RISK ASSESSMENT OF CONSTRUCTION BUILDING PROJECTS

Volume: 09 Issue: 06 | June 2022 www.irjet.net p ISSN:2395 0072

RISK ASSESSMENT OF CONSTRUCTION BUILDING PROJECTS

1Student, Mtech in Construction Management, Maharashtra Institute of Technology, World Peace University, Kothrud, Pune, India

2Asst. Prof., Department of Civil Engineering, Maharashtra Institute of Technology, World Peace University, Kothrud, Pune, India. ***

ABSTRACT: The construction industry has now turned out to be one of the fastest growing industries of today that has significanteffectontheeconomyofIndiaLargedevelopmentprojectswhendeferredcauseincrementinthegeneralspending plan.Theundertakingmustbeplannedandsortedoutpropertyandpreciselytofinishitinsidegiventimewith goodquality work.Thisstudyspecifythatalltheconstructionprojects,allovertheworld,havehugenumberofrisksandtocompletethe project, efficiently and successfully, risk management is essential. The risks can be recognized by questionnaire survey. The risksareidentifiedandthenitisevaluatedbyvarioustechniquelikequalitativeanalysistoknowtheoccurrenceprobabilityof riskandimpactoftheseriskonprojectgoals.Whenanyriskarises,theyhavesevereorsimpleimpactonprojectanditaffects cost,scheduleofproject,time,andquality.Therefore,fortheprojecttobesucceed,theriskmanagementisrequired.

1.0 INTRODUCTION

Theconstructionindustryhasnowturnedouttobeoneofthefastestgrowingindustriesoftodaythathassignificanteffecton theeconomyofIndia.Ifweweretotakeacase,inthegreaterpartofthecreatingnationstheprimarydevelopmentexercises whichifcarried out add to right around 85% of the averagecapital resources, around 15% of their Gross domestic product, and more than around half of the capital that is been put resources into the fixed assets. The construction business always gives high work openings. Numerous tasks experience both significant time and cost overruns. Large development projects whendeferredcauseincrementinthegeneralspendingplan.Theundertakingmustbeplannedandsortedoutpropertyand precisely to finish it inside given time with good quality work. This has expanded the competition between the construction firmsinthecountry.Theconstructionfirmsandthecustomer'sbehaviorhavemadechangesbecauseoftheseevents.

OBJECTIVES OF THE RESEARCH

 Toanalyseandmakeabriefstudyon variousrisksthoseareveryoftentooccurintheconstructionproject.

 Segmentingandclassifyingtherisksdependingonthedifferentmatrixandthencategorizetheriskashigh,moderate, andlow.

 Formulateariskmitigationplan.

 Tomakeaworktoincreasetheprobabilityofoccurrenceofpositiveeventsbyproperpredictionofrisks.

 Providing practical recommendation and ideas for development of the risk management method and develop their performances.

2.0 LITERATURE REVIEW

The following literature survey includes summary of research papers presented in popular journals on topics almost like currentfieldofstudy.

(1)J.G Perry, R.W. Hayes .

This paper displays about idea of the risk management inside the management of construction projects. The primary importanceisonthecommitmentwhichcanbemadeontheelusionofcostandtime,attacksordinarilyconnectedwithmain

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Volume: 09 Issue: 06 | June 2022 www.irjet.net p ISSN:2395 0072

projects. The three major stages of risk management is identification, investigation and reaction are conserved and details abouttheorybrieflyexplainedout.Theriskmanagementespeciallyfitunderthreephasesoflifeofconstructionprojects,pre sanction and development of agreement strategy and arrangement of documents and its application to every one of these stagesarerepresented.

(2)Kinnaresh patel .

There are many challenging projects ongoing in the world which include variety of complexion procedures working simultaniously. Dealing with these procedures can be a quite challenge for the management. One of the measure task is identifying the risk that is involved. Risk management contains identifying risk, evaluating risk either quantitatively or subjectively, picking the correct technique for handling of risk, and after that controlling or recording the risk. This study distinguishes the strategies for risk recognizable proof, management and its observation from the Indian construction industrial players. Time and cost management fully consolidated with the identification process and time limitations and project management with adequate experience are basic while identifying the level of risk for mega projects as well as complex projects. The objective of this study is to advocate for a method of risk mitigation which includes a very well documentedprocess,whichhelpsasaonestop solutiontoalltherisksthatwouldariseinthefuture.

(3)M.J. Mawdesley .

This paper describes about how to understand and it gives solution for the construction risks, actual on the human risk factors. For this purpose many questionnaires are created and it is implemented in personal interviews with construction experts. Now a days risk management has been normally applied across construction sectors. It is very hardly includes the outcomeofhumanfactorals.Thispaperclassifiesthehumanriskfactorsmainlyintheconstruction,thehumanriskfactorsare cannotbeignoredatanycosttheseareconsideredtobeintheprojectriskmanagement.Anotherprocedureofevaluatingrisk tosimilarlyincorporatehumanriskcomponentshavetobecreated,inwhichhumanriskfactorsarerecognizedandexamined symmetrically,allthroughtheriskandsignificanceisgivenforincorporatinghumanriskfactorsintheimprovementproject management.

(4)Pattel Ankit Mahendra Et.Cl.

Conductedstudyonriskmanagementforapplyinginconstructionprojectwhichincludesnewproceduresforalltypesofrisks most likely happens during total lifeof project uncertainty and risk are picked up or collect from various sources in project, that are composite or difficulty in nature with the record of submission of risk not suitable in construction projects. The journal paper defines techniques of identifying the risks, evaluating and analyzing the risks involved. The risk management carryoutespeciallyprotectedbytheprojectteammembersandthenhandled withcare.Duetoinsufficientknowledgeabout risk managemental processes, it is not applied or useful in the construction projects. This paper describes the risk management should be conducted at the starting stage for the betterment of the project results. It has been concluded that thereisrequirementforallaroundrecordedwaytodealwithunraveleveryoneoftheriskinprojects.

(5)Pawel szymanski

Thispaperhelpsinidentificationandclassificationoftherisksastheriskispresenteverywhereandeveryareaoflifeinone suchisconstruction industrywhere the risk always present. Analysisisdone in partor in detail, including escortsand even stake holders by doing this we can effectively manage the risk coming in future and can be translated into clear benefits to project.Thefirststepisidentifytheriskintheverymainstageanddeterminingwhichtypeofrisk,howitisaffectingtothe project,and characteristics of risk and estimating possibility of its incidence to project. This paper reviews different type of riskspresentinstagesofconstruction.

(6)Saied A. Kartam .

This paper informs, the work is done on the basis of questionnaire survey on biggest Kuwaiti country contractors, and the main thing they consider is risk under construction projects. The important thing risk under construction management are timeandthecostoftheprojects.InthisstudytheKuwaiticontractorsfirstgiveconcentrationontheevaluation,allocationand risk on site areas. This paper represent two types risk management procedures, the priors is preventive, these risks were

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occurs at the beginning of the project works and mitigative, which are the main object to resolve during process of construction in less time. The exploration found that temporary workers demonstrate more readiness to acknowledge risks, thatareauthoritativeandlawfulrelatedasopposedtodifferentkindsofrisks.Theexplorationcomesaboutsimilarlyshowed thattheutilizationoftheformalhazardinvestigationstrategiesintheKuwaitidevelopmentindustryisrestrictial.

3.0 METHODOLOGY

Data identification / Risk identification Conduct questionnaire survey

Qualitative risk analysis Risk response planning

3.1 Risk identification

Riskidentificationisarepetitiveprocessbecauseastheprojectprogressesnewriskdevelopthroughtheprojectlifecycle.The risk valuation format should be continuous to allow the comparison between the effects of one risk even on the other. The identificationprocessinthe organizationincludestheprojectteam members.For thepurpose,theseveral risk arisingin the constructionprocessfromtheformulation,mobilizationandconstructionstagearecategorizedandlisted.

3.2 Questionnaire survey

Thequestionnairesurveyhasbeenconductedonconstructioncompaniesand thecasestudyandtheratingweregiven.

3.3 Qualitative risks analysis

Qualitative risk analysis involves evaluating the probability and impact of the various risks and listing the risks so as to improvetheperformanceoftheprojectbymakingtheriskswithhighpriority.Thevaluationofthepriorityidentifiedrisks is doneonbasisoflikelihoodorprobabilityofoccurrenceofrisks,thecorrespondingimpactoftherisksifithappensandaswell asurgencyofriskresponse.

3.4 Risk Response planning

TheRiskResponseplanningincludesdeterminingmethodstodecreaseortakeoutanythreatstotheproject,alsothe chancestodecreasetheirimpact.Itisfollowedbythequalitativeriskanalysis.Riskswithhighpriorityareaddressedby risk response plan. A risk response owner or risk expert will be allotted to take the responsibility of controlling the risk by introducing essential activities and resources to the budget, project schedule and management plan as required. The risk response also responsible for reducing the probability and impact of threats and sometimes to increase the probability and impactopportunities.

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4. RESULTS AND DISCUSSIONS

TECHNICAL

FINANCIAL RISKS

LOGISTICS AND CONSTRUCTION RISKS

MANAGEMENT RISKS

POLITICAL RISKS

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5.REMEDIES AND SUGGESTIONS

• Project description: Clearunderstandingofwhattheprojectis, howitistobeachievedandexplainingthecomplete resultsoftheproject.

• Project purpose: Suitablydefiningthepurposeoftheprojectandifpossibletyingthepurposeoftheprojectwiththe plannedgoalsandobjectivesofthemanagement.

• Project goals: This is one of the most essential elements in project preliminary investigation. Providing clear, assessable and actionable objectives, so that the project can be measured against the goals after completing. Clear documentationofthegoalsisnecessaryastheultimatesuccessoftheprojectdependsuponthesuccessofitsdefinite goals.

• Project requirements: Finding the requirements of the service or product that is to be developed. Requirements containelementssuchastime,cost,qualityandsafety.

• Project assumption: Assumptionsmadewithrespecttothebudget,schedule,atthebeginninghavetobeconsidered.

• Project milestone: Settingupofmilestones,helpstotrackthescheduleandfinishtheprojectontime.

• Well defined project scope: The project preliminary survey should be carried properly. The need, scope, requirementsoftheprojectshouldbethoroughlystudied.

• Involvement of client: The client or his representative should be involved in the process of planning. Any modifications in the plan should be carried to the notice of concerned individual and modification should be done in theplan.

• Conducting frequent meetings with client: Common meetings should be conducted with the clients to brief him abouttheflowprocessofplanninganddesigning.Thiswillimprovetheconnectionwiththeclientandincreaseclient’s satisfaction.

• Issuing deadlines: The staff involved in process of planning should work professionally to finish the work in time. Providingdeadlineswillgivemaximumoutputofstaff.

• Followingupfundrequirements,needandgap.

• Suitablesupervisionandassignmentofactivitybyexplainedstaff.

• Recordingthecashflow,andnotingthetransactionsandconstraintsontheiruse.

• Agreementatseveralphasesofprocessshouldbeprepared.

• Managementhastoadoptthemostusefulwaysgetbestproductionbyutilizingmaterials,machine,menandenergyat lowestcost.

• Plants and equipment’s should existing with all supporting resources for maximum efficiency, which can support in completingprojectgoalsassociatedtocosts,time,scope,andschedule.

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Volume: 09 Issue: 06 | June 2022 www.irjet.net p ISSN:2395 0072

6.CONCLUSION

The methods to classify project risks, that have been particularized for construction projects, have been presented from various point of view from construction companies and firms that may be helping the development of dealing with projectintheplanningandconstructionstages.

Theprojecthasstudiedvariousfactorsrelatedtorisksandsomeofoutcomesarelistedbelow:

• Therisksmanagementprocessstartspriortoprojectitself.

• There must be proper coordination between every distinct involved with project to implement better risk managementpractices.

• Recordofalltheriskoccurredandoccurring,occursinfutureshouldbemaintained.

• Everyorganizationbigorsmall shouldbe adoptrisk management practicesto reduceeffectof risksarisingin the projectanditsimpacttoreachtheprojectgoals.

• Theprojectshouldbeproperlyscheduledandmonitored.

• Clearunderstandingoftheprojectscopeexplainingofthecompleteoutcomeofproject.

• Repetitivelychangesindesignshouldbeavoidedintheprojects.

• Wagesoftheworkersshouldnotbedelayed.

• Procurementofmaterialsshouldbetimelyonsite.

Fromtheresults,itissafetosaythatmajorityoftheconstructionprojectshavenosystematicprocedureinplacetodeal withrisks.Riskmanagementisdoneinaveryinformalmode..

7.REFERENCES

[1] AgnieszkaDziadoz,MariuszRejment“Riskanalysisinconstructionprojects chosenmethod”, operationalresearch in sustainable development and civil engineering meeting of euro working group and 15th German Lithunain polishcolloquium(ORSDE2015),PP258 265.

[2] AbsulmatenTaroun,“Towardsabettermodelingandassessmentofconstructionrisk”, JournalofCivilEngineering Research2014,4(2A),volume32,PP101 105.

[3] Ana I, Irimia Dieguez, Alvaro sanchez carzola, Rafaela alfalla luque “Risk management in megaprojects”, science directprocedia socialandbehavioralsciences,vol.119(2014),PP407 416.

[4] HeZhi“Riskmanagementforoverseasprojectmanagement”,InternationalJournalofProjectManagement,Volume 13,PP231 237.

[5] J.G Perry, R.W. Hayes “Risk management in construction projects”, Asia Pacific Journal of Management Research and Innovation, Volume: 7, issue: 3, Article first published online: July 1, 2011; Issue published: July 1, 2011, PP: 107 120.

[6] Kinnaresh Patel “A study on risk assessment and its management in India”,American Journal of Civil Engineering. Vol.No1,Vol.No.2,2013,PP.64 67.

[7] M.J. Mawdesley “Perception of human risk factors in construction projects: An exploratory study”, Article in InternationalJournalofProjectManagement22(2):131137,February2004,volume22, PP131 137.

[8] PattelAnkitMahendraEt.Cl“Riskanalysisinconstructionprojects chosenmethods”,Internetsource.