The construction process has numerous uncertainties and risks, which increase with the size and the complexity of a project. Risk has been defined in different ways. Project Management Institute (PMI) defines project risk as an uncertain event or condition and that its occurrence has positive or negative effect on at least one project objective, such as time, cost, scope, or quality (PMI 2004). Project risks may have one or more causes and impacts, and project risk management might be formal or informal process. According to PMI (2004) “Project risk management includes the process concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project; most of these processes are updated throughout the project.” Ashley et al. (2006) have emphasized the importance of risk assessment, risk allocation, and risk management in effective management of highway construction projects. Risk management must be forward looking and identify potential problems.