The Problem of Exceeding the Cost of Construction and New Opportunities to Solve it at the Stage of Project Preparation

Abstract

The article discusses the problem of exceeding the planned cost of construction, sources of origin and ways to manage the risk of the need for additional financing of construction at the stage of project preparation. The possibilities of solving the problem by substantiating the reserve funds for unforeseen works and costs on the basis of the process approach and the digital model of distributed risk assessment are considered. In order to improve the reliability of determining the cost of construction, the dependence of the reserve funds for unforeseen works and costs, risk cost and risk degree is determined. An example is given of substantiating the reserve funds for unforeseen works and costs in the composition of the summary budget calculation of capital repair of the 1st Yelagin bridge over the Srednyaya Nevka river in Saint-Petersburg taking into account project design, production, technology, pricing, contractual and inflationary risk factors.