Literature Review | UK Construction Industry

LITERATURE REVIEW 0
Understanding the
importance of risk
management at the
pre-construction stage
of large-scale projects
within the UK
construction industry

LITERATURE REVIEW 1
Table of Contents
Literature review........................................................................................................ 2
Risks that affect larger-scale projects.....................................................................2
Role of risk management in larger-scale projects...................................................4
Risk management strategies used in the UK construction industry........................7
References............................................................................................................... 12

LITERATURE REVIEW 2
Literature review
It is highlighted that risk management at the construction business is a
major topic for the investigation and numerous articles were issued in the
last 5 years that will be reviewed in this chapter. The intention of the
literature search is to classify the risks and problems that affect large-scale
projects in UK construction sectors and evaluate the findings of recent
papers in regards to risk administration. It is determined that risk
management has the capability to control and address risks and challenges
occurred in larger projects and provide reliable services to the construction
industry. There are three points will be included in the literature review
such as risks that affect larger-scale projects, the role of risk administration
in the construction trade and risk administration strategies for larger-scale
projects.
Risks that affect larger-scale projects
Antunes and Gonzalez, (2015) reported that larger-scale projects in the UK
construction commerce face various risks and issues including technical
risks, communication-related issues, external risks and many more that
negatively impact on the performance of the projects. The presence of such
risks in the construction industry can produce barriers for the managers by
which the quality and effectiveness of larger-scale projects can be affected.
From a recent study, it is determined that design errors, changes in the
proposed design because of performance issues and discipline's
requirements are major technical risks that occur in the larger-scale
projects in the UK.
Cagliano, Grimaldi, and Rafele, (2015) supported this argument and
highlighted that lack of proper planning is a major concern due to which
construction companies in the UK face design errors and performance-
related problems while implementing larger-scale projects. It is found that
delay of design or gathering permits for the larger-scale project is a major

LITERATURE REVIEW 3
risk that negatively impacts on the UK construction industry. Such kinds of
risks contain delays that may occur due to the in-discipline in the larger-
scale projects in the construction sectors. From previous investigations, it is
found that improper plans and structures can produce the issues and
glitches in the UK construction trade for which it is significant to include
risk management plans and methods.
It is true that complicated design and insufficient information is concerned
with the insufficiency of the needed details. Such risk has a larger
probability and larger impact on the presentation of the UK construction
commerce and more complicated to manage due to a lack of effective
techniques and strategies. Due to low engineering capability, companies in
the UK are not capable to handle such problems while larger-scale projects.
According to Dadhic, et al., (2015), lack of proper interaction among team
members is one of the leading risks occurred in the larger scale projects in
UK construction sectors. Because of this risk, the team members are not
capable to manage the plans and project stages that negatively impact on
the performance of the larger-scale projects.
More than 56% of the construction sectors in the UK are suffering from a
lack of communication issues while implementing larger projects. From
recent literature, it is determined that in the UK many construction
companies do not plan for the communication system due to which the team
members are not able to handle the issues that occurred in the larger-scale
projects. It is found that in the UK construction trade there is not details
plan for the project interaction and lack of coordination among various
disciplines in the larger projects depends on the capability of the project
director but lack of communication produces barriers for the project
managers. Moreover, incompatibility among construction breakdown
structure and engineer firms is another serious risk that affects the
performance of larger-scale projects in the UK construction industry.