Theoretical framework
The theory part is divided into three parts. The first part is a description of a project
organization structure. Its purpose is to provide a reader with general information about a
construction project and its organization. The second part introduces concept of risk
management and provides definitions of terms used in this process. Finally, the theoretical
concept of risk management process and methods used for risk assessment are presented.
Some risks which occur commonly in the construction industry are, for example weather,
design issues, problems with material, accidents, labor issues etc. Risks can vary in character
and have different impacts on a project. In spite of this, risk management is not widely used
within the construction industry