Project risk factors : case study of Ministry of Education projects

Abstract

Risks are inherent in any projects. A major criticism of the Ministry of Education (MOE) projects undertaken by the Public Works Department (PWD) is the growing rate of delays and cost overrun in project delivery. As reports under the JKR Project Information System, (SKALA JKR), as of September 2008 there are three hundred and fifty nine (359) MOE projects were granted extension of time (EOT) and twenty three (23) projects were not completed in a timely manner due to the poor risk anticipation. The aim of this study is to investigate risk factors in building construction projects belonging to MOE. In order to achieve this aim, three objectives have been outlined in this study; to establish risk factors in building project belonging to MOE, to identify the levels of risk of each risk factor from the contractors’ perspective and to identify the risk treatment for each risk factor from the contractors’ perspective. Postal questionnaire surveys were used as the main data collection method. From the comprehensive assessment of the likelihood of occurrence and their impacts, this study identifies ten major risk factors where "affordable material is more expensive than presented in bills of quantity (BQ)" factor was found to have significant impact on the project during its life cycle. This study also found that each risk factor can be treated by reducing its impact if the risk occurs. Treatment includes contingency planning that should address significant risk areas through some form of tactical response. The adoption of a risk management technique for building projects belonging to the MOE is critical to ensure the successfulness of the future project implementation.