2.2 Contractor’s risk in performing project
B. Contractor’s risk in performing project
Pool Yoke and Ong (2003) they found that most construction risks associated with labour, plant, materials, technology and management are controllable risks, and should be borne by the contractor. The local contractors perceived the following as significant risks during the construction phase :
• Inclement weather
• Safety and accidents
• Latent condition
• Availability of material and equipment, and labor
The availability of the resources necessary to construct the project is allocated to the contractor. The major risks of availability of resources are namely:
1. The delivery of required materials or equipment may be late;
2. Shortage of materials, equipment and labor;
3. Subcontractors allocate their labor force to different projects to achieve maximum profit. As a result, the main contractor has less control over the number of workers at the site.
• Labor disputes