What are your top risk in Construction projects?

1. Zoning


2. Environmental assessments


3. Work unions

All comments above are very valuable inputs depending on their project situations. I just roughly list some categories of risks for construction domain based on my experience in various international civil projects for over 15 years. All listed below might be dependent on the real situations and durations in different projects since longer period will impose much more uncertainties in planning and executing the project.

1. Performing Organization
1.1. Resources
1.1.1. H/R
1.1.2. Equipment
1.1.3 Materials

1.2. Culture, communication and management engagement
1.3. Supporting departments
1.4. others

2. Client
2.1. Client Organization
2.1.1. Duplicated roles or responsibilities or vague communication channels
2.1.2. Biased decisions in conflict of interests.
2.1.3. Lack of expertise

2.2. Client Representative
2.2.1. Biased decisions
2.2.2. Lack of power
2.2.3. Lack of expertise

3. Design
Unclear design issues might create huge uncertainty impacts.

4. Site Condition
Unforeseen site conditions might be compensated though claim procedures but may not all.

5. Contract
Type of contract, unclear and/or arguable stipulations, procedures on unclear design and unforeseen site conditions etc. So many contract issues might affect the overall performance of project.

6. Schedule
Schedule risks might be dependent on the experiences and technical skills of estimators and team members.

7. Costs
Cost risks might be largely dependent on the experiences and technical skills of estimators and team members.

8. Project manager's leadership and technical skills

9. Weather condition

10. Force Majeure

11. Sellers or subcontractors

12. Applicable law or regulations

13. Environmental and safety effects

14. Workers' health effects

15. Insurance

16. Regional cultures or practices( for International projects)

17. External stakeholders like relevant authorities and residents

18. Site acquisitions

19.Lack of historical information

20. Labor union.

Thanks Mauro,

What do you mean by "Changes in the work", by the client or by the constrain on site or error in the design?

Accident is an important one, all the Heart and safety issue can have a major impact on a project. Some accident can close the site for a day or more depending on gravity.

Thanks Rami
Estimation error is almost not a risk, in the sense that it's a certitude, the magnitude is unknown.

Weather conditions, I guest you mean changing weather condition from historical data. Like we plan for something in the 1 by 10 years base on historic data, but the new 1 in 10 is closer to the 1 in 50.

Based on historic data the rainy seasons are taken into consideration in schedule network . However due to climate change scenario the prediction of seasonal variation in present scenario is difficult and hence become a risk factor in construction arena.

HSE is also predominately affecting project outcome if not addressed in timely manner and become potential risk .

@Vincent, two issues you quoted are related partially. Force majeure events might be clearly stipulated in the main contract between the client and the main contractor but sometimes they are missing in subcontracting. Insurance policies should include and cover all the force majeure events and contractors risks but sometimes some events or issues are not covered by the insurer so that some risks remain untransferable at all. In case that contractors should choose the type of insurance based on the type of contract and situations of the project, it's more complicated to select right type of insurance and policies therein.

In project management terms "Changes in the work" would be uncontrolled scope changes, caused by customer uncertainties or unforeseen conditions.

Hi Vincent,

Estimation Errors can be a serious risk "Cost Wise" so of course it is a risk. I recall on one of the large projects the following happened:

" The ROM was done by PMO Headquarters and then we submitted for the bid. After winning the bid and when construction started, we discovered that some of the pre-tensioned cables that should be embedded in the structure are not available locally and that we will have to purchase them from overseas with a lead time of 8 Months and additional cost of $150,000" - We tried to check design alternatives but we concluded that there is nothing much that can be done for the 90 m long structure except to order them from overseas" - Result: Schedule Delay, Extra Cost so yes it can be a risk sometimes.

As for weather, with global warming these days, the climate is changing and can be unpredictable at some point which can affect the environment and eventually pose a serious risk on a project depending on the nature and location of the project.