Intaver Institute Inc.

How to Analyze Risks in

Construction Projects
Lessons Learned from Construction Industry

Project Risk Analysis and Risk Management

 Construction Risks

1999 - $4.3B
2003 - $5.3B
2008 - $7.2B
2012 - $8.4B
2018 - $11.1B
Main Risks in Construction Industry
East Side Access Project, New York Design Changes
The most expensive construction Poor Management
project of its type in the world Weather
Delays Due to Supplier or Subcontractor

Project Risk Analysis and Risk Management

RiskyProject Software Suite
 Why Construction Projects Are Often Behind
Schedule or Over Budget
Deception: intentional
Delays and attempt of project
Poor project Cost Overruns planners to
underestimate cost and
planning behind duration of project to get Total
delays and cost it approved Delay /
overruns Cost
Overruns
Solution: project risk
analysis
Delusion: unintentional planning Project Size
mistakes due cognitive biases

Project Risk Analysis and Risk Management

RiskyProject Software Suite
 How Project Risk Analysis is Performed
Risk Register Project Schedule
Assign risks

Run Monte Carlo simulations

Result of analysis

Project Risk Analysis and Risk Management

RiskyProject Software Suite
Project Risk Analysis for Competitive Bidding

Deterministic
Duration –No 80% confidence that
Risks project will be complete
on time

Project Risk Analysis and Risk Management

RiskyProject Software Suite
 Risk Associated With Resources

Risk can assigned to

resources

Increase/reduce
• duration or/cost of
tasks this resource is
assigned to
• rate
• resource allocation

Project Risk Analysis and Risk Management

RiskyProject Software Suite
 Criticality Index
Iteration 1 Iteration 2

Critical Path

Critical Path

Project Risk Analysis and Risk Management

RiskyProject Software Suite
 Project Control

Percent of project completed

Expected p80 project
completion date with
Deterministic risks and uncertainties
Schedule
High Estimate

Mean Estimate

Low
Low estimate
estimate

Actual Duration of
completed portion
of project

Project Risk Analysis and Risk Management

RiskyProject Software Suite
 About Project Risk Analysis

For more Information:

Project Risk Analysis Made Ridiculously Simple

A Step by Step Guide to Project Risk Analysis

by Lev Virine and Michael Trumper

www.intaver.com

Project Risk Analysis and Risk Management

RiskyProject Software Suite