Identification of the main causes of risks in engineering procurement construction projects

Abstract

Many risks have adverse consequences for construction projects’ objectives such as quality, schedule, and cost. As engineering procurement construction (EPC) contracts gradually become one of the most common types used in implementing major large-scale construction projects, identifying common risk types and analyzing their root causes is important for developing measures to decrease and eliminate future risks in these types of contracts. The information about the main causes of risks was collected via well-structured questionnaires addressed to construction sector professionals and preparing lists of main potential risks in EPC/construction projects through reviewing literature studies, books, and articles related to this topic. The findings indicate that several causes of risks are more critical for the project including causes related to contract, design and execution, subcontractors, systems, and equipment. The study’s results revealed that the absence of risk management implementation in the EPC construction project is a root cause of the lack of planning and control of the project.

Keywords

• epc
• construction project
• risks
• risk management