Identification and Assessment of risk factors affecting the time and cost of bridge projects: A case study based approach

Abstract

The construction industry has many underlying risks and uncertainties, due to which project deadlines and costs frequently diverge. The objective of this study is to examine the process of identifying and assessing risks in construction projects and their substantial impact on budget and schedule. Project risk as an entirety does not constitute the same as individual project hazards. The impact of uncertainty on the project as a whole is represented by overall project risk. Being the entirety of project uncertainty, it encompasses all potential sources of risk and goes beyond the total of those risks alone. The life cycle of a construction object is full of different risks. Risks might originate from a variety of places. Furthermore, risks are increased by the growing scale and complexity of construction projects. Risk is any uncertain occurrence or circumstance that, if it materializes, could have a favourable or unfavourable impact on at least one project objective, such as time, cost, or quality. Risks lead to construction project costs and schedule overruns. This study evaluates the effectiveness of Monte Carlo simulation in identifying and quantifying risks, enabling the development of an optimum contingency budget to mitigate the anticipated divergence. A thorough literature analysis identifies the many risk factors, that have an impact on the time and cost of the project. These uncertainties are modelled probabilistically using the Monte Carlo simulation technique, which makes it possible to calculate the probability of various time and cost overruns and create a contingency budget and time of completion.