Risk Management within a construction industry sector of your choice, and in a global region of your choice (in Saudi Arabia)

Construction industry is characterised by a high degree of risk, generated by its business activities, processes, environment and organization (Kim & Bajaj, 2000). Failure to manage and deal with these risks often manifest itself in cost and time overruns (Andi, 2006). Risk can affect performance, quality, efficiency, duration and cost of a project (Mills, 2001).
Risk and uncertainty are present in all types, aspects and sizes of construction project (Hayes et al., 1986). Serious risks can have detrimental effects on the project, even turning a lucrative project into a loss-making endeavour in the worst case scenario (Mills, 2001). Construction risks, however, can not be eliminated entirely. They can be transferred, reduced or retained (Andi, 2006).
According to Webster dictionary, risk is the possibility of loss, injury, disadvantage or destruction (Jannadi & Almishari, 2003). Laifson and Shaifer (1982) describe risk as, the uncertainty associated with estimates of outcomes. Hammer (1981) termed it as, expression of possible loss over a certain period of time or number of operational cycles.
The construction industry has been known for its poor management of risk (Mills, 2001; Jannadi, 2008). As a result, clients, contractors, and all others involves suffer (Jannadi, 2008). It is not till recently have there been efforts to introduce a systematic and organised risk management framework in the projects. As per the Handbook of Project-Based Management, risk management is the process of reducing the risk’s probability of occurrence or its impact on the project (Turner, 1993). Kerzner defines risk management as a systematic approach to identifying and measuring risk and devising, choosing and executing options for handling these risks (Kerzner, 1995). Jannadi (2008) has termed it as the identification, analysis and assessment of risk and selection of the best possible option of treating it. The ultimate aim of risk management is mitigation of risk.
Identification of risk is the first step towards the management of risk. It is only once the risk is identified in terms of its nature and limits, can it be analyzed and evaluated to be reduced (Jannadi, 2008). After evaluation of risk, risk control strategies are selected and implemented. There are four types of risk control namely, risk avoidance, risk retention, risk transfer and risk reduction (Ridley, 1983).
Excavation in all construction projects contains hazards for people as well as property. Trenching excavation in public utilities project is not any different. Soil caving into the trenches is a prime potential risk in underground work. Materialisation of the risk may result in burying the workers, which may suffocate to or crushed to death or get seriously injured. Additionally, conditions which may cause trench failure include trenches being dug through or situated adjacent to backfilled area, trenches intersecting a building excavation, trenches being dug in wet or clay soil which are low in strength, in layered soil of different nature which are unstable, in loose soil which are also not stable or in rocks as the cracks produce in them due to equipment operation loads and vibration may lead to caving-in. This hazard is amplified by rainy weather, material or equipment too near the edge, vibration due to traffic or heavy equipment or load from any existing structure (Jannadi, 2008).
Equipment normally used in trenching works including excavators, backhoe, crane, jackhammer, compressor, loader, etc., should be dealt with care ensuring that the sides do not collapse. Material such as pipes, concrete, bedding material, etc may also cause accidents if not properly handled. Existence of other utilities intersecting the trenches poses the risk of running into and damaging them, hence delaying the work. The location of these utility projects also poses issues and problems. As these trenching works take place in streets and roads, there are risks of public and traffic accidents (Jannadi, 2008).
The statistics show that most accidents which occur in the trenching work sites are caused by the attitude of the workers. Unskilled workers as well as workers which are not properly trained in safe work practices or which do not correctly use protective equipment caused most accidents (Jannadi, 2008).
Among the local contractors in Saudi Arabia, an interview survey was conducted regarding the causes of safety risk in the trenching work. According to the results, the number of serious accident cases average 0.8 case/year/100 employee, injuries average 1.25 case/month/100 employee and minor injuries averaging of 3 case/month/100 employee. The major causes are inadequacy or lack of shoring system, improper or poor conditions of equipment and tools, improper or lack of safety precautions, unskilled or untrained equipment operators, workers and foremen, unavailability or improper use of personal protective equipment and tools, imprecise utility line locations, poor housekeeping on the job site, poor weather conditions such as rain and wind weather, sloppy attitude of workers especially involving manual tools and accidents involving the public or nearby traffic (Jannadi, 2008).
It was also revealed in the study that, the probability of occurrence of the above mentioned risk factors depends on the condition of the site, size of the project, the contractor’s experience, the contractor’s financial ability, the client’s influence on the project, and the project location. Moreover, the occurrence of accidents due to the aforementioned causes also depends on management and control of the causes and the actions implemented to minimise their occurrence and impacts. The contractors indicated that the probability of these caused leading to the risk of accidents is medium to high as they are less bothered about the protection of people and more about their work (Jannadi, 2008).
In reference to the risk management practices, it was revealed that contractors prepare and maintain the accident records for insurance purposes only. Most of the contractors do not have any specific measures of safety performance on their site. First aid case is available at some job sites only. The safety meetings are conducted at different times by contractors, some including supervisors and foremen as needed while others just make it a part of monthly held progress review meeting. Most contractors were not found to have any formal safety rules, manual or program. Some have verbal announcements (Jannadi, 2008).
Training in operating equipment and safe work practice is often not provided. The only training available is on-job training by other workers or foremen. Project managers mostly conduct inspections to ensure the protection of work and employees. Contractors also revealed that the respect for safety varies among workers as per their nationality, like Filipinos have better safety consciousness than Indians or Egyptians. Contractors confirm that most accidents were the result of unsafe practices by the workers. The workers carefulness is often corresponding to the stress of foremen and field engineers on safety. The chief problem identified by the contractors in implementing safety rules and regulation on job site is the associated cost of providing safety requirements, lack of trained workers and time required (Jannadi, 2008).
The possible measure to minimize the safety risks can include: investigating soil conditions so that an appropriate shoring system can be framed and utilized, providing enduring perimeter guarding, training the workers in safe practices, supplying personal protective equipment and tools, maintaining good housekeeping in the job site, providing complete safety precautions like barricades around the trench, traffic signs, warning signs and lights, etc., keeping first-aid facilities, maintaining equipment in good operating condition, and provide protection for existing utility lines (Jannadi, 2008).
In trenching work, safety measure can protect people and property by reducing the occurrence and impact of risk. All the potential risks should be considered by the contractor prior to commencement of work. Safety measures should be taken to avoid or reduce accidents that may lead to damage to property or injuries to people (Jannadi, 2008).