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CHAPTER 8

RISK MITIGATION

8.1 GENERAL

Risk mitigation aims at providing efficient response to the

identified and analysed risks. The potential identified risk having major
impact on the project throughout its project life cycle are further analysed
based on the responsibility and its root cause. Risk mitigation strategies are
described as risk prevention, risk reduce, risk transfer and risk acceptance
(Al-bahar and Crandall, 1990).

In this stage an attempt is made to suggest with suitable feasibility

status for risk mitigation process.

8.2 MITIGATION MEASURES FOR RISK IN INDUSTRIAL

PROJECT

The allocated risk as of the previous chapter is viewed further to

have a suitable mitigation strategy. It is well known fact that construction
project involves huge sum of amount with many resources in each stage of the
project has to be given utmost care to eliminate the risk. The risk that are
found in the industrial construction can be reduced to a greater level if proper
planning and strategy is deployed, delay in the project organization
finalization can be reduced if the PMC discuss well in advance with the client
and also communication will be automatically eliminated if it gets done at the
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earliest. The delays such as due diligence documents, concept and project
brief finalization including desired is finalized earlier with the consent of
client these kinds of major risk will be eliminated at the ease. The client being
proactive will eliminate many risk such as resizing and providing new ideas at
the later stage causing delay in scope delineation matrix as there wof
additional work, a proper study of the monsoon and better feasibility report
will reduce the numerous risk that are seen in resizing of the project causing
quantity variation redesign, delay in master plan preparation can be
eliminated. It is also observed that proper planning during the planning stage
will avoid many delay caused by material delivery, safety issues during night
work , resource shortage from vendors and revised BOQ materials. The delay
in master plan finalization can be prevented.it is estimated that a total of 25
risk can be reduced and 9 risk can be prevented that are causing serious risk
factor and impact in successful achievement of the project as per the schedule.
The mitigation measures for the identified risks during the construction of an
industrial building are tabulated in table 8.1.

Table 8.1: Mitigation measures for identified risks of an industrial

building construction project

Pre-Construction Stage
S.No Risk factor Impact Prevent Reduce Transfer Accept
This would impact the scope
Client Brief not
1 of works and impact overall 
obtained
budget for the project.
Will affect legally if it is not
Delay in Contractor's done on time also Invoices
2 
Agreement Sign-off will not be raised without the
agreement sign-off.
Delay in Finalization
Discuss with Client for early
3 of the project 
Finalization
organization chart
Delay in Finalization
Discuss with Client for early
4 of the communication 
Finalization
protocol
Delay in Due diligence
documents
(topographical plan, Will impact the time; and
5 
geotechnical survey design
and environment
assessment )
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Delay in Concept &

Project Brief Will impact the start of
6 
Finalization including design
desired budget
Delay in Master plan
8 Will impact design detailing 
finalization
Design Delivery
This would delay the tender
9 Schedule may not sent 
document submission
by the architect in time
Design Brief Report This would in turn impact
10 may not prepared by time and budget for the 
architect project.
List of packages for
11 Tender may not Delay in tendering 
finalised
duplication of works or
additional works and there
Delay in Scope
12 by impacting time and 
delineation matrix
overall budget for the
project.
Master schedule to be affect the tracking part if not
14 
approved approved on time.
Delay in issuing the Will affect the entire Master
15 tender drawings for all schedule & Tender event 
works schedule(TES)
Pending inputs to be difficult to find required
16 
shared from Client locations should be finalised
Client has to give the layout
All layouts to be
17 for consultant to proceed 
confirmed
with design.
Construction Stage
S.No Risk factor Impact Prevent Reduce Transfer Accept
Will affect the execution
1 Monsoon impact 
work
Will leads to quantity
Quantity variation in
2 variation during site 
BOQ
execution works
Will affect the entire design
process on the entire project
3 Resizing of Project 
& increasing the timeline of
the project.
Revised BOQ for the Will affect the timeline of
4 
All Works the execution work
If variation observed
Vendor to give the Will affect the overall budget
5 Variation change based if not found in appropriate 
on the revisions in time
drawings
Will cause delay in
Delay in Materials
7 execution which tends to 
Delivery
delay in overall schedule
8 Site quality lab set up. Quality issues will occur. 
9 Administrative works Lack of Administration. 
10 Permanent power Additional cost will come 
Construction power Will impact the construction
11 
and water start up
Will impact the construction
12 General lighting 
start up
Security and
Will impact the construction
13 surveillance during 
start up
construction stage
14 Housekeeping / waste Will impact the construction 
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disposal during start up

construction stage
Require more time &
Micro level additional resources on
15 
Procurement procurement process as per
Client Requirement
Will cause delay in
Delay in revised execution the works which
16 
layouts tends to delay in overall
schedule & design process
Will cause delay in
Delay in Structural
executing the Works which
17 material shipment from 
tends to delay in overall
vendor
schedule
Will lead to stop the works
Safety issues during due to poor illumination,
18 
night shift works unsafe works followed,
monitoring problems etc.
Resource shortage
from the Vendor Will affects the report
19 (Engineer, Supervisor, deliverables & supervisions 
Safety officer, from the vendor
Electrician)
Completion Stage
S.No Risk factor Impact Prevent Reduce Transfer Accept
Will have to plan at the
Move Planning from earliest to avoid last moment
1 
the existing facility changes/Sequence of shifting
equipment’s
Delay in rectification Will affect the quality of the
2 
works building
Chances of Will have chance beyond the
3 reconciliation on final quantity & have impact on 
bills for all vendors budget
Quantity variation
4 Will impact on budget 
from BOQ
LD clause may
Will affect the pending
imposed to Vendors
5 completion works along  
due to delay in
punch points & snag list
Completion of Project
Vendor in Critical path
Will Impact the overall
- due to delays in
6 schedule due to other vendor 
executing target
depending activities
completion dates
Vendor may go legally Will have change to get the
7 
for their claim raised claim if go legally
Will affect cost & time if not
Vendor Snag list
8 do on time. Which will affect 
completion issues
other vendors as well
Finalizing of Vendor
Additional Claim Will impact the Overall
9 
beyond contract budget allotted
duration
11 Closeout in Hurry. Improper close out. 
Delay in completion of Delay in completion of
12 machinery installation machinery installation works 
works will delay in handing over
Delay in handing over Delay in handing over of one
of one area from one area to other vendor will
13 vendor to another delay the erection works and 
vendor to start their in turn the handing over of
works the building
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No proper documents
All proper test report and
of the Inspection test
documents must be
14 procedures done at site 
maintained at site as per
maintained by the
client requirement
Vendors
Delay/improper
Will affect the handing over
Handing over
15 process from Projects to 
documentation by the
Facility/maintenance team.
contractor
Will have an impact on
Delay/non-satisfactory
delivering poor quality of
16 Completion of Snag 
work & cause problem while
list
operation if it is done
Deep Cleaning of
completed areas cannot
Handing over can be done
17 be done as the 
only after deep cleaning.
Housekeeping
contractor
The risk mitigation measures for the identified risk factors in an industrial
building construction project are summarized and are as shown in figure 8.1.

Figure8.1 Risk mitigation for industrial project

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8.3 MITIGATION MEASURES FOR RISK IN COMMERCIAL

BUILDING CONSTRUCTION

The mitigation process in commercial project suggest that many of

the potential risk can be prevented and reduced. During the pre-construction
stage, the selection of proper contractors and vendors will avoid majority of
the risk in all stages as the delay by contractors in terms of non-performance
leading to lesser productivity, delay in drawing submission can be avoided
and prevented. As of quality issues intermittent stoppage of work will cause
serious delay which can be prevented through proper selection of vendor and
better monitoring of work will avoid rework causing delay in the project
completion time. The client on the other side causing delay in finalization of
materials, delay in procurement of materials, delay in getting statuary
approvals from government agencies, finalising vendor claim can be
prevented if the client is having proper planning in the inception stage of the
project. The delay in execution of work as of climate and weather condition
have to be accepted. The mitigation measures for the identified risks during
the construction of a commercial building are tabulated in table 8.2.

Table 8.2: Mitigation measures for identified risks of a commercial

building construction project

S.no Risk Factors Impact Prevent Reduce Transfer Accept

Will impact the timeline
Non Performance of
1 of work execution and 
general contractors
will affect the cost
Delay in work
execution due to Will affect work
2 
climate or weather execution
conditions
Intermittent stoppage
3 Quality issues will occur 
of works
Finalization of
materials for Will cause delay in
4 
construction or execution
architectural works
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Not achieving the Will affect the quality of

5 
desired output the building
Will cause delay in
Re-Designing execution which tends to
6 
structural elements delay in overall schedule
and design process
Will cause delay in
Delay in procurement
7 execution which tends to 
of materials
delay in overall schedule
Delay in getting
statutory clearances
Will cause delay in the
8 from respective 
commencement of works
Government
departments/board
Will impact the
Delay in drawing
9 timeframe for these 
submission
activities
Will have to plan at
earliest to avoid last
Move planning from
10 moment changes 
existing facility
/sequence of shifting
equipment’s
Pursue client for early
Approval from clients finalization or will delay
11 
for stakeholders the commencement of
activities at site
Will affect the quality of
12 Improper completion 
the building
Will affect cost and time
Vendor snag list if not done on time, which
13 
completion issues will affect other vendors
as well
Finalizing of vendor
additional claim
14 Will impact budget 
beyond contract
duration
Vendor in critical path Will impact overall
due to delays in schedule due to other
15 
executing target vendor depending
completion dates activities

The risk mitigation measures for the identified risk factors in a commercial
building construction project are summarized and are as shown in figure 8.2.
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Figure 8.2 Risk mitigation for commercial building construction

8.4 MITIGATION MEASURES FOR RISK IN HIGHWAY

PROJECTS

It is evident from the highway projects, the majority of the potential

risk that are resulted in delay of the project can be prevented, few risk can be
reduced, The factors such as increase in material rate has to be accepted by
client and contractor by certain margin. Improper feasibility study will impact
the cost and time of the project due to delays caused alignment delay, land
acquisition, scope deviation from actual plan heritage and emotional issues
which should be prevented at the early stage of the project. Delay caused by
vendor selection, lack of men , material and machines should be avoided and
reduced which may lead to delay in time line completion of the project. The
climatic effect and weather condition has to be accepted. The mitigation
measures for the identified risks during the construction of a highway are
tabulated in table 8.3.
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Table 8.3: Mitigation measures for identified risks of a highway

construction project

S. No Risk factors Impact Prevent Reduce Transfer Accept

Improper feasibility Will cause impact on cost,

1 time and budget of the 
study
project

Inadequate traffic Required for designing the

2 
flow assessment road

Improper road This may lead to change in

3 
alignment the scope of work

Land acquisition Will impact the schedule

4 
problems and budget of the project

Unexpected Will affect the quality of

5 
geotechnical survey work

Heritage and Will delay the acquisition

6 
emotional issues of land

Delay in statutory Will delay the initiation of

7 
approvals work

8 Monsoon impact Will affect the execution 

of work

Delay in vendor Will delay the

9 
deciding procurement process

10 Site mobilization Will Impact the time, and 

delay the site works

Lack of men,
11 material, and Will delay the completion 
of the project
machines(3M)

Contractor Will impact on time and

12 
productivity issues cost of the project

Scope deviation
13 from agreement Will impact on time and 
cost of the project
(or) plan
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Delay in timeline of
14 completing Will impact on schedule 
and budget of the project
activities

Error in structural Will impact the time, cost

15 
design and delay the works

Natural Will increase the budget

obstructions like due to additional works
16 like bridge construction 
hills, rivers, trees,
and also impact the
etc schedule of the project

Will lead to stop the works

due to poor illumination,
Safety issues during unsafe works followed,
17 
night shift works monitoring problems etc.
which tends to big safety
issues at the end.

18 Defective work Will affect cost and time 

of the project

Losing critical staff

Will have impact on the
19 at crucial point of cost and time of the 
the project project

Lack of
20 coordination/ Will delay the completion 
of the project
communication

Safety issues due to Will delay the completion

21 
traffic of the project

Project budget
22 increases due to Will affect the budget of 
the project
price variations

Further delay in Will affect the quality of

23 
rectification works the project

Quantity variation
24 Will impact on budget 
from BOQ

Will affect cost & time if

Vendor snag list not done on time, which
25 
completion issues will affect other vendors
as well
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The risk mitigation measures for the identified risk factors in highway
construction project are summarized and are as shown in figure 8.3.

Figure 8.3 Risk mitigation for highway construction

8.5 MITIGATION MEASURES FOR RISK IN APARTMENT

PROJECTS

The study shows that in the construction of the apartment projects,

most of the threatening resources can be prevented and reduced. The risk such
as delay from government for approval, improper financial flow, poor site
management by the contractor, lack of experience by the contractor, lack of
data and survey before designing, change in foundation detail can be
prevented if proper planning and selection is done through feasibility study
will prevent the delay in project. Even proper selection of contractor will
avoid shortage of labours, defective work, rework and will avoid lack of
communication co-ordination. Demand of sand and increase in price of
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material cannot be avoided as it is process through time happening. The

mitigation measures for the identified risks during the construction of a
apartment building are tabulated in table 8.4.

Table 8.4: Mitigation measures for identified risks of a apartment

building construction project

S. No Risk factors Impact Prevent Reduce Transfer Accept

Delay in approval from Will delay the initiation

1 
government of work

This would impact the

Change in the scope of
2 time and cost of the 
the project project

3 Improper financial flow Will affect the budget of 

the project

Work gets stopped due

4 Exposure to accidents to safety issues & due to 
high risk works

Poor management of site Will impact on the

5 
by contractor monitoring of the works

Delay in subcontractor’s Will cause impact on

6 time and cost of the 
work
project

Lack of experience of Will impact on the

7 
contractors monitoring of the works

Lack of proper data and Will delay the designing

8 work and also have 
survey before designing
error in design

Will lead to
Lack of communication/ miscommunication and
9 
coordination error occurs in the work
done

Chances of project
10 manager leaving the Will delay the project 
completion
project

11 Will affect the 

Last minute design
execution and method
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change in foundation of application

Will lead to the

12 Demand of sand stoppage of works if 
failed to find alternate
materials

Change in quality of Will affect the quality

of work
13 material during 
execution

Selection of Will affect the quality

14 
inappropriate equipment of work

Will impact the

schedule, causes poor
15 Equipment shortage productivity & quality 
issues due to overtime
works.

Affects the impact on

schedule delivery, poor
16 Shortage of labours productivity & quality 
issues due to overtime
works.

Landslide during Lead temporary

17 stoppage of excavation 
excavation
work for 2 days

Water scarcity for Will affect the quality

18 
construction of work

Delay in providing water

19 connection to the site and Will delay the 
completion of works
facility

20 Defective work Will affect cost and 

time of the project

Safety issues due to Will tends to chances of

21 incidents unless not 
working in the heights
abide by safety norms

Project budget increases Will affect the budget of

22 
due to price variations the project

Further delay in Will affect the quality

23 
rectification works of the project
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Quantity variation from

24 Will impact on budget 
BOQ

Will affect cost & time

Vendor snag list if not do on time. Which
25 
completion issues will affect other vendors
as well

The risk mitigation measures for the identified risk factors in an apartment
building construction project are summarized and are as shown in figure 8.4.

Figure 8.4 Risk mitigation for apartment construction

8.6 RESULTS ON RISK MITIGATION

Majority of risk can be prevented before occurring. The prevention

is the best risk mitigation strategy followed by reduction of its severity on
construction projects.