Construction is a risky industry where managing projects means managing risk. Construction risk can be defined as any threat to the progress and completion of a construction project that creates potential loss exposure. In the construction industry, risk is a part of every stage of the project lifecycle, from preconstruction to project closeout.

The complexity of construction projects of all types and sizes creates an ever-present environment of uncertainty and risk. Risks such as weather issues, safety concerns, budgetary concerns, and project delays, to name a few, can appear in any form at any stage of the construction process. These and many other risks adversely impact project performance, compromising quality, increasing costs, and delaying project completion.