Survey on

Name:
Cadre:
Years Of Experience:
Current Department:
Current Project:
Field of Experience (mostly):

Sl No.

Risk Identification

When the risk arises

What is the Probability of

Risk

What is the impact of the

Risk

Remote Level Risk

Economic
1

Source of Funding (negative impact on cashflow due to long

process of approvals at source.)

Foreign funding due to non availability of funds at source

country.

Inflation

During Construction Time

Likely

Minor

Liquidity Crunch

During Construction Time

Unlikely

High

High Interest Rates

Political

7
8

Change of Leadership

Corruption
Incompetent Administrative process
Legislature

During Financial Closure & Mobiliza Possible

Moderate

During Construction Time

Extreme

Rare

9
10
11
12
13
14
15
16
17

18
19
20
21
22
23
24

25

26
27
28
29
30

Changes in legislature
Delay in Environment Clearance
Delay in Clearance for mining/excavation/boring etc
Delay in Traffic Clearance
Issues with Local Police
Arbitration/Litigation
Environment
Extension of Monsoon
Unforseeable Soil Conditions
Pollution ex. Muck disposal, oil spillage

During Financial Closure & Mobiliza Possible

Extreme

During Construction Time

During Construction Time

Possible
Possible

Moderate
Moderate

Flood
Earthquake
Tsunami
Fluctuations in Tidal Conditions
Extreme Summer
Extreme Winter
Hilly Terrain
Social Conditions

During
During
During
During
During
During

Rare
Rare
Rare
Rare
Rare
Rare

High
High
High
High
Moderate
Moderate

During Construction Time

Possible

High

During
During
During
During
During

Time
Time
Time
Time
Time

Possible
Rare
Possible
Unlikely
Possible

High
Insignificant
Minor
Minor
Insignificant

Local Hostility

Land Acquisition Problems

Cultural & Linguistic Differences
Non-availability of local skilled labour
Dispute with local land owners
Bad local Road conditions
International Conditions

Construction
Construction
Construction
Construction
Construction
Construction

Construction
Construction
Construction
Construction
Construction

Time
Time
Time
Time
Time
Time

31
32

War Likelihood
Currency Fluctuations

During Construction Time

During Construction Time

Rare
Possible

High
Moderate

33

Vendor Base Creation (Delay in procurement process due to

time lapse in vendor base formation in international markets.)

During Construction Time

Possible

Moderate

34

Delay due to lack of knowledge of international taxes & duties

During Construction Time

Possible

Moderate

35
36

High Interest Rates of borrowing from international markets.

Delay due to media Interruption
Operating Level Risk
Clients
37
Delayed Payment of Bill
38
Non settlement of claim
39
Non-clarity in responses to contractual letters
40
Encashing the PBG
41
Delay in final Bill payment
42
Non clarity in preference of documents
43
Inadequate time available for bidding
44
Pre-tender data provided/not provided
45
Improper Setting Out & inadequate Site Data
46
Non sufficiency of ROW
47
Selection of subcontractor
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

Non- availability and/or non-performance of Nominated

subcontractor
Price Variation
Suspension of Works
Taking over parts of works
Ommisions in BOQ (in Item Rate Contract)
Employer's risks
Design Risk-Item rate contract (as quantity variaton will not
cause price variation upto a certain limit).
Default of employer
Delay in Dispute Resolution
Consultant/Engineer
Delay in Bill Certification
Delay in SOP Approval (idling of resources due to non-approval
of method statement.)
Delay in Quality Assurance Plan approval
BOQ quantity variation (as quantity variation will not cause
price variation upto a certain limit.)
Delay in approval of Initial Construction Program
Delay in Variation approval/non approval
Delay in EOT approval/non approval
Suppliers
Delay in supply
Inferior Quality of supply
Supplier's monopoly
Technical incompetency
Commercial incompetency
Supply incapability
Competition
PQ Qualification criteria
Aggressive approach of competition
Top Management (unrealisitc commitments)

During Construction Time

Rare

Insignificant

During
During
During
During
During
During
During
During
During
During
During

Time
Time

Possible
Possible
Possible
Unlikely
Possible
Possible
Possible
Possible
Possible
Unlikely
Unlikely

Minor
Moderate
Minor
High
Moderate
Minor
Moderate
Moderate
Minor
Minor
Minor

During Construction Time

During Construction Time
During Construction Time

Unlikely
Likely
Unlikely

Minor
Minor
High

During Construction Time

Likely

Minor

During Construction Time

During Construction Time
During Construction Time

Likely
Rare
Rare

Minor
High
High

During Construction Time

Possible

Minor

During Construction Time

During Construction Time

Possible
Possible

Minor
Minor

During
During
During
During

Construction
Construction
Construction
Construction

Time
Time
Time
Time

Possible
Possible
Possible
Possible

Minor
Minor
Minor
Minor

During
During
During
During
During
During

Construction
Construction
Construction
Construction
Construction
Construction

Time
Time
Time
Time
Time
Time

Possible
Unlikely
Possible
Unlikely
Unlikely
Unlikely

Minor
Minor
Minor
Moderate
Moderate
Moderate

Likely

High

Construction
Construction
Construction
Construction
Construction
Construction
Tender Time
Tender Time
Tender Time
Construction
Construction

During Tender Time

Time
Time
Time
Time
Time
Time

Internal Risk
Structure
73
Management Structure
74
Internal Structure of approval
75
Project Organization Structure

During Construction Time

During Construction Time
During Construction Time

Unlikely
Unlikely
Unlikely

Minor
Minor
Minor

75
76
77

During Construction Time

During Construction Time
During Construction Time

Possible
Unlikely
Possible

High
Minor
Minor

During
During
During
During
During
During
During
During

Rare
Possible
Possible
Possible
Possible
Possible
Possible
Possible

Insignificant
Minor
Minor
Minor
Insignificant
Insignificant
Minor
Minor

78
79
80
81
82
83
84
85

JV/Consortium Partner Issues

Appraisal Process
Delay In payment to vendors
Strategy
Internal/External Hire
make or buy decision
Logistics of imported Items
Logistics of domestic Items
Wastage in basic material
Theft
Lower Productivity
Subcontractor/Vendor Selection Criteria

Construction
Construction
Construction
Construction
Construction
Construction
Construction
Construction

Time
Time
Time
Time
Time
Time
Time
Time

Survey on Risk Analysis for Infrastructure Projects

Risk Rating at a
scale of 5X5

Who has ultimate

responsibility of the
risk

Should we keep a
contingency for this
risk

Risk Treatment

0
0

Client

Yes

Contractor

No

Contractor

Yes

Client

No

Risk Retention- Put monetary contingen

Mitigate impact- reduce consequence of

0
15
0
0
0
0

Contractor

Yes

Mitigate impact- reduce consequence of

9
9
0

Contractor
Contractor

Yes
Yes

Risk Retention- Put monetary contingency

Risk Retention- Put monetary contingency

4
4
4
4
3
3
0

Contractor
Contractor
Contractor
Contractor
Contractor
Contractor

Yes
Yes
Yes
Yes
Yes
Yes

InsuranceInsuranceInsuranceInsuranceInsuranceInsurance-

12

Client

No

12
1
6
4
3

Client
Not Applicable
Contractor
Contractor
Contractor

No
No
Yes
No
No

Risk Retention- Put monetary contingency

4
9

Contractor
Contractor

Yes
Yes

Insurance- CAR, Transit insurance etc.

Risk Retention- Put monetary contingen

Contractor

Yes

Avoid Risk- Try & eliminate source of risk

Contractor

Yes

Avoid Risk- Try & eliminate source of risk

CAR,
CAR,
CAR,
CAR,
CAR,
CAR,

Transit
Transit
Transit
Transit
Transit
Transit

insurance
insurance
insurance
insurance
insurance
insurance

etc.
etc.
etc.
etc.
etc.
etc.

0
1

Not Applicable

Yes

Avoid Risk- Try & eliminate source of risk

6
9
6
8
9
6
9
9
6
4
4

Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No

Risk Retention- Put monetary contingency

Share Risk- Subcontract or outsource
Avoid Risk- Try & eliminate source of risk
Avoid Risk- Try & eliminate source of risk
Share Risk- Subcontract or outsource
Share Risk- Subcontract or outsource
Risk Retention- Put monetary contingency
Share Risk- Subcontract or outsource
Share Risk- Subcontract or outsource

4
8
8
0
8
0

Contractor
Contractor
Contractor

No
yes
No

Contractor

No

8
0
4

Contractor
Contractor
Contractor

No
No
No

Risk Retention- Put monetary contingency

Contractor

Yes

Avoid Risk- Try & eliminate source of risk

6
6

Contractor
Contractor

Yes
Yes

Avoid Risk- Try & eliminate source of risk

Avoid Risk- Try & eliminate source of risk

6
6
6
6

Contractor
Contractor
Contractor
Contractor

Yes
Yes
Yes
Yes

Risk Retention- Put monetary contingency

Avoid Risk- Try & eliminate source of risk
Avoid Risk- Try & eliminate source of risk
Avoid Risk- Try & eliminate source of risk

6
4
6
6
6
6

Contractor
Contractor
Contractor
Contractor
Contractor
Contractor

Yes
Yes
Yes
Yes
Yes
Yes

Avoid Risk- Try & eliminate source of risk

Avoid Risk- Try & eliminate source of risk
Avoid Risk- Try & eliminate source of risk
Risk Retention- Put monetary contingency
Risk Retention- Put monetary contingency
Avoid Risk- Try & eliminate source of risk

0
0
0

Contractor

Yes

Share Risk- Subcontract or outsource

Risk Retention- Put monetary contingency

0
0
0

Contractor
Contractor
Contractor

No
No
No

0
0

Contractor
Contractor
Contractor

Yes
No
Yes

0
0
0
0
0
0
0
0

Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor
Contractor

No
Yes
Yes
Yes
Yes
Yes
Yes
Yes

0
Mitigate impact- reduce consequence of
Share Risk- Subcontract or outsource

Avoid Risk- Try & eliminate source of risk

Avoid Risk- Try & eliminate source of risk
Avoid Risk- Try & eliminate source of risk
Risk Retention- Put monetary contingency
Insurance- CAR, Transit insurance etc.
Share Risk- Subcontract or outsource
Share Risk- Subcontract or outsource

Real Life example of occurrence &/or treatment of risk with as much of detailing as possible

Qatars construction inflation could peak to 18% during the World Cup building boom between 2016 and 2019.
Due to the cyclical nature of demand for construction, construction tender price inflation fluctuates much more than the consumer price index (CPI), it said, adding in
relatively small construction markets such as Qatar, the ability of the supply chain to absorb fluctuations in workload is limited.

Gammon India: (2012-2013)

The company had good pipeline of construction projects and the order book was almost Rs 15,000 crore in March 2012. Higher order book enabled the company to grow in
terms of sales, but that was accompanied by the pressure on the balance sheet. During 2012 the company made a sales turnover of about Rs 8080 crore.
However this also led to higher inventory and debtors in the books. In FY12 its working capital stood at Rs 3,256 crore which was almost 40% of the turnover of the company.
Higher working capital needs and cash needed to manage day-to-day business led to higher borrowings
Result:
In march, 2013 Gammon India announced its plan to restructure its debt with the lenders through the corporate debt restructuring. Though this should have had a positive
rub-off on its share price instead its stock fell almost 6% post the announcement.
2008, The rates at which banks are lending was as high as 13.25 per cent which led to decline of PBT of all major construction firms inlcuding L&T.
Many of the highway project on PPP model was stalled because of the inability of the contractor to achieve financial closure
Male Airport dispute
In 2010, GMR and Malaysia Airports (in a 77:23 partnership) had won the contract to upgrade Males Ibrahim Nasir International Airport for a total cost of $511 million. The
25-year concession agreement involved upgrading the terminal, as well as setting up a new one to expand the capacity.

2002-2003 Taj Corridor case

In the scam, former Uttar Pradesh chief minister Mayawati and a minister in her government, Nasimuddin Siddiqui, were charged with corruption.
The Taj Corridor project was intended to upgrade tourist facilities near the Taj Mahal and was to be implemented during her tenure as Chief Minister.
The then BJP government at the Centre gave the Environmental Clearance required for the project near Taj Mahal. However, later on the BJP backed out and alleged that the
project was not cleared by the Environment Ministry and blamed Mayawati for starting construction work near the Taj Mahal.
In late 2012, after change in govt, the new Maldives govt cancels the contract and evicts the consortium, alleging the previous govt in the country awarded the contract in a
not- transparent manner; Maldives goes for arbitration seeking to declare the concession pact void, GMR disputes

The 555-km-long stretch between Rajasthan and Gujarat, Rs 7,700-crore Kishangarh-Udaipur-Ahmedabad highway.
The project was terminated dur to issues of land acquisition, environmental clearance and toll notification. L&T lost Rs 3,500 cr construction orders.

contingency
contingency
Real estate projects were highly hit during recent Chennai Flood. Besides wastage of hundreds of tonnes of building materials such as cement and sand at construction sites
and losses due to inordinate project delays, developers were also losing their recent sales momentum.

The Tehri Dam has been the object of protests by environmental organizations and local people of the region. In addition to the human rights concerns, the project has
spurred concerns about the environmental consequences of locating such a large dam in the fragile ecosystem of the Himalayan foothills.
The relocation of more than 100,000 people from the area has led to protracted legal battles over resettlement rights, and ultimately resulted in the project's delayed
completion
Goa road project
IRB had bagged the project for four-laning of the Panaji - Goa stretch of Goa - Karnataka Border road. At the time of winning the project, the company had said that it would
cost Rs 800 crore, of which Rs 186.30 crore would be the grant from government.
IRB signed a concession agreement with NHAI in February 2010 and achieved financial closure for the project in March 2010. The project was scheduled to be executed in 30
months but was delayed due to unavailability of land.
NHAI terminates pact with IRB Infrastructure for Goa road project.

contingency

Punj Lloyds landed into trouble due to recent civil war in North African countries esp. in Libya. Punj Loyyd had 10 projects in Libyainvolving construction of infrastructure
and laying gas pipelinesworth about 98.35 billion rupees ($2.17 billion) during that time.
http://www.themoscowtimes.com/business/article/russia-s-weak-ruble-puts-china-s-moscow-development-projects-on-hold/511300.html

urce of risk

urce of risk

urce of risk

contingency

urce of risk
urce of risk

contingency

contingency

contingency

urce of risk

urce of risk
urce of risk

contingency
urce of risk
urce of risk
urce of risk

urce of risk
urce of risk
urce of risk
contingency
contingency
urce of risk

Delhi-based KMP Expressways:

At the bidding stage, DS Constructions, UK-based Apollo enterprises and Madhucon Projects were part of the consortium. However, when KMP Expressways was formed as a
special purpose vehicle to execute the project, Madhucon did not figure on the list of promoters. Madhucon dragged the others to court and even got a stay on construction.
By the time the matter was settled, precious time had been lost.

urce of risk
urce of risk
urce of risk
contingency

When the risk arises

During Pre-Qualification Time
During Tender Time
During Financial Closure & Mobilization Time
During Construction Time
During DLP
After Completion Certificate is received
What is the Probability of Risk
Rare
Unlikely
Possible
Likely
Almost Certain
What is the impact of the Risk
Insignificant
Minor
Moderate
High
Extreme
Who has ultimate responsibility of the risk
Client
Not Applicable
Consultant/Engineer
Designer
Contractor
Sub-Contractor
Should we keep a contingency for this risk
Yes
No
Risk Treatment
Avoid Risk- Try & eliminate source of risk
Mitigate impact- reduce consequence of risk
Share Risk- Subcontract or outsource
Insurance- CAR, Transit insurance etc.
Risk Retention- Put monetary contingency
Field of experience (mostly)
Execution

Planning & Procurement

P&M
Accounts & Admin
Safety
Quality
Other