MULTI- CRITERIA DECISION MAKING APPROACH FOR MANAGING RISKS IN CONSTRUCTION PROJECTS

Construction projects becomes more complex and dynamics. Risks are inevitable in such environment; however, they can be controllable through an effective management. Identifying the critical risks and selecting the appropriate mitigation measures for these risks reflects a real life decision problem particularly in the light of scarce resources. This paper develops a multi criteria model to help mangers to make decisions in risk situations. The proposed model is more realistic in practical conditions and lead to minimizing deviations in the expected results. The model is tested on ranking the response measures which are frequently adopted for managing the construction risks in Egypt. Results exposed preference of adopting preventive actions at early stages of the project than transferring the risks to other parties. Results highlighted that the most effective risk response measure is to making close coordination with project stakeholders from the beginning of the project and during its entire time, while the least response is to transferring the risks to insurance parties.