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Create a 40 pages page paper that discusses risk investment in construction industry. In addition, a case study in China’s construction industry is included to demonstrate the effectiveness of risk management.

Although the Chinese construction industry has organised a risk management campaign, the anticipated continuous improvement in risk alleviation fails to be realised in the industry. There are some obstacles to the successful implementation of risk management practices in a planned economy including those stemming from both within (internal) and outside (external) an organisation. This study aims to unveil these major obstacles by a survey analysed with the proper methodology. These obstacles include the mandatory requirement by the government. acute competition in the construction market. commitment and leadership of top management. bidding policies. labor training. unique specialties of the industry. statistical methods. organisation structures and teamwork. and resource input. The study reveals that such actions should be implemented that affects the industry’s external factor, in which, it is more crucial than internal factors in hampering the successful progress of the construction industry in Asia, specifically in China. Based on the analysis of risk management approaches and the pitfalls of quality certification in the construction industry of China, this paper proposes that active implementation of a risk management system is more effective than passive implementation in the pursuit of continuous risk management for quality improvement.

The construction industry plays a very important role in the national economy in both developed and developing countries (Miles and Neale, 1991). There is normally a vigorous demand for construction in industrialisation and urbanisation, which is reflected from the sizeable proportion of added value of the construction industry in the gross domestic product (GDP) (Hillebrandt, 2000).

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