Dr. D.Y.

Patil Institute Of Technology,

Pimpri, Pune-18
Department Of Civil Engineering
PROJECT STAGE II:-
“Qualitative Risk Analysis for Construction Projects ”
Submitted By – Siddhesh Phadtare
(M.E.CIVIL 2nd Year)
(MCL21207)
Guided By – Dr.J.D.Agrawal.
(Professor)
CONTENT
Introduction
objectivees
NEED OF STUDY
Literature review
LITERATURE SUMMARY
Research Methodology
work to be done
Reference
Introduction:-
 Risk management is an idea which is been
utilized in every industries, it might be IT
related enormous business, pharmaceutical
business or automobile industry to the
construction division.
 Risk management is taken as one of the
toughest part of the construction process
and its application must be empowered in
every one of the project to avoid negative
results in the project.
 Effective risk management does not mean
the removal of risk, which would be the
seemingly be the cheapest option.
OBJECTIVES:-
By investigating the real circumstances in
construction business the following objectives of
the study are listed.
1. To identify various risks those are uncertain to
occur in the construction project.
2. Categorizing the risks depending on the
probability, impact, urgency, priority and
then categorize the risk as high, moderate,
and low.
3. Qualitative risk analysis carried for the
identification of high risks.
4. To perform a case study by visiting local on
going construction sites.
NEED OF STUDY:-
 The enormity of construction sector has
associated possibility of various environmental,
socio-political, and other unanticipated
problems which will cause huge loss to the
industry.

 Therefore, well-organized management of

project is required by using all the methods of
project management which involves project risk
management as an important constituent,
through the several stages of the project, in
order to manage the risks and reduce the cost
overruns, time overruns, and quality and safety
issues.
 Literature review
N AUTHOR PAPER REVIEW
O.
Pawel Risk management This paper helps in identification and classification of the risks. The
1. szymanski. in construction author concluded, risk is present everywhere and every area of life in
projects. one such is construction industry where the risk always present.

Agnieszka Risk analysis in This paper defines, the risk cannot be measured and it is measurable
2. Dziadoz, construction part of uncertainty, which we are able to identify some of
Mariusz projects-chosen occurrences of probability and size of injury or loss. This paper presents
Rejment. method. three types of risk analysis. They are methods, and advantages,
disadvantages, others and selection of project (pre-estimation).

Pattel Ankit Risk analysis in The assessment issues, which are the canvas of operation of the
3. Mahendra construction examined techniques are not commonly interrelated. They author
Et.Cl . projects - chosen display various parts of variations of the investment procedure.
methods.

V. Rathna A Study on Risk The aim of this study is to use earned value management as a
4. Devi. Analysis in quantitative method to risk analysis. The earned value analysis can be
Construction used to predict the cost at completion and percentage of completion
Project. with reference to the baseline estimate and schedule. This method of
quantitative analysis considers financial risk and schedule risk as major
factor in the execution of project.

Nikita Risk management The study of various literature review is carried out in this paper. Based
5. Bhadane, in residential on that study the risks are identified for residential building project. The
Bhavana building data is collected regarding the risks and analysis is done. The analysis
Kunte, Janhavi construction. will be done using Qualitative risk analysis method.
Manure.
N AUTHOR PAPER REVIEW
O
N. Risk assessment for In this project, the qualitative analysis of all types of risks except
6. B.Chaphalkar, managing risks in financial and economical risks in the construction projects is done by
C. A. Shelar, real estate Risk factor and priority model’. The industry has shifted from risk transfer
Smita K. Patil. construction to risk reduction, current risk management systems are in adequate to
management manage project risks, and lack of joint risk management mechanisms is
project. the key barrier to adequate risk management.

Dale Cooper, Project Risk This covers the basic principles, practices, and techniques for
7. Stephan Grey. Management managing risk in projects, especially large-scale and complex projects.
Guidelines. With extensive case study material, the book addresses the basics of
project risk management and outlines a step-by-step approach to risk
management.

Oleg Kaplinski. Risk Management This paper describes the method of defining the utility function as the
8. of Construction decision maker is faced with a choice between a certitude of a given
Works by Means of result and a lottery was to extreme results. The two contrasting cases of
the Utility Theory: A function of utility, that is characteristic of a decision maker with an
Case Study. aversion to risk, and decision maker with a predilection to risk, are then
analyzed in detail.

Vikas Pawar, Risk in Fast Track This paper emphasizes the identification and assessment of various risks
9. Prof Construction. in case of fast track projects. The evaluation of risks can help in
P.M.Attarde, prioritizing risks for effective risk management and successful
Abhishek C completion of a project. A risk factor RF or combined risk measure is
Ayachit. then calculated for each category.

Zenghua Risk Management The aim of the this paper is to identify and evaluate current risks and
10. Kuang. in Construction uncertainties in the construction industry through extensive literature
Projects. survey and aims to make a basis for future studies for development of a
risk management framework to be adopted by prospective investors,
developers and contractors.
NO AUTHOR PAPER REVIEW

S. M. A Review on Critical It mainly discusses the critical risk factors and its assessment
11. Renuka, C. Risk Factors in the Life techniques through comparative study of various international
Umarani and Cycle of construction projects. About 50 relevant articles published over the
S. Kamal . Construction last 25 years have been reviewed. The review resulted that a simple
Projects. analytical tool will be developed for each project task to assess the
risk easily and quickly, which will encourage the practitioners to do
the risk analysis in their project.
Svetlana A Method for It provides a methodology that will assist the selection of one of the
12. Boyadzhieva Choosing a Project's key figures in the theory of Earned Value Management - the basic
. Planned Value Curve project plan. This methodology is based on historical data from
. completed projects, as well as on simulation methods that generate
possible project outcomes. The research is based on the three Steps
to a Successful Schedule Risk Analysis.
Asish Ram Study on This paper articulates to study about the delay causes and factors
13. and Construction that contribute to the construction sequence delay for the road
Pratheeba Sequence Delay for infrastructure projects and how one can predict the future
Paul . Road Infrastructure completion date for the delayed project using earned value
Projects. management. The data about the causes and quantification of
delay factors is gathered through questionnaire survey.
Altaher Risk Management in It seeks to identify the risk factors that affect the performance of
14. Mohamed Small Construction construction projects, using appropriate tools and technique and to
Eida and Project. develop a risk management framework. This study investigates,
R.K. Pandey. categorizes and evaluates the risk and develops a risk management
policies and guidelines .
Uher, T. E. & Risk management in This paper sets out the results of a study into the use of risk
15. Toakley, A. the conceptual management in the conceptual phase of the construction project
R. phase of a development cycle in the Australian construction industry. The study
project.International consisted of a literature review, a survey to examine skill levels and
Journal of Project attitudes of key players to risk management, and their attitude to
Management . change.
NO AUTHOR PAPER REVIEW

Akintoye, Risk analysis and The paper describes, on the basis of a questionnaire survey of
16. A.S. and management in general contractors and project management practices, the
MacLeod, construction. construction industry's perception of risk associated with its activities
M.J. and the extent to which the industry uses risk analysis and
management techniques.

Baker, S., Risk response This paper concentrates on the choice and use of the most
17. Ponniah, techniques employed successful risk response techniques within the oil and gas industry
D., and currently for major and compares them with the use of those chosen by the
Smith. projects. construction industry. Results were ascertained through a survey of
over one hundred companies within these two sectors by use of an
extensive questionnaire.

Dariusz Risk management in The paper is related to risk management in construction

18. Skorupka. building projects. undertakings. The authors discuss the nature of construction
undertakings and legal aspects of these types of projects. The paper
presents an example of risk quantification which may occur during
construction projects. The presented method of risk assessment is the
authors’ original solution.

Dilesh Risk Management In This study proposes to apply the risk management technique which
19. Pardhi BOT Projects. includes well - documented procedures for the one stop solution all
AnandKum types of hazards most likely to occur during any construction project
ar Patil. Lifecycle.

Dr. M. J. Study of Risk in The purpose of this study is to study different types of risk, factors
20. Kolhatkar, Construction Projects. affecting risk, common sources of risk, advantage and
Er. Amit disadvantage of risk management in construction projects.
Bijon Dutta.
NO AUTHOR PAPER REVIEW

Mehmood Risk Management in The aim of the this paper is to identify and evaluate current risks and
21. Alam, Dr. construction industry. uncertainties in the construction industry through extensive literature
Nadeem survey and aims to make a basis for future studies for development of
Ehsan, a risk management framework to be adopted by prospective
Ebtisam investors, developers and contractors.
Mirza, Azam
Ishaque.

Prof. Shakil S. Risk Management in In the design and construction, the risk can be described as a
22. Malek, Construction systematic methodology and continuous process in which events
Nazneen I. Industry. that may significantly affect the final product can identify, quantify,
Pathan. model, manage and monitor.

S. Q. Wang Risk management This research seeks to identify and evaluate these risks and their
23. and M. F. frame work for effective mitigation measures and to develop a risk management
Dulami. construction projects framework which the international investors/developers/contractors
in developing can adopt when contracting construction work in developing
countries. countries.

Smith, N.J., Managing risk in The overall aim of this research is to increase the understanding of risk
24. Tony, M., construction management in the different procurement options: design-bid-build
and Jobling. projects. contracts, design-build contracts and collaborative form of
partnering. Deeper understanding is expected to contribute to a
more effective risk management and, therefore, a better project
output and better value for both clients and contractors.

Soon Kim; Risk management in This paper covers the ideas of risk management and varied risk
25. Deepak construction: An analysis techniques to be used for the one stop resolution for all sorts
Bejaj. approach for of hazards presumably to occur throughout any construction project
contractors in South lifecycle.
Korea.
LITERATURE SUMMARY:-
The relevant literature related to risk
management techniques in general, risk factors,
methods used for risk analysis, earned value
analysis and the use of earned value analysis in
risk analysis were reviewed. And the summary is
mentioned below.
 Risk management is the systematic process of
identifying, analyzing, and responding to
project risk. The process of risk analysis includes
qualitative and quantitative analysis.
 The qualitative risk analysis is done by
prioritizing the identified risk factors based on
their probability and impact. The quantitative
risk analysis is expressed in terms of monetary
value and schedule.
 The aim of this study is to use the known
resources to study qualitative method to risk
analysis.
 The process to be followed for the analysis
can be learned from literature review.
 Recognition of risks in the construction
project is done.
 For the data collection, the distribution of
questionnaire survey to the various
contractors and consultants of the project is
conducted.
 In this paper, the qualitative risk analysis
method is used.
 Matrix for probability-impact is plotted.
 High risks are marked and a graph is plotted
for high risks.
RESEARCH METHODOLOGY:-
❖GENERAL:-
o The purpose of current work is to study
various risk in construction projects, their
importance and impact on the project
goals and identification of high risks using
qualitative risk analysis.
o Here, an effort is made to recognize and
evaluate risk in construction projects.
❖RESEARCH STAGES :-
o The methodology selected for risk
management is distributing questionnaire
survey to the various contractors and
clients, consultant of the project.
o Qualitative risk analysis is used for data
analysis.
 o This investigate, passed through the following
stages in figure:

Objective And Scope Of Project.

Risk Identification.

Design of questionnaire.

Survey and data collection.

Qualitative risk analysis.

➢ Objective and scope of project :-
The study is carried with the following
objectives:
o Classify the risks and get ratings for probability
and impact and urgency for each risk.

o Make risk matrices to find high, moderate, and

low risks.
➢ Risk identification :-
o Risk identification is a repetitive process
because as the project progresses new risk
develop.
o The risk valuation format should be continuous
to allow the comparison between the effects of
one risk even on the other.
o The identification process in the organization
includes the project team members.
o For the purpose, the several risk arising in the
construction process are categorized and
listed.
➢ Design of questionnaire:-
o As the result of pilot overview, there are types
of risks which influence the risk occurs in
construction, types are listed below:
i. Technical risks
ii. Financial risks
iii. Logistics and construction risks
iv. Management risks
v. Socio political risk
vi. Environmental risks
➢ Survey and data collection :-
o To successfully accomplish the objective of the
study, one of the best vital stage is collection of
accurate information.
o Data collection is a method of collecting
important information records for a certain test
or populace of observations.
➢Qualitative Risk Analysis :-
o Qualitative risk analysis involves evaluating the
probability and impact of the various risks and
listing the risks so as to improve the performance
of the project by making the risks with high
priority.

o The valuation of the priority identified risks is

done on basis of likelihood or probability of
occurrence of risks, the corresponding impact of
the risks if it happens and as well as urgency of
risk response.
 Valuation of the priority identified risks on
basis of likelihood or probability of
occurrence of risks, the corresponding
impact of the risks if it happens and as well
as urgency of risk response.

 To conduct qualitative risk analysis is carried

out by marking following matrix.
❑PROBABLITY-IMPACT MATRIX:-
▪ Probability is the likelihood of the risk to
occur whereas impact is the effect of the
risk on project functioning.
▪ Before making the P-I matrix, we have to
identify risk, collect risk data, determine
probability and impact levels.
▪ After doing these tasks, the P-I matrix is
made.
▪ First, the probability and impact are given
ranking generally from 1 to 5.
SCALE PROBABLITY IMPACT

1. Rare Very Low

2. Ocassional Low

3. Somewhat Frequent Moderate

4. Frequent High

5. Very Frequent Very High

RESULTS:-
 After the successful completion of the
Questionnaire survey the average results
were calculated and mentioned according
to the type of risks .
 P-Probability.
 I-Impact.
 Financial Risks

SR.NO RISKS. P I

1 Project Investments. 2 2
2 Worker Wages And Salary Delay. 3 5

3 Increased material cost 4 4

4 Unevenness in Foreign Exchange 1 1

5 Funds Released. 2 2
6 Import. 2 2
 Management Risks.

SR.NO RISKS. P I

1 Clashes between two groups. 1 2

2 Allocation of resources and labour 3 3

3 Relations of Company. 1 2
4 Less work assigned. 1 2
5 Unsatisfied Skilled staf. 2 3
6 Uncertain relations of employees. 2 2
 Enviornment Risks.

SR.NO RISKS. P I

1 Natural Calamities. 1 5
2 Uneven Weather Conditions. 3 4
3 Low Quality Enviornment 2 2
Resources
 After ranking the risks according to their
probability and impact levels, the risk matrix
is made by taking impact ratings on X-axis
and probability ratings on Y-axis.
 The matrix is divided into 3 colour codes for
representing 3 categories of risks.
 1) Red represents risks that need an
immediate response (Risk score 15-25).
 2) Yellow represents risks that require further
analysis and investigation (Risk score 5-14).
 3) Green represents risks that can be
ignored. (Risk score 1-4)
 Very 5 5 10 15 20 25
Frequent
Frequent 4 4 8 12 16 20

Somewhat 3 3 6 9 12 15
Frequent
Occasional 2 2 4 6 8 10

Rare 1 1 2 3 4 5
1 2 3 4 5
Probability/
Impact Very Low Modera High Very
Low te High
 CONCLUSIONS:-
 The methods to categorise the project risks,
that have been selected for construction
projects, have been represented from various
point of view such as (from contractors,
consultants, and government contractors)
and construction companies and firms.
 From the results, I am arrived to a conclusion
that majority of the construction projects have
no procedure to deal with risks. Risk
management is done without a dedicated
process and even not done in some of the
companies. All the risks which were recorded
were given the ratings for their probability of
occurrence, its impact on the project.
REFERENCES:-
1. Pawel szymanski “Risk management in
construction projects” EURO working group
Operational Research in Sustainable Development
and Civil Engineering 24 May- 2nd International
Workshop on flexibility in sustainable construction,
ORSDCE 2017, 24-26 April, PP 174-182.
2.Agnieszka Dziadoz, Mariusz Rejment “Risk analysis
in construction projects-chosen method”,
operational research in sustainable development
and civil engineering – meeting of euro working
group and 15th German-Lithunain-polish
colloquium(ORSDE2015), PP 258-265.
3. Pattel Ankit Mahendra Et.Cl “Risk analysis in
construction projects - chosen methods”, Internet
source.
4. N. B. Chaphalkar, C. A. Shelar, Smita K. Patil, (July-
September 2011), "Risk assessment for managing risks
in real estate construction management project”,
NICMAR Journal of Construction Management, ISSN
No. 0970-3675. Volume XXVI, Number 3 .
5. Dale Cooper, Stephan Grey, Geoffrey Raymond,
Phil Walker, (2005), “Project Risk Management
Guidelines”, John Wiley & Sons, Ltd
5. V. Rathna Devi.
A Study on Risk Analysis in Construction Project.
6. Nikita Bhadane1, Bhavana Kunte2, Janhavi
Manure3, Kranti Salunkhe4
Risk management in residential building construction.
7. Vikas Pawar, Prof. P.M. Attarde, Abhishek C
Ayachit and Swapnil Kulkarni (2014).
‘Risk in Fast Track Construction’, International Journal
of Advanced Engineering Research and Studies, ISSN
2249–8974.
8. Asish Ram and Pratheeba Paul (2015),
‘Study on Construction Sequence Delay for Road
Infrastructure Projects’, IOSR Journal of Mechanical
and Civil Engineering (IOSR-JMCE), ISSN: 2320-334X,
Volume 12, Issue 2, PP 15-21.
9.Oleg Kaplinski (2013),
‘Risk Management of Construction Works by Means
of the Utility Theory: A Case Study’, Procedia
Engineering, 57, 533 – 539.
10.S. M. Renuka, C. Umarani and S. Kamal (2014),
‘A Review on Critical Risk Factors in the Life Cycle of
Construction Projects’, Journal of Civil Engineering
Research, 4(2A): 31-36.
11.Svetlana Boyadzhieva (2014),
‘A Method for Choosing a Project's Planned Value
Curve by Integrating.