Lebunu Hewage, U W A; Wadu Mesthrige, J and Too, E G (2024) Barriers to risk management in small construction projects in Sri Lanka. Built Environment Project and Asset Management, 14(2), pp. 296-311. ISSN 2044-124X
Abstract
Purpose: This study explores the current status of risk management (RM) in Sri Lanka and the obstacles in implementing RM in Sri Lankan small construction projects. Design/methodology/approach: The current research study adopted a quantitative research method. Using a purposeful sampling strategy, 100 construction companies engaged in small construction projects in Sri Lanka were selected and a questionnaire was distributed among top managerial employees of these companies. Employees belonging to 47 companies responded to the survey which provided information relating to 812 construction projects. The collected data were analyzed using the RM implementation index (RMII) and other quantitative measures such as mean, median and percentages. Findings: The research findings indicated that RM incorporation was at a lower degree in small construction projects in Sri Lanka. The findings further indicated that RM incorporation was relatively high in the public construction projects compared to the private construction projects. The main obstacles identified through the survey for RM implementation were: “lack of funding”, “lack of time”, “low profit margin”, “not economical” and “lack of knowledge”. Research limitations/implications: The study was limited to exploring RM implementation in small construction projects in Sri Lanka. The study was limited to the building construction companies under the 150-million-rupee (approx. below 450,000 USD) financial limit registered with the construction industry development authority in Sri Lanka. Originality/value: RM in small construction projects in developing countries is a relatively less explored domain. Sri Lankan construction industry is another relatively less explored domain in terms of new management technique implementation such as RM and value management. The quantitative approach used for the study revealed that RM implementation is at a lower degree in the small construction projects. Moreover, several obstacles pertaining to RM implementation were recognized through this study. These findings will be useful for the construction stakeholders to overcome the recognized barriers and effectively use RM in their respective construction projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | barriers; risk management; small construction projects; Sri Lanka |
| Index terms: | developing country, quantitative research, building construction, strategy, survey, construction company, construction industry development, profit, methodology, funding, construction project, public construction, Sri Lanka, value management, risk management, sampling, questionnaire, implementation, construction industry |
| Subjects: | data analysis and analytics, contractual arrangements, economic analysis, risk assessment, data collection methods, organization, building construction, industry analysis, management, research methods, Geography, production management, development economics |
| Topics: | Procurement, Construction Technology, Risk Management, Project Management, Geographical Context, Research Practice, Engineering Principles, Business Strategy, International Construction, Value Management |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here