Risk

category

Risk
cod
e

Risk Factor

Construction
1

Shortage of equipment

Shortage of material

Late deliveries of
material

Poor quality of
workmanship

Lower work quality in

presence of time
constraint

Risk Treatment
a) Hire the security officer to make sure
about the safety of the equipment
b) Conduct the frequent jobsite inspection
c) Establish safety equipment and material
storage system
Material price fluctuation
a) Always have a review of construction
material at the current situation
b) Develop a good, clear and appropriate
plan and control on schedule.
c) Maintain good relationship with the
suppliers to avoid any chance for the
suppliers to take an advantage of their
material prices
Material is necessarily imported from other
country
a) Avoid any late order to the supplier
b) Review the background and history of
each supplier before sign any contract.
c) Ensure standby cash flow in advance
d) Avoid any miscommunication with the
supplier from other country to prevent
any major losses
a) Avoid any late order to the supplier
b) Choose the capable suppliers that have
a good communication and linkage
c) Review the background and history of
each supplier before sign any contract.
d) Make sure the payment to the supplier is
following the schedule to avoid any
problem in delivering the materials to the
construction site.
e) Develop a good, clear and appropriate
plan and control on schedule.
a) Proper communication among parties
involved
b) Strict supervision by the supervisor
c) Provide training and education to the
workers
d) Proper construction management
a) Proper construction management and
manpower management
b) Proper work planning by the supervisors
c) Monitoring the workers to make sure

Construction

Lack of site safety

inspection and poor
supervision

Accidents

Damage to persons or
property

10

Inadequate planning

11

Insolvency of suppliers

12

Insolvency
of subcontractors

everything is follow the right procedures

a) Maintain the approval of site safety
inspection procedure and supervision
b) Identify/mapping of all areas
c) Use a checklist to ensure consistent and
comprehensive inspections.
d) Assign competent HSE inspectors to
conduct daily inspections based on
mapping schedules and checklist.
e) Ensure proper training of inspectors.
f) Ensure the proper documentation for
each inspection
g) Ensure proper safety training for the site
engineer
h) Maintain a minimum number of safety
officers on site based on the number of
workers
a) Provide sufficient guardrails or personal
fall protection equipment
b) Employer needs to ensure that they
are provide sufficient Personal Fall
Protection and this equipment needs to
be tested before use
c) Responsible person need to observe
their workers when working at high
elevation and give a penalty to
workers that failed to obey the safety
rules
Prepare the insurance for life or property for
each personnel who are involved with the
project.
a) Proper project planning and scheduling
b) Effective strategic planning
c) Collaborative working in construction
Ensuring the continuation and availability of key
resources (including staff, plant, equipment and
materials) and that the work should continue if
there are minimal delays but there should be a
backup plan.
a) Properly directing the subcontractor to
ensure they know what is expected of
them in relation to the project
b) Avoiding the selection of the cheapest
subcontractor if there is doubt on
performance track record
c) Clear definition of each subcontractors

Construction

13

Bad Weather

19

Poor supervision

20

Bureaucratic system
and long procedure for
approval

22

Delay in payment for

claim

23

Cash flow difficulties

24

Price inflation of
construction materials

Politics and
Contracts
Provision

Finance

28

Lack of financial
resources

scope of work
d) Select subcontractor which already have
experience in similar project
Take protective measures, for example site
manager might therefore consider installing
protective sheeting around scaffolding, which
can also mitigate against wind, or temporary
roofing structures.
Provide training and seminar to the site
supervisor to improve their supervision skilled
task, requiring the highest levels of social work
skills and knowledge of research on what works.
a) Maintain good relationship and
connection with higher local government
agencies
b) Ensure the project is complying with
local authority procedure
c) Prepare and submit all the necessary
documents in a timely manner to the
government agencies
d) Always maintain a good reputation
without any blacklisted title.
a) Prepare the entire claim document early
before the submission date to the clients.
b) Have a discussion with the client to
approve the claim early and release the
money as soon as possible to make sure
all the site activities can be run as usual
without any delay.
a) Be sure to start of your year by
deploying an accounting system that you
can use to put all your invoices as well
as capture all expenses.
b) Always generate and deliver your
invoices immediately a service has been
completed.
a) Always have a review of construction
material at the current situation
b) Develop a good, clear and appropriate
plan and control on schedule
c) Maintain good relationship with the
suppliers to avoid any chance for the
suppliers to take an advantage of their
material prices
a) Ensure standby cash flow in advance
b) Examine the company's financial viability

30

Method of construction
defined in drawing and
specification is
inappropriate and
inapplicable to
construct

31

Design and drawing

change

33

Not coordinated design

Design

35
Environmental

39

Lack of consistency
between bill of
quantities, drawing and
specification
Pollution

c) Obtain guarantees or other credit

support from reliable and credit worthy
local and international entities
d) Contractor should struggle to prevent
financial failure by practicing a stern
cash flow management and minimizing
the dependence on bank loans.
a) Making sure the project is properly
understood before embarking on it
b) Detailed review of the information
relating to the work before embarking on
it
c) Development a project execution plan for
the work before starting on it Ensuring
adequate coordination of design and
activities preceding and following the
complex work
d) Calling in specialists to advise and
contribute to the planning and
management of complex works/projects
a) Ensuring as much design as possible is
done for the complex work or project
before commencing
b) Ensuring adequate coordination of
design and activities preceding and
following the complex work
c) Calling in specialists to advise and
contribute to the planning and
management of complex works/projects
d) Conducting workshops and
brainstorming session to generate ideas
and for problems solving before and
during the complex work/project
e) Ensuring the cause of a design change
is always determined
The link between design coordination and
production needs to be clearly understood and
elevated in importance to help contractors take
advantage of the reductions in field conflicts and
production planning information that can be
achieved through the coordination process
The need for innovative contract procurement
methods such as management contracting
which are more capable of allocating the risks to
the parties that could best handle them.
a) Take a precaution steps to make sure all

40

Ecological damage

41

Adverse weather
conditions

42

Difficulty to access the

site (very far)

43

Environmental factors
(floods, droughts, etc.)

Environmental

44
Logistics

45

Compliance with law

and regulation
Inaccurate project
program

the personnel and the nearest residents

is not affected by the pollution
b) Have a proper site clearing to make sure
no dust can cause air pollution, and have
a proper drainage so there will be no
water pollution.
a) Develop strategies to reduce adverse
impacts of development.
b) Planning mitigation early in the project
can be highly beneficial to the
development and the community.
a) Preparing the construction schedule.
b) Schedule activities that can be impacted
by rain, such as earthworks, to occur
outside of the rainy season.
c) Close up buildings ahead of the rain
season or cold weather. Schedule
activities such as roofing and lifting large
loads to happen outside the windy
season.
d) Understand the expected weather
conditions and allow additional time in
the schedule to compensate for delays
caused by inclement weather.
a) Undertake pre-project planning to ensure
existing utilities
b) Always aware with the condition of
surrounding area and make proper plan
or schedule to check on the satisfaction
of public
c) Arrange and undertake comprehensive
site investigation before construction
phase
a) Insurance carried by owner
b) Contractual clauses for delay and
payments for incurred damages
Access and leverage information in
prequalification database to select
a) Undertake pre-project planning to ensure
the scope of the project
b) Arrange and undertake comprehensive
site investigation before construction
stage
c) Employ local staff with multi-skill ability
d) Develop a good, clear and appropriate
plan and control on cost

47

Lack of manpower on
site

49

Undefined scope of
working

50

Lack of skilled workers

51

Inexperienced
staff assigned

52

Losing critical staff at

crucial point of the
project

a) Establish networking with others

contractor for labour sharing
b) Direct negotiation between Malaysia
government and the other country which
can provide labour supply
Describe the scope of work in general terms to
the all workers to make sure they understand
what is their role in site construction
a) Take steps to convince a new generation
of workers that their talents could be put
to good use in the construction industry.
b) Convincing young people the computer
skills that they already possess have
real-world applications on job sites
a) Good communication between senior
and junior engineers is a key to a safe
working environment.
b) Reinforcing a safe and knowledge
seeking culture within senior
engineering management
a) Attempt negotiation where ask them to
stay on an extra week or two to get you
through this critical period to find a
replacement
b) Re-examine your project plan either reorganized your team or brought on
someone with the necessary business or
technical skills where you can keep and
maintain the project on schedule