IDENTIFICATION AND ASSESSMENT OF CRITICAL RISK FACTORS IN CONSTRUCTION PROJECTS IN KHYBER PAKHTUNKHWA PAKISTAN

Abstract

This study systematically identifies and analyzes risk factors in construction projects. A review of the literature yielded a list of 34 risk factors, which served as the foundation for empirical research. The survey's reliability was confirmed by a high Cronbach's Alpha score of 0.895, indicating internal consistency. The descriptive analysis identified "High Inflation/Increase in Prices" as the factor with the highest rating (mean score 4.04). "High Inflation/Increase in Prices (RII = 0.73151)," "Shift in Political Leadership (RII = 0.63014)," and "Delayed Payment on Contract (RII = 0.62192)" were the top-ranked risk factors, according to the Risk Index of Importance (RII). Prioritization based on occurrence frequency was followed by Pareto analysis. The study concluded with cluster analysis, which classified 66 respondents according to their risk attitudes and behaviors. According to a probabilistic analysis, "High Inflation/Increase in Prices" has the highest likelihood of occurring in future construction projects. This study provides useful insights for proactive risk management and strategic planning in the construction industry, allowing for informed risk mitigation and project success.