Hello everyone,
Recent studies show that 70-90% of construction Megaprojects suffer cost and time overrun due to poor risk management, this underlines that the existing risk management and uncertainty management fail to manage these projects effectively. In your point of view, what is the main limitations and weaknesses associated with existing standard uncertainty management approaches in Megaprojects context?
Thank you in advance for your comments,
Mustafa
Dear sir,
As per my view every construction project is unique. Each and every problem of construction projects is unique. Construction project is not same as production unit with definite output with systematic activity schedule.
By the way proper planning and risk management we can reduce the percentage.
following are the weakness.
wrong Estimation of time,cost and quality
proper Visualization of project activity.
Fluctuation in labour, supervisor , project manager and construction manager.
Less ability to risk finding.
poor Coordination with consultant, coordinator with site execution team
now a days to remove above weakness in all projects we have to use BIM based software
There are many reasons which lead to risks and time, cost overrun as explained in above comment. I would like to highlight variations in the construction as one big factor which if controlled can limit these risks. Constant changes disrupts the entire project schedule and thus sudden changes are required in the entire project planning. This involves time, cost, manpower changes, material variation, etc.
The allure of risk management
The complexity and size of modern capital projects have generated numerous calls for better risk management as a way of preventing the risk exposures; pushing aside engineering & management failings to design and execute a well thought project. Reference to the risk management literature over the last 25 years, demonstrates that the desire for risk management to function in a more holistic fashion, but at the same time they ignore the contribution of inadequate engineering and interface management. This writer argues that the risk management literature needs to give more attention to the risk due to inadequate engineering and management and less on other uncertainties. If you dissect failure of major projects you will find that not enough time was spent to weed out ways that a project can go wrong. In multi- organisations project, always the root of problem lies on poor interface management. If not properly considered, such inadequacies are capable of thwarting many proposed risk management solutions. The primary sources of risk come from knowledge and information gaps, and not giving the issue of complexity proper attention at the design stage.
Dear Dharmesh K. Oza.
Could you please clarify further how the weaknesses that you have mentioned above are related to the poor performance of uncertainty management? As I see some of them are just a normal risk by itself such as "Fluctuation in labour, supervisor , project manager and construction manager"
Regards,
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