Risk management in procurement of construction project- a context of PWD

Abstract

This thesis deals with Risk Management in Procurement of Construction Project. Procurement of Construction is well known as a high-risk project as it involves in lot of uncertainty at which it must be carefully managed. In risk management it is contractor’s job to take the risk or to avoid the risk in their construction project. Some of them also may take some action in order to lessen the risk in their construction project. In construction project we always heard about the project is over schedule, project over budget, low quality of project, problems with the tender, problem with the client, problem with the sub-contractor and etc. Hence, this research is to study the possible risk in construction project, to determine the level of awareness of the procurement risk among contractors and other stakeholder in construction project and lastly to identify the tools and technique used in managing risk of construction procurement process. This method of research is both qualitative and quantitative based. A questionnaire survey was conducted to collect data from Officers of PWD, Bangladesh. Questionnaire surveys were distributed to 54 respondents located in Dhaka and Barisal PWD offices. The data collected is calculated using the percentage analysis. The result shown that financial, management, time and technical are the risk that involved in construction and the level of awareness of risk among the contractors/client are high. In conclusion, the risk in construction is not small issues in construction and the contractor/client must take quick action in managing the risk in construction.