Assessing Risk on The Engineering Procurement Construction (EPC) Project from The Perspective of The Owner: A Case Study

Abstract

Risk is part of infrastructure projects, and EPC projects are no exception. Risk is a consequence of uncertainty conditions. In construction projects, the risk cannot be predicted because there are a lot of uncertainties in predicting problems [1]. The risks in different types of contract projects would also be different, because of the different characteristics of each contract. In this study, the risk of construction projects was reviewed based on the project life cycle of the E.P.C (Engineering Procurement Contract) contract. The aim of this study is to analyze the risk from the perception of the owner of the project with the Engineering, Procurement, and Construction contract type. Primary data collected were in the form of identification and assessment of the impact and risk probability obtained by interviews and questionnaires. Data analysis was done with the Risk Breakdown Structure method to determine the risk ranking. The risk analysis of the Engineering Procurement Construction project from the owner’s perception showed that the majority risk was risk in the low category (46%), then moderate risk (27%), and high risk (27%).