Construction Risks

(Quoted from a Study by the National Economic Development Office, London)

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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