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CHAPTER 6

RISK CONTRIBUTION

6.1 GENERAL

In this step, the risk contribution in terms of time, cost, quality and
safety in the project are arrived to find their impact on the project
correspondingly. It is essential, to monitor and control risks throughout the
stages of projects for the successful completion of project within the
stipulated time and estimated cost without compromising quality thereby
ensuring safety.

The contribution of risk factors in terms of time, cost, quality and

safety were assessed and grouped under the corresponding groups which have
been categorized for each of the three stages of construction.

6.2 RISK CONTRIBUTION FOR INDUSTRIAL PROJECT

The factors causing potential threats for the successful completion

of the project in terms of Time, Cost, Quality and Safety that are being highly
alarming in industrial construction projects during each stage are discussed
herewith.
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6.2.1 Identified Risk Factors In Order To Make Their Risk Contribution

During Pre-Construction Stage

Table 6.1: Risk Contribution- Pre Construction Stage

Pre-Construction Stage
S.No Risk factor Impact Time Cost Quality Safety

This would impact the

scope of works and
1 Client Brief not obtained  
impact overall budget
for the project.

Will affect legally if it

Delay in Contractor's
2 Invoices will not be
Agreement Sign-off
Delay in Finalization of the
3 
project organization chart
Delay in Finalization of the
4 
communication protocol
Delay in Due diligence
documents (topographical
5 plan, geotechnical survey
and environment
assessment )
Delay in Concept &
6 Project Brief Finalization
including desired budget
Delay in finalising the
7 
vendors by client
Delay in Master plan
8 
finalization
Design Delivery Schedule
9 may not sent by the
architect in time
Design Brief Report may
10 not prepared by the
architect
List of packages for
11
Tender may not finalised
Delay in Scope delineation
12
matrix
Master schedule to be
14
approved
Delay in issuing the tender
15
drawings for all works
is not done on time also

raised without the
agreement sign-off.
Discuss with Client for

early Finalization
Discuss with Client for

early Finalization
Will impact the time;
  
and design
Will impact the start of
  
design
delay the start of works
at site
Will impact design
detailing
This would delay the
tender document  
submission
This would in turn
impact time and budget  
for the project.
Delay in tendering 
Duplication of works or
additional works and
there by impacting time   
and overall budget for
the project.
Affect the tracking part

if not approved on time.
Will affect the entire
Master schedule &

Tender event
schedule(TES)
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6.2.2 Identified Risk Factors In Order To Make Their Risk Contribution

During Construction Stage

Table 6.2: Risk Contribution- Construction Stage

Construction Stage
S.No Risk factor Impact Time Cost Quality Safety
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
3 Resizing of Project   
entire 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
5 Variation change based budget if not found in  
on the revisions in appropriate 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   
Need of Construction
Will impact the
11 power and water    
construction start up
supply
Will impact the
12 General lighting    
construction start up
Security and
Will impact the
13 surveillance during 
construction start up
construction stage
Housekeeping / waste
Will impact the
14 disposal during  
construction 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
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6.2.3 Identified Risk Factors In Order To Make Their Risk Contribution

For Completion Stage

Table 6.3: Risk Contribution- Completion Stage

Completion Stage
S.No Risk factor Impact Time Cost Quality Safety
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
Will Impact the overall
path - due to delays in
6 schedule due to other vendor    
executing target
depending activities
completion dates
Vendor may go
Will have change to get the
7 legally for their claim  
claim if go legally
raised
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 Delay in completion of
12 of machinery machinery installation works  
installation 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
No proper documents
All proper test report and
of the Inspection test
documents must be
14 procedures done at 
maintained at site as per
site 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
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6.2.4 Result

The various parameters and factors causing significant impact over

time, cost, quality and safety during each stages of construction with their
contribution percentage are tabulated as below:

Table 6.4:Result for Risk Contribution – Industrial Construction

S.No. Stages Time Cost Quality Safety

1 Pre-Construction Stage 14 02 08 01
2 Construction Stage 11 11 11 04
3 Completion Stage 10 11 07 03

From the table it is evident that during each stages significant impact is on
time and in all cases throughout the construction project it’s on time which is
highly affected. Hence it is recommended that the factors contributing to the
time has to be focused and eliminated.

Figure: 6.1 Results for Risk Contribution – Industrial Construction

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6.3 RISK CONTRIBUTION FOR COMMERCIAL PROJECT

The factors causing potential threats for the successful completion

of the project in terms of Time, Cost, Quality and Safety that are being highly
alarming in commercial construction projects during each stage are discussed
herewith.

Table 6.5 : Risk contribution for Commercial projects

S. No Risk factors Impact Time Cost Safety Quality

1 Chances of Will have chance beyond the

reconciliation on final quantity & have impact on 
bills for all vendors budget

2
Quantity variation
Will impact on budget 
from BOQ

3 Vendor Snag list Will affect cost & time if not

do on time. Which will affect  
completion issues
other vendors as well

4 Finalizing of Vendor
Additional Claim Will impact the Overall

beyond contract budget allotted
duration

5 Closeout in Hurry. Improper close out.    

6 Monsoon impact Will affect the execution of    

work

7 Delay in vendor Will delay the procurement  

deciding process

8 Site mobilization Will Impact the time, and  

delay the site works

9 Lack of men, Will delay the completion of  

material, and the project

machines(3M)
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10 Contractor Will impact on time and cost   

productivity issues of the project

11 Scope deviation from Will impact on time and cost  

agreement (or) plan of the project

12 Delay in timeline of Will impact on schedule and  

completing activities budget of the project

13 Error in structural Will impact the time, cost    

design and delay the works

14 Will cause delay in

Delay in Materials
execution which tends to   
Delivery
delay in overall schedule

15 Administrative works Lack of Administration.  

16 Permanent power Additional cost will come   

17 Lack of coordination/ Will delay the completion of   

communication the project

18 Delay in Concept &

Project Brief Will impact the start of
  
Finalization including design
desired budget

19 Delay in Master plan

Will impact design detailing 
finalization

20 Housekeeping / waste
Will impact the construction
disposal during  
start up
construction stage

21 Defective work    
Will affect cost and time of
the project

22 Losing critical staff at Will have impact on the cost   

crucial point of the and time of the project

project

23 Further delay in Will affect the quality of the   

rectification works project
 200

24 Chances of project Will delay the project  

manager leaving the completion

project

25 Delay in Will cause impact on time  

subcontractor’s work and cost of the project

Figure 6.2 Risk contributions for Commercial projects

6.4 RISK CONTRIBUTION FOR HIGHWAY PROJECTS

Similarly the risk contribution factors has been listed as in the table
below for Highway projects for all the three stages which are added together
to minimize the size of the study.
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Table 6.6: Risk contribution for highway projects

S. No Risk factors Impact Time Cost Safety Quality

1 Improper feasibility Will cause impact on time and    

study budget of the project

2 Inadequate traffic flow Required for designing the    

assessment road

3 Improper road This may lead to change in the   

alignment scope of work

4 Land acquisition Will impact the schedule and  

problems budget of the project

5 Unexpected Will affect the quality of work    

geotechnical survey

6 Heritage and emotional Will delay the acquisition of  

issues land

7 Delay in statutory Will delay the initiation of 

approvals work

8 Monsoon impact Will affect the execution of    

work

9 Delay in vendor Will delay the procurement  

deciding process

10 Site mobilization Will Impact the time, and  

delay the site works

11 Lack of men, material, Will delay the completion of  

and machines(3M) the project

12 Contractor productivity Will impact on time and cost   

issues of the project

13 Scope deviation from Will impact on time and cost  

agreement (or) plan of the project

14 Delay in timeline of Will impact on schedule and  

completing activities budget of the project
 202

15 Error in structural Will impact the time, cost and    

design delay the works

16 Natural obstructions Will increase the budget due to  

like hills, rivers, trees, additional works like bridge
construction and also impact
etc
the schedule of the project

17 Safety issues during Will lead to stop the works   

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

18 Defective work Will affect cost and time of the   

project

19 Losing critical staff at Will have impact on the cost   

crucial point of the and time of the project

project

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

communication the project

21 Safety issues due to Will delay the completion of   

traffic the project

22 Project budget Will affect the budget of the 

increases due to price project

variations

23 Further delay in Will affect the quality of the   

rectification works project

24 Quantity variation from Will impact on budget 

BOQ

25 Vendor snag list Will affect cost & time if not  

completion issues done on time, which will
affect other vendors as well
 203

Figure 6.3 Risk contributions for highway projects

6.5 RISK CONTRIBUTION FOR APARTMENT PROJECTS

The same procedure has been adopted for the all stages of construction in
apartment projects and correlated against Time, Cost, Quality and safety
based on their impact over the projects and further the results are tabulated as
follows:

Table 6.7: Risk contribution for apartment projects

S. Risk factors Impact Time Cost Safety Quality

No

1 Delay in approval from Will delay the initiation of 

government work

2 Change in the scope of the This would impact the time  

project and cost of the project

3 Improper financial flow Will affect the budget of 

the project
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4 Exposure to accidents Work gets stopped due to    

safety issues & due to high
risk works

5 Poor management of site by Will impact on the    

contractor monitoring of the works

6 Delay in subcontractor’s Will cause impact on time  

work and cost of the project

7 Lack of experience of Will impact on the    

contractors monitoring of the works

8 Lack of proper data and Will delay the designing    

survey before designing work and also have error in
design

9 Lack of communication/ Will lead to    

coordination miscommunication and
error occurs in the work
done

10 Chances of project manager Will delay the project  

leaving the project completion

11 Last minute design change Will affect the execution  

in foundation and method of application

12 Demand of sand Will lead to the stoppage   

of works if failed to find
alternate materials

13 Change in quality of Will affect the quality of   

material during execution work

14 Selection of inappropriate Will affect the quality of   

equipment work

15 Equipment shortage Will impact the schedule,  

causes poor productivity &
quality issues due to
overtime works.

16 Shortage of labours Affects the impact on  

schedule delivery, poor
productivity & quality
issues due to overtime
works.
 205

17 Landslide during excavation Lead temporary stoppage   

of excavation work for 2
days

18 Water scarcity for Will affect the quality of   

construction work

19 Delay in providing water Will delay the completion 

connection to the site and of works

facility

20 Defective work Will affect cost and time of   

the project

21 Safety issues due to working Will tends to chances of   

in the heights incidents unless not abide
by safety norms

22 Project budget increases due Will affect the budget of 

to price variations the project

23 Further delay in rectification Will affect the quality of  

works the project

24 Quantity variation from Will impact on budget 

BOQ

25 Vendor snag list completion Will affect cost & time if  

issues not do on time. Which will
affect other vendors as well
 206

Risk contribution- Apartment

projects
25 23
21
20
Number of Factors

15
10
10 8

0
Time Cost Safety Quality
Category

Figure 6.4 Risk contribution for apartment projects

6.6 RESULT
Various risk factors which are identified from literatures and field
observations for industrial, commercial, highway and apartment projects
contributed to some or all of the aspects viz. time, cost, quality and safety
during pre-construction, construction and completion stages of the
construction project. The majority of the risks are contributed mainly due to
time and cost.