Fuzzy Logic: An Appropriate Technique for Effective Risk Analysis and Decision Making for Construction Projects

-Risk management is an important and crucial matter for project manager as the success of any project very much depends on the associated risks and uncertainties in the project. A systematic risk management process can be divided into risk classification, risk identification, risk analysis and risk response. Risk analysis is the second stage in the Project risk management (PRM) where risks which have the highest impact on the project, are short listed out of all the identified risks. There are number of techniques available for risk assessment in the literature, which have their own advantages, disadvantages and limitations. The purpose of this paper is to review and discuss risk analysis techniques which can be used for risk analysis for construction industry. The strengths and weaknesses of the techniques are highlighted and discussed. In this paper, we are illustrating the use of fuzzy logic theory for risk analysis and decision support system in construction industry, as according to author this theory has the potential to handle the complex and dynamic nature of construction industry. Keywords---Construction management, Simulation, Risk, Fuzzy logic, Probability