Risk management trends in the construction industry: Moving towards joint risk management

This paper reports the outcomes of the first of three planned questionnaire surveys in the first phase of a broader Hong Kong based study on Joint Risk Management' (JRM). The survey compared perceptions on both present and preferred risk allocation, including JRM, in construction contracts. Data was mainly collected in Hong Kong and mainland China (with most respondents having working experience from Hong Kong) from various professionals and practitioners representing broad groups of academics, consultants, contractors and owners (clients). Survey results reinforce previous observations (in Canada) of the divergences in perceptions on both present and preferred risk allocation, both within and between different contracting parties. The present study reveals quite wide (marked) divergencies with many individual cases of diametrically opposing views on allocating particular risks within specific groups. Despite such divergencies, respondents professed a general enthusiasm towards JRM, irrespective of their contractual or professional affiliation. Moreover, they generally preferred to assign reduced risks from either one or both contracting parties to JRM, rather than shifting more risks to the other party. This is indicative of a perceived trend towards more collaborative and teamwork based working environments.