The construction sector in India is a major contributor to economic growth ofthe nation and provides employment to about 40 million people. The construction industry, however, is plagued by many issues like low productivity, severe skill shortage and limited mechanisation. There is a strong evidence ofinconsistent performance in over 60% ofIndian construction projects especially on the key performance measures ofcost, quality and schedule. Compared with many other industries, the construction industry is subject to more risks due to the unique features ofthe construction activities. Risk management aims at identifying sources ofrisk and uncertainty, determining their impact and developing appropriate management response. A questionnaire survey was conducted, in the state of Kerala in India, to identify the risk factors in construction projects and their underlying relationships. 55 critical risk factors were identified from the literature. Among the 55 factors considered, 'tight project schedule' was identified as the most critical risk factor for construction projects. Factor analysis performed on the risk factors categorized the factors into seven groups, namely (1) inefficient project team; (2) poor coordination of project team; (3) improper project planning; (4) environmental issues; (5) delays in obtaining administrative approval; (6) lack ofquality ofresources and (7) delays in obtaining technical and financial sanctions. The results of regression analysis indicate that inefficient project team is the most significant ofall the factors having negative influence on cost performance. This study provides an insight into the problems affecting the successful delivery ofconstruction projects and provides directions in devising solutions and strategies for overcoming them.