Identification and Management of Risk in Building and Infrastructure Projects

Abstract

Building and infrastructure projects are very large and complex in nature consisting of extensive risks. For the successful accomplishment of these projects, risk identification and management should be used effectively. This paper recognizes the critical risk factors related to building and infrastructure projects in India. Seventy risks were identified through an in-depth study of literature related to risk in building and infrastructure projects. These seventy risks were categorized into eight major categories and a questionnaire survey was developed. Each risk factor was judged based on the probability and severity of that risk. Risk prioritization was used for determining the most critical risk factors involved. Data of one-forty-seven responses was used to analyze risk probability, risk severity using relative importance index (RII), and risk total impact was calculated using risk priority method. A risk mitigation model was also suggested. The most critical risk factors recognized were- approval and permit delays, payment delays, unpredicted changes in inflation rates, the pressure to crash project duration (time constraints), design errors or design changes. The results of this research will help risk managers, project managers, construction practitioners to identify risks related to these projects before the commencement of the project and to deal with them in such a way that these risks have minimal negative effects on project objectives.