**3. Methods and data**

The aims of the research were: first, to identify contractors' opinion on the significance of the construction projects risks; and second, to explore the risk analysis and risk management practices in the Lithuanian construction companies.

The initial survey was distributed during February through March 2008. A second, similar questionnaire was distributed during February through March 2009. A questionnaire containing three sections was developed to facilitate data collection. The first section includes the respondents' opinion on the risk factor in terms of its probability and impact to overall construction project success. The second section includes the respondents' opinion on the risk consequences for construction project performance measures as well as the risk assessment and response practices. The third section aims to collect the background information of the respondents, e.g. their age, gender, position, education, work experience and professional background.

The questionnaire of first survey was distributed either personally or via e-mail to 40 members of top and middle management in the construction companies. A sample of 40 practitioners received the questionnaire and 38 valid questionnaires were returned for analysis with a response rate of 95%. The second questionnaire was distributed either personally or via e-mail to 35 members of top and middle management in the construction companies. Of the 35 questionnaires distributed in the second survey, 35 were returned, but 5 were incompletely completed and so were excluded from the data analysis. The response rate was 86%.

436 Risk Management – Current Issues and Challenges

project life cycle.

the construction project.

**3. Methods and data** 

and professional background.

eliminate all the risks associated with a specific project. All that can be done is to regulate the risk allocated to different parties and then to properly manage the risk. Chapman and Ward [61] argue that the contract choice decisions are central to both stakeholder management and the management of risk and uncertainty. The authors proposed an integrated approach based on a balanced incentive and risk sharing (BIARS) approach to contracting as well as a best practice approach to risk management in terms of the whole

Contractors generally aim to make an acceptable range of profit margin. Profit margins in the industry have been low for most contractors on projects in recent years. Correct understanding and allocation of risk helps for contractors to avoid erosion of the profit margin. Ökmen and Öztas [62] proposed a new simulation-based model – the correlated cost risk analysis model (CCRAM) – to analyse the construction costs under uncertainty when the costs and risk-factors are correlated. The CCRAM model captures the correlation between the costs and risk-factors indirectly and qualitatively. Baloi and Price [63] determined the most critical risk factors affecting construction cost performance. The authors stated that global risk factors pose more challenges to contractors, which are less familiar with them. The authors introduced a fuzzy decision framework for a systematic modelling, analysis and management of global risk factors affecting construction cost performance from contractor's perspective and at a project level. Similarly, Ismail et al. [64] provide a 'Level-Severity-Probability' approach to determine the critical risk source and factors. Fuzzy logic is used in the proposed methodology for evaluation of the risk level, severity and probability. As stated by Zeng et al. [65], the application of fuzzy reasoning techniques provides an effective tool to handle the uncertainties and subjectivities arising in

The review of the literature revealed a wide range of risk types and sources in construction projects, and that various risk management methods and techniques can be employed in the

The aims of the research were: first, to identify contractors' opinion on the significance of the construction projects risks; and second, to explore the risk analysis and risk management

The initial survey was distributed during February through March 2008. A second, similar questionnaire was distributed during February through March 2009. A questionnaire containing three sections was developed to facilitate data collection. The first section includes the respondents' opinion on the risk factor in terms of its probability and impact to overall construction project success. The second section includes the respondents' opinion on the risk consequences for construction project performance measures as well as the risk assessment and response practices. The third section aims to collect the background information of the respondents, e.g. their age, gender, position, education, work experience

management of construction projects in order to control potential risks.

practices in the Lithuanian construction companies.

In both surveys, the baseline characteristics of the respondents were relatively similar. Of the 38 respondents in the first study, site managers comprise 29%, project managers 26%, other position senior managers 21%, civil engineers 16%, and designing engineers 8%. Of the 30 respondents in the second study, site managers, project managers, and other position senior managers comprise 80%.

The Likert scale was selected to obtain the probability of the risk factors in construction project that are identified in the literature review. A 5-point Likert scale was adopted, where 1 represented "rare", 2 "occasional", 3 "somewhat frequent", 4 "frequent", and 5 "very frequent". Likewise, the Likert scale was selected to obtain the impact of the risk factors in construction project that are identified in the literature review. A 5-point Likert scale was adopted, where 1 represented "very low", 2 "low", 3 "moderate", 4 "high", and 5 "very high".

The latest survey was carried out in December 2010-January 2011. In a subsequent study, the role of risk factors at a project level was addressed. A questionnaire containing three sections was developed to facilitate data collection. The first section includes the respondents' opinion on the risk consequences for construction project performance measures as well as the risk assessment and response practices. The second section includes the respondents' opinion on the risk factor in terms of its probability and impact to overall construction project success. The third section aims to collect the background information of the respondents, e.g. their age, gender, position, education, work experience and professional background.

The third questionnaire was distributed either personally or via e–mail to 23 members of top and middle management in the construction company and 23 valid questionnaires were returned for analysis in time to be included in the analysis (100% overall response rate). Of the 23 respondents in the study, site managers, project managers, and other position senior managers comprise 91%.

In all surveys, the majority of the respondents have more than 15 years' experience in construction/project management or working knowledge of construction/project management activities. Based on work experience and employment position, it was inferred that the respondents have adequate knowledge of the activities associated with construction project risk. This makes them as reliable and credible sources of information which is crucial to satisfy the research goal. The procedure, findings, and relevant discussion of the analyses are detailed in the following section.
