Construction risk management

Today, in China, with the fast development of the general economy and rapid pace of modem construction, the number of construction projects becomes more and more large. All of these bring about the rising investment and prolongation of construction projects. And there are more potential possibilities for a construction process to be out of control. So it seems more and more significant to take total risk initial stage of the implementing of risk management in construction project in China, with poor risk management, not so much attention is paid to risks of a construction project. So it is necessary to carry out a study on risk management in construction project at present. In this paper, the proposed new model is entitled construction risk management system. The model provides an effective systematic framework for quantitatively identifying, evaluating, and responding to risk in construction projects. With the method particular emphasis is placed on how to identify and manage risks before, rather than after. The model has the features of a systematic framework of risk management which is methodological objective, analytical, has quantitative measurement, and self-contained. And the paper has showed that an effective risk management program is not static but be dynamic and ongoing. The purpose of this paper is to provide a method of treating construction risk correctly for the engineering managers and using it to instruct their works.