An Integrated Framework for Risk Management in Procurement: Construction Projects in India

Abstract

High susceptibility to risk characterises the construction sector, as it operates within intricate and everchanging project settings that generate an ambience of substantial unpredictability and risk. The report aims to create an integrated framework for effectively managing procurement-related risks in the Indian construction industry by identifying and analysing the risks associated with the procurement process in a project, analysing the severity and probability of the identified risks, and identifying risk mitigation techniques concerning procurement in construction. The paper discusses the nature and complexity of construction projects, the different types of risks that can occur during various project stages, and the importance of risk analysis and management during project planning. Data collection involves a literature review through which risk management and procurement risks are identified, followed by the further collection of primary data through two surveys with professionals. The analysis of data through Principal component factor analysis for prioritisation of risks is followed by the framework. The research uncovers that in construction projects in India, the dominant risks occur during planning, including procurement delays and inefficiencies in the organisational structure, which overshadow legal considerations. The study highlights the importance of earlystage risk management to minimise later-stage consequences. The framework supports preventive measures and offers a strong strategy for risk reduction. The thesis recommends further research to explore real-world applications, considering contextual factors.