CHAPTER 1.

INTRODUCTION

Project management is the science which applies skills, tools and techniques to fulfil project
activities in a way that the expectations and requirements of stakeholders are fulfilled or
exceeded. Project risk management is an integral part of the process which aims at
identifying the potential risks associated with a project and responding to those risks. It
includes activities which aim to maximize the consequences associated with positive events
and to minimize the impact of negative events. It is believed generally that risk in an
environment is a choice rather than fate, and the inherent uncertainty in the plans can affect
thedesired outcome of achieving project and business goals.
Risk is present in all the activities in a project; it is only theamount which varies from one
activity to another.
Risks and uncertainties inherent in the construction industry are more than other industries.
The process of planning, executing and maintaining all project activities is complex and time-
consuming. The whole process requires amyriad of people with diverse skill sets and the
coordinationof a vast amount of complex and interrelated activities. Thesituation is made
complex by many external factors. Thetrack record of construction industry is very poor in
terms ofcoping with risks, resulting in the failure of many projects to meet time schedules,
targets of budget and sometimes even the scope of work. As a result, a lot of suffering is
inflicted to the clients and contractors of such projects and also to the general public. Risk in
the construction industry is perceived to be a combination of activities, which adversely
affect the project objectives of time, cost, scope and quality. Some risks in construction
processes can be easily predicted or readily identified; still some can be totally unforeseen.
Construction risks can be related to technical, management, logistical, or socio-political
aspects or can be related to natural disasters. In the domain of project management, some
of the critical effects of risks are failure to achieve operational requirements and the required
quality, noncompletion of the project within stipulated time and estimated cost.

Risk management refers to the problems that may occur which are only in term of
probability, at the same time in the actual time of occurrence there can be a no. of other
events happening which are unknown. Things may differ from the prediction made. In such
cases a series of events can occur due to one unforeseen hazard. At the same time it’s too
difficult to coin what is hazard as it may vary from person to person. A small hazard may
seem big for the

1
other person. It depends on the exposure of the participant to such circumstances and its
effect on developing perception towards it. This difference may be due to attitude, earlier
experiences, different culture of work environment or knowledge of the person concerning
that particular risk. Turner (1993) provides an encapsulating definition of a project as; “..An
Endeavour in which human material and financial resources are organized in a novel way..”
Projects unique character differentiates then from operation.

Project requires effort while operations can be repetitive in nature. Projects are different with
new endeavor which may have lot of uncertainties. According to Edwards & Bowen (1999)
lot of assumptions were made as the data is not sufficient to consider the task for proper
construction management. Assumptions are made, as a matter of necessity, by construction
management in situations where there is insufficient data or information to continue with a
task. Adams (1995) states that the risk and uncertainty associated with a venture are managed
by the implementation of a risk management process; the objective of which is to reduce risk.

In construction, risk usually refers to the factors that may hamper the objective of the project
regarding time, cost and quality. Identification of the risk that can be faced is important for
the contractor to get alert and prepare in advance for the uncertainties that arises. A lot of
ways are there to identify the risk and predict. This includes economic risk, financial risk,
legal risk, managerial risk, technical risk, political risk and environmental risk [Edwards PJ,
Bowen PA, 199]. Identification of risk forms the first major part of risk analysis. There can
be of inherent factors which can be identified in this phase of risk management. Without
proper identification management of risk becomes very difficult. Without identification it is
impossible to manage risk. Many uncertainties cause due to lack of proper identification.
Risk factor needs a proper analysis. To avoid such factors the risk identification process
should be implemented properly in a way which minimizes the probability of uncertainties.
To achieve this questionnaire and interviews are done after a lot of brain storming process.
The development of infrastructure is one of the most important activities that can boost up the
business of various industries, thereby increasing the gross domestic product (GDP) of the
country. Construction projects are always unique and risks raises from a number of different
sources. Risk is defined as any action or occurrence which will affect the achievement of
project objectives. Risk management is a technique which is used in many other industries
from, IT related to business, automobile, pharmaceutical industry, to the construction sector.

2
Risks and uncertainties inherent in the construction industries are more than any other
industries. Many industries have become more proactive about using risk management
techniques in project. However, with respect to the construction industry, the same is not
used commonly. Risk is an integral component of any project. Risk is present in all projects
irrespective of their size or sector. No project is totally free from risks. If risks are not
properly analyzed and strategies are not trained to deal with them, the project is likely to lead
to failures.

In the construction industry, risk is often referred to as the presence of potential or actual
threats or opportunities that influence the objectives of a project during construction,
commissioning, or at time of use. Risk is also defined as the exposure to the chance of
occurrences of events adversely or favourably affecting project objectives as a consequence
of uncertainty.

Risk management (RM) is a concept which is used in all industries, from IT related business,
automobile or pharmaceutical industry, to the construction sector. Each industry has
developed their own RM standards, but the general ideas of the concept usually remain the
same regardless of the sector. According to the Project Management Institute (PMI) (2004),
project risk management is one of the nine most critical parts of project commissioning. This
indicates a strong relationship between managing risks and a project success. While RM is
described as the most difficult area within construction management (Winch, 2002; Potts
2008) its application is promoted in all projects in order to avoid negative consequences
(Potts, 2008).

The research for this study was conducted together with a consultancy company working
with construction project management, which consults a variety of construction projects. This
organization works with risks in a way that they are aware of risks, but do not use any
specific structured methods to handle them. However, they believe that a project’s
performance can be improved by implementing risk management methods. At the time when
research was conducted, the company was working on a school project in the western part of
Gothenburg, which is the case study in this thesis. The project was chosen in order to
investigate the practices of risk management across project organization.The current study is
focused on concepts of risk management.

3
 CHAPTER 2. LITERATURE SURVEY

Following journals were studied-

 Shankar Neeraj1, Balasubramanian. Post Graduate Student, Civil Engineering, SRM

University, Tamil Nadu, India. Assistant Professor, Civil Engineering, SRM University,
Tamil Nadu, India. International Research Journal of Engineering and Technology
“ASSESSMENT OF RISK IN CONSTRUCTION INDUSTRY’’
This Journal presents various types of risks in construction works such as :-
1. Construction risk
2. Technical risk
3. Physical Risk
4. Organizational Risk
5. Financial Risk
6. Socio-Political
7. Environmental Risk
As well as it presents concept of risk, categorization of risk

 Authors: Maarten G.H. BijlRobbert J. Hamann Delft University of Technology

Aerospace Engineering August 2002 “Risk Management Literature Survey.’’

This paper gives whole information about of literature survey of “risk management in
construction projects.” It also presents methods and data required for risk management
projects.

 University of Applied Sciences Augsburg, Baumgartnerstrasse 16, 86161 Augsburg,

Germany E-mail: [email protected] Received 06 10 2005; accepted 2001 2006
“Journal of Business Economics and Management.” “Risk management in construction
project management.”

This paper presents the steps of risk management project in construction industry as well
as benefits, limits & purpose of risk management.

 IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) ISSN: 2278-1684, PP:
59-65 www.iosrjournals.org. Mr. Satish K. Kamane1, Mr. Sandip A. Mahadik2 1,2(Asst.
Prof Civil Engineering Dept. AtsSbgiMiraj) “Risk Management in Construction
Industry.”

4
 This paper presents risks at various stages of construction project, risk identification
methods, risk assessment, questionnaire, risk categorization & risk evaluation etc.

 A. Suchith Reddy 1 Master of Science in Construction Management, Sheffield Hallam

University, UK, 20101 Assistant Professor, Department of Civil Engineering, KITS
College, Warangal, Telangana, India International Journal of Innovative Research in
Science, Engineering and Technology. “Risk Management in Construction Industry - A
Case Study.”

This Journal presents the case study about the project such as how to prepare the
questionnaire, to make pie chart from questionnaire.

 Prof. RedaAbdulaal Vice Presidency for Projects. “INTRODUCTION TO RISK

MANAGEMENT FOR CONSTRUCTION PROJECTS.” December 2009.

 Vicknayson Thevendran. Risk Management in the Construction Industry: the relevance of

Human Factors.

 KrantikumarMhetre, B.A.Konnur, Amarsinh B. Landage Government College of

Engineering, Karad 415124 India Email:[email protected], [email protected],
[email protected] .International Journal of Engineering Research Volume No.5,
Issue Special 1 pp: 153-155. “Risk Management in Construction Industry.”

 Syed M. Ahmed, Ph.D. Department of Construction Management Florida International

University, Miami, Florida. “Risk Management in Construction.”

5
 CHAPTER NO 3. OBJECTIVES AND METHODOLODGY.

OBJECTIVES: -

a) To critical study on literature survey on risk management in construction industry.

b) To identify the various type of risk in construction industry.

c) To apply the risk management fundamentals.

d) To study new methodology and analyse the construction risk.

e) To study risk management techniques on a selected case study.

f) To provide the recommendation to respond the risk in construction industry.

METHODOLODGY:-

In this Project, at the outset, general focus has been made on the general concepts of project risk
management. A questionnaire was developed by going through literature on construction risk
management. A discussion was made with personnel working for the construction industry
near Jalna & Aurangabad Circle to identify and assess, the risk factors relating to
construction industry in Aurangabad.

6
 CHAPTER 4. CONSTRUCTION RISKS ITS TYPES

Risks can be viewed as business, technical, or operational. A technical risk is the inability to
build the product that will satisfy requirements. An operational risk is the inability of the
customer to work with core team members. Risks are either acceptable or unacceptable. An
acceptable risk is one that negatively affects a task on the non-critical path. An unacceptable
risk is one that negatively affects the critical path. Risks are either short or long term. A
short-term risk has an immediate impact, such as changing the requirements for a deliverable.
A long-term risk has an impact sometime in the distant future, such as releasing a product
without adequate testing. Risks are viewed as either manageable or unmanageable. A
manageable risk is one you can live with, such as a minor requirement change. An
unmanageable risk is impossible to accommodate, such as a huge turnover of core team
members. Risk factors for this study are classified into eight categories namely.
8. Construction risk
9. Technical risk
10. Physical Risk
11. Organizational Risk
12. Financial Risk
13. Socio-Political
14. Environmental Risk

1. Construction Risks:
These risks include Labour productivity, Labour disputes, Site condition, Equipment
failures, Designchanges, too high quality standard and new technology.

2. Technical risk
The risks associated with the IncompleteDesign, Inadequate specification, inadequate
site investigation Change in scope, Construction procedures and insufficient resource
availability etc. are termed as technical risks.

3. Physical Risks:
The risks arising from the Damage tostructure, Damage to equipment, Labour
injuries, Equipment &material fire and theft etc. are known as physical risks.

7
 4. Organizational Risks:
The organizational risks consist ofContractual relations, Contractor’s experience,
Attitudes ofparticipants, inexperienced work force and Communication.

5. Financial Risks:
Increased material cost, Low market demand,Exchange rate fluctuation, Payment
delays and improperestimation taxes etc. are related to financial risks.

6. Socio-Political Risks:
Changes in laws and regulations, Pollution and safety rules, Bribery/Corruption,
Language/Cultural barrier, Law & order, War and civil disorder and Requirement for
permits and their approval.

7. Environmental Risks:
Natural Disasters and Weather Implications.

CONCEPT OF RISK

Risk is a multi-facet concept. In the context of construction industry, it could be the

likelihood of the occurrence of a definite event/factor or combinationof events/factors which
occur during the whole process of construction to the detriment of the project a lack of
predictability about structure outcome or consequences in a decision or planning situation,
the uncertainty associated with estimates of outcomes – there is a chance that results could be
better than expected as well as worse than expected etc. In addition to the different definitions
of risk, there are various ways for categorizing risk for different purposes too. Some
categorize risks in construction projects broadly into external risks and internal risks while
others classify risk in more detailed categories of political risk, financial risk, market risk,
intellectual property risk, social risk, safety risk, etc

DEFINATIONS OF RISKS

Risk and uncertainty are the two most often used concepts in the literature covering RM field.
Although these terms are closely related, a number of authors differentiate between them

8
(Samson, 2009). Also practitioners working with risk have difficulty in defining and
distinguishing between these two. Often definitions of risk or uncertainty are tailored for the
use of a particular project. To make it more systematized, a literature research was done. The
findings of this search resulted in a number of definitions of risk and uncertainties. These
have been compiled and are presented in following Table,

Author: Risk definition Uncertainty definition

Smith et al. A stage where there is a lack of Uncertainty is a part of the information
(2006) information, but by looking at past required in order to take a decision. The
experience, it is easier to predict the required information consists of the
future. Events where the outcome is amount of available information and
known and expected. uncertainty. The level of uncertainty will
decrease the further a project is
proceeding throughout the lifecycle.

Cleden (2009) Risk is the statement of what may Uncertainty is the intangible measure of
arise from that lack of knowledge. what we don’t know. Uncertainty is
Risks are gaps in knowledge which what is left behind when all the risks
we think constitute a threat to the have been identified. Uncertainty is gaps
project. in our knowledge we may not
even be aware of.

Smith et al. Risks occur where there is some There might be not enough information
(2006) knowledge about the event. about the occurrence of an event, but we
know that it might occur.

Webb (2003) Risk is a situation in which he Uncertainty is a situation with an

possesses some objectives outcome about which a person has no
information about what the outcome knowledge.
might be. Risk exposure can be
valued either positively or

9
 negatively.

Darnall and Risk is a possibility of loss or injury.

Preston (2010)

Cooper et al. Risk is exposure to the

(2005) consequences of uncertainty.

CHAPTER 5. A CONCEPT OF RISK MANAGEMENT

10
Smith et al. (2006) provide a comprehensive description of the concept of RM and how it can
be used in practice. According to the authors, risk management cannot be perceived as a tool
to predict the future, since that is rather impossible. Instead, they describe it as a tool to
facilitate the project in order to make better decisions based on the information from the
investment. In this way, decisions based on insufficient information can be avoided, and this
will lead to better overall performance. In the literature, RM is described as a process with
some predefined procedures. The scope of its definition differs among the authors, however
the core information is the same. From a number of definitions which can be found in the
management literature Cooper et al. (2005) explanation brings the essence of this concept:
“The risk management process involves the systematic application of management
policies, processes and procedures to the tasks of establishing the context, identifying,
analyzing, assessing, treating, monitoring and communicating risks (Cooper et al., 2005).”
Risk management process (RMP) is the basic principle of understanding and managing risks
in a project. It consists of the main phases: identification, assessment and analysis, and
response (Smith et al. 2006) as shown in Figure 3. All steps in RMP should be included when
dealing with risks, in order to efficiently implement the process in the project. There are
many variations of RMP available in literature, but most commonly described frameworks
consist of those mentioned steps. In some models there is one more step added, and the
majority of sources identify it as risk monitoring or review. For the purpose of this paper the
model of RMP described by Smith et al. (2006) will be used for further analysis and will be
further explained in the following section.

Risk control

Risk
Risk Analysis
mitigation

Risk Risk
identification respoonce
11
 CHAPTER 6. PURPOSE OF PROJECT

The purpose of this master thesis is to evaluate how the risk management process is used in
the construction industry and how the practitioners are managing risks in everyday situations.

The theory of the risk management process will be compared to the actual practice in order
to investigate similarities and differences.

In other words, the main idea is to see if the construction industry is working with risk
management as it is described in the literature regarding the methods and techniques
presented.

Purpose of this project is to identify and minimize the different types of risk.

It is very essential to carry out the structural failures and design omission.

12
To ensure the quality of work without any errors.

To increase the life of structure.

CHAPTR 7. BENEFITS AND LIMITS OF RISK MANAGEMENT

BENEFITS: -
To maximize the efficiency of risk management, the RMP should be continuously developed
during the ent ire project. In this way, risks will be discovered and managed throughout all
the phases (Smith et al. 2006). The benefits from RM are not only reserved for the project
itself, but also for the actors involved. The main incentives are clear understanding and
awareness of potential risks in the project. In other words, risk management contributes to a
better view of possible consequences resulting from unmanaged risks and how to avoid them.
(Thomas, 2009) Another benefit of working with risk management is increased level of
control over the whole project and more efficient problem solving processes which can be
supported on a more genuine basis. It results from an analysis of project conditions already in
the beginning of the project. (Perry, 1986) The risk management also provides a procedure

13
which can reduce possible and sudden surprises (Cooper et al. 2005). Different attitudes
towards risk can be explained as cultural differences between organizations, where the
approach depends on the company's policy and their internal procedures (Webb, 2003).
Within the RM, three company’s approaches can be distinguished.

LIMITS OF RISK MANAGEMENT: -

The level of risk is always related to the project complexity (Darnall and Preston, 2010). The
fact that there are so many risks which can be identified in the construction industry, can be
explained by the projects‟ size and their complexity. The bigger the project is, the larger the
number of potential risks that may be faced. Several factors can stimulate risk occurrence.
Those most often mentioned in the literature are financial, environmental (the project’s
surrounding, location and overall regulations), time, design and quality. Other influences on
the occurrence of risk are the level of technology used and the organization’s risks (Gould
and Joyce, 2002).
Caledon (2009) claims that complexity is a factor that can limit a project; the bigger and more
complex a project is, the more resources are required to complete it. Moreover, when all
potential risks have been identified, the project team must remember that there might be more
threats. Therefore, the project team should not solely focus on management of those
identified risks but also be alert for any new potential risks which might arise. RM should be
used as a tool to discover the majority of risks and a project manager should be also prepared
for managing uncertainties not included in a RM plan (Cleden, 2009).

CHAPTER 8. THEREOTICAL FRAMEWORK

The theory part is divided into three parts. The first part is a description of a project
organization structure. Its purpose is to provide a reader with general information about a
construction project and its organization. The second part introduces concept of risk
management and provides definitions of terms used in this process. Finally, the theoretical
concept of risk management process and methods used for risk assessment are presented.
Some risks which occur commonly in the construction industry are, for example weather,
design issues, problems with material, accidents, labour issues etc. Risks can vary in
character and have different impacts on a project. In spite of this, risk management is not
widely used within the construction industry.

14
 CHAPTER 9. STEPS OF RISKS MANAGEMENT

Steps: - 1 identifying risks: -

Risks that are not recognized also cannot be assessed and dealt with. However, a complete
coverage of the risks are impossible. The task of risk management is therefore to cover the
essential risks as completely as possible. Risk identification must therefore be carried in a
way that is both forward-looking and in line with the progress of the project, since before the
start of the project not
all risks are completely recognizable and during the project implementation further risks may
emerge. Fig 3 provides an overview of various methods for identifying risks. In principle,
creative and guided methods are distinguished. The first type offers the possibility also to
discover new kinds of risk. Guided

15
methods use such as checklists for identifying risks, the aid of which the conceivable types
of risk are checked. In projects, in particular the following risks occur, which are broken
down according to risk types:
Quality risks
- Defect in interim results
- Lacking application of project methods
- Too few controls / tests
Personnel risks
- Lack of skills
- Disagreements in the team
Cost risks
- Planning changes
- Complicated project conditions
- Customer fails to pay
Set date / deadline risks
- No handover in good time
- The project end is delayed
Risks of strategic decisions
- Failure to recognize chances
- Lack of ability to consistently use chances
External risks
- Natural occurrences
- Political changes
- Changes in society
- A shift in the market / new markets
- Legal developments
- Shifts in sectoral trends
- Technological changes

Step 2: -Analysing risks: -

The objective is to describe the risk situation as completely and precisely as possible and to
prioritizen the risks. For this, the identified risks are investigated with regard to the

16
probability of their occurrence and the effect on the project. In the first place, a portfolio and
a risk costs assessment respectively serves of classification purposes. Criteria must be found,
on the basis of which individual risks can be assessed and compared with one another. A risk
must always be described as a damage or loss entailing event to which a particular value can
be allocated. From this, damage or loss assessed in terms of costs and the probability of
occurrence, a value for the risk can be calculated. Next, the causes of errors are
systematically assessed in terms of the probability of their occurrence, the significance for the
customer and the probability of their being discovered. Finally, suitable measures are
commenced. The risk portfolio in the risk portfolio risks are ordered according to the amount
of damage or loss and the probability of their occurrence. Accordingly, the effects on the
project and the need to take action are evaluated. n Risk team analysis The risk evaluation is
carried out by the project manager in the context of project controlling. For the risk team
analysis, risks are determined and analysed according to types and indicators for the
occurrence of risk are worked out. From this possible measures are elaborated and
represented and persons responsible for the risk monitoring and notification are determined.

STEP 3: - ASSESSING RISKS: -

The risk assessment comprises the qualitative assessment and quantitative measurement of
individual risks including the interrelationship of their effects. With the help of the results of
risk assessment for example a risk portfolio of a project can be illustrated and compared with
others. While for the banking or insurance industry mathematically and statistically exact
methods for risk assessment are useful, these cannot satisfy the typical risks in the
construction industry. The following methods of risk assessment and risk comparison can
also be used in construction projects: Key performance indicators Key performance
indicators cover quantitatively measurable circumstances and thus create a basis for
comparison. They are preferably consulted for risk assessment if a large number of data and
figures must be compared. For the key performance indicators, threshold values from which a
risk warning exists are determined. Typical key performance indicators in the real estate
sector are average operating costs, average rent, and vacancy rate or average interest on
outside capital.

STEP 4: - CONTROLLING RISKS: -

17
Controlling risk is the active influencing of the risks determined in the context of the risk
analysis. Measures of dealing with risk can be differentiated between cause-related and
effect-related measures. Cause-related measures are supposed to avoid or reduce risks, while
effect-related measures serve to reduce or safeguard against the amount of damage or loss to
be expected in the event of the damage or loss entailing event [3]. Strategies of controlling
risk are accordingly the following:
- Avoidance
- Reduction
- Passing on the risk
- Bearing the risk by oneself

STEP 5: - MONITORING RISKS: -

The monitoring of risks is the continuous operative control of the effectiveness of the risk
control measures. The goal of risk management is not to eliminate risks completely from the
project. The monitoring of the risk helps guarantee that the risk position of the project
corresponds to the risk situation strived for. This task is supported instrumentally through
analyses of variances. The internal control system is part of the monitoring of the risk. The
continuous monitoring of the early indicators and the repeated risk verification are carried out
by the persons responsible in each case, no later than the respective milestone deadlines. A
precondition for this is that a reporting and meeting structure in the organisation and for the
project is stipulated. Besides the pursuit of the risk status and the progress of the measures,
new additional risks must be included. Risks that have occurred must be documented with the
relevant amount of damage or loss; critical situations of the managerial staff must be
reported.

STEP 6: - CONTROLLING GOALS: -

After the recognition, analysis and assessment of risks, measures for controlling goals must
be taken. The control process may be broken down into sub-processes: determination of the
target value, determination of the actual value, target/actual comparison and an analysis of
variances. As a permanent process, in the context of the monitoring, the risk identification,
analysis, and controlling are checked to find out whether the risk control is implemented in
due form. In the event of variances between the actual risk situation and the risk situation

18
strived for, steps must be commenced to specify the causes. Based on these recognitions, the
risk strategy must then be adapted or revised. Consequently, by monitoring the risk it is
guaranteed that standards set of risk management are taken into account.

CHAPTER 10. METHODS AND DATA

The aims of the research were: first, to identify Project manager’s opinion on the significance
of the construction projects risks; and second, to explore the risk analysis and risk
management practices in the “Mehra & Group of construction” & “IRB Infrastructure LTD”
companies. The initial survey was distributed during February through March 2017. A
second, similar questionnaire was distributed during February through March 2017. A
questionnaire containing three sections was developed to facilitate data collection. The first
section includes the respondents’ opinion on the risk factor in terms of its probability and
impact to overall construction project success. The second section includes the respondents’
opinion on the risk consequences for construction project performance measures as well as
the risk assessment and response practices. The third section aims to collect the background

19
information of the respondents, e.g. their age, gender, position, education, work experience
and professional background.

CHAPTER 11. A CASE STUDY I

Questionnaire: -

1) NAME OF CONSTRUCTION INDUSTRY:- Mehra & group of construction.

2) OWENER OF INDUSTRY: -Mrs.D.M.Mehra.

3) EMPLOYERS SEQUENCE IN INDUSTRY:-

i. Owner
ii. Manager
iii. Site head
iv. Senior engineer

20
 v. Junior engineer
vi. Office staff
vii. Skilled labour
viii. Unskilled labour
4) NAME OF PROJECT:- Ayesh-Kiran Township (AOP)

5) PROJECT MANAGER:- Mrs.Pawan Kapoor sir.

6) ESTIMATED COST:- 19.68 Crore.

7) PROJECT START DATE:- 02/07/2017.

8) TOTAL MANPOWER:-
a. Total-150.
b. Office staff-6.
c. Engineer-3.
d. Workers-141.

9) LOCATION OF SITE:-
Jalna-Aurangabad Road,
Survey no: - 45P 46P,
Opposite Chandanzira,
Jalna-431203.

10) BRANCHES OF COMPANY:-

Head Office: -Jalna( Near CTMK School )
Other Construction Works: -
a. Irrigation department.
b. Railway earthwork.

11) TOWNSHIP DETAIL:-

i. PLOT AREA:- 7065.59 sq.m

ii. BUILT UP AREA:- 9394.22 sq.m

21
 iii. RESIDENTIAL AREA: - 9394.22 Sq.m

iv. COMMERTIAL AREA: - 0 sq.m

v. FLAT DETAILS: -
a. FLAT AREA: - 31414.94 sq.m

B. AREA OF 1 FLAT: - 97.87 sq.m

c. TOTAL NO’S OF FLAT: - 266 flats.

FIG:

QUESTIONS RELATED TO RISK MANAGEMENT:-

1) What is the likely hood and severity of risk in your company?

Ans:- Low

a) Very high b) High c) Medium d) Low

22
2) Did the employees receive a health and safety training?

Ans:- Yes, Because we give health and safety training.

a) Yes b) No c) Don’t know d) Most of the time

3) Can the work carried out be safe?

Ans:- Yes, earthquake resistance structure.
Good maintain quality.
a) Yes b) No c) Don’t know d) Most of the case

4) What is the scope of your company with regards to the type of projects carried on?

Ans:- Easily cost paying, affordable.

 a) Large b) Medium c)Small

5) Is a risk assessment required in your company?

Ans:- Yes

a) Yes b) No c) Don’t know d) Most of the cases

6) Do the tender documents contain the risk allocation clause?

Ans:- No because it is private company

a) Yes b) No c) Don’t know d) Most of the cases

7) Do the team discuss about risk involved in the project?

Ans:-Always our staff discuss about the risk involved in the project

a) Always b) Sometimes c) Most of the time D) Never

8) Which type of action is taken to reduce risk?

Ans:- All of the above

a) Competent specialist appointed.

23
 b) All plants and equipment’s are adequate.

c) Necessary PPE provided and worn.

d) All inspection and certificates provided.

e) All of the above.

9) What is the protective measure that you take?

Ans:-use appropriate technology and working methods.

a) Avoid the risk.

b) Combat the risk at the source.
c) use appropriate technology and working methods.

10) What are the field and scope of projects that you accomplish?

Ans:-Affordable Housing.

a) Public Housing.
b) Housing Private.
c) Private Retail.

24
FIG:2 DISCUSSION WITH SITE MANAGER

FIG:3 ON THE SITE

FIG:4 GROUP MEMBER WITH LABOURS ON SITE.

25
RISK CATEGORISATION

Sr. Categories Likelihood 1 Impact 1

(rare)-5 (very (very low)-5
frequent) (very high)
Design risks
D1 Design errors and omissions 0 0
D2 Design process takes longer than 2 3
anticipated
D3 Stakeholders request late changes 1 1
D4 Failure to carry out the works in accordance 2 1
with the contract
External risks
E1 New stakeholders emerge and request 2 1
changes
E2 Public objections 1 1
E3 Laws and local standards change 1 1
E4 Tax change 2 2
Environmental risks
En1 Environmental analysis incomplete 1 1
EN2 New alternatives required to avoid, mitigate 2 2
or minimize environmental impact
Organizational risks
O1 Inexperienced workforce and staff turnover 4 5
O2 Delayed deliveries 1 1
O3 Lack of protection on a construction site 0 0
Project management risks
PM1 Failure to comply with contractual quality 4 5
requirements
PM2 Scheduling errors, contractor delays 1 1
PM3 Project team conflicts 1 1
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 Right of way risks
R1 Expired temporary construction permits 0 0
R2 Contradictions in the construction 0 0
documents
Construction risks
C1 Construction cost overruns 1 1

C2 Technology changes 1 1

EVALUATION OF RISKS: -

LIKELIHOOD
Rare Occasional Somewhat Frequent Very
(1) (2) frequent (4) Frequen
(3) t (5)

Very low D4,E2,E3,O2, E1,En2

(1) PM2,
PM3,C1, C2
Low E4 D2
(2)
Moderate D3
IMPA (3)
CT High
(4)
Very High O1,PM1
(5)

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CONCLUSION: -
In this site visit , we have studuied how to evalulate different types of risk in this township
design errors and omissions were very less.
In this township there was no public objections and request changes.
Environmental analysis was completed before the execution of township under skilled
expertise.
Adequate protection to all the employes were provided in this township.
Quality of work and proper class of employes were adopted for the execution.

FIG:5 GROUP PHOTO WITH PROJECT MANAGER

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 CHAPTER 12. A CASE STUDY II

FIG: PHOTO OF COMPANY BOARD

QUISTIONARE: -

1) NAME OFCONSTRUCTION INDUSTRY: - YATPL- IRB INFRA LTD.

2) EMPLOYERS SEQUENCE IN INDUSTRY: -

CGM

GM2
GM1

PM3 PM4
PM1 PM2
PLANT MANAGER

MATERIAL MANAGER

HIGHWAY INCHARGE
STORE MANAGER

3) NAME OF PROJECT:- FOUR LANNING OF YEDESHI TO AURANGABAD

29
 NH 211 OF 200KM IN THE STATE MAHARASHTRA

4) PROJECT MANAGER:- CGM- RAJIV RANJAN SRIVASTAVA

5) ESTIMATED COST:- 3177 CRORE

6) LOCATION OF SITE:- YEDSHI TO AURANGABAD

7) DETAILS OF BRIDGE:-

Length of bridge: - 56 m
Width of bridge: - 12 m
Types of bearing used in the bridge: - Elastomeric bearing (rubber
bearing)

FIG:6: - MATERIAL MANAGER

QUESTIONS RELATED TO RISK MANAGEMENT:-

1) What is the likely hood and severity of risk in your company?

30
 During work safety precaution are taken

a)Very high b) High c) Medium d) Low

2) Did the employees receive a health and safety training?

a) Yes b) No c) Don’t know d) Most of the time

3) Can the work carried out be safe?

a) Yes b) No c) Don’t know d) Most of the cases

4) What is the scope of your company with regards to the type of projects carried on?

a) Large b)Medium c)Small

5) Is a risk assessment required in your company?

a) Yes b) No c) Don’t know d) Most of the cases

6) Do the tender documents contain the risk allocation clause?

a) Yes b) No c) Don’t know d) Most of the cases

7) Do the team discuss about risk involved in the project?

a) Always b) Sometimes c) Most of the time D) Never

8) Which type of action is taken to reduce risk?

a) All plants and equipment’s are adequate.

b) Necessary PPE provided and worn.

c) All inspection and certificates provided.

d) All of the above

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9) What is the protective measure that you take?

a) Avoid the risk.

b) Combat the risk at the source.
c) use appropriate technology and working methods.

FIG:7: - DISSCUSION WITH MANAGER

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FIG:8: - DISSCUSION WITH STRUCTURAL MANAGER

FIG:9: - AT BRIDGE SITE

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CATEGEORIZATION OF RISKS: -

Sr. Categories Likelihood 1 Impact 1

(rare)-5 (very (very low)-5
frequent) (very high)
Design risks
D1 Design errors and omissions 01 01
D2 Design process takes longer than 02 03
anticipated
D3 Stakeholders request late changes 01 02
D4 Failure to carry out the works in accordance 02 02
with the contract
External risks
E1 New stakeholders emerge and request 03 02
changes
E2 Public objections 02 01
E3 Laws and local standards change 01 02
E4 Tax change 00 00
Environmental risks
En1 Environmental analysis incomplete 02 03
EN2 New alternatives required to avoid, mitigate 01 02
or minimize environmental impact
Organizational risks
O1 Inexperienced workforce and staff turnover 01 02
O2 Delayed deliveries 02 01
O3 Lack of protection on a construction site 03 02
Project management risks
PM1 Failure to comply with contractual quality 01 01
requirements
PM2 Scheduling errors, contractor delays 01 02
PM3 Project team conflicts 00 00
Right of way risks

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R1 Expired temporary construction permits 01 02
R2 Contradictions in the construction 02 01
documents
Construction risks
C1 LIKELIHOOD
Construction cost overruns 03 01

C2 Rare
Technology changes Occasional Somewhat
01 Frequent
01 Very
(1) (2) frequent (4) Frequen

35
 (3) t (5)

Very low D1,EN2,O1, E2,O2,R2 . E1, C1 .

(1) PM2,C2 .

Low D3,E3,OM3, D4. O3.

(2) R1.
Moderate D2,EN1.
IMPA
(3)
CT
High
(4)
Very High
(5)
EVALUATION OF RISK:-

CONCLUSION

In this site visit of YATPL-IRB infra ltd, we have studied the importance of risk identification
and evaluation in a construction work.
In this site we have observed that they had given there first priority to the quality of material
and work. Hence there were less structural failures.
They had adopted each and every test to verify the quality of materials. There was modern
technologies and advance equipments.

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FIG:10: - PHOTO WITH SITE MANAGER

37
 CHAPTER 13. CONCLUSION

The construction companies need to include risk as an integral part of their project
management. Decision making such as risk assessment in construction projects is very
important in the construction management. The identification and assessment of project risk
are the critical procedures for projecting success. This study determines the key factors of
risk in construction industry.

An effective risk management process encourages the construction company to identify and
quantify risks and to consider risk containment and risk reduction policies. Construction
companies that manage risk effectively and efficiently enjoy financial savings, and greater
productivity, improved success rates of new projects and better decision making.

Risk management in the construction project management context is a comprehensive and

systematic way of identifying, analyzing and responding to risks to achieve the project
objectives. The research results show that the Lithuanian construction company significantly
differ from the construction companies in foreign countries in the adoption of risk
management practices. To management the risk effectively and efficiently, the contractor
must understand risk responsibilities, risk event conditions, risk preference, and risk
management capabilities.

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