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3/25/24, 2:31 PM Managing technical risk in construction - Construction Week Online
construction management platform. Here, we’ll consider how we manage technical
risks.

What is technical risk?

Technical risk includes instances where resource scarcity prevents a project from
progressing as planned, for example, errors in design documents, inaccurate cost
forecasting, changes in scope or requirements, inadequate site investigation and more.
A 2023 Procore survey of contractors in the Middle East and North Africa region, How
We Build Now, revealed that one in four business leaders say 25% of a typical project’s
time is spent on building problems and rework.

Every successful business of any scale today is also a technology business to some
extent. And as technology increasingly pervades the way we work, communicate and
live, technical risks are becoming more widespread and complex. Technical risk is
therefore an area where construction businesses and leaders will benefit from focussing
their attention.

Technical risk in the Middle East and North

Africa

However, construction businesses in the Middle East and North Africa are feeling
confident. In the same survey mentioned above, over 90% of construction business
leaders were “somewhat confident” or “very confident” about building and construction
market conditions over the next 12 months, despite inflation driving up the cost of
materials, supply chain interruptions and shortages in parts of the labour and skills
markets.

Managing technical risks is a surefire way to greater profitability. As the construction
industry becomes more digital, with paper reports and standalone Excel spreadsheets
gradually becoming things of the past, so the nature of risk becomes more digital and
data-orientated.

“Some businesses think the traditional isn’t compatible with the digital,” says Seif
Ragab of SIAC, a leading private construction firm expanding its operations across the
Middle East and North Africa region, and now making a difference with Procore. “But
we see it as enabling new ways of doing the traditional.”

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