Key Challenges and Opportunities to Improve Risk Assessments in the Construction Industry

Risk management is crucial for the effective delivery of construction projects. While extensive research around the importance of risk management exists globally, limited studies have examined the effectiveness of risk assessment in general and in Egyptian construction projects in particular. Hence,...

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Bibliographic Details
Main Authors: Wahbi Albasyouni, John Kamara, Oliver Heidrich
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Buildings
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Online Access:https://www.mdpi.com/2075-5309/15/11/1832
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Summary:Risk management is crucial for the effective delivery of construction projects. While extensive research around the importance of risk management exists globally, limited studies have examined the effectiveness of risk assessment in general and in Egyptian construction projects in particular. Hence, this paper fills this gap by exploring current risk assessment practices through semi-structured interviews with 15 industry experts from various construction firms in Egypt. A qualitative methodology was adopted, and thematic analysis was used to identify key challenges and opportunities for improvement. The findings indicated that Egyptian firms tend to rely heavily on personal judgment rather than implementing a structured process, whereas multinational companies adopt more formalized approaches. The absence of systematic documentation on project failures further weakens the effectiveness of current risk assessment practices. Unlike previous studies that primarily used quantitative methods, this research employs a qualitative approach that provides direct insights from the industry and offers a deeper understanding of actual practices. Given the differences in risk assessment approaches between local and international companies, this study suggests that cultural and operational factors must be considered when developing structured risk management frameworks. Similar patterns have been observed in other regions, where multinational firms operating in markets such as the Middle East, Asia, and Latin America tend to implement standardized risk management protocols, while local companies often face challenges in formalizing these practices. The findings offer valuable insights for both national and multinational companies operating in the Egyptian construction sector that aim to enhance project risk management.
ISSN:2075-5309