Construction risk management: a quantitative approach

Research output: Contribution to journalArticle

Abstract

Conventional project management techniques are not always sufficient for ensuring time, cost and quality achievement of large-scale construction projects due to complexity in planning and implementation processes. The main reasons for project non-achievement are changes in scope and design, changes in Government policies and regulations, unforeseen inflation) under-estimation and improper estimation. Projects that are exposed to such an uncertain environment can be effectively managed with the application of risk numagement throughout project life cycle. However, the effectiveness of risk management depends on the technique in which the effects of risk factors are analysed and! or quantified. This study proposes Analytic Hierarchy Process (AHP), a multiple attribute decision-making technique as a tool for risk analysis because it can handle subjective as well as objective factors in decision model that are conflicting in nature. This provides a decision support system (DSS) to project managenumt for making the right decision at the right time for ensuring project success in line with organisation policy, project objectives and competitive business environment. The whole methodology is explained through a case study of a cross-country petroleum pipeline project in India and its effectiveness in project1nana.gement is demonstrated.
Original languageEnglish
Pages (from-to)9-24
Number of pages16
JournalWest Indian Journal of Engineering
Volume25
Issue number1
Publication statusPublished - Jul 2002

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Risk management
Decision model
Methodology
Decision rights
Multiple attribute decision making
India
Analytic hierarchy process
Project management
Time costs
Inflation
Management techniques
Factors
Planning process
Business environment
Petroleum
Risk factors
Risk analysis
Project life cycle
Government policy and regulation
Project success

Keywords

  • construction risk management

Cite this

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abstract = "Conventional project management techniques are not always sufficient for ensuring time, cost and quality achievement of large-scale construction projects due to complexity in planning and implementation processes. The main reasons for project non-achievement are changes in scope and design, changes in Government policies and regulations, unforeseen inflation) under-estimation and improper estimation. Projects that are exposed to such an uncertain environment can be effectively managed with the application of risk numagement throughout project life cycle. However, the effectiveness of risk management depends on the technique in which the effects of risk factors are analysed and! or quantified. This study proposes Analytic Hierarchy Process (AHP), a multiple attribute decision-making technique as a tool for risk analysis because it can handle subjective as well as objective factors in decision model that are conflicting in nature. This provides a decision support system (DSS) to project managenumt for making the right decision at the right time for ensuring project success in line with organisation policy, project objectives and competitive business environment. The whole methodology is explained through a case study of a cross-country petroleum pipeline project in India and its effectiveness in project1nana.gement is demonstrated.",
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Construction risk management : a quantitative approach. / Dey, P.K.

In: West Indian Journal of Engineering, Vol. 25, No. 1, 07.2002, p. 9-24.

Research output: Contribution to journalArticle

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