The Differences on Risk Perception Ways in Construction Projects

This study focuses on the risk perception ways in construction projects. 52 professional contractors are invited to assess these risk factors with perceived risk, probability of occurrence and potential impact, respectively. The expected utility and the variance of risk factors are calculated as the additional two measures of the risk. Results show that the risk rank order obtained by the perceived risk measurement is significantly different than that obtained by the expected utility-based measurement. Results show that contractors' perceived risk could be taken as a combination of the potential impact and the uncertainty of risk factors. Following the finding, the practical implications for developing effective strategies of risk management are discussed.