International Journal of Advanced Research in Engineering and Technology (IJARET)

Volume 9, Issue 2, March – April 2018, pp. 35–42, Article ID: IJARET_09_02_005
Available online at http://iaeme.com/Home/issue/IJARET?Volume=9&Issue=2
ISSN Print: 0976-6480 and ISSN Online: 0976-6499
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A STUDY ON INFLUENCE OF RISK FACTORS

IN HIGHWAY CONSTRUCTION PROJECT
Dinesh Kumar.B
Research Scholar, Department of Civil and Structural Engineering,
Annamalai University, Annamalainagar, Tamil Nadu, India

Dr. Deiveegan. A
Assistant Professor, Department of Civil and Structural Engineering,
Annamalai University, Annamalainagar, Tamil Nadu, India

ABSTRACT
In India, the highway construction sector has reported to suffer from significantly
higher levels of risk factor affecting the project either directly or indirectly in the
process. Most of the study reviewed that the factors influencing the risk factors as most
critical issues in highways construction projects. However, in this paper the additional
factors are also included based on the recommendation by experts in the highways
project. The study was carried out to identify the risk factors that influence the highways
project in the Indian construction. The risk factors of the highways projects were
identified and analyzed for minimizing the risk in highways construction. The structure
questionnaire was developed and circulated to the stakeholders involved in the
completed project for rating their opinion using likert’s scale (5 points). The
questionnaire was consisting of fifty nine risk factors. The responses of the
questionnaire survey collected from 286 completed projects were considered the
analysis through management tools. The descriptive statistical approach was carried
out to identify the most influencing the risk factors of the highways construction. This
study would help the highway developers to minimize the occurrences of risk in the
highways project.
Key words: Initiation And Planning Phase, Construction Phase, Operation and
Maintenance Phase, Transfers Phase, Risk Factors.
Cite this Article: Dinesh Kumar.B and Dr. Deiveegan. A, A Study on Influence of
Risk Factors In Highway Construction Project. International Journal of Advanced
Research in Engineering and Technology, 9(2), 2018, pp 35–42.
http://iaeme.com/Home/issue/IJARET?Volume=9&Issue=2

1. INTRODUCTION
Road transportation is large consumer of space and has high maintenance costs, both for
vehicles and infrastructures. They are mainly linked to light industries where small batches of
freight are requires to be transported. They are useful for everyday movement of people to their
workplaces or to meet every day needs. For efficient road transportation need good quality

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 A Study on Influence of Risk Factors In Highway Construction Project

roads with proper signage and traffic regulation. Risk and uncertainties are always incurred in
all projects, especially in the complicated projects. Risk can strongly influence each project
level from the project conceptual design, feasibility studies, design and planning, construction
and execution, Operation and maintenance and Transfer stage. Irrespective of the size and type
of the project, roadway construction is subjected to risk that are related to Environmental
Permission, Emotional Issue, Land Acquisition, Political, Quality, Time, Money, Machinery,
Rebound development around road analysis, Labour, Natural Obstruction, Knowledge level of
lead group. The risk arising from these factors occurs in the various stages of the project
lifecycles or Phases and they have effect on overall project. However, Subjective factors such
as community or social objection of a project has been identified as having indirect
consequence on the project progress which in turn leads to delay in completion, cost escalation
and degradation in quality. The main objective of this study is to identify those risk factors and
suggest to minimizing the effect on the project.

2. BACKGROUND OF THE STUDY

Road construction risk and their claims are an integral part of construction. Risk in road ways
usually consider in cost escalation and time delay in project. There is a great concern regarding
the escalation of project costs and delayed completion of road work. The main reason for the
high construction cost escalation and delay in project is due to lack of study at the every phase
of construction. Subsequently all the flaws are cumulated and resulted in the high cost
escalation and delay. Risk identification is an iterative process where different risk rises as
project progresses. The following are literature was support to identify the influencing risk
factors in highways construction.
Perera et al., (2009), identified the risk responsibilities of contractual parties in order to
improve their risk handling strategies. Semi-structured interviews were used for the primary
data collection. This was complemented with documentary evidence. The results show that
road construction projects in Sri Lanka are exposed to many risk sources while most risks are
borne by parties who were assigned with risks via contract clauses. The study concluded that
the Transfer of risks is also an important risk response method because it could act as a defence
against certain losses and to achieve the Organizational objectives of each party. Contractors
however were reluctant to forward claims for losses in order not to harm the good rapport with
the Employer. In this instance the involvement of insurers is significant.
KarimiAzari et al. (2011), Revealed the process of risk management was involved risk
identification, risk assessment and risk mitigation. The identification and assessment of project
risk are the critical procedures for success. This study addressed the decision based fuzzy
TOPSIS approach was developed with an effective algorithm to improve the quality and
effectiveness of decision making. TOPSIS provides good evaluations and it appears to be more
appropriate than other MCDM methods. Construction project would require interaction
between dissimilar, yet contractually integrated parties, owners, designers, contractors, sub-
contractors, suppliers, manufacturers, and others. Study concluded that the construction is
described as a collaborative teamwork process where parties with different interests, functions,
and objectives, share a common goal, which is successful completion of a project. In line with
a group decision environment of the problem, the approach provides a simple and effective
mechanism to make comparative and absolute judgments in a conventional manner. Finally the
model discriminates successfully and clearly among risk assessment methods.
Diab, et al. (2012), studied the different risk drivers in highway construction projects in the
US. Thirty one significant risk drivers, identified from previous studies, were chosen, analyzed,
and evaluated for this study. The study findings regarding the process of using of risk
assessment techniques and tools for determining its impact on construction cost and schedule

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 Dinesh Kumar.B and Dr. Deiveegan. A

performance ratings of highway projects. The analyses included project information and
characteristics as well as project risks’ cost and schedule impact ratings. The study concludes
that the majority of responders (80%) indicated that risk assessment was important for highway
construction projects. The use of risk assessment was more prevalent in private sector
organizations than public sector organizations. It has been used more often in design build
projects than design bid build highway projects.
Gupta et al. (2013) studied that major risk factors of on-going PPP highway projects (under
NHAI and MPRDC). Cumulative impact of risks and its fluctuation over various phases of
BOT project life have been analysed. In view of the findings it is suggested to set up Regulator
to the PPP Road projects which could oversee the fast changing overall socio economic
environment and suggest measures to lessen risk and create win-win situation to all
stakeholders.
Sayegh and Mansour (2015), the study was discussed about the risks associated with highway
construction projects in the United Arab Emirates (UAE). Thirty-three risks factors were
identified through detailed literature review
Further questionnaire was developed and circulated among the construction professionals.
Later, Fifty-one surveys were retrieved in the completed form and used in the analysis. Finally
the study concluded that the priority of each risk is calculated by multiplying the probability
with the impact for each risk. The priority helps identify the most significant risks. The relative
importance index (RII) for the risk priority is calculated based on all responses for each risk.
The most significant risks include inefficient planning, unexpected ground utilities, quality and
integrity of design, delays in approvals, and delays in expropriations. Internal project risks are
found to be more significant than external risks. Contractors and consultants are in agreement
on the risk rankings. This study helps to assists project managers to better estimate risks prior
to the commencement of a project and allows them to develop proper mitigation measures at
an early stage of a project
Katkar and Khandekar (2015), studied that risk management for National Highway Project.
The study dated that in the road construction the selection of right decision maker, the strengths
and weaknesses of potential. Found the qualitative and quantitative criteria for selection
process as well as the decision-maker. Multi criteria decision making methods facilitate the
process of finding a solution and enable decision makers to reach the right decisions. The study
provides solution to a decision making problem of budget allocation problem, to allocate funds
to deserving and competing organizations by using integrated Fuzzy, AHP and MCDM
techniques. Weights are calculated using Fuzzy set theory and AHP. Fuzzy set takes subjective
values like preferred, strongly preferred etc. and AHP technique evaluates relative importance
of factors by forming pair wise comparison matrix. Finally study concluded that FAHP has
been applied to rank this 12 factor Fuzzy Set theory is used to face the problem of subjectively
in expert judgment.
Vishambar et al. (2016) studied integrate the recognition of risk, risk assessment, developing
strategies to manage it, and mitigation of risk using managerial resources. The objective of the
study is to Studying, identifying and implementing effective risk management for construction
projects success. Identifying the key risk factors could stand in front of construction processes.
The study describes the different steps for effective risk management planning in construction
of highway project.
Vishwakarma and salunkhe (2016), Study considered to Identify, classify and assessment of
various risks in construction of highway projects using Relative Importance Index (RII). The
paper was found 36 impact factors and grouped under 8 topics such as Construction Risk,
Design Risk, Political Risk, Organizational Risks, Accidental Risks, Uncertain market
conditions, Time/Fund, Utilities. The results obtained in the study as follows, overall risks

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 A Study on Influence of Risk Factors In Highway Construction Project

mainly utilities relocation on time, obtaining government agencies approvals, construction in

hilly terrain and land acquisition impose high risk on any highway construction project. In
construction risk group impose delay in project lies under the high risk. Similarly, in design
category errors in designing due to consideration of improper basic parameters and in
environmental category natural obstructions have the greater impact on highway construction
project. These were the significant risks which mainly cause the delay of the project. As time
and cost of the project are related, hence as the time of the project overruns the cost also
overruns and impose high risk on highway construction project.
Singh and Chugh (2016), Study focused in two stages in road construction: First, the key
operational risks for highway projects in Malaysia and some selected developing Asian
countries. Second, extensive interviews were conducted with a number of key personnel from
the MHA in order to get their personal opinions and views about the possibility of the
operational risks identified from literature review to occur in the highway projects in Malaysia.
The study concluded that the Majority of responders (80%) indicated that risk assessment was
important for highway construction projects. Thus there is a huge likeliness for the thirteen key
operational risks identified to also occur in other highway projects around the world. These
operational risks ought to be carefully considered and mitigated to appropriate project parties
as a result, to ensure highway projects can be delivered in the most effective and efficient
manner around the world. The use of risk assessment lowered the rating of Cost growth (CG)
and/or Schedule growth (SG) for the following risk drivers:
• Changes to unforeseen site environment requirements
• Poor coordination among utility agencies, designers, and contractors
• Inexperienced professionals for this type of project
• Inadequate constructability reviews
• Unforeseen hazard conditions
• Inexperienced project manager
• Safety issues
Subya and Manoj (2017), studied to identify the most significant risk factors affecting
highway construction project in Kerala to decrease the likelihood and impact of those risks. A
set of 12 risk groups consisting of 53 risk factors was selected and a questionnaire survey was
conducted to determine the likelihood and impact of the identified risks. Later software
applications were developed using SPSS and MATLAB to facilitate risk evaluation of highway
projects. The study concluded that from the regression analysis results indicated that the most
significant risk factor is the safety regulation and from fuzzy results it is land acquisition.
From the literatures review there were fifty nine factors was identified as a risk factors
which influence the highways construction. These factors were addressed in the questionnaire
survey to identify the effect on project.

3. RESEARCH METHODOLOGY
The data collection was carried out in the various highways projects in state of Tamilnadu. It
was conducted through a questionnaire among engineers working in completed highway
project in Tamilnadu. The study is based on a 286 completed highways projects. The
questionnaire comprised of section sections: The first section collects the project characteristic
such as types of road, length of roads, budget of the project etc. of the project. Whereas in the
second section is about the risk factors in highway construction. It records the influencing of
risk with respect to various critical risk factors. In section first nominal scale was used. In order

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 Dinesh Kumar.B and Dr. Deiveegan. A

to measure the effect risk in project with respect to various risk factors 6-point Likert Scale
was used, where 5 was the Severe Impact in project and 0 was the Nil (no effect on the project).
The statistical package for social science (SPSS) was used for data analysis. To get an idea
about the effect of risk in highways construction data is collected for past 20 years of completed
project from road developers of different nature and risk rate is calculated discussed in the
flowing sections.

4. RESULT AND DISCUSSION

The descriptive analysis was carried out for 286 completed project responses in the SPSS
(Statistical Package of Social Studies) application. The frequency result and descriptive
statistics such as Mean and mode of risk factors were discussed in detail. The demographic
details of the respondents are shown in Table 1. From the table it is found that maximum
responses retrieved from the project are between 1 to 2 kms length having 37.4%. On the other
hand 69.6% of the projects belong to ODR (Other Districts Roads). In addition to that the
budgets of the project are also shown in the table.

Table 1 Project Characteristics

Project Characteristics Frequency Percent
Distance of the project
Upto 1 KM 84 29.4
1 - 2 km 107 37.4
2 - 3 km 50 17.5
> 3 km 45 15.7
Type of road
MDR 59 20.6
ODR 199 69.6
SH 28 9.8
Budget of the project
Upto 50 lakhs 117 40.9
50 l - 1 Crore 62 21.7
> 1 crore 107 37.4

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 A Study on Influence of Risk Factors In Highway Construction Project

Table 2 Risk Factors Effect on Highways Project

Operation
Construction and Transfers
Sl. Initiation and Planning Phase
Influencing factors for occurrence of Risk in Highway project Phase Maintenance Phase
No
Phase
Mean Mode Mean Mode Mean Mode Mean Mode
1 Purpose of Project is poorly defined 2.90 3 2.80 3 2.50 3 0.80 1
2 Changes to unforeseen site environment requirements 2.67 3 2.90 3 2.18 1 0.65 1
3 Change in Law & Regulation 2.50 3 3.25 3 2.36 3 0.63 1
4 Environmental. Clearance Pollution 3.45 3 3.55 4 2.88 3 1.00 1
5 Land acquisition/ compensation/ Social impact assessment 3.84 4 3.62 4 3.04 3 1.03 1
6 Inadequate plan reviews by designers and contractors/ design errors 3.07 3 3.01 3 2.77 3 1.02 1
7 Poor involvement of Contractors in Planning stage 2.80 3 3.04 3 2.72 3 1.03 1
8 High number of utilities in the site 3.15 3 3.58 4 3.03 3 1.11 1
9 Inaccuracy of existing utility locations and survey data 2.76 3 3.26 3 2.68 3 0.85 1
10 Poor coordination among utility agencies, designers, and contractors 3.59 4 3.54 4 2.30 1 0.72 1
11 Increased utility relocation costs 3.31 3 3.45 4 2.69 3 0.66 1
12 Poor Engineering Practice 3.49 3 3.32 3 3.34 3 0.75 1
13 Utility damages by contractors/subcontractors faults in Improvements 3.01 3 2.97 3 2.56 3 1.11 1
14 Delay in Surveys and/or surveying in error 3.53 4 3.27 3 2.61 3 0.86 1
15 Inexperienced professionals for this type of project 3.48 4 3.04 3 2.87 3 1.15 1
16 Design errors and omissions 3.52 4 3.62 4 2.80 3 1.67 1
17 Inadequate constructability reviews 2.72 3 3.45 3 2.39 3 0.98 1
18 Delay in Quality Assurance/Quality Control (QA/QC) services 2.69 3 3.38 3 2.81 3 0.80 1
19 Poor preliminary soil information and investigations 3.45 4 3.34 3 2.40 3 1.09 1
20 Unforeseen and/or different geotechnical conditions 2.80 3 3.15 3 2.36 3 1.07 1
21 Unforeseen hazard conditions 2.98 3 3.47 3 2.69 3 0.79 1
22 Inaccurate structures design 2.74 3 3.39 3 2.95 3 0.71 1
23 Social unrest problem 3.39 3 3.40 3 3.12 3 0.88 1
24 Natural calamity 3.64 4 3.49 3 3.17 3 0.97 1
25 Historical findings 3.02 3 2.86 3 2.49 1 0.97 1
26 Rebellion/ Terrorism 2.54 3 2.68 3 2.59 3 0.95 1
27 Poor geotechnical condition 2.73 3 3.30 3 2.90 3 0.95 1
28 Poor contract management/ non-performance of vendors/ subcontractors 2.41 3 3.07 3 2.67 3 0.75 1
29 Availability of Labour/ Material 2.85 3 2.98 3 2.67 3 0.79 1
30 Bad weather 3.06 3 3.60 4 2.39 3 0.91 1
31 Cost overrun 2.65 3 2.97 3 2.64 3 0.67 1
32 Time overrun 3.01 3 3.14 3 2.97 3 0.78 1
33 Technology Risk (Unproven tech./ design deficiency) 2.73 3 2.37 3 2.49 1 0.85 1
34 Poor communication with owner and contractor 3.26 3 3.27 3 2.53 3 0.73 1
35 Delay of permits 2.80 3 2.75 3 2.38 3 0.92 1
36 Constraints in Improvements work frame 3.27 3 3.62 4 2.28 1 0.86 1
37 Material availability and price inflation 2.42 3 3.71 4 2.36 3 0.63 1
38 Subcontractors errors and delays 2.63 3 3.15 3 2.37 3 0.69 1
39 Maintenance of traffic/staging/auxiliary lanes 3.44 4 3.17 3 2.25 3 0.76 1
40 Inexperienced project manager 3.01 3 2.89 3 2.84 3 0.80 1
41 Safety issues 3.05 3 3.05 4 2.44 1 0.71 1
42 Warranty issues 2.56 3 3.15 3 2.51 3 0.66 1
43 Unexpected/ Unforeseen deterioration 3.30 3 3.45 3 2.88 3 0.92 1
44 Design deficiency/ bad workmanship /low quality during Improvements. 3.47 4 3.67 4 2.95 3 0.98 1
45 Tolling technology 2.84 3 2.82 3 2.93 3 0.91 1
46 Overloading control 2.83 3 3.20 3 2.67 3 1.00 1
47 Traffic/Incident management 3.10 3 3.43 3 3.03 3 0.99 1
48 Cost overrun Risk 2.99 3 3.58 4 2.97 3 0.83 1
49 No outstanding value 2.80 3 2.73 3 2.16 1 0.86 1
50 Transmission failure 2.50 2 3.00 2 2.31 2 0.72 1
51 Inflation rate instability 2.49 2 2.87 2 2.29 2 0.65 1
52 Interest rate instability 3.27 4 3.18 4 2.47 2 0.86 1
53 Financial closure risk 2.53 2 2.76 2 2.30 2 0.78 1
54 Poor financial market 2.33 2 2.31 2 2.06 2 0.85 1
55 High cost of financing Risk 2.42 2 2.38 2 1.98 2 0.83 1
56 Traffic/ level of demand risk 2.43 2 2.55 2 2.33 2 0.78 1
57 Non competing facility 2.13 2 2.32 2 1.80 2 0.70 1
58 Lack of demand/ slow economic development of the country 2.57 2 2.67 2 1.79 2 0.59 1
59 Delay by govt. notification of toll collection. 2.54 2 2.75 2 2.50 2 0.83 1

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 Dinesh Kumar.B and Dr. Deiveegan. A

From Table 2 shows the responses of risk factors which influence the initiation and
planning phase of the highway projects. There were 26 risk factors contributing effect on the
process of highway project which has mean value more than 3 (Medium Impact and above) out
of 59 factors. The top five critical risk factors which affect the process of highway projects are
i. “Land acquisition/ compensation/ Social impact assessment” having mean value of 3.84, ii.
“Natural calamity” having mean value of 3.64, iii. “Poor coordination among utility agencies,
designers, and contractors” having mean value 3.59, iv. “Delay in Surveys and/or surveying in
error” having mean value of 3.53 v. “Design errors and omissions” having mean value of 3.52.
However, the responses who opt modal value 4(High impact) for 10 factors out of 59 factors
are highlighted bold in the Table 2.
The following observation from Table 2 shows the critical factors which influence the
Construction phase of the highway projects. There were 39 risk factors contributing effect on
the process of highway project which has mean value more than 3 (Medium Impact and above)
out of 59 factors. The top five critical risk factors which affect the process of highway projects
are i. “Material availability and price inflation” having mean value of 3.71, ii. “Design
deficiency/ bad workmanship /low quality during Improvements” having mean value of 3.67
iii. “Land acquisition/ compensation/ Social impact assessment” having mean value of 3.62,
iv. “Design errors and omissions” having mean value 3.62, v. “Constraints in Improvements
work frame” having mean value of 3.62. However, the responses who opt modal value 4(High
impact) for 13 factors out of 59 factors are highlighted bold in the Table 2.
From Table 2 shows the responses of risk factors which influence the Operation and
maintenance phase of the highway projects. There were 6 risk factors contributing effect on the
process of highway project which has mean value more than 3 (Medium Impact and above) out
of 59 factors. The top five critical risk factors which affect the process of highway projects are
i. “Poor Engineering Practice” having mean value of 3.34, ii. “Natural calamity” having mean
value of 3.17, iii. “Social unrest problem” having mean value 3.12, iv. “High number of utilities
in the site” having mean value of 3.03 v. “Traffic/Incident management” having mean value of
3.03. However, the responses opt that the maximum modal value lies between 3 and below 3,
which means in the operation and maintenance phase have only less impact rather than the
other phases.
In the Transfers phase the respondents have not mention any critical factors which affect
the highway projects. The maximum mean value obtain less than half a mark between 0 (Nil)
to 5 (Severe Impact).

5. FINDING AND CONCLUSIONS

In this study, the critical risk factors which affect the highways projects were identified through
questionnaire survey. The results obtained from the study are more relevant to the response of
the project having length of road between 1 to 2 kms (37.4%), ODR roads (69.6%). The study
were identified the risk factors in various phase of the highways construction project such as
Initiation and planning phase, construction phase, operation and maintenance phase and
transfers phase. From the result it is clear that Land acquisition/ compensation/ Social impact
assessment are the top most reasons for effect on process of highways project; next to that
Material availability and price inflation, Natural calamity, Design deficiency/ bad
workmanship /low quality during Improvements and Design errors and omissions are also
considered as reasons. From the results it is found that the Improper Planning and Management
before initiate the project which leads the cost escalation and delay in project. To reduce the
risk in highways project suitable management strategies need develop in the area such as land
acquisition, assign proper surveying team and adequate knowledge person for surveying,
establish wealthy technical team to overcome the design deficiency and contractors should

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 A Study on Influence of Risk Factors In Highway Construction Project

have extensive experience in the specific road construction to overcome the bad workmanship,
Adequate drawings and detailing should be provided. The creation of new technologies and
trends are essential for minimizing the occurrences of risk in highway construction.

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