MOST COMMON CAUSES OF RISKS IN CONSTRUCTION PROJECTS: Some typical key risks and potential sources of rks in construction projects can be identified according to the folowing indicated catagories. This lists not intended tobe exhaustive but rather informative; here are many ‘ther ways to Cassty risk for identification purposes spec to the project. Performing organizations should ‘develop ther ow list appropiate forthe typeof project in which they engage X3.1 Design/Technical Risks: ‘+ Inadequate and incomplete design; ‘+ Incomplete knowledge of local ste condtons: “+ Inaccurat tonic assumptions; ‘+ Insufficient technical background and experience on specific projct type andlocel characterises; ‘+ Incorect selection of equipment, materials, and building techriques; “+ Incorect geotechnical and foundation estimations and structural design; * Unavaiabilty and incorect capacity of uty services; ‘+ Erors and omissions by consutans ‘Lack of specialized technical consultants on cial aspects of th project; + Over-involvement ofthe ovmer in design; ‘Continuous changes to the project seape; ‘Delays in obtaining cont concurronce: ‘Design scope exceeding valabe budget; ‘Uncertainty in the total cost estimate due to uncertain quantiles and unit prices during the planning ‘and initial design phase; and ‘+ Incomplete projact cost estate and inaccurate projet schedie, X3.2 Construction Risks: X3.2.1 Contractors, Subcontractors, and Suppliers, ‘Contractor and/or subcontractor capably, ‘+ Inofciot coordination of project plans, * Unavaiabilty of suffcent and skiled human resources,+ ravaleotyio une of spect mates ane costuctenequpment an equpmer reakoome, + ulpmen commissioning “+ rset squpment and mara + Lote ot competency in maragemen spel subeontacios, + Incanpeteknoedge antag on spec conssucton cng + constuction oot catty, * Lack enn ring and knoe of were ont, + stile ork nous nd “+ oath an sft roguaons an openstitios X3.2.2 Technical Factors + cranes n work ras, + Looe of ocurred etal cos, + Lacko sented irons and craving documents, '* Gap between theory and actual quantities of work, and + tnoxpoced css of sae saps. X3.2.3 Site and Layout Conditions ‘+ Sto accss, ‘+ stesecuny, “+ Avatabity of resources, ‘+ Avalailty and capacity ot utity services, “+ Resource overeating, and “+ Intrerence netween tes rons. X3.24 Physical Factors ‘+ Geological and getecnnical conten, “+ Sutteent ana rerasentatvegeotecnnal ana gstgical ests and samples, ‘+ Groundwater ive, ‘+ Topography, ‘+ Unforesen sunsutaceconatons, and "Unexpected mate conditions not covered under force majeure.X3.2.5 Security Factors + comuption; + Assaut vandalism, sabotage, and thet; and ‘+ Intusion and nega cocupancy ot ste. X3.2.6 Contractual Factors ‘Inaccurate contract tme estimates; * Insohiency of contractor, subeonractar, or supple, * Inadequate change orders procedure; ‘change orders negotiation; + Unexpected work and extras; + Datayed cetvertes and asruptons; ‘Deka payment on contacts; + Vendor appraisals; and ‘+ siane ona singe source. X3.2.7 Performance Factors + etecve work, + Unsifunss: + Negigence and matcous acts; + aor asputes; + Unsuitable mates; + constuction progctty dor and equpment; + Accidents and injuries; and + creat ess tes X3.3_ External Risks: X3.3.1 Contractual Factors + Tght project schedule, * Glent's quay and performance expectations higher than documented, ‘+ Weak dition and documentation of projct objectives (cast, schedule, scope, quay),‘+ Overlooked or new powertl and intuencing steketoiers, nd ‘> Imuencing ate changes n stakenolers requrements, X8.3.2 Force Majeure Factors "+ Market changes, ‘+ Economie and plc insti, Changes in equlaton, Labor stios, ‘+ Adverse weather, “Natura alates, and ‘+ Aas of God X3.3.3 Social Factors "+ competing interests between project ana loca communttes, ‘+ Working patterns inked to local cultural and religous factors, > cultue andnabits, ‘+ Neighboring ettzens rejecting te project, and ‘+ Nongovernment orgntztions (NCOs) and environmental agantzations oppasing the projet. X3.34 Public Involvement ‘+ Pubile perception astrte by med, “+ Pubic exposure, ana ‘+ cltzen interest. 3.35 Environmental Factors "+ Unexpected aacitonal enaronmenta equations; ‘+ Envronmental impact statement or assessment; ‘+ Historical and atte paltmony snd archeological petrimony protection, ‘+ Antropoiogical or ological intrest (protection of endangered species, tora, and fauna): and ‘+ Hazardous wast, noise, contamination, and emissions6 POMTEAT VISTO, ane REGULON Facto “+ Authorities with juriceton and vulerailty of palteal support ‘+ Regulatory institutions, goveriment, and administrations statutory requirements or clearances; ‘+ Changes inlaw procedures, subsidies, pois and regulations, or project pris; “Complex administrative approval procedures; ‘Obstruction of approvals; x3 Burwaucracy, ‘+ Environmental political pressures; and ‘+ Poltical sensitivity and climate, X3.4 Organizational Risks: + aftr; + tudes; + Disameementabout objectives; Insufficient resources; Inewpererced,inadewuate, or undertsned sta; Interal approval complexes, Ireosistnt cos, time, cope, and quality ebjertvs; end ‘Changes to pritiation of exiting program. X35 Project Management Risks: ‘Incomplete stakeholder identification; ‘Overoaded team project portfolio: * Insufcent resources assigned to the management of he project; “+ Inoufcont tine to plan: * Unanticipatedprojact manager workload; * Inexpsrenced, inadequate, or undertained stat; ‘+ Project team stablity (ack of projct team continuity high rotation); ‘+ Resource availability; ‘adequate change request procedure; ‘+ Communication breakdown within projet team; and ‘+ Project purpose definition, needs, objectives, costs, and deliverables that are pootly defined ot underined.X3.6 Business Risks: X3.6.1 Financial and Economical Funding and firancing, “ration rato volt, "© Currency exchange rata uctations, ‘+ National economic growth and reczssions, and “Loan intrest rata, X3.6.2 Planning, Monitoring, and Controlling “+ Number of key projet sponsors for decision making and management, "+ Contractor selection procedure, Designer selection procedure, + Selection of insurance, + Prorites oF te project, + Conrlo key issues ofthe project, and + Project management infomation systems. X3.6.3 Land and Property, Statutory Clearance: + Land aoquiston; Glare to fand with appropiate zoning: + Expropriation, 1+ Rights of way, * Delay in and accuse agreement; Damage to neighboring ropes; and ‘+ Clearance rom regulatory institutions, govemment, and administration,