Risk Management in Selected Building Construction Projects within Kathmandu Metropolitan City, Nepal
Student: Bibek Kumar Sah
Supervisor: Er. Hari Mohan Shrestha
Submitted Date:
October, 2023
Abstract
Any construction project is a complex and risky. It involves great deal of uncertainty
in its execution. Building construction projects, especially high rise building
construction projects are vulnerable to various risks during their life cycle. These risks
may negatively affect the project cost and duration, time, quality, safety and decreased
stakeholder satisfaction. Therefore the main objective of this study is to assess the risk
factors and its management in building construction projects in Kathmandu
metropolitan city.
The methodology of the study was based on the review of the literatures available in
different sources on the relevant topic of study. The four completed high rise building
construction projects were selected to study the risk management within Kathmandu
metropolitan city by severity, probability and exposure (SPE) model analysis.
Questionnaire survey as well as interviews were conducted among the clients and
contractors representatives, of the selected projects. The method used in data analysis
is primarily focused on calculating risk score, degree of risk, and check guidance from
the views of respondents. After calculating risk score through SPE model the risks
factors are ranked based on their degree of risk. To achieve the study goal, risk matrix
table, severity, probability, exposure mean values and frequency charts were used as
data analysis tools. Also the perspective of client and contractors on its preventive and
mitigate measures were suggested and conclusion drawn accordingly.
The findings of the study revealed that out of total 30 risks factor contractors and clients
both considered strikes as the very high degree of risk and blockade, defective design
as the high degree of risk. Similarly undefined scope of work, inflation, delayed
payment on contract, acts and regulations, adverse weather conditions and occurrence
of accidents and poor safety procedures are the major risk factors identified which
adversely affect the progress of the work during the construction of building projects.
The findings also revealed the risk factors allocation as risk acceptable, risk transferred,
risk shared and risk avoided from both client and contractor point of view.
VI
In this study, it is found that plan alternative method as standby is the most significant
preventive measure for the very high degree of risk from both clients and contractors
perspectives. The most significant mitigate measure suggested from this study is the
closed supervision of works for the risk management. This study recommends to
discontinue the construction project works in the case of the very high degree of risk
and to correct the involved risk factors immediately in case of the high degree of risk.
Keywords
Severity, Probability, Exposure, Risk Score, Degree of Risk, Risk
management, Risk transfer, Risk acceptable, Risk shared