An investigative study of risk management practices of major U.S. contractors

The construction industry, as in any other business, has its own risks and challenges arising from change which is inherent in construction. Because all risks associated with a construction project cannot be eliminated, there is a need for a risk management process to manage and/or control all types of risks. Risk management has been traditionally applied instinctively, with risks remaining implicit and managed by judgment and informed by experience. Despite the importance of risk management in construction business, little is known regarding the industry's response to risk and the techniques employed for risk management. Most of the research studies undertaken in the construction industry have focused on risk allocation, global project risks and other aspects of risk management. No recent study has specifically focused on evaluating and assessing risk management practices and techniques of general contractors in the United States. The objective of this study was to investigate and assess the current status of risk management practices of major general contractors in United States.