International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 02 | Feb 2024
p-ISSN: 2395-0072
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A Case study on “Management of risks implied by conditions of contract and specifications” S. M. Tandale1, A. S. Sajane2, S. K. Patil3 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 ---------------------------------------------------------------------***--------------------------------------------------------------------2. RELEVANCE ABSTRACT- Management of risk 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. This project proposes identification and analysis of risks associated with the infrastructure projects. Based on a comprehensive assessment of conditions of contracts, this project identifies risks and classifies them into few categories. After Quantitative risk analysis, “change in design”, “opposition from social bodies”, “suspension of work”, are recognized to influence the project objectives maximum.
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 to 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. 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 few categories. After Quantitative risk analysis, “change in design”, “opposition from social bodies”, “suspension of work”, are recognized to influence the project objectives maximum.
Key words- Risk, risk management, construction projects, contract, qualitative risk analysis.
1. INTRODUCTION Construction projects are unique in character and do not lend themselves to standardization. Projects are constructed under environmental conditions of weather, location, transportation and labor that are more or less beyond the contractor’s control. The agencies involved may differ, the owner requirements may differ, the site conditions would be different, market conditions would vary. The construction business is a volatile one, with many seasonal and cyclical ups and downs. Hence, each construction project requires a lot of care in handling because of the dynamic nature of the construction industry. Also, construction activity involves a number of agencies like the client, an architect/ engineer, the contractor & these agencies have conflicting interests to an extent because the client wants the work to be accomplished with his requirements fulfilled and with minimum cost to him and also with minimum hassles and responsibilities whereas the contractor wants to accomplish the work by making as much profit as possible and with least amount of hassles. Hence in order to establish the duties, obligations, rights, responsibilities amongst the various agencies, a contract is required to be made between them which will establish a mutual relationship to do a work. The most of civil engineering work is performed under contract. A contract provides a “self-contained statement of obligations as between its own parties”. Contracts are vital to the success of a project is important difficult, costly and lengthy proceedings.
3. LITERATURE REVIEW 1. B.A.K.S. Perera, Indika Dhanasinghe and Raufdeen Rameezdeen studied cases from srilanka construction industry. In the study the risk of defective design, late approvals, late handling over of the site, tentative drawing and unforeseen site ground condition had thwarted the contractor on many occasions. A few risks that were not relevant to the two cases under study. 2. Dr. Nadeem Ehsan, Ebtisam Mirza, Mehmood Alam, in this paper, the perception of risk by contractors and consultants is mostly based on their intuition and experience. The most
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