Risk Assessment and Allocation for Building Construction Projects in Preliminary Phase in Albanian Construction Industry

Abstract

This study identifies the assessment and allocation of significant risks in Albanian construction industry in preliminary design phase of a building construction project. An in-depth study has been performed to determine risks affecting the building projects using some risk identification techniques. To identify critical risks, a real building project is selected as a case study. This study reveals that economic risk such as change of prices, budget construction, inflation, shortage in materials and labor supply are significant. Other significant risks include political and social risks as building and electrical permissions. Owner risks such as unrealistic design construction schedule, improper intervention and changes in designs are found significant as well. More risks are allocated to contractors or shared between contractors and owners or directly to owners.