Love
et al., 2010).
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2.10.4 Risk avoidance:

Risk avoidance is the strategy used for elimination of hazards, activities and exposures that
can negatively affect the major assets of organization. This strategy can avoid low risks and
consider high risks in projects. The response strategy is conducted by adopting sustainable
policy and planning to tackle risks with high magnitude in project.
2.11 Summary
This chapter was critically evaluating the process of risk management in construction
projects. The major purpose of this chapter was to investigate the importance of risk
management process, whereas nature of construction project was also considered for
analysing the risk management process. This chapter was providing complete information
about requirement of risk management process in developing countries, whereas conditions
of Libya were considered in particular with all suitable recommendations for construction
industry. This chapter was providing complete information about different types of
techniques and approaches used in risk management process. These techniques were
identifying, analysing and responding to different types of risks in construction projects. This
chapter categorised different risks in terms of internal and external risks. The major risks
identified in construction project were technical, political, economical, social, legal, financial,
and cultural risks. This chapter provided information about different types of risk
identification techniques such as brainstorming, checklists, influence diagram, PRINCE 2 and
SWOT analysis. The brainstorming and PRINCE 2 techniques were recommended to Saraya
Construction Company by considering the nature of their construction projects and conditions
in Libya. This chapter provided information about different types of risk analysis techniques
such as decision tree, impact and probability grid analysis and Monte Carlo simulation
technique. The impact and probability grid analysis was recommended to Saraya
Construction Company. This chapter also provided information about different types of risks
response strategies such as risk avoidance, risk reduction, risk transfer and risk acceptance.
This chapter recommended risk reduction strategy to Saraya Construction Company.
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Chapter 3: Research Methodology

3.1 Introduction:
The success of any research is depending on selecting an appropriate methodology and
analysis method. There are different types of methodologies available for different field of
studies. The selection of methodology is depending on nature of research and objectives of
research. The research methodology is providing complete directions for commencing the
research work, whereas research questions and hypothesis are answered by collecting reliable
and validated data from research methodology. There are different elements of research
methodology such as research question, research approach, research data sources, research
method, data collection method, research ethics and research reliability. (Saunders et al.,
2011). The purpose of research is based on selecting appropriate methodologies to analyse the
existing data of organisations for recommending the improvement factors in their system and
policies. This chapter is providing information about selection of questionnaire methodology
for this dissertation, whereas different aspects of research methodology are discussed in this
chapter such as research questions, hypothesis, data sources, data collection, design of
questionnaire, and distribution of questionnaire. This chapter is highlighting the key
methodological approach adopted to analyse the existing risk management process of Saraya
Construction Company.
3.2 Research Question:
The initial stage of any research is based on identifying the research problems, whereas
research questions can be formulated by compiling these research problems and
requirements. The research questions are playing vital role for any research by providing
directions for adopting appropriate research methodology and data analysis method. The
success of any research is depending on successful answer to proposed research questions.
The research questions can also help in designing the whole research schedule and objectives
of research. The researchers can define different segments to answer these research questions.
(Kumar, 2005). The evaluation of research can be done by confirming the completion
evidences of these research questions. The researcher can face confusion in research due to
weakly designed research questions. Also, research requirements cannot be completed
without appropriate research questions. The designing of questionnaire can also consider
these research questions to collect appropriate data from participants. The research questions
can be categorised into two types such as short and open research questions. The short
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research questions are designed for collecting the complete view of participants, whereas
open research questions are designed for collecting information based on experience of
participants. (Kvale & Brinkmann, 2009).
3.3 Research Approach:
The importance of research question is incomplete without selection of appropriate research
approach. The efficient research approach is helping the researchers to provide answers to
different research questions. There are two different types of research approaches adopted
such as deductive and inductive. The deductive research approach is collecting the
generalised information from different theories and researchers to provide specific outcome
of research. The inductive research is considering one single issue in research and proposing
multiple sub issues related with major research problem. The inductive research is using
primary data, concepts, patterns and categories for finalising multiple outcomes of research,
whereas deductive research is considering research statements, hypothesis and observations.
(Burney, 2008). The deductive research approach is considering numerical results based on
logics and factors, whereas inductive research is considering qualitative data based on
random response from participants. This dissertation is adopting deductive research approach
by considering questionnaire based methodology to analyse the risks management process of
Saraya Construction Company.
3.4 Sources of research data:
3.4.1 Primary research:
The primary data is considered as unique data that is never been used for any kind of
research. This type of data is directly collected from market and organisations, whereas
different approaches can be adopted to collect the primary data such as questionnaire,
interviews, observations and case histories. This type of data requires more time and efforts
from researchers. There are different aspects involved in collection of primary data such as
selection of participants, reliability and validity of data, relevance of research, and data
collection process. These aspects can be successfully conducted by comparing the data with
previous research studies and case studies in same field of work. (Gray, 2009).
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3.4.2 Secondary Research:

This type of data is not considered unique in any terms due to easy availability on internet in
the form of articles and books. This type of research data can be collected from secondary
sources with information matching the research work. There are different types of secondary
research data available in construction industry such as article journals, books, benchmark
reports, organisational fact sheets, and industry reports. This type of data can be used with
primary research data to overcome the issues related with reliability and validity of data.
(Gray, 2009).
This dissertation is using secondary research data for literature review and risk management
plan for Saraya Construction Company. The primary research data is collected during the
questionnaire methodology, whereas responses of participants were matched with previous
research work to confirm the relevance, reliability and validity of research data.
3.5 Data Collection Methods:
The research data can be collected by using three different methods such as: qualitative,
quantitative, and mixed methods. The summary of each data collection method is as given
below:
3.5.1 Quantitative data collection methods:
This type of data is presented in numerical format such as percentages of responses, mean
deviation, average and standard deviation. This type of research data is collected by using
different methodologies such as questionnaire, technological observation and short question
interviews. This data is collected by designing a complete platform consisting of short
questions and possible options for participants. The percentage of responses can be further
compiled in numerical format by calculating the average of responses. This type of research
data collection method is considered more reliable as compare to other data collection
method. The quantitative data is considered more accurate and easy to handle during research
work. (Coughian et al., 2009).
3.5.2 Qualitative data collection methods:
This type of research data is collected in descriptive format by considering different
methodologies such as open interview, open questionnaire, observations and case study
comparison. This type of data is commonly used during the start of project for confirming the
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opinion and perception about research problem. This type of data collection method is
providing large data and commonly based on behaviour of research participants. The
researcher faces more difficulties and problems to handle qualitative data, whereas there may
be confused and distracted outcome of research. This type of research data is considered less
reliable as compare to other research data collection method. (Alvesson and Skoldberg,
2009).
3.5.3 Mixed data collection methods:
This type of data collection method can involve both types of data collection methods such as
qualitative and quantitative methods. There are different methodologies that require selection
of mixed data collection method such as questionnaire with open and short questions,
observations with narrow and broad elements, and interviews with open and short questions.
This type of data collection method is commonly used in social and scientific science
research studies. (Gray, 2009).
3.6 Selection of research methodology:
This dissertation is proposing a new risk management plan for Saraya Construction Company
and include a complete analysis of their existing risk management process. There are
different types of research methodologies available such as questionnaire, survey, interviews,
case study comparison, observation and others. This dissertation is selecting questionnaire
based methodology for analysing the existing risk management process of Saraya
Construction Company. The research methodology is completed by designing a questionnaire
with 15 short and 1 open question. This dissertation is efficiently considering the research
questions based on risk management process, whereas major research problem is answered
by proposing a new risk management plan for Saraya Construction Company. This
dissertation is considering deductive research approach by identifying relevant risks and
hazards in Saraya Construction Company. This dissertation is using mixed method for
collection of data from participants of questionnaire. The questionnaire methodology is
considered more reliable as compare to other methodologies. The major reason for selecting
the questionnaire methodology was based on distance between Client Company and
researcher, whereas less arrangement was required for conducting the research methodology
in Saraya Construction Company.
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3.7 Selection of questionnaire respondents:

Before designing the questionnaire, it was very important to consider the respondents of
questionnaire. This consideration was helping to efficiently design the research questionnaire.
Also, relevance of research data and reliability issues can be removed by considering
appropriate respondents for research methodology. The risk management process is important
in all construction projects, whereas all employees have sufficient knowledge about risk
factors. But, analysis of risk management process requires expert knowledge from higher
officials that are managing different types of risk techniques in their construction project.
Therefore, this dissertation considered the higher management including project managers,
risk managers, and other managers for responding to research questionnaire. According to
Denscombe (2007), design of questionnaire is depending on capabilities of respondents,
whereas appropriate selection of respondents can efficiently help to answer the research
questions. Therefore, the senior managers from each department of Saraya Construction
Company were presented the questionnaire through emails. The questionnaire was also
designed in easy format to increase the interest and contribution of respondents.
3.8 Questionnaire Design:
The questionnaire was designed by considering the capabilities of respondents, whereas data
collected from literature review about different types of risks and risk techniques were also
used. There are different aspects involved with designing of research questionnaire such as
relevance to research problem, easy to answer, respondents interest, and ethics. The success
of analysis is depending on designing of questionnaire, whereas final recommendations can
be made on the basis of data collected through questionnaire. (Denscombe, 2007). The
designing of questionnaire also requires high level of professionalism from researcher, in
order to present the questionnaire to higher officials of different organisations. This
questionnaire for this dissertation was considering 15 short and 1 open questions for different
respondents in Saraya Construction Company. The questionnaire was also collecting
information about designation and experience of respondents. Also, questionnaire was
simplified by providing relevant options for all short questions. The open question was used
to collect generalised response of participants based on their experience in construction
projects.
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The first question was considering the total experience of respondents in construction project.
The second question was also asking the level of their experience in risk management process
of construction projects. The third question was considering their management capabilities by
confirming the total workforce in their departments. These three questions were considering
the capability and experience level of participants for managing risks in construction project.
These questions were considering the relevance of respondents for research questions.
The fourth question was considering the type of construction project, whereas fifth question
was considering the approach of organisation for managing risks. These two questions were
confirming the actual perception and understanding of participants about risk management
process in construction projects. The sixth question was considering the implementation of
risk management process at each stage of construction project. This question was confirming
the importance of risk management process at each stage of construction project.
The next five questions were considering different types of risks in construction project such
as market risks, financial risks, technical risks, management risks and environmental risks.
All these questions were confirming the impact and probability of each type of risks in
construction project. These questions were providing information about understanding and
opinion of respondents about different types of risks in their construction project. The data
was collected on the basis of probability and impact percentage, whereas respondents were
advised to mark the highest and lowest ranking for each type of risks in their construction
project.
The next question was considering the knowledge and usage of risks identification techniques
by respondents in their construction projects. The next question was considering the
knowledge and usage of risk analysis techniques by respondents in their construction project.
These two questions were confirming the awareness of respondents about different types of
risk identification and analysis techniques. Also, these questions were confirming the most
suitable risk identification and analysis technique for Saraya Construction Company.
The next question was considering the risk factors in construction project, whereas major
perception and experience of respondents was used to identify the key factors affecting the
risk management process in Saraya Construction Company. The next question was
considering different types of quality factors involved in construction project. The experience
and perception of respondents was used to identify the key factors that can affect the quality
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of future construction projects. The next question was considering the qualitative data from
respondents by asking open question about any further comments relevant to risk
management process of Saraya Construction Company.
3.9 Pilot Test of Questionnaire:
The professionalism is important for designing of questionnaire in any type of research,
whereas there are different errors and complexities that can reduce the interest of participants
in questionnaire. (Gray, 2009). These errors and complexities can be removed by using pilot
testing technique for research questionnaire. This dissertation also considered pilot testing of
questionnaire by getting feedback from supervisor and colleagues. There were different errors
identified by supervisor and colleagues that were removed from questionnaire. The questions
considering impact and probability of risks were simplified by providing three categories for
each risk such as low, medium and high risks. The questionnaire was sent in professional way
by removing all types of errors and complexities.
3.10 Questionnaire Distribution:
After successful pilot testing, the questionnaire was distributed among participants through
email. There are different ways of distributing questionnaire such as in person distribution, by
mail and through online poll. But, email distribution mechanism was adopted due to
simplicity of distribution procedure, whereas process was also made faster as compare to
other distribution methods. The critics considered that only face to face in-person distribution
and data collection method can provide reliable questionnaire results. (Pryor, 2014). Also,
special requests were made to higher officials of Saraya Construction Company for quick
response from participants. There were difficulties faced during the distribution process,
whereas responses were received late due to busy schedule of participants. The questionnaire
was sent in Microsoft Word format file attached in email that can be easily downloaded and
filed from participants computers. Also, telephone contacts were made to increase the pace
of data collection process.
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Chapter 4: Results and Analysis Chapter:

4.1 Introduction:
After successfully designing and distributing questionnaire among participants of Saraya
Construction Company. The data was analysed by calculating the average of opinion
collected for each question of questionnaire. This chapter is providing analysis of all the
responses for each question to analyse the existing risk management process of Saraya
Construction Company. The efficient risk management process can be achieved through
effective knowledge and awareness about different types of risks and techniques. This chapter
was highlighting the knowledge and experience of participants from Saraya Construction
Company about different types of risks, factors affecting risk management, risk identification
techniques and risk analysis techniques. The questionnaire was designed in professional way
to increase the interest and contribution of respondents. The questionnaire was distributed
through emails, whereas 60 participants were selected from Saraya Construction Company to
provide their valuable opinion about designed questionnaire. The higher officials were
involved to receive quick response from participants, whereas 34 participants answered the
questionnaire with 3 weeks time period.
4.2 Analysis of questionnaire response:
The questionnaire was also collecting general information about designation and department
of respondents. This was done to confirm the appropriate selection of respondents according
to research problem. There were 34 responses received out of 60 respondents with total
percentage of 57% received responses. There were different types of respondents that
provided answers for questionnaire such as 43% were project managers, 31% were site
manager, 19% were human resource managers, and 7% were site supervisors. These
responses were showing strong relevance of participants with risk management process. The
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major success was considered for receiving responses from project managers of Saraya
Construction Company. The best way to collect response from survey is based on increasing
the attention of respondents through regular and professional reminders. (Pryor, 2004).
Therefore, the regular reminders were sent through emails, whereas regular calls were made
to higher officials for increasing the questionnaire response process. The given below figure
4.1 is showing the total percentage of respondents with their designation for this research
dissertation.
Figure 4.1: Percentage of respondents with their designation in Saraya Construction

Company
4.3 Experience of respondents:
After confirming the relevance of respondents with research problem, the next question was
confirming the experience of these respondents in construction industry. There were 42%
respondents with total experience ranging between 10 to 15 years, 26% respondents with total
experience ranging between 6 to 10 years, 21% respondents with total experience of 20 or
more years, and 11% respondents with experience of 1 to 5 years as shown in figure 4.2.
These results showed remarkable achievement for dissertation due to responses from highly
experienced and professional personnel of construction industry. The experience of
respondents provided reliability and relevance of data with research problem. The
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confirmation of experience removed any kind of confusion and doubts about response. The
experience of respondents is used to analyse the risk management process of Saraya
Figure 4.2: Total percentage of respondents with their work experience

4.4 Knowledge of risk management process:
After confirming the designation and experience of respondents, the next question was
confirming their knowledge about risk management process in their organisation. There were
76% respondents with sufficient awareness about risk management process in their
organisation. The individual result analysis also confirmed that all project managers were
well aware about risk management process in Saraya Construction Company. There were
18% respondents with satisfactory knowledge about risk management process. There were
6% respondents with less knowledge about risk management process in their organisation as
shown in figure 4.3. The majority responses confirmed that risk management practices are
involved in policies and strategies of Saraya Construction Company. But, still there were
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different incidents and accidents faced by organisation due to arising risks in their
organisation.
Figure 4.3: Knowledge of respondents about risk management process

4.5 Size of department:
After confirming the knowledge of respondents about risk management process, it was
important to identify their capacity to manage large number of workforce in organisation. The
literature information confirmed that most of the risks are arising due to human factors in
construction projects. There were 61% respondents that were managing workforce of more
than 500 employees. There were 24% respondents that were managing workforce ranging
between 100 and 500 employees, whereas there were only 15% respondents that were
managing workforce of less than 100 employees as shown in figure 4.4. The human factors
are increasing many risks in construction projects, whereas large organisations are facing
more risks as compare to small organisations. But, efficient management capabilities can help
in reducing these risk factors from construction projects. (Sadeh and Zwikael, 2007).
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Figure 4.4: Capability of respondents to manage large workforce

4.6 Relevance of project nature with risk management:
There are different types of construction projects constructed by Saraya Construction
Company, whereas majority of projects are done for constructing commercial building and
housing projects. The risk factors can be found in all kind of construction projects, but risk
factors can change depending on nature of construction project. (Perminova et al., 2008). The
major reason is that different construction projects use different budget values, engineering
tools, schedule, and design strategies. This question was asked to confirm the expertise of
respondents for dealing with risks in specific type of construction project. There were 52%
respondents that confirmed the efficient usage of risk management process in commercial
building projects. There was tie between two options with 18% respondents confirming the
efficient use of risk management process in engineering projects and all other construction
projects. There were only 12% respondents confirming the use of risk management process in
industrial construction projects as shown in figure 4.5. These responses were received due to
mode of operation of Saraya Construction Company because there are more numbers of
commercial projects constructed in Libya as compare to other construction structures.
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Figure 4.5: Responses about usage of risk management system in different types of
construction projects
4.7 Adoption level of risk management process:
The acceptance of risk management process plays vital role in organisation, whereas positive
behaviour for adopting risk free tasks can provide efficient performance during construction
project. There are different policies and strategies adopted during construction projects,
whereas risk free environment can be developed through complete acceptance of risk
management process in construction project. This question was also confirming the
perception of respondents about acceptance of risk management process during their
construction projects. There were majority of respondents with total percentage of 89%
confirming the acceptance of policies and strategies based on risk management process.
There were only 11% respondents that were not sure about acceptance and consideration of
risk management process with organisational strategies and policies as shown in figure 4.6.
The construction companies that are efficiently adopting risk management process can
achieve higher project performance and competitive advantage in construction industry.
(Lyons and Skitmore, 2009). There are many incidents and accidents caused due to ignoring
risk management process with policies and strategies of organisation.
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Figure 4.6: Acceptance level of risk management in organisational policies

4.8 Implication of risk management at different project stages:
There are five key stages of construction project such as planning, implementation, design,
tendering, and delivery stage. There are different types of risks arising during each stage of
construction project. Many researchers recommended that risks must be identified and
analysed at their early stages or during the start of project. (Loch et al., 2011). This question
was also confirming the importance of risk management process at different project stages.
There were 46% respondents confirming the importance of risk management process during
planning stage. There were 25% respondents confirming the importance of risk management
process at all stages of construction project. There were 13% respondents confirming design
stage and 11% respondents confirming implementation stage. There were only 5%
respondents confirming the importance of risk management process at tendering stage of
construction project. The responses showed that risk management is commonly used during
planning stage, whereas only one fourth of respondents considered importance of risk
management process at all stages as shown in figure 4.7. But, researchers confirmed that risks
can arise at any stage, therefore these risks should be monitored during all stages of
construction project. Also, risk management process should be implemented at all stages of
construction project. (Zavadskas et al., 2010).
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Figure 4.7: Risk management process at different construction project stages
4.9 Impact and probability of different types of risks:

After analysing the importance and awareness about risk management process in construction
project, there are different types of risks causing severe destruction during construction
projects. The questions 7-11 were selected by using the impact probability analysis, whereas
respondents were asked to mark the probability and impact level of these risks in their
construction project. The respondents were asked to provide responses in terms of high,
medium and low risks.
4.9.1 Market risks:
There are different types of market risks involved during construction project such as
customer risks, competitor and sub contractor risks. These three major risks were identified
from literature review of this dissertation, whereas responses will confirm the impact and
probability of these risks in construction projects. This question was confirming the
probability and impact of each type of risks during construction project. The majority of
respondents confirmed that customer and sub contractor risks have high impact and
probability in their construction project as shown in figure 4.8.
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Figure 4.8: Impact and probability level of market risks

The market risks can cause severe delay in schedule due to non delivery of material, labour
and other resources. The sub contractors can also affect the construction project by providing
low quality material for project. There are different unions organised by these sub contractors
for affecting the performance of construction project to accomplish their demands in projects.
The sub contractors can also affect the prestige of construction companies by non-complying
with risk free regulations and policies. The quality and performance of project can be affected
due to non consideration of safety factors during delivery of material. (Winch, 2010).
The customer risks can also cause severe delays in project schedule by making regular
modification in project design. Also, non payment from customer can affect the performance
and completion of construction project. Therefore, it is important to consider these risks in all
kind of construction projects. Also, competitor risk is medium in terms of its impact and
probability. But, this risk cannot be neglected in order to get competitive advantage in
construction industry. The major competition in market can affect the profit ratio of main
contractors, whereas more efforts would be required for attracting the customer such as
efficient marketing, public relations and good track record in construction field. (Kent &
Becerik-Gerber, 2010).
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4.9.2 Financial risks:

Beside the market risks, there are different types of financial risks involved in construction
projects such as tax fluctuation, fluctuation of material price, fluctuation of foreign currency
and country inflation. The recession all around the world had severely affected the
performance of construction projects. The construction projects are normally operated with
high budget for constructing massive structures, whereas different material and labour is
involved to complete the construction project. These financial risks can directly affect the
budget and schedule of construction project, whereas buying power of customer can be
affected due to financial risks. The majority of respondents considered inflation of country
and fluctuation of foreign currency as two major financial risks in construction projects. The
respondents also considered fluctuation of material price and tax fluctuation as medium risks
during construction project as shown in figure 4.9.
Figure 4.9: Impact and probability levels of financial risks
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There are different strategies and external financial sources used by construction companies
to minimise the impact of financial risks during their construction projects. The country
inflation and foreign currency fluctuation are the two major financial risks in construction
project. The major technologies and material are purchased by using the USD as universal
currency unit. Also, there are many multinational companies involved for completing mega
construction structures. The increase in foreign currency rate can affect the budget of these
foreign investors, whereas hike in prices of material in international market can cause many
problems during construction projects such as increase in competition, selection of low
quality material, lack of resources, conflicts between sub contractors, and less profit for main
contractor. (Hoi and Ling, 2006).
The current situation of law and order is very critical in Libya due to political instability and
riots throughout the country. These critical conditions have severely affected the economy of
Libya, whereas Libyan Dinar is losing its value in global market. The foreign investors are
also avoiding to invest in any Libyan business, whereas unemployment rate is increasing due
to lack of opportunities in professional fields. These critical conditions are also affecting the
physical existence of construction industry in Libya. Therefore, it is highly required to
convert major assets into foreign currency, whereas construction sites should be selected with
thorough analysis of geographical conditions. These steps cannot completely reduce financial
risks but can be helpful in current conditions of Libya. The 2011 Libyan Civil War and 2014
Libyan Conflicts were also mainly responsible for inflation of Libya. These wars had
severely affected the currency and economy of Libya, results in increasing different types of
risks during construction projects. The construction projects were delayed during these wars,
whereas major losses were faced in terms of loss of resources and workers. (The Telegraph
News, 2011).
4.9.3 Technical risks:
The advancement of technology had increased more pressure on construction companies to
improve their performance, whereas many risks had also arisen due to technical issues in
construction projects. The organisations with advanced technologies are getting more benefits
during construction projects as compare to other construction companies. There are different
technical risks involved in construction project such as use of old technologies, design
modification, and shortage of skilled labour. The majority of respondents considered that
design modification and usage of old machinery are two major technical risks with high
impact and probability in construction projects as shown in figure 4.10.
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Figure 4.10: Impact and probability levels of technical risks

There are many problems faced by construction companies due to major modifications in
design of project. These modifications are commonly done by customer or different risk
factors are forcing to modify the design plan. The modification of design can directly affect
the planning, budget and schedule of construction project. Also, confusion and lack of
communication from client can also lead to major modifications in design. There are many
complimentary services required by client during construction project, whereas procurement
is completely depending on agreements between client and contractor. Also, use of old
machinery can cause major problems during construction project. There are many factors that
are directly relating design modification and use of old machinery such as incompetency of
workforce, shortage of skilled workforce, and incompetent design team. (Smith et al., 2013).
The majority of accidents and incidents are happening due to use of out dated machinery
during construction projects. These accidents and incidents are causing severe damage to
resources, workforce and finance of construction project. Also, skilled labour shortage risks
are considered low due to high volume of labour is available in Libya. These risks can be
managed by efficiently managing procurement methods and using updated technology in
construction project. Also, major modification and changes must be avoided by efficiently
discussing all the client requirements before the start of project. Also, alternatives must be
considered during the project planning to avoid major modifications.
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4.9.4 Management risks:

The effective management plays vital role for managing different types of risks in
construction projects. There are many risks associated with management of construction
project such as lack of management skills, lack of communication, and employee
management risks. The majority of respondents were senior level managers; therefore they
considered lack of communication as major management risk during construction project.
Also, lack of management skills and employee management risks were considered low during
construction projects as shown in figure 4.11.
Figure 4.11: Impact and probability level of management risks

The lack of communication is creating confusion and conflicts between managers and other
employees. There were many accidents occurred due to lack of communication between
employees such as unprofessional handover of shifts. The efficient communication is
important for maintaining the sustainable risk free environment of organisation. The
communication can be improved by active participation of employees in decision making,
whereas transformational leadership approach should be adopted to motivate the employees
during construction projects. (Lu et al., 2009). Also, communication can be improved by
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increasing interaction between employees through interlinked activities. Also, no

discrimination and diversity policies should be operated during construction projects to
improve the overall performance of work environment. Also, communication can be
improved by using advanced technology tools such as emails, digital panels, computerised
shift handovers, emails, intercom system and others.
Besides considering strong communication in construction project, efficient management of
employees and skills of managers are also important. These two types of risks were found
with low level of impact and probability but these risks cannot be neglected in construction
project. These factors can be improved by efficient human resource management system in
construction project. Also, appropriate training and inductions should be provided to
managers and employees to increase their skills and competency levels. Also, efficient
workforce with highly competent management can provided sustainable risk free operations
in construction project. (Lu et al., 2009).
4.9.5 Environmental risks:
The environmental factors plays vital role for managing risks in construction project and
these risk factors cannot be predicted at any stage of project. There are different types of
environmental risks involved in construction project such as terrorism, act of God and
political instability. These risks can occur at any stage of construction project and cannot be
minimised through any strategy. These risks are considered the most dangerous risks for
construction projects. The majority of respondents considered terrorism and political
instability as major environmental risks with high level of impact and probability in
construction project as shown in figure 4.12. The current conditions of Libya are not
favourable for construction companies due to political instability after Muammar Gaddafi
government. Also, major terrorist groups had taken advantage of political instability in Libya.
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Figure 4.12: Impact and probability level of environmental risks

There are two major problems faced by construction companies in Libya such as terrorism
and political instability. Majority of business were affected after the end of dictatorship
period of Muammar Gaddafi. Also, construction companies faced major problems during
their construction project such as lack of skilled workers, lack of material, destruction of
construction sites, delays in delivery, and loss of foreign investors. These factors cannot be
reduced without the influence in government, whereas these risks can only be accepted
during construction project. The construction company is always required to make mitigation
plan for dealing with these environmental factors, whereas strong security and surveillance
should be installed on construction premises. These risks can be tackled by adopting the risk
adaptation strategy in construction projects. Also, risk transfer technique should be used for
considering insurance companies to handle these types of risks. The insurance companies
have their own terms and conditions for these environmental risks in construction projects.
Also, act of god risk can be avoided by considering the geological conditions of construction
site, whereas sustainable strategies should be adopted to minimise the impact of these
environmental risks. The construction companies are always required to consider these
environmental risks during initial planning of project, whereas project sites should be
selected after analysing the working conditions in that specific region.
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4.10 Techniques for identification of risks:

After analysing different types of risks in construction project, there are different types of
techniques that can be used for identifying the risks in construction project. These techniques
can be used for identifying the risks at their early stages, whereas efficient risk management
is mainly depending on use of multiple risk identification techniques such as brainstorming,
SWOT Analysis, influence diagram, checklists, PRINCE 2, Delphi technique and cause effect
diagram. Majority of respondents considered brainstorming and PRINCE 2 as efficient risk
identification technique in their construction project as shown in figure 4.13.
Figure 4.13: Best risk identification technique in construction projects

All the respondents were using different types of techniques for identifying risks during their
construction projects. There were 37% respondents that considered brainstorming as best risk
identification technique. There were 25% respondents that considered PRINCE 2 as best
technique for identification of risk. There were mixed responses provided for other types of
risk identification techniques. But, brainstorming and PRINCE 2 are more suitable for Saraya
Construction Company due to efficient use of expert and technological mechanism to identify
risks. These risk identification techniques can be selected on the basis of project nature,
whereas different other factors are also considered for selection of risk identification
technique such as budget, time and competency of employees. Many researchers recommend
combination of multiple risk identification techniques, in order to minimise the chance to
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avoid or neglect any risks in construction project. (Kivrak et al., 2008). The brainstorming
can help in identifying risks, whereas it can also improve the participation of employees for
improving the risk management process of construction project.
4.11 Techniques for analysis of risks:
Besides selecting efficient risk identification technique, there are different risk analysis
techniques in construction project such as impact probability grid analysis, Monte Carlos
technique and decision tree. The majority of respondents considered impact probability grid
analysis as best technique for analysing the risks in construction project as shown in figure
4.14. The selection of risk analysis technique is also depending on budget, project time and
competency of employees. This technique can efficiently help project managers to adopt
sustainable strategies and policies to improve risk management process.
Figure 4.14: Responses regarding the risk analysis techniques

The majority of respondents considered impact and probability grid analysis technique for
analysing risks in construction projects. This technique is much better and simple as compare
to other risk analysis techniques, whereas both impact and probability of risks are cross
linked to identify the high level, medium level and low level risks in construction projects.
Many researchers considered that combination of risk analysis techniques should be used in
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construction projects for efficient analysis of risks. The other risk analysis techniques can
also provide efficient results but requires more resource, computer based platform and
competent employees for analysing risks in construction project.
4.12 Factors affecting the risk management process:
The risk management process is considered the most important aspect of any construction
project but there are different factors that can affect the adoption and implementation of risk
management process in construction projects such as acceptance barriers, cost issues,
organisational resistance, lack of experts and time shortage in construction project. In the
light of current situation of Libya, majority of respondents confirmed that lack of expert is the
major factor affecting the adoption and efficiency of risk management process in construction
project as shown in figure 4.15.
Figure 4.15: Different types of factors affecting the process of risk management
Due to political instability and terrorism issues in Libya, there is huge shortage of skilled
workforce and even foreign workers are not considering jobs in Libya due to severe war
conditions. Libya is considered as Oil rich country and most of the experts are considering
these oil companies due to high pay scale and benefits. Beside the lack of experts, there were
mixed responses about acceptance of risk management and organisational resistance. These
issues can be resolved by introducing efficient training and induction sessions for all
employees to accept the risk management process. Also, competency and skill level of
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employees should be increased by providing suitable trainings. Also, sustainable strategies

should be made for improving the performance and decision making of organisation. (Smith
et al., 2013).
4.13 Factor affecting quality of construction projects:
The risk and quality are directly related with each other in construction projects, whereas less
number of risks can provide good quality of construction project. Also, construction
companies that are properly managing quality in their projects are getting less internal and
external risks. The improved quality can also help in minimising the human risks in
construction projects. There are different factors that can affect the quality of construction
project such as improper communication, improper designer training, improper defining of
roles, and improper tender information. Majority of respondents considered that improper
designers training is affecting the quality of construction project as shown in figure 4.16.
Figure 4.16: Factors affecting the quality performance of project

The design of project is important in all aspects due to successful completion within allocated
time and budget. There are different trainings provided in Construction Company, whereas
different experts are hired from external companies to increase the designing skills of specific
employees in construction project. The majority of respondents were not happy with
improper training provided for improving the design of construction project. Libya is facing
many problems in terms of experts in all kind of fields, whereas lack of expert designer is
major concern for Libyan construction industry. Therefore, it is required to arrange foreign
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training programmes for their employees. This process will improve the design process and
skills of designers to make sustainable construction project design. Beside the designer
trainings, there were mixed low responses received for improper defining of roles, tender
material and communication. But, these factors can also severely affect the quality of
construction projects. Therefore, proper quality management strategies should be designed
and implemented with risk management process of construction projects.
4.14 Qualitative comments:
There were very less comments provided for analysing the risk management process of
Saraya Construction Company. The qualitative response showed major statement for
considering efficient engineering based technologies. Also, there were two project managers
who recommended lean philosophy for Saraya Construction Company. The lean philosophy
can improve the waste management of construction project and can minimise financial risks.
Also, there was one single statement about motivation and job satisfaction of employees. This
can be done by adopting transformational leadership techniques for motivating and satisfying
the needs of employees. There were also some recommendations for making mergers and
acquisitions with other construction companies. This can be done by adopting sustainable
procurement strategies, whereas different alliance can be made with sub contractors and
suppliers in construction industry. (Pesamma et al., 2009). Beside these general comments,
most of the respondents didnt provide any further comments. Therefore, risk management
plan was proposed by considering the quantitative data due to more number of responses
received as compare to qualitative data.
4.15 Summary:
This chapter was providing information about data collected from questionnaire, whereas
collected data was analysed by using previous studies of risk management process in
construction industry. There were 15 quantitative questions and 1 qualitative question in the
questionnaire presented to participants from Saraya Construction Company. The major
purpose of questionnaire was to analyse the existing risk management process of Saraya
Construction Company. The initial information in questionnaire was confirming the
designation and experience of respondents. This was identified that majority of respondents
were high experienced in construction project and were capable of managing large workforce.
The majority of risks are occurring due to errors and mistakes made by human in construction
projects, whereas companies with large workforce gets more risks as compare to smaller
companies. The effective human resource management can help in minimising human risks in
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construction projects. It was also identified that respondents were well aware about risk
management process, whereas they have knowledge about implementation of risk
management at different stages of construction project.
This confirmation was linked with confirming different types of risks in their projects. There
were different types of risks identified in Saraya Construction Company such as market risks
(sub contractor and customer risks), financial risks (foreign currency fluctuation and country
inflation), technical risks (modification in design), management risks (lack of
communication), and environmental risks (terrorism and political instability). Also, it was
identified that risk management process is mostly applied during planning stage of
construction project. The information was also collected to confirm the best risk identification
techniques, whereas majority of respondents considered brainstorming and PRINCE 2. The
information was also collected to confirm the best risk analysis technique, whereas majority
of respondents considered impact and probability grid analysis technique. Beside these
techniques, there are different factors affecting the adoption and acceptance of risk
management process in construction project such as lack of experts and improper designer
trainings. Also, qualitative comments showed suggestion for adopting lean philosophy,
transformational leadership approach and alliances with other construction companies.
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Chapter 5: Risk Management Plan Chapter:

5.1 Background Summary:
Saraya Construction Company is one of the leading construction groups in Libya and
recognised as prestigious company for constructing commercial and industrial structures all
around the country. The company is capable of managing large number of construction
projects but faces problems for managing different types of risks in their organisation. There
are different types of risks affecting the performance at all stages of construction projects.
The construction companies in developing countries are facing more risks as compare to
companies in developed countries. Libya is also considered as developing country with large
oil and gas resources. The country is mainly focusing on improving their oil and gas industry,
whereas other industries are getting very less benefits in Libyan market. (The Telegraph,
2011). There were different accidents and incidents that directly affected the prestige of
construction industry in Libya. This dissertation was adopting dual approach to analyse the
risk management process of Saraya Construction Company by considering both secondary
literature information and primary questionnaire based information. The analysis from both
types of data helped in designing a new risk management plan for Saraya Construction
Company.
The key findings of literature review and questionnaire analysis confirmed that Saraya
Construction Company was facing many risks during their construction projects such as
market risks (sub contractor and customer risks), financial risks (foreign currency fluctuation
and country inflation), technical risks (modification in design), management risks (lack of
communication), and environmental risks (terrorism and political instability). (See Section
4.9 and its subheadings). Beside these risks in Saraya Construction Company, brainstorming
and PRINCE 2 was considered the most recommended risk identification technique for
Saraya Construction Company. (See Section 4.10). Also, impact and probability grid analysis
technique was considered the most recommended risk analysis technique for Saraya
Construction Company. (See Section 4.11). Therefore, it is important to propose a new risks
management plan by compiling all the information from literature review and analysis
chapter.
The analysis chapter also confirmed that risk management process is considered during the
planning stage of construction project, but there were very less evidences about consideration
of risk management process at other stages of construction project. (See Section 4.8). The
company was only considering the past experience of their employees and there were no
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evidences about proper training programmes in their company. The work was completed
without considering health and safety issues, whereas workers were not provided with extra
benefits for their safe work. The company also lack in terms of managing their resources and
waste during construction project. There are many other types of risks identified such as war
conditions, dust storms and political instability in Libya. (See Section 4.9 and its
subheadings). Therefore, it is highly required to adopt a new risk management plan at the
start of their construction projects. This risk management plan can be monitored and updated
at each stage of construction project. (See Section 4.8).
5.2 Risk Management Plan:
This risk management plan will help Saraya Construction Company to detect risks at their
early stages, whereas sustainable strategies can be designed to minimise the impact of these
risks. This risks management plan was considering all the standards and requirements of
client, whereas all these steps were justified in the light of previous research studies. There
are many previous researches that had used efficient risk management plan to improve the
quality and operations of their project such as Australian Case study by Walker and Shen
(2002), New Zealand Case study by Le Masurier et al. (2006), and United Kingdom Case
study by Bresnen and Marshall (2000). All these case studies recommended efficient risk
management plan to reduce different types of risks from their organisation. There are six
major steps of newly proposed risk management plan, whereas each steps are linked with
each other to efficiently identify, analyse and respond to different types of risks in
construction projects.
Also, Risk management plan strategy is important due to different identified risks from our
analysis findings such as sub contractor risks (See section 4.9.1), Country inflation, foreign
currency fluctuation (See section 4.9.2), design modifications, old engineering tools (see
section 4.9.3), Lack of communication (See section 4.9.4), and Terrorism (See section 4.9.5).
Beside these risk factors, there were different lacking find in terms of managing risks in
Saraya Construction Company such as Improper designed trainings (See section 4.13), Lack
of experts (See section 4.12), and alternative risk management techniques (See section 4.10
and 4.11). Figure 5.1 shows newly proposed risk management plan, whereas all the above
discussed risks are considered with new risk management plan.
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Figure 5.1: Proposed Risk Management Plan for Saraya Construction Company
5.2.1 Step 1: Project objectives:
The success of risk management plan is depending on efficiently understanding the objectives
of project. Also, senior managers are responsible for explaining these project objectives to all
other members of team, whereas project objectives must be clarified to all stakeholders
during the start of project. The project managers are required to develop strong
communication to explain the major project objectives through meetings, brainstorming
sessions, memorandums and digital notices. (See section 4.10). The efficient understanding of
project objectives will help in removing errors and ambiguities from construction projects.
The project objectives must be considering all factors involved in construction projects such
as risks, quality, planning, budget, schedule and mode of delivery. The project objectives
must be cross linked with all these factors, whereas completion procedures and modes must
be cleared to all team members. (Lu et al., 2009). The initial risk approach must be defined
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with project objectives by considering proper quality management process, financial

planning, project schedule, and health and safety measures. (See section 4.9.4).
5.2.2 Step 2: Risk management team:
After successfully considering the project objectives and risks associated in construction
project, the risk management team can be formed by selecting different employees from all
department of organisation. The risk management team must be formed by selecting the most
experienced and competent employees of organisation. The risk management team must
consider major designations in construction projects such as architects, designers, legal
advisors, project managers, site supervisors, finance managers, quality control managers,
engineering, technical experts, and human resource managers. (See section 4.2). The
combined efforts of these key employees will help in achieving the project objectives with
minimised risks in construction project. The diversity factors must be removed from risk
management team by adopting no discrimination policies. The organisation can select
transformational leader to lead and motivate team members to achieve the project objectives
within designed budget and schedule. (See section 2.5). The team members should provide
collective efforts to minimise the impact of different types of risks in construction project.
(Zavadskas et al., 2010).
5.2.3 Step 3: Risk identification process:
The risk management team should consider all types of natural, human, internal and external
risks in construction project. There are different technique that can be used for identifying
and managing risks in construction project such as brainstorming, PRINCE2, influence
diagram, decision tree, SWOT analysis and causes influence diagram. (See section 2.8 and its
sub headings). The literature review and analysis chapter identified that brainstorming and
PRINCE 2 are key techniques that should be used for identifying the risks in construction
projects. The risk management team must have experience and knowledge about these risk
identification and management techniques. The brainstorming can be conducted with all team
members, whereas evaluation team can analyse the final outcome of their valuable opinions.
(See section 4.10). The risk management team also provide trainings and education to other
employees in their own department, whereas risk knowledge must be transferred among all
employees through risk management team members. The risk management team must adopt
different strategies to prioritise different types of risks, in order to utilise the resources for
high risks in construction project. Also, these risk identification and management techniques
66 | P a g e
must be combined with other techniques to provide better results in construction projects.
(Kivrak et al., 2008).
5.2.4 Step 4: Risk analysis process:
Besides considering efficient risk identification techniques, risk management team should
also consider efficient techniques for analysing these risks in construction project. There are
different types of risk analysis techniques such as impact probability grid analysis, Monte
Carlos technique and decision tree analysis technique. The literature review and analysis
chapter confirmed that impact probability grid analysis is considered the most efficient risk
analysis technique in construction projects. The risk management team should analyse
different risks associated with project objectives by considering their impacts and probability
in project. The team is required to maintain proper record system for maintaining the histories
of different types of risks during project. (See section 4.11). The risk management team
should adopt analysis strategies based on impact and probability of risks, whereas risks must
be analysed based on priority in construction project. This dissertation was also using impact
probability analysis technique to analyse the major risks in Saraya Construction Company.
Therefore, new risk management team must have knowledge and experience for using impact
probability grid analysis technique. (Fan et al., 2008).
5.2.5 Step 5: Risk response process:
After successfully identifying and analysing risks in construction projects, risk management
team is required to adopt sustainable risk response strategy in construction projects. There are
four types of risks response techniques such as risk acceptance, reduction, transfer, and
avoidance strategies. The risk management team must consider risk reduction and avoidance
strategy in Saraya Construction Company. These two strategies must be considered with
many other strategies of organisation such as quality management, procurement management,
human resource management and others. The risk transfer and acceptance strategies should
be considered when other strategies are not applicable for any kind of risk. (See section 2.10
and its subheadings).The risk management team should maintain histories of these risks,
whereas all team members must be provided training and manual to counter measure these
risks in future. (Kerzner, 2009).
5.2.6 Step 6: Monitoring risks:
The risks can arise at any stage and time of construction project, whereas majority of risks are
faced during middle of the construction project. Therefore, risk management team is required
67 | P a g e
to monitor all kinds of risks throughout the lifecycle of construction project. The monitoring
of risk will help risk management team to alert the concern department for any unwanted
event in construction project. Also, monitoring of risks will provide efficient ways to design
strategies to minimise these risks at their early stage. Also, the risk management team should
consider technological monitoring tools to detect the arising of any unwanted event in
construction projects. (See section 4.9, 4.10, 4.11). The risk management team should
consider efficient risk detection techniques with complete collaboration and feedback report
from all employees in organisation.
The given below figure 5.2 shows the implementation of risk management plan in
organisational structure of Saraya Construction Company. The colour coding will show the
implementation stages of our recommended risk management plan. The step 1 is applicable to
all higher officials, whereas remaining steps can be applied on all other employees in
structure of Saraya Construction Company.
Figure 5.2: Coloured implementation of risk management steps in structure of Saraya

Construction Company (Saraya Company Data, 2010).
68 | P a g e
5.3 Recommendations:
Following are the key recommendations for Saraya Construction Company based on findings
from analysis and literature information.
Risk management process should be started from the planning and feasibility stages of
construction project. (See Section 4.8).
The construction companies must consider sub contractor and customer related risks,
whereas different third party contracts should be avoided. Also, strong communication
should be managed with sub contractors. (See Section 4.9.1).
Foreign currency fluctuation and other financial issues can be sorted out by assets
converting into foreign currency and selecting construction sites away from cities and
localities. (See Section 4.9.2).
The companies should avoid design modification and usage of old machinery,
whereas latest and updated engineering systems should be used for construction work.
(See Section 4.9.3).
The companies should manage strong communication in their organisation through
employee participation in decision making, whereas friendly environment can help in
removing management related risks. (See Section 4.9.4).
The companies should install extra security to protect their construction sites, whereas
non political and religious approach should be adopted to get affected from terrorism
in country. (See Section 4.9.5).
The construction company must use efficient risk identification techniques such as
brainstorming, PRINCE 2 and Checklists. (See Section 4.10).
The construction company must use efficient risk analysis technique such as impact
probability grid analysis. (See Section 4.11).
The construction companies should always introduce graduate and highly skilled
programmes on national and international level to avoid lack of experts in their
company. (See Section 4.12).
The construction companies must provide efficient training and induction to all their
employees for increasing their skills and competency level. (See Section 4.13).
Chapter 6: Evaluation of dissertation:

The critical evaluation of research objectives is helping to determine the success of any
research. The critical evaluation of project objectives is increasing the confidence of
researcher. The researcher can remove any errors and mistakes after critically evaluating the
69 | P a g e
whole research work against project objectives. This chapter is also critically evaluating the
whole dissertation against the project objectives. The critical evaluation is considering the
successful completion of research objective and their evidence in completed dissertation.
6.1 Critical evaluation of research objectives:
The given below table 6.1 is critically evaluating all the five research objectives defined at
the start of this dissertation to complete all the research requirements of Saraya Construction
Company and University of Sunderland.
S.N
O
1
Research Objectives
Success/Evidence
Literature
This research objective was related with literature review
based
information
on
evaluating
information
about
risk
management
process
in
different types of strategies
construction projects. There were different primary and
for
secondary data sources used to collect information about
risk
management
system and investigating

the
effectiveness
of
different risk management

techniques.
risk management process in construction projects such as

article journals, books, case studies, technical reports,
news reports, company fact sheets and company risk
reports. This objective was divided into two major
portions such as types of risks and risk management
techniques. There were different types of risks identified
in construction projects such as political instability, design
modifications,
country
inflation,
increase
in
tax,
terrorism, sub contractor risks, and lack of experts.

The next portion was completed by providing literature
based
information
about
different
types
of
risk
identification, analysis and response techniques. There

was
discussion
about
different
risk
identification
techniques such as brainstorming, PRINCE 2, cause

influence diagram, checklists and SWOT analysis. There
was discussion about different risk analysis technique
such as impact probability grid analysis, decision tree and
Monte Carlos simulation technique. There was discussion
about different risk response strategies such as risk
avoidance, reduction, transfer and acceptance. Also,
70 | P a g e
major concern was made for identifying the knowledge

about risk management process in developing countries.
This objective was considering conditions of Libya to
analyse different types of risks and risk management
techniques. The evidence of completion can be found in
literature review of this dissertation.
Evidence of Completion: Literature review chapter
2
To critically evaluate the
This research objective was related with methodology of
risk management system of
this
Saraya
Construction
methodology was adopted to analyse the existing risk
Company
by
management process of Saraya Construction Company.
using
questionnaire
based
methodology
and
analysing
the
affecting
their
factors
management system.
risk
dissertation,
whereas
questionnaire
based
This research objective was completed by designing a

questionnaire
for
different
respondents
in
Saraya
Construction Company. The questionnaire was designed

after considering the information collected from literature
review of this dissertation. This objective was considered
the most important objective of dissertation due to
collection of real world data from professionals of Saraya
Construction Company. This research objective was
completed after following all research concepts and ethics
to design questionnaire, pilot test, distribute, selection of
participants, data collection method, research approach
and research questions.
This research objective helped in understanding the whole
mechanism of risk management process, whereas it
helped in collecting reliable data from highly qualified
professionals of Saraya Construction Company. This
research objective was completed after completing the
methodology
chapter
and
questionnaire
in
this
dissertation. The completion of this research objective

helped in increasing my skills to communicate with
higher professionals of any organisation. The completion
of this research objective also helped in understanding
71 | P a g e
research principles and aspects. Also, it provided

understanding about conducting questionnaire based
methodology,
whereas
communication
skills
were
developed after completing this research objective. The

successful completion of this research objective was
helping to collect useful data from respondents, whereas
collected data can be analysed in future chapters.
Beside the methodology chapter, analysis chapter was
also completed by analysing the collected data from
questionnaire, whereas reliability and validity of data was
confirmed by considering previous research studies. The
analysis chapter was providing key findings from
collected data, whereas these key findings can be added
with literature information to propose a new risk
management plan for Saraya Construction Company.
There were different problems faced during the collection
of data from questionnaire such as response delays,
incomplete information, and lack of interest from
respondents. These issues were resolved by requesting the
higher officials of organisation to improve the procedure
of data collection. Also, there were different problems
faced during analysis of collected data. There was less
literature information available for risk management in
Libyan Construction Companies. Therefore, information
from other developing countries was selected to confirm
the reliability and validity of data.
Evidence of Completion: Methodology and Analysis

Chapters
3
To recommend a new risk
This research objective was selected for proposing a new
management
risk management plan to Saraya Construction Company.
different
techniques
72 | P a g e
considering
methods
to
and
The new risk management plan was proposed after
minimise
considering all the key points of literature review and

risk
factors
in
Saraya
analysis chapter. The new risk management plan was

consisting of 6 steps such as project objectives, risk
management team, risk identification, risk analysis, risk
response and risk monitoring. The main aim of
dissertation was based on this research objective, whereas
proposing a new risk management plan helped in
completing
this
research
objective.
This
research
objective was providing information that can improve the

risk
management
process
of
Saraya
Construction
Company. This research objective was completing the

major requirement of client as decided before the start of
dissertation. The completion of this research objective
helped in learning the process and procedure that can be
followed to improve the risk management in any
construction company. Also, completion of this research
objective helped in gaining confidence to propose
valuable recommendations to construction industry. There
were different problems faced during the completion of
this research objective such as primary data of Saraya
Construction Company and implementation of new risk
management plan in their structure. These issues were
resolved
with
complete
cooperation
from
project
managers of Saraya Construction Company. The evidence

of completion can be found in the risk management plan
chapter of this dissertation.
Evidence of Completion: Risk Management Plan
Chapter
4
Produce
critical
This objective was selected to confirm the success and
evaluation of my work in
completion of client requirements in this dissertation. This
terms of success measured.
chapter helped in understanding the process to critically

evaluate the research work. Also, success evidence helped
in gaining confidence for submitting my final dissertation.
This research objective was completed by critically
73 | P a g e
evaluating client requirements and research objective.

5
write
Evidence of Completion: Critical Evaluation Chapter

complete This research objective was selected for writing the
dissertation
satisfying complete dissertation after considering all the valuable
To
the necessary academic feedbacks from my supervisor. Also, this research

and client requirements.
objective was completed by finalising all the chapters of

this dissertation. The completion of this research objective
helped in increasing the skills and capabilities to write
future research papers. The knowledge of whole
dissertation will be used throughout my career.
Evidence of Completion: Whole Dissertation
Table 6.1: Lesson learnt and completion evidence of research objectives
Chapter 7: Conclusion:
7.1 Overall Conclusion:
The construction industry is considered one of the most important industries in real world due
to construction of commercial, industrial, engineering, and other projects. The construction
industry had grown rapidly in last three decades due to competition to construct either world
74 | P a g e
largest building or other attractive projects. This industry had improved the living standard of
human beings by providing reliable and attractive structures all around the world. There are
different aspects and operations involved in construction industry such as quality
management, procurement, human resource management, risk management, material
management and finance management. The large number of activities and operations are
creating more problems and issues in construction projects. There were many incidents and
accidents in past that affected the prestige of construction industry. The analysis of these
accidents showed major existence of different types of risks in construction projects. The risk
factor is affecting the performance of construction projects by modifying design, delays, and
over budget projects.
There are different types of risks involved during construction projects such as
environmental, technical, financial, legal, political, and social risks. There are two major
categories of risks such as natural and human risks. The natural risks cannot be reduced by
pre-planning of project can help in avoiding these risks in construction projects. The human
risks can be minimised efficiently at their early stages by adopting efficient risk
identification, analysis and response techniques. The organisations with efficient mechanism
to management risks are getting more benefits and competitive advantage in global market.
Also, construction companies are managing large workforce and majority of human risks are
faced during the management of large or unskilled workforce. The construction companies
from developing countries are getting more risks as compare to developed countries due to
many reasons. The construction companies in developing countries are facing risks due to
lack of resources, lack of management and lack of skilled workforce. These risks can directly
affect the budget, schedule, resources and workforce of Construction Company.
Majority of construction projects are delayed or fail due to these risks at different stages,
whereas incompetent approach of construction companies can also face severe risks in their
construction projects. The main aim of this dissertation is to analyse the risk management
process of Saraya Construction Company. This dissertation designed five key risk objectives
to propose a new risk management plan to Saraya Construction Company. This dissertation
was providing information related to Saraya Construction Company, whereas future
researchers have to analyse the conditions of risk management in their organisation. This
dissertation was providing complete information about requirement of risk management
process in developing countries, whereas conditions of Libya were considered in particular
with all suitable recommendations for construction industry. This dissertation was providing
complete information about different types of techniques and approaches used in risk
75 | P a g e
management process. These techniques were identifying, analysing and responding to

different types of risks in construction projects. The major risks identified in construction
project were technical, political, economical, social, legal, financial, and cultural risks.
This dissertation provided information about different types of risk identification techniques
such as brainstorming, checklists, influence diagram, PRINCE 2 and SWOT analysis. The
brainstorming and PRINCE 2 techniques were recommended to Saraya Construction
Company by considering the nature of their construction projects and conditions of Libya.
This dissertation also provided information about different types of risk analysis techniques
such as decision tree, impact and probability grid analysis and Monte Carlo simulation
technique. The impact and probability grid analysis was recommended to Saraya
Construction Company. This dissertation also provided information about different types of
risks response strategies such as risk avoidance, risk reduction, risk transfer and risk
acceptance. This dissertation recommended risk reduction strategy to Saraya Construction
Company. The whole process of risk management can be improved by adopting sustainable
strategies during construction projects. Also, risk management process must follow
systematic approach of identifying, analysing, responding and monitoring risks.
7.2 Recommendations:
There were different reliable resources used in this dissertation to analyse the risk
management process of Saraya Construction Company. These resources were used to design
a questionnaire for collecting data from reliable respondents from Saraya Construction
Company. All these information were used to recommend a new risk management plan with
six major steps to minimise risks in construction projects. This dissertation highly
recommends for adopting efficient strategies to improve risks management process in
construction projects. The construction companies are highly recommended to identify key
risks in their construction projects. Also, there are different risk identification techniques that
can be used for efficient risk identification process. This dissertation recommends
brainstorming and PRINCE 2 as key risk identification techniques in construction project.
The construction Companies are also recommended to adopt sustainable risk analysis
techniques, whereas this dissertation recommended impact probability grid analysis in
construction projects. The construction companies are highly recommended to adopt
sustainable risk response strategies, whereas risk reduction is recommended in this
dissertation. All construction companies are required to monitor these risks throughout their
construction projects because risks can affect any stage of construction project.
76 | P a g e
The information provided in the literature review and analysis chapter can be used for future
researches. The researchers can use the literature information as foundation for implementing
risk management plan in any construction company. The risk management process is wide
enough, whereas different other options could be used such as health and safety related risks,
training programmes, geographical hazards, and many other risks during construction project.
This research work can be further used with quality management process, whereas
researchers can also consider interlinking the quality management process with risk
management process in future studies.
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FACULTY OF APPLIED SCIENCES

DEPARTMENT OF ENGINEERING MANAGEMENT

A project dissertation submitted in partial fulfilment of the

MSc Engineering Management, University of Sunderland

Development of preliminary risk

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

2.7.1 Identification of risks:.............................................................................................................24

Mohamed Omran Ben Abeed

3.10 Questionnaire Distribution:......................................................................................................41

Mohamed Omran Ben Abeed

Chapter 6: Evaluation of dissertation:..............................................................................................70

Mohamed Omran Ben Abeed

Figure 2.1: Planning strategies at different project phases

Mohamed Omran Ben Abeed

Table 2.1: Example of checklist table used in construction projects

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Literature information based on evaluating different types of strategies for risk

risk management system.

to minimise risk factors in Saraya Construction Company.

1.5 Project outcome:

To critically evaluate different types of risk management techniques, in order to

Introduction chapter: This chapter is providing general information about whole

final product to be delivered to client.

Mohamed Omran Ben Abeed

analysis, and risk response techniques.

collection method is defined in this chapter.

theories and researches related with risk management in construction industry.

implementation in Saraya Construction Company.

objectives with evidence of their successful completion in this dissertation.

Chapter 2: Literature Review

Mohamed Omran Ben Abeed

2.3 Interrelation between risk management and project management:

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

2.4 Significance of Risk Management:

Mohamed Omran Ben Abeed

According to Haponava and Al-Jibouri (2009), efficient risk

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Figure 2.5: PRINCE 2 technique and its principles (Williams, 2008).

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed

2.8.6 Brain storming:

Mohamed Omran Ben Abeed

2.9.1 Decision tree:

Mohamed Omran Ben Abeed

Figure 2.9: Impact and Probability Matrix (Dey, 2010).

Mohamed Omran Ben Abeed

Mohamed Omran Ben Abeed