International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

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Risk Management using Primavera Software for Residential Sector

Pranav Budruk1, Dr. D.N. Mudgal2, Prof. S.B. Patil3
1PG Student, Civil Engineering Department, Ashokrao Mane Group of Institutions, Vathar.
2Director of Ashokrao Mane Group of Institutions, Vathar
3PG Co-coordinator, Civil Engineering Department, Ashokrao Mane Group of Institutions, Vathar.

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Abstract - Risk management constitutes identification, have been identified they can be reduced, removed, avoided
assessment and setting preference for risk mitigation. This or accepted.
may include a synchronized and cost effective way of using the
materials and resources in an order to minimize the hazards 2.1 Agnieszka Dziadosz and Mariusz Rejment, 2015
that may arise along with monitoring and controlling the
unfortunate events that may occur. Risk can happen due to The risk is a measurable part of uncertainty, for which
uncertainty in financial market, accidents, failures in the authors are able to estimate the occurrence probability and
project, natural factors, legal issues, risk associated with credit the size of damage. The risk is assumed as a deviation from
etc. Different methods can be applied to manage risk which the desired level. It can be positive or, which most often
may range from transferring of the risk to subsequent party, happens, it can be negative. Therefore, the risks analysis is so
avoiding the risk factor, minimizing the consequences of risk important for project selection and coordination of
and accepting the effect of risk in few cases. Project requires a construction work. The risk analysis is regarded as the
special mission which is used by the client to get a viable edge analysis of adverse events even at the stage of planning and
in the market to operate. The past projects do not match the programming of a construction project. In analysis authors
subsequent project due to its uniqueness which ultimately enrich the decision-making process and provide additional
increases the chances of hazards. The characteristics of each arguments, which help to select the optimal variant of a
project keeps on changing which make it difficult to be construction project using the Multi-Aspects approach. In
imitated. This requires unique skills to manage and article authors present three different methods of the risk
accomplish the process. analysis as well as highlighting their disadvantages,
advantages and primary areas of application (selection or
Key Words: Risk management, Risk identification, Risk pre-estimation). The analysis was finished on the statistical
mitigation, Residential sector, Primavera. method, which determines the type of used data therefore it
affects the quality of the results. [1]
1. INTRODUCTION
2.2 Mr. Satish K. Kamane and Mr. Sandip A. Mahadik,
Risk Management is becoming more and more 2015
important in the field of civil engineering. One of the main
reasons is that more and more projects fail, generating high Construction projects are characterized as very complex
unplanned costs. Risks can be so expensive that they even projects, where uncertainty comes from various sources.
can lead to the downfall of a company. To increase the Construction projects gather together hundreds of
probability of success it is necessary for an organization to stakeholders, which makes it difficult to study a network as a
understand the potential risks that are involved in all these whole. But at the same time, these projects offer an ideal
resources. Risk management is a fundamental component of environment for network and risk management research.
project management. The Project Management Institute Additionally, construction projects are frequently used in
(PMI) lists the management of risk in their Project management research, and several different tools and
Management Body of Knowledge as one of nine knowledge techniques have already been developed and especially for
areas for project management, along with the management project. However, there is a gap between risk management
of project scope, cost, and schedule. techniques and their practical application by construction
contractor. In this research authors have given identification
Every new product innovation has to deal with risks of risk by different methods, types of risks associated with
and with every decision, there are risks associated with it. construction project and different risk mitigation techniques.
When starting a new land development project there cannot In the construction industry, risk is often referred to as the
be a complete understanding of all the components, the presence of potential or actual threats or opportunities that
technology, people‘s knowledge and expertise. So risks will influence the objectives of a project during construction,
be taken and decisions have to be made on how to handle commissioning, or at time of use. Risk is also defined as the
those. To get an understanding of the potential risks they exposure to the chance of occurrences of events adversely or
have to be systematically measured, the effects and possible favourably affecting project objectives as a consequence of
causes of them have to be anticipated and then appropriate uncertainty. It may be stated that risk Management is the
methods have to be chosen to deal with them. Once the risks core of project management. [2]

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 International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 06 Issue: 07 | July 2019 www.irjet.net p-ISSN: 2395-0072

2.3 Shankar Neeraj, Balasubramanian, 2015 measure reduced scores and risk mitigation strategy
becomes very easy.
The risk is a choice in an environment rather than a fate. The
risk is present in all the activities in a project; it is only the The questions that are addressed by this research are:
amount which varies from one activity to another.
Evaluating and analysing the risks of a project and planning 1. What are the best international practices currently
to manage them are the most critical steps should be done in applied in risk management on construction projects and
the project definition stage. Risk evaluation and analysis how they compare with the current practices?
were ignored. The track record of the construction industry
is very poor in terms of coping with risks, resulting in the 2. How can risk management practices in organizations
failure of many projects to meet time schedules, targets of and companies involved in construction projects be assessed?
budget and sometimes even the scope of work. As a result, a
3. What knowledge is needed for an effective and efficient
lot of suffering is inflicted on the clients and contractors of
management of risk in construction projects?
such projects and also to the general public. The general
methodology of this study relies largely on the survey 4. How can needed risk management knowledge be
questionnaire which was collected from the local building obtained, organized and made available in a systematic and
contractors of different sizes by mail or by personnel useful way?
meeting. A thorough literature review is initially conducted
to identify the risk factors that affect the performance of 4. METHODOLOGY
construction industry as a whole. The survey questionnaire
is designed to probe the cross-sectional behavioural pattern In this project work, prepared questions for survey by
of the construction risks construction industry.[3] identifying factors which require in primavera for matrix
formation. By studying some research papers on risk
2.4 O. O. Odimabo, C. F. Oduoza, 2013 management in construction industry, residential building
from Pune is choose for case study. Total 10 people are
Economic growth and socio-economic development are respondent for this survey and 28 general risks are
particularly important for developing countries, and the considered. Ranking is done on the basis of 5 options viz.
construction industry plays a central role in driving both of (Very high, High, Medium, Low, Very low).
these. The general situation observed currently in building
construction in developing country such as Nigeria is that Procedure of work:
the output of a construction company is usually
characterized by poor-quality work, cost and time overruns. Step 1: Rank the probability, schedule and cost as per very
These characteristics originate because a number of risk high to very low.
factors have not been properly taken into consideration in
the project planning and implementation stage. Therefore, a Step 2: Analysis of response and calculate probability score.
focus on risk management is necessary to improve the
current project’s poor performance. In this study, the Delphi Step 3: Risk categorization
method for construction building project risk and the
Bayesian belief network is adapted to model risk Step 4: Risk result wise factor count.
assessment/management in building construction
In this analysis probability is taken as per filled in survey
environments .By analysing data a Framework for Risk
report and impact is taken from cost. From probability and
Assessment of Building Projects in Construction Firms is
impact calculation probability score is identified. By using
prepared. [4]
probability score average of each risk category is taken. After
3. GAP IDENTIFICATION taking average risk categories are ranked as per high,
medium and low.
In construction sector, risk is very important part but in
many projects it is not taking very seriously. Due to lack of 5. RESULTS AND DISCUSSION
awareness of loss of project, risks are not considered an
In questionnaire survey risks are ranked as per their
important part. Because of that there is loss of money,
occurrence and their impact as per probability, cost and
wastage of time, project can’t complete in schedule. If risks
schedule.
are identified by various methods and effect is calculated in
software then we come to know the severity of risk. So we
can manage project in different ways. We can use different
options to reduce effects of risks on project. By using
software it becomes easy to work on risk part and it affects
on project schedule and budget also. By understanding scores
we can apply strategies to reduce the risks. So, we can easily

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 International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 06 Issue: 07 | July 2019 www.irjet.net p-ISSN: 2395-0072

Table 5.1: RESPONDENT SHEET OF HIGH RISE As per these results and discussions risks are identified as
BUILDING (Average taken from survey) per high to low

Type
Risk Factors (Threats or Probability Cost Schedule
Opportunity)
1) Time
Logistical risk T H H L
Centring work not completed in time T M L M
Financial problems of firm T VH VH VH
Windows are not ready to fix T H M M
2) Quality
Not proper supervision T L L L
Proper mixture of material T VH M M
3) Project Management
Improper selection of site T H H H
Planning and designing T M L M
Government rules and regulations T M M M
Rera effect on booking O M M H
4) Contract
Change in contractors demand T M L M
Not using selected material T L L L
5) People
Health and safety of labours O H VL H
Strike of labours T VH VH VH
Thieves on site T M M M
Lack of skilled labour T L M L
Line out of blocks is improper T M M M
Unskilled labours doing electrical work T M M M
Scaffolding not properly tightened T M L M
Clients demands are different T VH M VH
6) Market
Change in rates of material O VH H VH
6. RESULT AND DISCUSSIONS
Constraint of availability of concrete T M M M
7) Environment
Water percolation while excavation T L VL L General recommendations to manage risks for high rise
Heavy rain while construction T M M M building construction
8) Cost
Different soil conditions T M H M 1- Clients should study the internal and external risk factors
Availability of resources T H H H
Damage of blocks T L L L
related to that building project with help of advanced
Damage of electrical wires T M M M managerial and financial institute to reduce such arise.

Table 5.2: Risk categories and their ranks 2- Due to high competition in market the client not giving the
importance to the design phase of project which is very
Risk Category Result important in construction process. They have to concentrate
more on design phase.
Time H
Quality L 3- Firm has to acquire how to split and shift the different
Project Management M risks in different way by hiring specialized sub-contractors.
Contract L 4- Contracting firm has to prevent the financial failures by
People H adopting the strict cash flow management and less depend
upon banking sectors.
Market H
Environment L 5- Firm has to study and apply computerized viewpoints
Cost H used for risk analysis and evaluation of risk by using
Microsoft Excel or any other software’s.

6- Mostly if possible risk manager should be there and risks

should be identified while planning the project.

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 International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 06 Issue: 07 | July 2019 www.irjet.net p-ISSN: 2395-0072

7. CONCLUSIONS [3] Krantikumar Mhetre, B.A.Konnur, Amarsinh B. Landage,

Risk Management in Construction Industry,
1. An effective risk management process encourages the International Journal of Engineering Research, Volume
construction company to identify and quantify risks and to No.5, Issue Special 1 pp : 153-155, ISSN:2319-
consider risk containment and risk reduction policies. 6890(online),2347-5013, 8 & 9 Jan 2016
Construction companies that manage risk effectively and
efficiently enjoy financial savings and greater productivity [4] A. Suchith Reddy, , Risk Management in Construction
improved success rates of new projects and better decision Industry - A Case Study, International Journal of
making. Risk management is the construction project Innovative Research in Science, Engineering and
management context is a comprehensive and systematic way Technology, Vol. 4, Issue 10, October 2015, ISSN(Online)
of identifying, analyzing and responding to risks to achieve :2319-8753 ISSN (Print) : 2347-6710
the project objectives.

2. The construction companies need to include risk as an

integral part of their project management. Decision making
such as risk assessment in construction projects is very
important in the construction management. The
identification and assessment of project risks are the critical
procedures for projecting success. This case study
determines the key factors of risk in construction industry of
building

3. This research is unique in a way that a project case study

is used to develop a better understanding using the realistic
data compared with formulated model of risks.

4. A stepwise case study is elaborated in the light of the

guidelines. From the results of the case study of building
construction at Pune, it showed that the forecasted results
are approximately accurate as per their experience.

5. In case study, high risk categories are time, people,

market, cost which are highlighted in red Color. Medium risk
is identified project management and low risks are identified
as quality, contract and environment.

6. Out of eight main categories four categories are under high

risk, one is under medium risk and three are under low risk.

7. Future scope of the project is wide as same model can be

applied in similar constructions to avoid risks. The model
can be easily modified and applied in any construction risk
involving attributes to analyze the most critical attributes
causing risks to the construction of building.

8. REFERENCES

[1] O. O. Odimabo, C. F. Oduoza, Risk Assessment

Framework for Building Construction Projects’ in
Developing Countries, International Journal of
Construction Engineering and Management 2013, 2(5):
143-154 DOI: 10.5923/j.ijcem.20130205.02

[2] Dr.Haitham H. Al-Shibly, Dr.Basem M. Louzi, Mohammad

A. Hiassat, The impact of risk management on
construction projects success from the employees
perspective, INTERDISCIPLINARY JOURNAL OF
CONTEMPORARY RESEARCH IN BUSINESS, AUGUST
2013 VOL 5, NO 4

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