Generally, risks in construction industry should be controlled and reduced during design, procurement and As an example, one big marina and residential project was in danger with Review results of Ehting survey ; Monitor programme for
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RISK ASSESSMENT IN CONSTRUCTION INDUSTRY
Goran Cirovic
The College of Civil Engineering and Geodesy, Belgrade, Serbia cirovic@sezampro.yuSimo Sudjic
The College of Civil Engineering and Geodesy, Belgrade, Serbia simosudjich@yahoo.comConstruction indu
stry is a highly risky process mostly because of its long life duration and unique product as a result of construction, and also many different professions are involved in one project. Generally, risks in construction industry should be controlled and reduced during design, procurement and construction phase, and the most important activities are define risk management plan from the very beginning and to assign risks to different project members and to manage their execution. In this paper risks on a project in initial phase will be presented, cost and duration risks and complete contingency for the previously defined budget will be described. Statistical data for one project in design phase will be analyzed and general comments and recommendations will be proposed. Also, general method for calculating risks will be presented.KEYWORDS:
construction, risk management, forecasting.INTRODUCTION
Project management in the construction industry is mostly risk management oriented, and the main goal is to achieve risk control in all project phases. Great and long-lasting construction projects are exposed to many different risks, so the most important is to define risks at the very beginning of the project and to control and reduce them during the project execution. Risk management is a very important segment of project management, and generally the main target on a construction projects is to manage cost and time since quality is very often defined in an agreement. In order to systematize risk overview management it is necessary to carry out risk analysis. Risk Analysis is a systematic approach to understand ing these risks and their impact so that the decision makers can account for them in contingency planning, as well as plan for risk miti gation. The project risk can be in many areas, such as trafficestimation, product pricing, host country's fiscal policy or political uncertainty, EHS risk, etc. RISK ANALYSIS Risk assessment should be the process which passes through few phases, and during risk generation assessor should overview all risks on the project and their changes. Generally, the
risk management framework is [1]: