RESEARCH
MANAGING FINANCIAL RISKS IN CONSTRUCTION PROJECTS CONSTRUCTION PROJECTS ARE EXPERIENCING CATASTROPHIC CONSEQUENCES FROM THE COVID-19 OUTBREAK, WITH A SURGE IN FINANCIAL RISKS. A RESEARCH TEAM FROM WESTERN SYDNEY UNIVERSITY PROVIDES RECOMMENDATIONS FOR ADDRESSING THE RISKS AND FUTURE PLANNING.
With compulsory lockdowns and temporary closure directives, the costs of hiring labour are skyrocketing due to a shortage of construction workers coupled with rising interest charges on contractual loans, additional construction 32
cost overruns, and health and safety expenditure. Furthermore, the pandemic has risen the possibility of projects missing deadlines, exacerbating the fear that banks and private investors will lose their capital investments if the project fails. So, what are project financial risks? According to Project Management Institute (PMI), the financial risks of a project
