In the heart of Baghdad, a groundbreaking study is shedding light on the financial risks that have long plagued the Iraqi construction sector, with implications that resonate far beyond its borders. Marwa Makki Dishar, a dedicated researcher from the Department of Civil Engineering at the University of Baghdad, has been delving into the complexities of financial hazards in construction projects, aiming to equip stakeholders with the knowledge to mitigate these risks effectively.
The construction industry, a cornerstone of economic development, is not without its challenges. In Iraq, these challenges are amplified, often leading to project delays and budgetary constraints. Dishar’s research, published in the *Journal of Engineering* (translated from Arabic), has identified eight critical factors that significantly impact construction projects, categorizing them as high risk. These include inaccurate cost estimates, delayed client payment processes, clients’ financial instability, material price fluctuations, change orders, corruption, strong political opposition, and operations in hazardous areas.
The study employed a probability-impact matrix to quantify these parameters, providing a robust framework for understanding the financial risks involved. “By using the relative importance index to rank these hazards, we can prioritize our risk management strategies,” Dishar explains. This approach not only helps in identifying the most critical risks but also offers a roadmap for mitigating their impact.
The implications of this research are profound, particularly for the energy sector, which often relies on large-scale construction projects. “Understanding these risks can lead to more informed decision-making, ultimately reducing time and cost overruns,” Dishar notes. This is crucial for ensuring the success of energy infrastructure projects, which are vital for Iraq’s economic growth and stability.
The study’s findings are a call to action for owners, contractors, engineers, and decision-makers. By recognizing the root causes of financial hazards, they can develop comprehensive risk management strategies that enhance project efficiency and longevity. As the construction sector continues to evolve, this research provides a valuable tool for navigating the complex landscape of financial risks, ensuring that projects are completed on time, within budget, and to the highest standards.
In a field where every delay and every cost overrun can have significant commercial impacts, Dishar’s work offers a beacon of clarity. It underscores the importance of proactive risk management and sets the stage for future developments in the construction industry, both in Iraq and beyond. As the sector continues to grow and adapt, this research will undoubtedly play a pivotal role in shaping its future.