Critical risk factors in construction projects: perspective of contractors in South Africa

The significant impact of construction projects on a nation has been characterised in literature in terms of infrastructure development and job creation. These projects are nevertheless associated with various risks that need to be managed to achieve set goals. Despite the extensive research on risk management in the construction industry, there are still significant risk factors that hinder projects from being achieved. In order to manage the project for a successful delivery, the identification of these risk factors is of utmost importance. Therefore, this study seeks to investigate risk factors from contractors' perspective since contractors are the key players in the success of a project. To achieve the purpose of this study, questionnaires were distributed to contractors in the construction sector in Gauteng (South Africa). Results revealed that supply of faulty materials, poor communication between involved parties, financial failure of the contractor, working at dangerous areas and closure were the five significant risk factors in construction projects. These significant factors are from four major categories of physical, management, financial and political group risks. The results of this study would considerably boost the understanding of risk factors and also assist contractors in handling various risks faced in construction projects.