ABSTRACT
This chapter starts by introducing the risk management principles under the Project Management Body of Knowledge and the Standard for Risk Management in Portfolios, Programs, and Projects of the Project Management Institute and Risk principle under projects in controlled environments. It discusses how risk allocation has been arranged under the forms of contract respectively and the procedure to undertake risk management under both contracts. The chapter discusses how the quantitative cost and schedule risk analysis has been undertaken in complex construction projects and how it can be of benefit to the overall project. The risk manager or the project manager then reviews the outcomes from the risk workshop and prepares a risk register for risk management. Qualitative risk analysis provides a preliminary estimate of the overall effect of risk on the project. The chapter concludes with recommendations for best practice of risk management in large construction projects.
