Abstract:
To understand the concept of risk-management among stakeholders in
Pakistan’s construction industry is relatively on the very low side. This study is based
on systems thinking approach to comprehend the risks related with highways during
construction and how to tackle those risks. The causal loop diagram helps us in
understanding the risks and their mitigation in a holistic systematic view. The analysis
of the results indicates the critical risk is the financial and economic factors such as
cost overruns, payment delays, other risks are design changes or errors, change orders,
material and equipment resourcing, poor project planning, inadequate site
management, site contamination and lack of skills and techniques. Results indicate
that majority of the risks can be tackled but the issue of lack of skillfull staff in
developing countries is still a dilemma. Contractors are reluctant to hire a skill full
competent staff because of the high salaries and demands and also there is a shortage
or non availability of skill full personels in geo graphicals areas because not many of
them wants to go to such areas with such low perks given to them by the contractors.
The risks caused by the skills shortage must be identified, and methods for risk
management must be developed in collaboration with the whole construction sector
specially in a developing country like Pakistan.
