A framework for process-driven risk management in construction projects
This thesis describes the development of a framework for a systematic approach to risk management in construction projects, whose application in construction practice would lead to changes and improvements in the construction industry. To verify and apply the framework in future construction projects, the author developed the PPRisk computer programme as IT support. Before showing how the framework was developed, there is a survey of what has been written on the subject and a systematic analysis of risk management, risk in construction and process in construction. This led to the conclusion that realising a construction project is a process and that the risk management process should be subordinated to the construction process. A new approach was therefore introduced to managing risks: process-driven risk management. This approach will give all the participants in the project better understanding of the construction process, enable changes in the construction industry, and contribute to improvement of quality and efficiency in construction. An analysis of published plans of work showed that the Construction Process Protocol, developed at the University of Salford under the leadership of Professor R. Cooper, is suitable and appropriate as a construction process in which the framework for process-driven risk management can be placed. Process-driven risk management implies a cyclical risk management process in all the phases through which the construction project passes according to Process Protocol. Key risks are identified in the framework, which are independent of the size, type and purpose of the project being realized. Project related risks should be separately identified for each specific project. Depending on available data, quantitative and qualitative analysis is carried out for the identified risks, their risk probability and risk impact determined, and the corresponding risk exposure calculated. Then the adequate risk response is given for each identified risk, depending on its exposure. As the process unfolds new risks appear in each phase and the risk management process begins a new.