Risk management analysis in construction company at northern region of Malaysia

Abstract

Construction industry faces more risk and hazard than other industry due to its unique characteristics. Risk management is essential in the construction company to lower the impact of risk on the construction project. The objectives of this research is to study the risk management in construction company of G6 and G7 class registered of category with CIDB located at northern region of Malaysia, to identify the primary risk considered by the contractor before deciding to participate in the bidding of the project, and to examine the mitigation measure to manage each category of risks. A questionnaire was distributed to the targeted company and at the same time an interview session was carried out to understand the view of respondents on risk management. There were total of 100 questionnaire distributed and 70 of the questionnaire are successfully collected. The result was analyse by using Average Index. The result showed that the main risk that considered by the construction company before deciding to participate in the bidding of the project are delayed payment with Average Index of 4.03, changing in term of contract, delay in approval of permit and licences, both with Average Index of 3.70, inadequate specification and detail in drawing with Average Index of 3.89 and poor site geology and geotechnical condition with Average Index of 3.91.