Proceedings of The 3rd International Conference on Research in Management and Economics
Management of Organizational and Technological Risks at the Stage of Preparation in Order to Minimize the Cost of Construction Activities
Construction industry all-around is vulnerable to socio-economic occurrences transpiring both globally and locally, which negatively impact the basic objectives of projects – time, quality and cost. With ever-growing possibilities of entering new markets, and new companies emerging from previously undeveloped countries, the contest for high profile and lucrative projects sharpens. The effectiveness and competitiveness of a construction company depends on its ability to withstand the influence of many disturbing factors of external and internal environments. Whether their roots are in external causes or internal causes, they appear at all stages of construction projects bringing the need to hire experts to tackle them. To mitigate these negative effects proper risk management techniques need to be applied to various construction activities, and out of years of scientific and field research it is determined that the most important ones are those that occur in the stage of preparation of a project. Delays which come out of improper realization of that stage result in increasing costs during the construction activities – therefore the amount of funding necessary for completing the project usually significantly increases, since the quality of the finished object must be as contracted. This paper presents an internal comparative analysis of losses caused by the effects of organizational and technological risks in construction of multiple residential buildings for which there wasn’t proper analysis of construction activities in preparation stage. Given analysis shows that there is a need to improve organizational and technological consciousness about the stage of construction preparation.
Keywords: construction management, risk management, risk assessment, construction delays, mitigating risks.