Risk of Delay in Construction Projects

Abstract

The construction sector is considered the most important sector, as it contributes to raising the country’s economy. Therefore, it is necessary to search for the obstacles. One of these obstacles is the delay, as the project is rarely completed within the planned period. Among the most prominent reasons for this delay are change orders, financial problems for the owner, and slow decision-making on the part of stakeholders. This delay led to various risks, like financial risks, which were represented in exceeding the cost of the project as well as the other in operating the facility and benefiting from the planned benefit. The risk identification process starts with Existence of uncertainty, Preliminary checklist, Risk events consequence scenarios, Logical categorization scheme, Risk mapping, and finally is risk category summary. Therefore, these risks should be analyzed during the planning stage, which can reduce risks during the implementation of the project must be developed. Also, money must be involved in the planning process to be able to fully understand the owner’s perception of the project. The provision of the required budget for the project in the early stages ensures the availability of financial liquidity and thus does not delay payment to the contractor.