A project report submitted in partial fulfillment of the requirements for the degree of Proffessional Master of Project Management

Project (M. Eng.) - Asian Institute of Technology, 2009

The construction industry is one of the most dynamic, risky and challenging businesses because of their implementing time is very long with huge investment capital and various par ticipat ing components . However, the industry has a very p oor reputation for managing risk, with many major projects failing to meet deadlines and cost targets. Risk is inherent in construction projects and m anaging risks in construction projects has been recognised as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. Therefore, project risks must be properly analyzed and mitigated to ensure the success of any project. The purpose of risk management is to identify potential problems before they occur so that risk - handling activities may be planned and invoked as needed across the life of the product or project to mitigate adverse impacts on achieving objec tives. To effectively manage the risk in construction project, it is necessary for organizations to identify important risk, then provide a suitable tool to measure their effects in each stage of project life cycle and suggest the effective solution method s as minimised, shared, transferred, avoided or accepted but can not be ignored