The construction industry has many sources of risk some of which can be attributed to the complexity of processes, the environment of construction projects, financial aspects, organizational structures and technology usage. In the success of construction projects, the importance of identifying and managing risks is widely acknowledged. Delays in time and cost overrun have become the most common risks facing the industry worldwide. However, they are particularly prevalent in developing countries where adversities such as shortage of materials, lack of management skills, unskilled labour as well as socio economic and political problems must be dealt with; all of which make construction projects more difficult to manage. Interviews with project managers responsible for projects in the public and private sectors were carried out in order to evaluate their perception of risks, how they manage these risks and the effects of the risks on their projects. The results of the investigation show the main sources of risk identified relate to: the risk management process; organizational structure; labour unions; and economic factors. For example, the Venezuelan construction companies face risks as a result of the current economic situation brought about by the currency exchange controls applied 10 years ago. This is causing a negative impact on the procurement and costs of construction projects. This paper explains how these factors are managed and their impact on time and cost. One of the recommendations proposed as a way of improving the risk management process in Venezuelan construction projects is to assess the internal processes and organizational structure of project management companies. This will aid advanced identification of the sources of risk in order to allow timely decision making.