UNIVERSITI TEKNOLOGI MARA

ASSESSING RISK MANAGEMENT MATURITY FOR CONSTRUCTION PROJECTS IN JABATAN KERJA RAYA (JKR)

SAIFUL BIN JUMALI

Dissertation submitted in partial fulfillment of the requirements for thedegree of

Master of Science in Construction Engineering

Faculty of Civil Engineering

July 2014

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AUTHOR’S DECLARATION

I declare that the work in this dissertation was carried out accordance with the

regulations of Universiti Teknologi MARA . It is original and is the results of my own

work, unless otherwise indicated or acknowledged as reference work. The topic has

not been submitted to any other academic institution or non-academic for any degree

or qualification.

In the event that my dissertation be found to violate the conditions mentioned above, I

voluntarily waive the right of conferment of my degree and agree be subjected to the

disciplinary rules and regulations of Universiti Teknologi MARA.

Name of Candidate SAIFUL BIN JUMALI

Candidate I.D No. 2012917135

Programme Master of Science in Construction Engineering

Faculty Civil Engineering

Thesis Title

Signature of Candidate

Assessing Risk Management Maturity for Construction Projects in Jabatan Kerja Raya (JKR)

Date 16 July 2014

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ABSTRACT

Under the Ninth Malaysia Plan (9MP), Jabatan Kerja Raya (JKR) was burdened by too many projects. Therefore, financial and time losses sometimes occurred during the process of building procurement until project implementation when managing risks not properly. The aim of this study was to assess the maturity of risk management for construction projects in JKR. In order to achieve this aim, three objectives have been outlined in this study; to establish the relationship between attributes, to identify the high influence indices of risk management attributes for construction projects in JKR and to identify the current overall risk management maturity for construction projects in JKR. In this study, four attributes were chosen for JKR risk management maturity model. The four attributes namely culture/ awareness, experiences, processes and practices. Therefore, in this study had used four levels of maturity namely level 1: Initial, level 2: Established, level 3: Managed and level 4: Optimized. This study was conducted using a questionnaire survey among professional in all JKR branches which cover business sector, management sector, expert sector and JKR state. A total of 133 out of 580 completed questionnaires were returned. This research found a strong and positive relationship between processes attribute and experiences attribute [r=0.781, N=133, p=0.0005]. The high influence indices of risk management attributes for construction projects in JKR was the acceptance of risk management in JKR. The empirical research findings showed that the overall risk management maturity levels for construction projects in the JKR were 2.52. The four (4) attributes to assess risk management maturity for construction projects in JKR namely culture/ awareness, experiences, processes and practices were achieved between level 2 and level 3 or between “managed" and “optimized” based on the JKR Risk Management Maturity Model proposed in this research.

ACKNOWLEDGEMENT

Firstly and foremost, I would like to express my gratitude to the almighty Allah the god of the universe who has given me strength, commitment and patience required to complete this project. I would like to express my sincere appreciation to my dissertation project supervisors, Dr. Siti Rashidah Mohd Nasir (Universiti Teknologi MARA) and Ir. Azizan Bin Mohamed Yasin (JKR, Unit Pengurusan Risiko, PROKOM) for guidance, knowledge, assistance, and advice from research project planning stage until completion of project my research. Their professional guidance has enabled this master project to be written and submitted as a partial requirement for the Masters of Construction Engineering Programme.

I would like to express my gratitude to the members of the panel, they are Dr. Intan Rohani Endut and Ir. Dr. Abdul Halim Bin Abdul Ghani who have provided me with constructive criticisms and great ideas in project management and risk management.

In this opportunity, I would like to express my love and special thanks to my family especially to our beloved parents, En. Jumali Bin Joned and Pn. Hasnah Binti Hj. Basiran, and my younger brother En. Rahmat Bin Jumali who have given strong support for me to complete this research project.

I would like to express my sincere thanks to professional in all JKR’s branches and state who generously spent their precious time to participate the survey for this study. Besides, I would like thanks to JKR experts which is Ir. Hj. Yaakob Bin Abdul Latif, Senior Chief Assistant Director of Risk Management Unit, Ir. Zainal Abidin Bin Saidun, Senior Chief Assistant Director of Portfolio Office Unit and Ir. Mohammad Darus Bin Selamat, Senior Assistant Director of Risk Management Unit for their opinions and comments are useful indeed. Finally, my sincere appreciation also extends to all my colleagues and others who have been directly and indirectly involved in providing assistance and support in the completion of this master project.

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TABLE OF CONTENTS

ABSTRACT iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES ix

LIST OF FIGURES xii

LIST OF ABBREVIATIONS xiii

LIST OF APPENDICES xiv

1.0 CHAPTER 1: INTRODUCTION

1.1 Introduction 1

1.2 Background of Study 31.3 Problem Statement 51.4 Aims and Objectives 61.5 Scope of Study 71.6 Research Methodology 7

2.0 CHAPTER 2: LITERATURE REVIEW

2.1 Introduction 9

2.2 Risk and Uncertainty 92.3 Risk Sources 102.4 Risk Management 12

2.5 The Important of Risk Management 122.6 Risk Management in Construction 132.7 Risk Management in Jabatan Kerja Raya (JKR) 15

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