Risk Analysis for Design-Build Construction Projects

General
Risk is defined as an uncertain event or condition that, if occurred has a negative
or a positive outcome on a projects objective. In construction activity a large
number of risks are encountered which may major negative impact on the
completion time and cost of the project. Risk management is the process of
identification, assessment, quantification, monitoring and control of risks.
Approach to risk management includes identification of risks, their classification,
analysis, deciding upon risk response strategies and monitoring as well as
controlling of the implemented risk response strategies.
The planning and execution of Design Build project are different than the
traditional Design Bid Build projects. The time schedule of design build projects
may have overlapping phases to fast-track the execution process, consequently
the risk exposure in them are different than the DBB projects. Design and Build
procurement method is prone to several risks. Some of these risks are borne by
the design build contractor and the client and in some cases are shared by both
parties.
Using a probabilistic approach time and cost risk can be quantified. This
quantification of risk will give an idea for strategies for risk response and control.

Aim
To identify and quantify risk (schedule and cost) in Design Build project.

Objective
Identify risk in Design build Projects
Risk prioritization in DB projects
Quantification of schedule and cost risk using Monte Carlo simulation using
standard software for risk analysis.
Strategy to mitigate the quantified risk.

Scope
Thesis is restricted to identification, prioritization and quantification of risks in
Design Build construction projects.
Use of primavera risk analysis software to quantify time and cost risk.

Methodology
Literature study to understand risk management process.
Questionnaire survey to prioritize risks.
Case study of design build project.
Using the cost and time schedule of the design build project in pert master for
risk quantification.