Critical External Risks in International Construction Projects in Pakistan

Abstract

Managing risk of a construction project is a comprehensive and crucial task that must occur before its commencement. International construction projects face additional risks and thus possess a critical task of assessing and managing them. As the construction industry plays an important role in the socio economic development of any country, international constructors are welcomed to launch the capital ventures for the economic uplift. In doing so, the risk management gains a significant priority on international level for working in the multicultural environment and to achieve project success. During the construction project under International Joint Ventures (IJVs), external risks must be considered significantly hence this will enhance opportunities to complete the project within budget, in a specified time and with the intended quality. Pakistan is a developing country which can create greater opportunities for international constructors to form JVs with local firms. This gives the importance to the identification and management of the unique or critical external risks that might hinder international contractors/firms to venture in Pakistan. This research determines the critical external risks for cost, quality and time. This study also prioritizes critical external risks discretely for cost, quality and time by using Analytical Hierarchy Process (AHP). It aims at helping the international contractors to form JVs by knowing the trend of critical external risks