A review of application of risk management in Malaysia construction industry

Abstract

Abstract Risk management is project management tools that provide a very significant information about risk and uncertain event during perform the construction project. This management tool must be applying to all project life cycles stages in order to get high performance of achievement in completing project objective. However, in Malaysia construction industry this project management tools were very new in implementation among construction players. In construction industry, project risk and uncertain event are very unique activity to manage because of the project itself have a different type agreement, project environment and stakeholder. In this review paper, information on how the process in risk management in Malaysia is obtained from various writings and what is the methodologies that are actively being used in Malaysia construction industry. Furthermore, effectiveness of implementation of risk management in Malaysia construction are discussed thoroughly in this paper. From that the main aim is to review whether this risk management is a successful tool applied in Malaysia construction industry or not. For that purpose, one method are primarily use in conducting this review is by obtaining data and information from literature review, books and standards. The major risk is differed between each type of performing the construction project. The result show most of research work are relating to agreement of contract, partner selection, financial problem, economic condition and variation order in execution of project. Therefore, conducting risk management starting in early of performing project and continue in every project life cycle will give very low negative impact to accomplish the objective and scope of project.