An Assessment of Risk Impact on Time and Cost Performance of Construction Projects

Abstract

Construction projects are distinct from other industries due to their unique structure, which makes them more susceptible to various risks. These risks include political, financial, construction, design, legal, environmental, and management risks, which can impede a project's success in terms of quality, cost, and time. Therefore, effective risk management is essential to ensure successful project completion. This research simulated a residental building project and analyzed three scenarios: one in which risks were not considered, one in which risks were considered but not addressed, and one in which risk responses were applied. The findings suggest that risks in construction projects can significantly impact project duration and cost, and that effective risk management can help mitigate these impacts.