Evaluating risk management strategies in residential construction: their influence on project performance in NZ

Purpose The residential construction sector is vital to economic development. Given its significance, it is imperative to improve performance within the sector through appropriate risk management practices. These distinctive risks and their unique business approaches require innovative mitigation strategies. However, knowledge of the correlation between risk management practices and project outcomes within the residential construction sector in New Zealand is in its infancy. Therefore, this study examines the risk management methodologies used by residential contractors and connects them to measurable indicators of project performance, thereby bridging the knowledge gap in this significant economic sector. Design/methodology/approach To achieve this objective, a qualitative research methodology was employed, which involved conducting a systematic literature review (SLR) and semi-structured industry consultation interviews with key subject matter experts. The SLR employed a strict search process to gather relevant studies, while the semi-structured interviews were conducted to gather insights from experts in the field. Findings The study outlines prevalent risks in the residential construction sector and the measures employed to mitigate them, which are essential for advancing Sustainable Development Goal (SDG) 9 and SDG 11. Subsequent interviews with industry experts confirmed the application of 16 out of 19 identified strategies in New Zealand. The study emphasises the importance of prioritising risk monitoring and control practices, emphasising their positive correlation with project success and long-term economic growth contributing to SDG 8. Research limitations/implications The study's insights hold promise for advancing risk management practices within the residential construction sector, leading to enhanced project performance and overall industry success while contributing to the broader 2030 Agenda for Sustainable Development. Originality/value This study provides a novel contribution by linking specific risk management strategies employed by residential construction contractors in New Zealand to measurable project performance outcomes. Unlike existing literature, which often generalises construction risk across broader sectors, this research focuses specifically on the residential domain and validates findings through both a systematic literature review and semi-structured industry consultation interviews with industry experts. The study uniquely aligns these strategies with Sustainable Development Goals (SDGs) 8, 9 and 11, demonstrating their broader impact on economic growth, resilient infrastructure and sustainable urban development. The findings offer practical guidance for contractors and stakeholders to optimise risk mitigation practices, ensuring improved project outcomes. Furthermore, the research distinctly contextualises these globally recognised risk management practices within New Zealand's specific regulatory, economic and environmental frameworks, addressing a notable gap in context-specific literature. The identification of 16 out of 19 globally recognised risk management measures actively applied by residential contractors in New Zealand offers practical, localised insights, effectively bridging the gap between theory and practice in this rapidly growing market.