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
projects. in 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
2. Dziadoz, construction measurable part of uncertainty, which we are able to identify some
Mariusz projects-chosen of occurrences of probability and size of injury or loss. This paper
Rejment. method. presents 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
Construction be used to predict the cost at completion and percentage of
Project. completion 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.
5. Bhadane, in residential Based on that study the risks are identified for residential building
Bhavana building project. The data is collected regarding the risks and analysis is
Kunte, Janhavi construction. done. The analysis will be done using Qualitative risk analysis
Manure. method.
N AUTHOR PAPER REVIEW
O
N. Risk assessment In this project, the qualitative analysis of all types of risks except
6. B.Chaphalkar, for managing financial and economical risks in the construction projects is done by
C. A. Shelar, risks in real estate Risk factor and priority model’. The industry has shifted from risk
Smita K. Patil. construction transfer to risk reduction, current risk management systems are in
management adequate to manage project risks, and lack of joint risk management
project. mechanisms is 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
Guidelines. projects. 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 Risk Management This paper describes the method of defining the utility function as
8. Kaplinski. of Construction the decision maker is faced with a choice between a certitude of a
Works by Means given result and a lottery was to extreme results. The two
of the Utility contrasting cases of function of utility, that is characteristic of a
Theory: A Case decision maker with an aversion to risk, and decision maker with a
Study. predilection to risk, are then analyzed in detail.

Vikas Pawar, Risk in Fast Track This paper emphasizes the identification and assessment of various
9. Prof Construction. risks 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
. Projects. literature 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 techniques through comparative study of various international
Umarani Life Cycle of construction projects. About 50 relevant articles published over the
and S. Construction last 25 years have been reviewed. The review resulted that a
Kamal . Projects. simple 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. Boyadzhiev Choosing a Project's key figures in the theory of Earned Value Management - the basic
a. 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
project.International study consisted of a literature review, a survey to examine skill
Journal of Project levels and attitudes of key players to risk management, and their
Management . attitude to 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
M.J. activities 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
D., and currently for major industry 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
19. Pardhi BOT Projects. which includes well - documented procedures for the one stop
AnandKum solution all types of hazards most likely to occur during any
ar Patil. construction project Lifecycle.

Dr. M. J. Study of Risk in The purpose of this study is to study different types of risk,
20. Kolhatkar, Construction Projects. factors 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
21. Alam, Dr. construction and uncertainties in the construction industry through extensive
Nadeem industry. literature survey and aims to make a basis for future studies for
Ehsan, development of a risk management framework to be adopted by
Ebtisam prospective investors, developers and contractors.
Mirza, Azam
Ishaque.

Prof. Shakil Risk Management in In the design and construction, the risk can be described as a
22. S. Malek, Construction systematic methodology and continuous process in which events
Nazneen I. Industry. that may significantly affect the final product can identify,
Pathan. quantify, 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 framework which the international
projects in investors/developers/contractors can adopt when contracting
developing construction work in developing countries.
countries.
Smith, N.J., Managing risk in The overall aim of this research is to increase the understanding of
24. Tony, M., construction risk management in the different procurement options: design-bid-
and Jobling. projects. build 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
Bejaj. approach for sorts of hazards presumably to occur throughout any construction
contractors in South project 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.
THANK YOU