Understanding the key risks in construction projects in China

Abstract

The aim of this paper is to understand the key risks in construction projects in China and to develop strategies to manage them. Risks were prioritized according to their significance of influences on typical project objectives in terms of cost, time, quality, safety and environmental sustainability, and then scrutinized from a joint perspective of project stakeholders and life cycle. Postal questionnaire surveys were used to collect data, based on which a total of 25 key risks were ascertained. These risks were compared with the findings of a parallel survey in the Australian construction industry context to highlight the unique risks associated with construction projects in China. Strategies to manage the risks were sought from the perspectives of project stakeholders and life cycle and in light of the Chinese construction culture. It is concluded that clients, designers and government bodies should take the responsibility to manage their relevant risks and work cooperatively from the feasibility phase onwards to address potential risks in time; contractors and subcontractors with robust construction and management knowledge should be employed to minimize construction risks and carry out safe, efficient and quality construction activities. © 2007 Elsevier Ltd and IPMA.