The importance and allocation of risks in Indonesian construction projects

To effectively manage risks in construction projects, it is crucial to correctly identify important risks and properly allocate them to the contractual parties. Understanding the perceptions of construction contractors and owners on the importance and allocation of risks in Indonesian construction projects is an important step in this process. A questionnaire survey was conducted and 27 construction risks were identified and evaluated. Significant differences in perceptions are encountered for the importance of several types of risk, especially those related to the contractor's competence. The respondents had different expectations toward the allocation of a number of risks, and at present, many risks are unclearly apportioned to the contracting parties.