Risk Management in Construction Projects in Afghanistann

Abstract

The topic of this research is Risk Management in Construction Projects in Afghanistan. The main purpose of this paper is to identify risk factors and how to mitigate, minimize, and response to those identified risk factors. The main scope of this study is done by doing questionary survey by filling the designed format in which all aspects related to risk management and its mitigation are placed by different question methods. The result of the questionary survey has diverse outcome including risk management, risk assessment, main causes of delays, types of risk in construction industries, risk management process steps, mitigation of identified risk in construction projects, and impact of identified risk factors on main component of the project (cost, quality, and schedule). In addition, these findings provide additional information about financial risk and delay in implementation of the project are also critically important, because most of the mega projects in Afghanistan are funding by numerous international organizations/donors. Some of the financial risks in constructions industry are currency exchange rates, income taxes, inappropriate estimation of the projects, working items, unexpected increment in price of materials, procurement, and delay in payment process. These are some of the main financial risk factors which have direct impact on the construction projects. On the other hand, the main causes of being behind the schedule are security issues, poor management, delay in supply of construction materials and social destructions as well. As a result, all construction projects have different risk from the initial to inauguration phase therefore, proper technical team of the management especially the sector of risk management is indispensable to be involved in every construction industry, however, in Afghanistan the stance of risk management is not common to be considered according to this research investigation. It’s recommended that a proper team of risk management with experts in management, especially in risk management should be considered in every planning project. This will assist the project manager to reduce risks and execute stable project within time and budget.