Improving the performance of construction projects using the enterprise based risk management practices and project risk management practices

Abstract

A number of construction projects are experiencing some pitfalls and these failures are due to not meeting the budget and schedule constraints. The literature review of this study covered different aspects of construction projects in the use of ERM practices and PRM maturity models.This study examines enterprise based risk management practices and to use project risk management maturity models in the delivery of construction projects. Data was collected by means of interviews where 10 respondents involved in different projects and departments were interviewed on a one-on-one basis in order to address the research questions. The study found that lack of a risk management culture and therefore shared levels of awareness due to lack of communication amongst the key stakeholders was a problem. The study also found that integration with other knowledge management areas was ineffective. Participants further indicated that project risk gets communicated within a specific stage of the project, but as they move through the stages the communication gets lost to a certain degree. The study recommends that for organisations to execute successful projects, it is fundamental to apply risk management best practices. Further recommendations to address gaps found were made within the study.