The construction industry, similar to other industries, is subject to risk and uncertainty because of the nature of its operating environment, which may affect overall performance toward achieving desired goals. This research identifies the contractors’ perspectives in regards to the key risk factors, their associated causes, current risk management implementation, and mitigative measures in large construction companies in the northern states of Malaysia. Data were obtained via interview and structured questionnaire surveys conducted on 100 G6 and G7 companies in Perlis, Kedah, and Pulau Pinang. Of 70% valid responses, the top five risks factors considered are “Delayed progress payment by client,” “Changing contract terms and clauses,” “Delay in solving contractual issues,” “Errors and omissions in design drawings, inadequate drawings and technical specifications, and uncoordinated design disciplines,” and “Poor geological and geotechnical site conditions.” “Lack of communication” between all parties is the main factor causing risk. “Effective risk management implementation” to increase the competitiveness of the company was not selected as the current exercise, and local construction industry players considered “Ensure effective site management and good contractor supervision” as the mitigative measure in response to risk. These findings indicate that the Malaysian contractors' perspectives remain at the early stages of risk management and lacks standardization.
