What is a significant risk associated with construction management?

Budget overruns due to unforeseen issues represent a significant risk associated with construction management because construction projects are often subject to a wide range of unpredictable factors. These can include unexpected site conditions, changes in material costs, labor shortages, or design changes that occur during the build process. When these unforeseen circumstances arise, they can lead to increased costs beyond what was initially projected in the budget.

This risk is crucial to manage as it can affect the overall financial health of the project. Effective construction management includes robust planning, budgeting, and contingency measures to mitigate this risk. By anticipating potential issues and incorporating allowances in the budget, project managers can better control costs and minimize financial liabilities.