Crisis Management in Construction Projects

A project is a temporary endeavor undertaken to create a unique product, service, or result (Project Management Institute). Many construction projects are often subject to crises during their lifetime and must either be overcome by managers to achieve the perceived benefits, or the project will fail. A crisis is seen as “a situation faced by an individual, group or organization which they are unable to cope with by the use of normal routine procedures and in which stress is created by sudden change.”(Loosemore). In the context of construction projects, this is usually something that disrupts the construction from continuing. The main goal of this article is to cover the various tools project managers have to prevent crises in relations to cost overrun in construction projects, and the available tools to mitigate cost after crises. The article will also offer a brief background in crisis management.