Construction Information Services

Construction Risks

Monday, December 22, 2014


The construction risks can be broadly grouped under the following categories: 

Technical Risks

  • Incomplete design.
  • Inadequate site investigation.
  • Uncertainty over the source and availability of materials.
  • Appropriateness of specifications.

. Logistical Risks

  • Availability of resources - particularly construction equipments, spare parts, fuel and labor.
  • Availability of sufficient transportation facilities.

. Construction Risks

  • Uncertain productivity of resources.
  • Weather and seasonal implications.
  • Industrial relations problems.

. Financial Risks

  • Inflation.
  • Availability and fluctuation in foreign exchange.
  • Delay in Payment.
  • Repatriation of funds.
  • Local taxes.

. Political Risks

  • Constraints on the  availability and employment of expatriate staff.
  • Customs and import restrictions and procedures.
  • Difficulties in disposing of plant and equipment.
  • Insistence on use of local firms and agents.



Further Reading: Financial Crisis: A Multi Level Impact on Construction










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