Risk Management in Projects: Peculiarities of Lithuanian Construction Companies/Rizikos Valdymas Projektuose: Lietuvos Statybos Imoniu Savitumai (Report‪)‬

1. INTRODUCTION The financial and economic crisis has had an adverse impact on the Lithuania's economy and construction industry. The GDP of Lithuania decreased 14.7% in 2009, in contrast to an increase of 2.9% in 2008 (GF, 2010). Some industries, such as construction; trade, transport and communications; and the industry sectors were most affected by the crisis. In the same period, the gross value added within the construction sector decreased by 43.3 %, and in the trade, transport and communications sector--by 16.6% (SL, 2010). The construction sector, one of the engines of economic growth in Lithuania over the last decade, is now facing with serious challenges as companies' closures, rising unemployment, and postponed or even cancelled investments. These events also have changed the clients' and construction companies' behaviour. A reduced demand and shortage of orders dramatically increased a competition between companies of the construction sector. This increased pressure to improve quality, productivity and reduce costs, and the need for project strategies and management that can appropriately and effectively manage project risk.