Lumbini Engineering Management and Science College

Bhalwari, Rupandehi

MSc. Construction Management

Final defense presentation

On

Risk Management Practice in Urban Road Construction Project in Shiddharthanagar Municipality,

Rupandehi, Nepal

Supervisor: Associate Prof. Anjay Kumar Mishra

Presented by: Roshan Adhikari

Roll. No.16060071

1
 Outline
• INTRODUCTION
 Background
 Statement of the Problem
 Research Questions
 Research Objectives
 Significance of the Study
 Scope and Limitations of the Study
• LITERATURE REVIEW
• METHODOLOGY
 Research Flow Process
 Study Area
 Population and Sample size
 Data collections
 Summary of Methodology

2
 Outline
• RESULTS AND DISCUSSION
 Risk Management Practice, Contractor’s and Client’s perspective
 Risk factors
 Overall Risk Significance and allocation, Contractor’s Perspective
 Overall Risk Significance and allocation, Client’s Perspective
 Risk Management actions

• CONCLUSION AND RECOMMENDATIONS

• REFERENCES

3
 Background

Risk Management
 Constructing a road project is mainly dependent on
management of various types of risk.
 Management of risk involves identification of various risks
associated with a project and assessment thereof. Simply put,
risk management entails shifting and/or sharing risks.
 Risk considered both positive and negative events . Positive
events is called opportunity and negative events is called
threats.
 Risk Management facilities on making risk decision network.

4
 Statement of the problem

 Risk management in road project - object of attention because

of time, cost overruns and quality of the construction project.

 The management of risks is a central issue in the planning

and management of any venture.

 Road Construction industry in Nepal is suffering from the

misunderstanding of risk management including risk
identification, analysis and assessment, and that is why this
research is important, to discover the risk factors in the road
construction industry in Nepal and determine the importance
of each factors in terms of severity and allocation.
5
 Research Question

 How the top management level are aware about risk

management and what are their ways for practicing it in urban
road construction project of Shiddharthanagar Municipality,
Rupandehi, Nepal from contractor's and client's perspectives?

 What are the risk factors and severity and how could it be
allocated at urban road construction project of
Shiddharthanagar Municipality, Rupandehi, Nepal?

 What are the risk response strategies of major risk factor at

urban road construction project of Shiddharthanagar
Municipality, Rupandehi, Nepal?

6
 Objectives of study

General Objectives
• To analyze the risk management practice in urban road
construction project in Shiddharthanagar Municipality, Rupandehi,
Nepal from the contractor’s and client’s perspectives.
Specific objectives
• To access the risk management practice in urban road construction
project in Shiddharthanagar Municipality, Rupandehi, Nepal based
on contractor’s and client’s perspectives.
• To identify and analyze risk factors with their severity and allocation
from contractor’s and client’s perspectives.
• To analyze the risk response strategies of various risk factors as per
contractor’s and client’s perspectives.

7
 Significance of study

 To understand the current practices of risk management .

 To draw the attention of construction companies/professionals for
better evaluation of risk factors and
 To understand the impact of risk management practice on urban
road construction projects as well as other construction projects.
Scope
• This research explores the study of risk factors and impact for the
severity and allocation of risk in urban road construction projects in
Shiddhathanagar Municipality, Rupandehi, Nepal.
Limitation
• The limitation of this research is that, the research is limited only
on the Shiddharthanagar Municipality, Rupandehi, Nepal. Only
contractor’s and client’s perceptions were considered for the study
as consultants were considered client’s representative.
8
 Literature Review

Risk
 Risk can be defined as an uncertain event or condition that, if it
occurs, has a positive or a negative effect on a project objective
 Jaafari (2001) defined risk as the exposure to loss/gain, or the
probability of occurrence of loss/gain multiplied by its
respective magnitude.

Civil Engineering Projects

 Several stages: inception/briefing, designing, tendering,
construction and commissioning
 the parties for construction are clients, consultants/designers,
contractors, public authorities, financers and users
9
 Sources of risks

• Commercial, financial, legal, political, environmental,

communication, geographical, constructional, technological,
operational, and management risks are the check list for the
risk drivers. (Estate Management Manual, 2001).
• While the list of potential risks in every category is neither
complete, it does represent the majority of typical project risks
and demonstration the advantages of a logically developed
classification scheme (Enhassi & Mayer, 2001).

10
 Typical Risks on a construction project
According to the (Flanagan & Norman, 1993) the typical
risk on a construction project are as:
• Occurrence of accidents
• Failure to complete within the specified time.
• Failure to obtain the expected outline
• Unforeseen adverse conditions
• Unexpected rises for labor and materials
• Force majeure.
• Failure to complete the project within the client's budget.

11
 Contd..
Risk Management Process Two main phases:

Risk assessment, which includes identification, analysis and prioritization,

Risk control, which includes risk management planning, risk resolution and risk
monitoring planning, tracking and corrective action (Boehm cited in(Michael,
2001))
Risk Identification
According to (Garg, 2005) risk can be identified by:
Brainstorming
Workshops
Interview
Questionnaire survey
Feedback from similar projects
Use of specialists and
Previous experience

12
 Contd…

Risk Analysis
According to Estate Management Manual; Risk Management, 2001

 The aim is to analysis a precise and objective calculation of risk.

 It allows the decision making process to be more certain
 It involves assessing the identified risks

Methods of Risk Analysis

 Qualitative analysis focuses on identification together with assessment of
risk- Direct judgment, Ranking options, Comparing options and Descriptive
analysis
 Quantitative analysis focuses on the evaluation of risk-Probability
analysis, Sensitivity analysis, Scenario analysis, Simulation analysis (Ward,
1997)
13
 Contd…

Risk Response Practices

(Project Management Institute UK, 2004)suggested three
ways of responding to risk in projects, they are as follows:

 Avoidance: usually by eliminating the cause.

 Mitigation: by reducing the probability of occurrence. e.g.

using new technology, buying insurance, etc.

 Acceptance: accepting the consequences. e.g. by

accepting a lower profit if some activities overrun.

14
 Empirical Review on Risk Management
Global Practice on Risk Management
Abu Mousa (2005) explain in their study "Risk management in
construction project from Contractor and owner perspectives " from
Palestine that top risk factors faced by construction industry are
 Awarded design to unqualified designers
 Accepted defective design
 Occurrence of accidents because of poor safety procedures
 Difficulty to access the site (vary far, settlement)
 Inaccurate quantities
 Lack of consistency between bill of quantities, drawing and
specification
 Working a hot (dangerous) areas
 Financial failure of the contractor
 High competition in bids.
15
 Regional practice on Risk management

B.A.K.S. Parera (et.al,2014) in their paper" Enhancing the effectiveness of

risk management practices in Sri Lankan road construction project“ the top
risk factors are as :
• Delay in client decision making
• Error in estimated cost and construction period.
Suggested
• Enhancing the early involvement of contractor in conceptual and design
stages.
• Amending the contractual regulations.
• Outstanding designing and estimation to unbiased specialized service
providers.

16
 Risk management practices in Nepal
•
 
Malik K (et.al, 2017) in their paper "Factor and impact of risk management
practices on success of construction project of housing developers,
Kathmandu Nepal" had sets insights into the significant factors of risk in
construction projects of housing in Kathmandu are
 time overrun,
 project scope risks,
 financial and economical risks,
 organization risks,
 safety and health risks and
 leadership risks and leadership risks.

17
 Research Methodology

Research Flow Process

Identification of Problem

Selection of Research topic

Selection of study area

Research Question design

Data Collection

Primary Data Secondary Data

(F.G.D, In depth interview,
Interaction with local peoples, (Journal, Reports, Published and
Questionnaires survey) unpublished research paper etc.)

Data analysis &interpretation

Final report

18
 The study will be in conduct in Shiddharthanagar Municipality, Rupandehi,I den tifi ca tion of Pro ble m
S eco nd ar y D ata
(J ou rna l, R epo rts , Pu bli s h ed a nd un pub lis he d re s ea rch pa pe r e tc.)
Sel ecti on of Re s ea rch top ic
Sel ecti on of s tu dy are a
Re s e ar ch Q ue s ti on d es ig n
Data Co lle cti on
Pri ma ry D at a
(F.G .D, In d ep th i nter vie w , Int era ctio n w ith lo cal pe opl es , Qu es tion na ires s u rve y)

Nepal. It is located in southern part of Rupandehi District and border of India

Dat a a nal ys i s & in terp reta tio n
Fi na l re po rt
  
 
 
 
 
 
 
Stu dyAr ea 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3.2 Stu dy ar ea

and western part of Nepal.

 It lies on 27030' North latitudeand 83027' East longitudes.
 It covers area of 36.03 Sq.km.
Population and Sample size
 Population consists of the nearly 200 urban roads in the Shiddharthanagar
Municipality, Rupandehi, Nepal constructed by approximately 30
Construction Companies. The 29 urban roads are taken as the sample size.
 From 29 urban roads 21 Construction Company are considered as sample
size. List of the sample road inventory is shown in Annex 1.
 The sample size was selected by the convenient sampling technique. The
population consist 3 clients (Municipality, FPIU and RUDP) from which 12
responses were received out of 14 respondents.
 The schedule questionnaire was carried out with the employees of the
contractor and client.

19
 Data Collection

a)Primary Data:
Primary data were collected through field studies, questionnaire and interviews
with Project Managers and Site in charge of contractors and clients.
The questionnaires were provided to same level of personnel from contractor as
well as client
The primary data collection were done through interview with respective Project
In Charge and Project Manager at construction site as a convenient sampling.
b)Secondary Data:
The collections of secondary data were done before starting the field survey
focusing the objective of the study.
Literature review, publications, journals were collected during the research.

20
 Summary of Methodology

S.N Objectives Variables Data Collection Data Analysis

1 To access the risk Awareness about the risk management, Questionnaire survey Risk management
management practice formal or informal techniques being with clients and practice followed by
for urban road followed and various risk analyzing contractors including contractors and
construction project of techniques. reference taken field clients.
Shiddharthanagar study, interview with in
Municipality. charge and Project
Manager.

2 To identify and analyze Risk factors like Project scope, design Questionnaire survey Severity analysis and
risk factors with their and specification, quality, cost overrun, and secondary data allocation of various
severity and allocation. leadership, organizational, physical through literature review, risk factors for clients
resources mobilization and utilization, journals, publications and contractors.
technology, contractual, force majeure including reference taken
and ecological, political legal and field study, interview
social, financial and economic, safety with in charge and
health and environment, and Project Manager.
communication and network failure.

3 To analyze the risk Various potential risk of project, risk of Questionnaire survey Documentation of risk
response strategies of projects, risk response of project, with clients and response strategy with
Major risk factors. preventive and remedial methods for contractors including their preventive and
major risks. reference taken field remedial methods for
study, interview with in various risks for
charge and Project contractors and
Manager. clients.

21
 Result and discussion

Risk Management Practice, Contractor's and

Client’s perspective
a. Awareness regarding risk management,
b. Practicing risk management formally or informally,
c. Practicing the risk management formally and
d. Analyzing various risk management techniques.
 29 responses were received from contractor’s
perspective and 12 responses from client’s
perspective.

22
 Contd…

A. Management awareness regarding risk

management.
Perspectives Mean Score Standard Deviation
Contractor 3.44 0.90
Client 4.08 0.79

B. Management practicing risk management

formally or informally.
Perspectives Mean Score Standard Deviation
Contractor 3.06 0.94
Client 4.00 0.60

23
 Con td….

C. Management practicing the risk management

formally
Perspectives Mean Score Standard Deviation
Contractor 2.79 0.94
Client 3.66 0.88

D. Management analyzing various risk management

techniques.
Perspectives Mean Score Standard Deviation
Contractor 1.96 0.77
Client 2.88 1.19

24
 Risk factor

• The questionnaire include 122 risk factors

which have been categorized into fifteen
groups, these groups are
 Project scope risks
 Design and specification risks
 Quality risks
 Time overrun risks
 Cost overrun risks
 Leadership risks
25
 Contd…
 Organization risks
 Physical resources mobilization and utilization risks
 Technology risks
 Contractual risks
 Force measures and ecological risks
 Political legal and social risks
 Financial and economic risks
 Safety, health and environment risks and
 Communication and network failure risk.
26
 Project Scope Risk-
Contractor’s and Client’s perspective

Severity
No. Project Scope Risk Factor Contractor’s Client’s
Severity Severity
(1-25) (1-25)

1 Frequent changing scope 14.34 7.50

requirement
2 No analysis in change in 13.65 5.50
problem
3 Ill- defined project 12.10 5.16
4 High complexity 11.17 3.67

27
 Allocation- Contractor’s Perspective
Risk Avoid Risk Transferred Risk Shared Risk Acceptance

10.34%
No analysis in change in problem 27.59%
62.07%
0%
6.89%
Frequently changing scope requirements 17.24%
65.51%
10%
17.24%
Ill defined project scope 68.96%
13.79%
0%
65.52%
High complexity 13.79%
20.69%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80%

S.N Project Scope Risk Allocation

1 Frequent changing scope requirement Risk Avoid
2 No analysis in change in problem Risk Transferred
3 Ill- defined project Risk Shared
4 High complexity Risk Shared

28
 Allocation- Client’s Perspective
Risk Avoided Risk Transferred Risk Shared Risk Accepted
16.67%
No analysis of changes in problem 0% 17%
67%
16.67%
Frequent changing scope requirement 0% 17%
67%
75.00%
Ill- defined project 0% 25%
0%
83.33%
High Complexity 0% 17%
0%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

S.N Project Scope Risk Allocation

1 Frequent changing scope requirement Risk Accepted
2 No analysis in change in problem Risk Accepted
3 Ill- defined project Risk Avoided
4 High complexity Risk Avoided

29
 Overall Risk Significance and Allocation, Contractor’s
Perspective

Severity
S.N Risk Factors Severity Group
(1-25)
Most important risk
1 Land acquisition delay 24.48 Political, legal and social
2 Strike 23.10 Political, legal and social
3 Payment Problem 21.89 Contractual 
4 Corruption 20.82 Political, legal and social
5 Inaccurate activity time estimates 20.51 Time overrun 
Least Important Risk categories
1 No backup data available 4.34 Communication and Network 
2 Pollution 3.17 Political, legal and social
3 Pollution 1.51 Communication and Network 
4 Landline phone not working properly 1.41 Communication and Network 

5 Non availability of anti-virus to 1.24 Communication and Network 

safeguard office computer

30
 Overall Allocation-Contractor
Risk Accepted
S.N Risk Description S.N Risk Description
1 Incorporation of new construction technology 20 Change order negotiations
2 Re-working defects 21 Extra work variation
3 Poor quality material 22 Payment problem
4 No soil investigation 23 Acts of god
5 Incomplete WBS 24 Ecological damage
6 Delay payment on contract 25 Epidemics
7 Constantly change market conditions 26 Change in government policies, regulations,
rules, laws
8 No extra work control 27 Pollution
9 Planning with resources management 28 waste treatment
10 Inadequate communication infrastructure 29 Local regulation
11 Inadequate and procurement of resources 30 Permits and regulation
12 low quality 31 Investment risk
13 Local requirement 32 Inflations
14 Waste 33 Local and national taxes
15 Special equipment and materials delay 34 Effect of time and cost overrun
16 Low productivity 35 Internet server breakdown
17 Damage during construction due to negligence 36 Landline phone not working properly
18 Inadequate information in new technology 37 High electricity fluctuations
19 Error or omission in bills of quantities 38 Non availability of anti-virus software to
safeguard office computers
31
 Risk Shared

S.N Risk Description S.N Risk Description

1 Frequent changing scope requirement 13 Incomplete assessment of project time, cost
2 No analysis of changes in problem 14 Inaccurate cost estimate
3 Inadequate design information 15 Barriers/ information communication
4 Unrealistic specification 16 Conflict among staff and participating
organization
5 Difficulties in interaction of design 17 Lack of coordination
changes
6 Inaccurate quantities 18 Poor communication
7 No soil investigation 19 project being too complex for the resources
available
8 Unachievable quality control 20 Incorrect documentation of claims and
disputes
9 Problem in quality control 21 Blockade
10 Inaccurate activity time estimates 22 Land acquisition delay
11 Unrealistic time schedule 23 Disputes among parties
12 Inability to take timely the corrective
action

32
 Risk Avoided

S.N Risk Description S.N Risk Description

1 High Complexity 16 Bad weather and working condition
2 Untrained manpower 17 Accidents
3 No quality assurance plan 18 Thief and fraud
4 Ineffective control system 19 Lack of safety and hygiene measure
5 No database 20 Lack of managerial skills
6 No project vision 21 Strike
7 No team building 22 Corruption
8 Unsafe working condition 23 Crime and insecurity
9 High turnover of critical team member 24 Accidents/strikes/work stoppage and
worker perceptions
10 Lack of senior management support 25 Unsafe working condition
11 High rate sickness and absenteeism 26 Non-conformance to statutory
requirement
12 Poor motivation of participants 27 Absence of safety audit
13 Wrong selection of project management 28 Loss of data due to network problem
14 poor assignment/allocation of tasks and 29 Lack of resources
responsibilities
15 Inappropriate organizational network 30 Ineffective information management
system

33
Risk Transferred
S. Risk Description S.N Risk Description
N
1 Ill- defined project 10 Non standard and inconsistent
condition of contract
2 Likelihood of design change 11 Insufficient time to prepare bid
tenders
3 Poor design 12 Change in work
4 Non- conformity with national 13 Unrealistic tender amount
and local specification
5 Right of way analysis in error 14 Rush bidding
6 No formal sequencing plan 15 Quality of work and time constant
7 Inadequate cost planning and 16 Delay disputes resolution
control
8 No analysis of changing 17 Cash flow problems
9 Unrealistic expectation
34
 Risk Undecided

S. Risk Description S.N Risk Description

N
1 Absence of approved soil and
material testing laboratories
2 Unsatisfactory conduct of status
review
3 Inflexible and unrealistic project
plans
4 Insufficient liaison with public
services
5 No project manual/documented
procedures/process
6 Inflexible and unrealistic project
plans
7 Unsatisfactory conduct of status
review
8 Non- availability of spare parts
9 Non- replacement in new technology
10 Non-availability of competent and
professional staff to use new
technology
11 Insufficient insurance and surety
12 Demand scenario and constantly
changing market conditions
13 Escalations of prices
14 No backup of data available

35
Overall Risk Significance and Allocation, Client’s
Perspective
Severity
S.N Risk Factors Severity Group
Most important risk
1 Land acquisition delay 16.00 Political, legal and social
2 15.50 Physical resources, mobilization and
Low productivity utilization
3 Special equipment and material delay Physical resources, mobilization and
14.40 utilization
4 Inaccurate cost estimate 13.66 Cost Overrun
5 Accidents/strikes/work stoppage and Safety, Health and Environment 
worker perception 13.16
Least Important Risk categories
1 Internet server break down 2.5 Communication and Network 
2 Epidemics 2.08 Force measures and ecological
3 Landline phone not working properly Communication and Network 
1.83
4 Local and national taxes 1.5 Financial and economical
5 Non availability of anti-virus to Communication and Network 
safeguard office computer 1

36
 Contd…
 The spearman's rank correlation between contractor's
perspective and client's perspective is 0.4 which is
very less. So, it is concluded that risk significance
between them is very poor.
 This result is supported by (Shakya.S et.al, 2019)
which gives the spearman's rank correlation between
(employer and contractor) is 0.44.

37
 Overall Allocation- Client’s Perspective
Risk Accepted
S.N Risk Description S.N Risk Description
1 Frequent changing scope requirement 18 Local requirement
2 No analysis of changes in problem 19 Non standard and inconsistent condition of
contract
3 Inadequate design information 20 Insufficient time to prepare bid tenders
4 Unrealistic specification 21 Unrealistic tender amount
5 Inaccurate quantities 22 Change order negotiations
6 Poor design 23 Change in work
7 Non- conformity with national and local 24 Change in government policies,
specification regulations, rules, laws
8 Right of way analysis in error 25 Permits and regulation
9 Likelihood of design change 26 Disputes among parties
10 No method statement 27 Local regulation
11 Inaccurate cost estimate 28 Local and national taxes
12 Inadequate cost planning and control 29 Cash flow problems
13 Delay payment on contract 30 Non availability of anti-virus software to
safeguard office computers
14 No analysis of changing 31 Landline phone not working properly
15 Constantly change market conditions 32 High electricity fluctuations
16 Lack of senior management support 33 Internet server breakdown
17 Inadequate communication infrastructure 34
38
 Risk Shared

S.N Risk Description S.N Risk Description

1 Difficulties in interaction of 12 Barriers/ information communication
design changes
2 Unachievable quality control 13 Project being too complex for the
resources available
3 Problem in quality control 14 Special equipment and materials delay
4 Inaccurate activity time estimates 15 Payment problem
5 Unsatisfactory conduct of status 16 Incorrect documentation of claims and
review disputes
6 No formal sequencing plan 17 Quality of work and time constant
7 Unrealistic time schedule 18 Acts of god
8 Unrealistic expectation 19 Ecological damage
9 Poor communication 20 Blockade
10 Conflict among staff and 21 Land acquisition delay
participating organization
11 Lack of coordination 22 Delay disputes resolution

39
 Risk Transferred
S.N Risk Description S.N Risk Description
1 Incorporation of new construction 17 Damage during construction due to
technology negligence
2 Re-working defects 18 Inadequate information in new technology
3 No soil investigation 19 Non-availability of competent and
professional staff to use new technology
4 Poor quality material 20 Delay in possession of site
5 Absence of approved soil and material 21 Error or omission in bills of quantities
testing laboratories
6 No quality assurance plan 22 Extra work variation
7 Incomplete WBS 23 Pollution
8 Incomplete assessment of project time, cost 24 waste treatment
9 Inability to take timely the corrective action 25 Investment risk
10 No extra work control 26 Inflations
11 Inflexible and unrealistic project plans 27 Escalations of prices
12 Planning with resources management 28 Effect of time and cost overrun
13 Inadequate and low quality procurement of 29 Unsafe working condition
resources
14 Non- availability of spare parts 30 Non-conformance to statutory requirement
15 Waste 31 Absence of safety audit
16 Low productivity 32 Accidents/strikes/work stoppage and worker
perceptions

40
 Risk Avoided

S.N Risk Description S.N Risk Description

1 High Complexity 15 Bad weather and working condition
2 Ill- defined project 16 Accidents
3 Untrained manpower 17 Thief and fraud
4 No database 18 Lack of safety and hygiene measure
5 Ineffective control system 19 Lack of managerial skills
6 Inflexible and unrealistic project plans 20 Rush bidding
7 No project vision 21 Epidemics
8 No team building 22 Crime and insecurity
9 Poor motivation of participants 23 Corruption
10 High turnover of critical team member 24 Strike
11 High rate sickness and absenteeism 25 Loss of data due to network problem
12 Unsafe working condition 26 No backup of data available
13 Inappropriate organizational network 27 Lack of resources
14 No project manual/documented 28 Ineffective information management
procedures/process system

41
 Risk Undecided

S.N Risk Description S. Risk Description

N
1 Insufficient liaison with public 5 Non- replacement in new
services technology
2 Poor assignment/allocation of 6 Insufficient insurance and surety
tasks and responsibilities

3 Wrong selection of project 7 Demand scenario and constantly

management changing market conditions

4 Unsatisfactory conduct of status 8

review

42
 Risk Response Strategy

Various methods to identify potential risk of the project, Contractor's and Client's
perspectives.

100.00% 89.65%
90.00% 83.33%
80.00% 75.00%
68.96%
70.00%
60.00% 50.00% 50.00%
50.00% 44.82%
40.00% 33.33%
30.00%
20.00% 13.79%
8.33%
10.00% 3.44% 0.00%
0.00%
t er g t rs
en ist on in ec he
m g ini r m r oj t
u Re Op O
oc t sto rP
D isk er ia n ila
ct R
tra Ex
p Br Sim
n m
Co Fro
k
b ac
eed
F

Contractor's perspective Client's perspective

43
Various methods to analyze risk of the project,
Contractor's and Client's perspective.
80.00%
72%
70.00% 66.67%

60.00% 58.33% 58.33% 59%

50.00%
41.67%
40.00% 38%
33.33%
30.00% 25.00%
20.00% 16.67%
14% 14%
10.00%
0% 0% 0.00% 0%
0.00%
t n is is is is is is
en tio lys lys lys lys lys lys
m p a a a a a a
dg gO An An An An A n An
Ju ik n g e y ve io on
re
ct n ain tiv ilit iti ar ati
i Ra r ir p ab s n l
D pa sc ob Se
n
Sc
e u
Co m De Pr Sim

Contractor's Perspective Client's Perspective

44
 Various methods to response risk of the project,
Contractor's and Client's perspective.
90.00% 82.75%83.33%
80.00% 72.41%
70.00% 66.67%
58.33%
60.00%
50.00% 41.67% 41.37%
40.00%
30.00% 20.68% 24.13%
20.00% 16.67%
10.00% 0.00% 0.00%
0.00%
isk isk lan isk isk rs
r r p r er the
the the cy the th O
g g en fe
r on
tin id
in ng
ns ati
cep vo nti a g
Ac A co Tr iti
a M
re
epa
pr
d
k an
ris
he
ort
it
on
M

Contractor's Perspective Client's Perspective

45
Preventive methods, Contractor's and Clients
perspectives
80.00% 70.35% 68.96%
63.33% 65.00% 62.75%
60.00% 56.66% 55.00%
53.80% 55.00%

40.00% 29.65%
20.00%
0.00%

Contractor's perspective Client's Perspective

46
Remedial Methods, Contractor's and Client's
perspectives
100.00%
90.00% 86.89% 88.33% 84.82%
80.00% 75.00%
70.00% 64.82% 61.66%
59.31% 58.33%
60.00% 55.17% 58.33%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

Contractor's Perspective Client's Perspective

47
 Conclusion

This research indicates that from contractor's perspective, respondents

believe that their top managements aware regarding the risk
management with mean score of 3.44, managed formally or informally
3.06, managed only formally 2.79 and by managing various techniques of
1.96 where as from client's perspective ,respondents believe that their
top managements aware regarding the risk management with mean
score of 4.03, managed formally or informally 4.0, managed only
formally 3.66 and by managing various techniques of 2.66.

Based on the contractor's perspective, land acquisition delay is the top

risk factor shared with client where from client’s perspective shared with
contractor’s.

48
 Contd…
• From the contractor perspective, risk accepted (31.14%) ,
shared risk with client (18.35%), transferred risk to client
(13.93%), avoids the risk (24.59%) and undecided risk
(11.47%) where as clients accept risk (27.04%) , shared risk
with contractors (18.03%), transferred to contractors
(26.22%), avoids the risk (22.90%) and undecided risk
(5.73%).
• The response strategy from the contractor's perspective
for various methods to identify potential risk of the project,
feedback from the similar project plays the most significant
role with 89.65% where as for client’s perspective 83.33%.

49
 Contd…
 In addition for various methods to response
risk of the project, monitor the risk and
prepare the contingency plan plays the most
significant role with 82.75%. where as for
client’s perspective 83.33%.
 Transfer or share risk to/with other parties
referring previous and ongoing similar projects
was the most applied to prevents risk events
by the contractor and depend on subjective
judgment by the client.
50
 Recommendation

• Risk should be managed by one who is capable of

managing the particular risk.
• There should be risk register at site.
• Effective cash flow management should be enforced.
• Clients and contractors should conduct continuous
training programs to advance managerial and financial
practices.
• The government, non-government, clients as well as
contractors should develop a risk management
manual.
51
 Proposed future studies
It is recommended that the researchers who are
interested to conduct thesis work in risk
management field can study on:
• To study the risk management practice in nation
highway construction project in Nepal..
• Challenges for road contractors to follow formal
risk management methods in Nepalese context.
• Improvement required for road contractors in risk
management practice.
52
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58
Thank You

59