Need of risk management practice amongst bumiputera contractors in Malaysia construction industries

Abstract

Malaysia construction industry has been growing continuously with double-digit\ngrowth for the past two decades. There are many issues surrounded the industry such as delay\nin delivery, cost overrun, quality and safety. In bumiputera contractor’s context, the literature\nreview found that 32 issues were encountered in the construction project. These issues can be\nhandled properly with the application of risk management. According to previous researchers,\napplication of risk management in Malaysia construction industry is at the low level where it is\nimplemented in traditional ways that are brainstorming and checklist. These were due to lack\nof knowledge, the high cost of hiring experts and avoiding extra cost. Besides that, this study\nalso intentions to analyse the risk categories in the construction industry as well as identify risk\nmanagement process to resolve the construction issues. Hence, this paper presents issues\nengulfed by Bumiputera contractors which can partly be resolved by applying risk\nmanagement practice in carrying out the construction activity. This may inspire the contractors\nto apply the risk management practice in ensuring the success of their construction project.