Conceptual Model for the Construction Risk Management Affecting Project Performance in Iraq

Abstract

The construction projects stakeholders seek to complete projects within time, cost, and quality specified limits.  Construction projects are exposed to numerous restrictions and risks that limit their accomplishment processes and usually have a major adverse effect on the whole project's performance because of its complex and dynamic nature. To conduct this study, interviews and a review of the literature were adopted to determine and rank the critical risk factors. The mean, standard deviation (std), relative importance index (RII), correlation analysis, and, regression analysis have been used as statistical analysis tools to identify critical risk factors and their ranking that represent an essential aspect in any construction project and to construct a conceptual model to research how risk factors affect projects performance in the context of the Iraqi construction industry. Understanding the influence of these factors is crucial for companies to risks management, exploit, and be concerned with chances. The study finds that risk factors for construction projects have a considerable impact on project performance, due to several factors, including delays in preparing, approving drawings, and the consultant's approval of significant project modifications, inflated cost estimates, and difficulties in financing the project during implementation, in addition to the delay in approving the type of materials required to complete the work by the owner work, as well as, low productivity of workers, machinery and other factors that must be highlighted and take appropriate strategies to risk management for early detection of these factors to reduce their impact. The study's results are foreseeable to be used by all project parties as a guide to assess risks and take appropriate solutions to reduce their impact on the project.