Construction Management - Finance and Risk Management - Essay Example

In the first half of 2013 the country experienced GDP growth rate of 9.4%. There was a significant growth in the construction sector at 17.7%. This growth in the construction industry in noted due to the fact that about 2000 new facilities were being built in the country. However, it also needs to be noted that the construction industry is mainly dependent on the spending by the government as there is very limited spending in construction industry by people. This is due to the fact that priority of construction of private housing is low.

It is seen that the construction industry in any country has a very important role to play in the economic development of any country and also as a supplier of the physical infrastructure of the country. After Turkmenistan broke free from Russia, the government has tried to build the physical infrastructure problems that aim at reconstructing Turkmenistan. This has led to the fact that GDP growth in the construction industry was 2.2 times. However, there are several risk factors that are associated with any industry.

Any industry should make policies that are associated towards managing those risks. The various risk factors or the factors that are associated with uncertainty are related to implementation of new technology, availability of workforce that is experienced, availability of timely payments by the government, bureaucratic risks etc. There are other factors that are related to failure of being able to meet the deadlines. All these factors ultimately translate to risk for the construction industry.

Now the question that arises in this context is related to the risk management practices that are implemented to counter the risk. The paper analyzes the risk management methods and the perception of risk management and financial management methods by the people. I think that whether it is the government or the public or the company or individual everyone