Risk Allocation in Construction Projects for Government-Linked Company (GLC)

Risk allocation (RA) is one of the important elements in risk management (RM) considered by construction project practitioners such as client, consultant and contractor to manage the risks in order to enhance organizational performance and to create value for their shareholders. This paper presents the allocation of risk factors that affect project performance in one of the government-linked companies (GLC) in Malaysia known as FGV Holdings (FGVH). The research adopted a quantitative approach using questionnaire survey to determine the significant risk factors affecting project performance based on risk allocation to client, consultant and contractors. The survey was administered to 30 respondents under FGVH. Descriptive and statistical analysis were used to analyze the data namely, reliability and normality tests, mean ranking and correlation. Overall findings show that risk allocation to client are related to decision making, payment, stakeholders' turnover, organization management, change order, law and regulation and site accessibility, while risk allocation to consultant are related to design, communication, scope of work, permit and ordinance, stakeholder's expectation and management process and finally to contractors are related to resource management of labor, material, equipment, internal factors on competency and commitment including external factors such as inclement weather and labor strike. Future research can be broadened across the FGV subsidiaries to obtain more information on the effectiveness of RM implementation in FGVH using real projects.