Financial risks in construction projects

Abstract

Risks in construction projects can be defined as the probability of an event that impairs the viability of the project. This probability, perhaps, is higher than in other industries. In the construction sector, as elsewhere, various risks that affect business can be identified. This paper aims to identify, classify and analyze the most significant risks inherent in large engineering or construction projects, with particular attention to the group of economic risks and developing finally a conclusion in this regard. The results showed that construction projects are exposed to many risk sources, internal and external, being one of the most important, the financial risks such as inflation, fluctuation of the currency, lack of solvency, etc. Construction is a complex area involving many factors that can affect the final outcome, and being a teamwork process whose common goal is the completion of the project, the risks are essentially due to the uncertainty affecting the various participants in it.