Risk Management in Construction Companies in Malaysia: Challenges and Strategies

The construction industry in Malaysia is one of the most important sectors in the economic development of this country.This research examines the challenges faced by construction companies, especially in the north of Peninsular Malaysia, as well as strategies to face those challenges.The challenges are classified into three categories, namely non-compliance with regulations, human resources and the environment.Several respondents who are project managers, construction company directors and risk management experts from academics were interviewed.The researcher found that all respondents explained that the uncertainty of the price of building materials is the main challenge at the moment in risk management in construction companies in Malaysia.The non-compliance factor is very important and is always followed.The respondents are aware of the consequences of noncompliance with the law and regulations.For the human resource factor, the respondents emphasized the need for skilled workers as well as the less skilled.Regarding environmental factors, all respondents are aware of environmental compliance and importance related to construction projects.They pay a lot of attention to environmental aspects and it has also been included as a condition in the documents of a construction project.