Professional Documents
Culture Documents
CHAPTER 10
1. Project risk management strategy and risks mitigation plan should be established
as soon as possible so that the executing team remain in position to mitigate it
beforehand.
2. Cohesion and good cooperation among relevant government agencies and
ministries is very important to mitigate future risks.
3. Insurance covers just a part of the risk and therefore company should have a
strong risk mitigation plan at first.
4. Insurance policy provides part coverage only, therefore instead of taking more
than one different policies it is better to have tailor made policy.
5. There is a requirement of legal framework for metro project as a whole. Some acts
are available but they are having some limitations.
6. Sometimes taking soft loans takes away the advantage of truly harnessing the
potential of competitive domestic and international construction and equipment
vendors market, because except DFID (Department for International
Development), there is no bilateral aid, which is not tied up to the export from the
donor country. It is estimated that hidden cost of being tied up to the donor
country’s equipment vendors and construction companies takes away whatever
interest differential advantage is available. So this risk is also kept in mind.
7. To reduce the chances of default from subcontractor like, Breach of Contract or
inferior quality of work, etc. making them the stakeholder in the project is
recommended.
8. If the time overrun and cost over-run are minimized through strong project
management than a lot of money can be saved which is a major problem metro
project in and outside India is facing.