Abstract

Risk management is essential for achieving project objectives, particularly in construction projects, which involve complex processes and multiple stakeholders. This study examines the key risk factors affecting construction projects in developing countries, based on a review of various studies. Price inflation identified as the most significant risk, consistently ranked as the top factor due to its impact on material costs and project budgets. Design changes and errors are also prominent, contributing to project delays, rework, and cost escalations. Poor construction management ranks fourth, as it often leads to inefficiencies and delays. Financial difficulties faced by owners or contractors rank fifth. Unrealistic project schedules and shortages of construction materials also pose critical risks, highlighting the need for effective planning and resource management. Other notable risks include delays in payments, poor project planning, and low labor productivity, all of which impact project timelines and performance. In Nepal, additional risks such as safety concerns, technological limitations, and equipment shortages emerge. Addressing these risks through effective risk management strategies to address both common and local context-specific risks is essential to improving project efficiency and ensuring successful outcomes, particularly in developing countries such as Nepal. Comprehensive mitigation approaches are needed to navigate these challenges, reduce the likelihood of adverse events, and promote timely project delivery.