Risk Management Strategies in Construction Projects: A Case Study of Cost Overruns

Thesis Abstract

Abstract
This thesis investigates the critical issue of risk management strategies in construction projects, focusing on the prevalent problem of cost overruns. The construction industry is inherently risky due to its complex nature and numerous uncertainties, leading to frequent occurrences of cost overruns that have significant impacts on project outcomes. This research aims to analyze existing risk management practices and strategies employed in construction projects to mitigate the effects of cost overruns, with a specific focus on identifying best practices and lessons learned from successful projects. The study begins with a comprehensive literature review that explores the theoretical foundations of risk management in construction projects. This review examines various risk management frameworks, tools, and techniques commonly used in the industry to identify, assess, and manage risks. By analyzing past research and case studies, the review establishes a solid theoretical foundation for understanding the complexities of risk management in construction projects. Following the literature review, the research methodology chapter outlines the research design and data collection methods used in this study. A mixed-method approach is adopted, combining quantitative analysis of project data with qualitative interviews and surveys to gather comprehensive insights from industry professionals, project managers, and stakeholders. The research methodology aims to provide a holistic view of risk management practices in construction projects and their effectiveness in addressing cost overruns. The findings chapter presents the results of the empirical analysis, highlighting key risk management strategies that have been successful in mitigating cost overruns in construction projects. By examining case studies and real-world examples, this chapter identifies common risk factors that contribute to cost overruns and evaluates the effectiveness of various risk management strategies in addressing these challenges. The findings offer valuable insights for project managers and stakeholders seeking to improve risk management practices in construction projects. In the conclusion and summary chapter, the research findings are synthesized to draw key conclusions and recommendations for enhancing risk management strategies in construction projects. The study underscores the importance of proactive risk management, stakeholder engagement, and continuous monitoring and control to mitigate cost overruns effectively. By implementing best practices identified in this study, construction project stakeholders can enhance project outcomes, reduce financial risks, and improve overall project performance. In conclusion, this thesis contributes to the body of knowledge on risk management in construction projects by providing a comprehensive analysis of strategies to address cost overruns. The research findings offer valuable insights for industry professionals, project managers, and researchers seeking to enhance risk management practices and improve project outcomes in the construction sector.