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Laterite soil is one of the types of soil, which is abundantly seen in coastal regions of Kerala state. Soil being a complex mixture of minerals, air and few organic matters , it becomes a major factor to study in detail about the nature of soil before carrying out any sort of work on it. The present study advocates, the study of laterite soil in the selected zones of Kerala with respect to the mineralogical properties and consequents geotechnical properties soil. Thus to understand the strength variations in the mapped zones and to characterize the zones which pose risk in construction of dwelling buildings. Risk Assessment is the first stage of risk management. Presently, a huge number of risk management approaches are present, but none of them relate to a condition where numerous factors are required to work on one plan. The first mission is to categorize the risk that happens by shaping the work in gradually multifaceted project systems .Risk Management’s intend is to make out the opportunities and alleviation strategies to diminish possibility and happening of an event. The aim of the study is to know the impact of this laterite soil property on the foundation cost of residence buildings and to conduct a Risk in sequence Model, which will denote the Risk occupied in the construction in the places enclosed in the Zonal Map. As designers and contractors should realize the relationship with varying foundation soils and the infrastructures. Construction has three phases for its proceedings. It includes PreBuilding Phase, Building Phase and Post-Building Phase. Understanding the ecological effect on the structure in the pre-building phase can successfully lead to the wise selection of construction materials.