Proposing a Risk Management Framework to Enhance Construction Project Performance: Case Study on Wated Engineering Projects in Al-Mukalla

Abstract

This study aims to bridge a research gap in construction project risk management within the private sector by proposing an integrated framework based on the International Risk Management Standards (ISO 31000) and the best practices outlined in the Project Management Body of Knowledge (PMBOK® Guide). It focuses on diagnosing the current state of risk management practices at "Wated Engineering Works and Contracting Office" and analyzing their impact on achieving project objectives (cost, time, quality). The research adopted a case study methodology, combining quantitative and qualitative analysis. Risks were identified and assessed using systematic tools, including: historical project record analysis, brainstorming interviews with experienced personnel, and the application of a Quantitative Risk Analysis Matrix (Probability and Impact Matrix) to prioritize them. The results revealed a structural weakness in the Office's risk management practices. Analysis of 30 projects showed average deviations exceeding 22% for cost and 31% for time from planned values. Eight high-impact risks were identified, representing 70% of the total threats. The analysis demonstrated that the absence of a systematic institutional framework and the lack of proactive tools were the main causes of the top five most impactful risks (according to Pareto Analysis). The study concludes that enhancing risk management efficiency requires developing a strategic plan based on adopting a Maturity Model aligned with PMI and ISO standards. It also proposes a practical framework for integrating risk management processes into the project lifecycle, which according to model simulation results could enable project managers to reduce deviations in project objectives by up to 40%. These findings open new avenues for developing customized risk management models for the local environment and underscore the urgent need to enhance organizational capabilities in small and medium-sized contracting enterprises.