Jakarta, Indonesia

Abstract — Risk plays an important role in the success of construction project. In managing risk, identification of risk factors is very critical. Hence, this study focused on the investigation of risk factors from contractors ’ perspective as the contractors are key players in the success of a project. The scope of this study was limited to Batu Pahat and Muar districts only. Data were gathered using structured questionnaire survey from contractors registered with Pusat Khidmat Kontraktor (PKK). Investigations on the risk factor involved 25 common risk factors classified in five categories, which were identified through literature works. Statistical methods were used to analyse the data. Results found that the five most important risk factors in construction project are shortage of material, late deliveries of material, insufficient technology, poor quality of workmanship, and cash flow difficulties. These significant factors are from two major categories of construction and finance. The findings of this study would assist contractors in dealing with risks encountered in construction projects