The objective of this study is to introduce the risk management system which is a relatively new concept for the Turkish construction industry and to emphasize the possible advantages that could be derived by the application of risk management techniques within the various stages of a construction project. Furthermore, some proposals for the successful management of construction projects are presented in case that the current contracting system has to be continued which creates the main bottleneck that discourage the frequent implementation of risk analysis techniques. Within this context, by focusing on Monte Carlo Simulation technique that constitutes an important part of the risk management system, cost prediction analysis of a lump-sum construction project has been realized by taking into consideration the previous cost records and expert opinions. Findings of the analysis reveal that risk analysis provides much more information to tenderers paving way to the achievement of more realistic decisions as compared to conventional analysis.