Ineffective implementation of risk management among sub contractors in northern area / Nurqameela Md Radzi

Construction industry is known as a high-risk activity as due to the nature of its work. It is crucial to manage the risk by all levels of multidisciplinary operations. Construction activities are exposed to hazardous situation and an unpredictable incident during the execution of the project. Any unwanted incident would contribute to project failure or delay. One of the main issues triggered by sub-contractors task is the failure to effectively manage the risk caused by main contractors. This research, therefore, aims to assist sub-contractors to overcome this situation. This study has developed three (3) objectives; (i) to identify the factors that contribute to ineffective implementation among Sub-Contractors, (ii) to determine the impacts due to ineffective implementation risk management and (iii) to propose the strategy to overcome the ineffective implementation of risk management. The research methodology adopted was the questionnaire survey analysis based on 300 respondents from sub-contractors among G1 to G4 in the northern state of East Malaysia. Findings show that there are four (4) significant factors that contribute to ineffective implementation of risk management among subcontractors namely lack coordination between parties, slow information between parties, accessibility of material and unclear goals. In addition, eight (8) criteria are impactful to the project due to failure in implementing proper risk management. These criteria are plant and machineries cost, waiting approval from authorities, contractor late site possession, material delay to site, unexpected bad even happened, insufficient resources, failure to adhere to SOP and improper supervision. Lastly, respondents agreed that there are ten (10) criteria that could improve risk management among subcontractors in northern Malaysia: effective site management and supervision; experienced contractor; good feasibility studies; understanding of the project before the execution; thoroughly investigate vendor capabilities; frequent progress meeting; frequent coordination between parties; sufficient allocation of resources; keeping project in the right path and proper identification of risk. By identifying the risk before executing a project the contractor will be able to minimize or mitigate a lot of challenges and problems that they face.