with a risk. Also, he must have an influence on how to

select a good project to reduce a risk in construction.

Four major factors of success:

•

Schedule management

•

Cost control

•

Teamwork and personnel development

•

Change order administration

And these factors (above) will explain it in short; when

using the schedule, you can resolve open issues. Also,

you can monitor and control the project. As time

runs, the ability to influence project decisions with

cost controls is greatly diminished. The acceptance

and consideration of all ideas is critical to maintain a

consistent flow of information. Finally, change in order

can lead to the deterioration of a company budgeted

profit.

Project risk management:

Risk management is the systematic process

of managing an organization’s exposures

to achieve its objectives in a manner

consistent with public interest, human safety

environmental factors, and the law.

There are two stages in the process of

project risk management, risk assessment

and risk control. Risk assessment can take

place at any time during the project, though

the sooner the better. However, risk control

cannot be effective without a previous risk

assessment.

Risk management hast two element, one

is risk assessment and another one is risk

control; each element has three factors.

For risk assessment element, there are three

factors such as: identify uncertainties, analyze

risks, and prioritize risks. Also, risk control has

three factors such as: mitigate risks, plan for

emergencies, and measure and control.

Risk mitigation measures:

Based on the foregoing studies, we have conclude

that risks may be allocated by more of die following

options:

•

Risk acceptance

•

Risk reduction

•

Risk sharing

•

Risk transfer

•

Risk avoidance

Understanding financial risk

from the owner’s perspective

Financial risk is directly tied to the owner’s ability to

design and execute an adequate financial plan. As

project managers lose control over this process due

to insufficient planning, unforeseen construction

problems, or abrupt changes in financial markets,

both the amount and cost of project financing are

affected.

Risk modeling and assessment:

This section deals with the issue of risk modeling

and measurement. In order to quantify the impact

of risk one needs to develop a logical model for

risk measurement. This model should be used in

conjunction with the identified risk items as described

previously.

Keeping projects on time and within budget are two of

the most important functions of project management

estimates.

Owner’s risk:

Almost every party involved in the project needs to

perform its own kind of risk analysis. The owner has

to look at risk issues at a macro or aggregate level,

the contractor would be wise to consider chance

variations at more detailed level. The owner, public

or private, needs to assess the amount of uncertainty

in the project cost and schedule in order to make

plans for seeking project funding. The accuracy

of estimating funding levels over project life, and

the probability of project failure due to optimistic

assumptions all add to the project’s financial risks. The

owner should also concern itself with the contractor

selection process, the stability and strength of the

contractor in executing a large transit project.

Contractor’s risk:

The traditional contractor on the other hand, looks

at a project’s risks from a different angle. Although

financial risks are very important and the contractor

would want to be sure that the owner has sufficient

funding to finance the project. the contractor will be

concerned with the amount of funding that would

be needed for interim financing. Also, the contractor

needs to pinpoint areas of risk and uncertainty in

the project and assess the impact of those areas on

the project cost and duration I in order to include to

include a reasonable contingency (cost element of

an estimate to cover a statistical probability of the

occurrence of unforeseeable elements of cost within

the defined project scope due to a combination of

uncertainties of future event) in the bid.

2017

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