Emerging Risk Management Approaches on Mega Construction Development projects – International Case Studies

The main purpose of this research is to achieve optimum mega-project outcomes through adopting a smart risk management system. A case study approach was adopted. A review of 65 projects identified 10 Main Risk Categories for further analysis. Of these, 10 representative case studies were studied further to gain insights that can be applied in the future projects. Of the top 10 Construction Risks, the risks such as scope, design and quality management risks; construction & SC management risks; force majeure events & VUCA market risks; and procurement & contract design risks occurred more frequently than others. The remaining six risks are: schedule and cost overrun; authority approvals and environment; contractual claims and disputes; client's BM and PM expertise; client's leadership, project governance, and oversight; and project finance. Though those six risks did not occur across all 10 projects, but the management of these risks is also critical for the success of a hypothetical Megaproject. Of the risk mitigation strategies employed, the Frontend focused risk management involving BM, PM, and Procurement Management are the most impactful. It is imperative to devise strategies to manage risk at the critical tender evaluation and procurement stage to inform the key 'partner' selection decision. It is also found that not only the project level risk management strategies, but also program/portfolio level project management and risk management approaches are most effective and the client's PMs effectively utilise various best practices in this regard as documented in this paper. This research finding is important as a forcemajeure event tend to happen on almost every Megaproject which needs to be understood and well prepared for by the PMs. Further research involving more Megaprojects and an in-depth study in any specific area (e.g. procurement, and post-contract risk management) could be undertaken.