Issuu

International Research Journal of Engineering and Technology (IRJET)

e-ISSN: 2395-0056

Volume: 11 Issue: 02 | Feb 2024

p-ISSN: 2395-0072

www.irjet.net

“ A research article on Management of risks implied by conditions of contract and specifications” S. M. Tandale1, A. S. Sajane2, S. K. Patil 3. 1 PG Student,Civil department, Dr. J. J. Magdum College of Engineering,

Jaysingpur,Sangli,Maharashtra,India 2 Associate Professor,Civil department, Dr. J. J. Magdum College of Engineering, Jaysingpur,Sangli,Maharashtra,India ---------------------------------------------------------------------***---------------------------------------------------------------------

Abstract – Effective risk management in construction

Managing risks in construction projects has been recognized as a very important management process in order to achieve the project objectives in terms of time, cost, quality and scope. In this identification and analysis of risks associated with the infrastructure projects. Based on a comprehensive assessment of conditions of contracts, this paper identifies risks and classifies them into different categories.

projects is crucial for achieving project objectives related to time, cost, quality, and scope. This project focuses on identifying and analyzing risks accompanying with infrastructure ventures, utilizing a inclusive assessment of contract conditions to categorize these risks. Through quantitative risk analysis, it becomes evident that factors such as "opposition from social bodies," "change in design," and "suspension of work" exert the most significant influence on project objectives. Furthermore, this research identifies best practices for mitigating these critical risks. It emphasizes the need for collaboration among clients, contractors, designers, and government organizations from the project's possibility phase forward to proactively address impending risks. Contract documents play a pivotal role as tools for risk management, including contractors, clients, and investors, should begin a risk management policy that spans the entire project life cycle. Ultimately, this approach ensures a more robust and successful execution of construction projects.

Key Words: Risk, risk management, construction projects, contract, qualitative risk analysis.

1.INTRODUCTION Building projects are inherently unique & resist standardization due to their complex and dynamic nature. These endeavours are shaped by various environmental factors such as weather conditions, geographical location, transportation accessibility, and labour availability, which often lie beyond the contractor's control. Furthermore, the entities involved in construction projects can differ significantly, including various agencies, owners with diverse requirements, distinct site conditions, and fluctuating market conditions. Consequently, the construction industry is characterized by volatility, marked by cyclical and seasonal ups & downs. Therefore, each building project demands meticulous handling and attention due to the ever-evolving landscape of the erection sector. In the realm of erection, multiple stakeholders play crucial roles, with differing interests and objectives. The primary players typically include the client, an architect/engineer, and the contractor, each harboring somewhat conflicting interests. The client desires the successful completion of the project while ensuring their specific requirements are met, all while minimizing costs, hassles, and responsibilities. In contrast, the contractor aims to maximize profits while minimizing operational challenges. This inherent tension among stakeholders necessitates the establishment of clear duties, obligations, rights, and responsibilities through a formalized contract. Contracts serve as the cornerstone of the construction industry, with the majority of civil engineering work conducted under contractual agreements. These contracts serve as "self-

The study of various risks and their management is becoming pre-requisite for many construction projects and can significantly beneficial most all parties. The construction activity involves a number of agencies like owner, consultant and contractor may have conflicting interests. In order to establish the duties, obligations, rights, responsibilities amongst the agencies, a contract is required to be made between them which will establish a mutual relationship to do a work. The contracts may be used as a risk managing tool by allocating risks to the various agencies through the various contracts between them and client, contractors and investors. The qualitative risk analysis is used for analysis which helps to predict severity of risks. Risk management includes identification of risks in contract documents, risk classification, risk analysis and then risk control. It has been found that severities of important risks have been calculated considering the suitable control measures from client and contractors point of view. The findings of study may be used as reference to similar construction projects in India i.e. for local clients, contractors, investors and also for government.

Impact Factor value: 8.226

ISO 9001:2008 Certified Journal

Page 370