Eng.Essa Alenezi
Large construction projects are generally prone to
budget and schedule overruns. The best foundation
for a successful project starts with a comprehensive
construction estimate prepared by a group of
professional estimators. Estimation requires the
ability to prepare quantity surveys, labor productivity,
price materials, and construction methodologies.
The project that we have done will discuss the risks
at Maintenance Engineering Department as a matter
of importance. There are two types of contract, first
type is Road Network Maintenance Contract and the
second type is Building Maintenance Contract. As a
matter of fact we will try to measure the risks in the
whole Maintenance Contracts to decrease or reduce
the risks in a project. Since the projects of Maintenance
are repeated itself and normal, though it contains a lot
of predictable risks that it deserves to study for and try
to reduce.
Risk definition:
Webster’s New World Dictionary of American English
defines risk as “the chance of injury, damage, or
loss, dangerous chance, hardship- the degree of
probability of loss- the amount of possible loss to the
insuring company- to expose to the chance of injury.
Risk Types:
There are several types of risk such as:
• Technology risk
• Construction risk
• Operating risk
• Supply risk
• Off take risk
• Financial risk
• Environmental risk
• Legal risk. …etc.
Risk Classification:
Risk can be classified as either:
• Known
• Known- unknown
• Unknown-unknown
A known risk is an itemor condition that is understood,
but can’t be measured with complete accuracy. Labor
productivity is a good example of a known risk
A known-unknown risk is an item that has low
frequency and result in severe consequences.
Earthquake, hurricanes, strikes and unusual difficulty
with a contractor are examples of this type.
Unknown-unknown risk is condition or event
that cannot be predicted. This item is generally
catastrophic in nature and has a low probability of
occurring. The hazard of asbestos or AIDS is a good
example of this type.
Sources of Risk in Construction:
There are many sources of risk such as:
• Acts of God
• Fire
• Natural disasters
• Strikes
• Human error
Also, Uncertainties that may exist through out the
project development constitute sources of risk.
Checklist of construction risks:
Checklist of construction can be divided in many
parts, such as:
• Management related risks
• Owner related risks
• Design related risks
• Contractor related risks
• General Economic Factor
• Site condition
• Safety
• Quality Assurance/Quality control, Inspection and
Acceptance, Warranties
• Cash flow
• Subcontractors
• Labor
• Materials and Installed Equipment/ Suppliers
Risk in selecting construction project:
There are several factors that are affecting in selecting
construction, such as:
• Owner
• Company and personnel experience
• Contract documents and types
• Engineer/architect
All what I mentioned above, will explain it shortly as a
matter of time.
The prior knowledge (experience) of the owner should
be available always to avoid a risk in construction.
High historical performance and good experienced
personnel is sufficient reason to gain bidding a
project. The contractor must understand all what has
been written documents to avoid any risk. An engineer
must have an experience and the ability of how to deal
Risk in Maintenance
Projects in Kuwait(1)
2017
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( 3اﻟﻌـﺪد )
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