Risk management in construction sector : New methodology for procurement in SME'S

Abstract

ABSTRACT: Construction industry is associated with complex projects with a great number of Risks. Within this sector, SME´s in Europe represent the majority of the companies in the sector and are responsible for sustaining the construction economy. Normally, managers of this kind of companies do not know about Project Management Methodologies and do not have time or resources to use them. The purpose of this final dissertation is the application of a New Risk Management Methodology to apply in SME´s within the Tendering Process with the intention to have more documentation to stablish a proper GO/NO-GO decision in the early stage of the project. The methodology is based in a broad comprehension of the literature review and a complete understanding of risk management in construction. The aim is to confer knowledge to improve quality and reduce time and costs during the Project Life Cycle. Three case studies provided by a SME of the construction industry were analysed and the methodology was applied. The results showed that applying Risk Management Practices with criteria can be helpful in the decision making and assessing when is possible to continue or not with the procurement of the project