Program Evaluation and Review Technique (PERT) in Construction Risk Analysis

Abstract

Construction project scheduling is one of the most critical factors for project success measurement. Critical Path Method (CPM) is commonly used in the construction industry for project scheduling. CPM is a deterministic method that ignores uncertainties in activities through the network, which determines the duration of the projects. Program Evaluation and Review Technique (PERT) is a probabilistic method based on the assumption that the duration of a single activity can be described by a probability density function. PERT takes into account the uncertainties during the construction process to plan, schedule and control complex projects with many uncertainties. The work reported in this paper describes the PERT work process to carry out the construction schedule risk assessment and illustrates the model through case studies. The utilization in the estimate the construction liquidated damage with the uncertainties is performed, which also can be used in the insurance company to calculate the insurance premium.