Risk management in the building industry - barriers that prevent the usage

Student thesis: Master thesis (including HD thesis)

  • Lasse Glerup Nielsen
  • Driton Ramadani
  • Dren Ferizi
Every year, the Danish construction companies waste between 5 and 10 billion DKK on unintended incidents (Andersen & Madsen, 2006). This is due to several different fac-tors where among other things, failure or inadequate usage of risk management is con-sidered a significant factor.
The purpose of this report is to identify the core barriers, that causes the lack of risk management in the Danish construction companies, and to bring a list of recommenda-tions, that can help the industry towards a better usage of risk management, which will result in optimized revenue and less money wasted on unintended incidents.
To investigate this problem, both qualitative and quantitative empirical data have been gathered. The quantitative data have been collected through questionnaire survey to identify the size of the problem. Additionally, interviews were conducted to form a greater insight into the core of the problem.
Through this study, it has become clear, that the Danish construction companies do not obey the recommended risk management processes. Furthermore, they do not use sev-eral of recommended technical risk management methods to analyze their risks. Fur-thermore, the qualitative study reveals that the construction companies do not neces-sarily have an interest in either implementing or using sophisticated risk management methods.
This report conclude that companies largely prefer qualitative risk management meth-ods rather than quantitative risk management methods. In addition, construction com-panies can advantageously use specialists who, through Kotter's (2012) eight-step model, can implement an increased use of risk management processes and methods. likewise, companies should use methods that fits the level of the company’s projects and arrange internal meetings through which the company's vision should be commu-nicated and distributed.
Publication date7 Jan 2022
Number of pages107
ID: 458081181