Risk Assessment of Bridge Construction Project through cost management phases

Abstract

Risk assessment is an important factor in project cost management. This study addresses the risks associated with a 900 meter long bridge construction project. The risk of a bridge construction project is assessed to limit and quantify the impact on the project. The impact of various risks was investigated to express the impact on the total project contract value at the estimation stage. A project risk analysis is introduced to assess the percentage of risk attributed to the total cost. After assessing the impact of risks on cost using Expected Monetary Value (EMV), a new approach of including uncertainties on risk analyses, using description (C, Q, K), is discussed and its advantages and shortcomings are highlighted. Risk is then assessed at several stages of project execution during the budgeting phase, and risk-based project value (RPV) is used to assess the value of the project at each stage. RPV usually increases as the project progresses towards its goals. Due to this property, the RPV of the entire project can be categorized into the contribution value (CV) of each activity. The CV of an activity is defined as the increase in RPV after each activity completes successfully. The results highlight the positive impact of successfully completing the activities associated with the highest risk. In addition, practical solutions for risk assessment and analysis of bridge construction projects are provided for use by bridge construction contractors, project managers and project management engineers.