Risk Management of Highways in Pakistan using Systems thinking Approach

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.