Risk Profile in General Contracting
This article is going to give an overview of Risk Profiling in General Contracting. General contracting is the most common project coalition in the construction site, and preferred by the EU procurement directives. .[1] The general contractor has a contract with a client for the entire execution of the project, and is responsible for the day-to-day overview on the construction site. Risk profiling in Construction industry are complicated because these kinds of projects carries complex risks for all involved in the project, not only the stakeholders, but for the process alone. When the construction takes place the risk increases extremely, especially in congested or populated areas.
Risk profiling in Construction industry are complicated because these kinds of projects carries complex risks for all involved in the project, not only the stakeholders, but for the process alone. When the construction takes place the risk increases extremely, especially in congested or populated areas.
Introduction to Risk Profile
To explain risk profiling it is important to define the word risk, this is a well-used term with many definitions. How risk is defined is different from person to person, it depends on experience, attitude and viewpoint. [2] Some will argue that risk is something with a consequent negative outcome. [3] Other will say that it is both negative and positive, like a threat and an opportunity.[4] International Organization for Standardization defines a risk as “the effect of uncertainty on objectives” (p. 1) in ISO 31000:2009. The last definition has been adopted in the British Standards Institution (BSI) [5] and will therefore be adopted in this article as well.
- ↑ G.M.Winch (2010), "Managing Construction Projects", Chapter 5.4.1 ,Second edition, Wiley-Blackwell.
- ↑ Walewski J, Gibson GE, Dudley G (2003) Development of the international project risk assessment (IPRA) tool. Construction Industry Institute, Austin.
- ↑ Baloi D, Price ADF (2003) Modelling global risk factors affecting construction cost performance. Int J Proj Manage 21(4):261–269
- ↑ Segal S (2011) Corporate value of enterprise risk management. Wiley, Hoboken
- ↑ Zhao X (2015) Enterprise Risk Management in International Construction Operations. Springer, Singapore
