Intense price competition is quite common in the construction industry. In many markets, contractors have to cut their bids to compete, giving priority to winning enough contracts to sustain normal operation, and it is common to see a winning bid close to the expected project cost. While cutting...

Cost estimation is an important task in construction projects. Since various risk-factors affect the construction costs, the actual costs generally deviate from the estimated costs in a favourable or an adverse direction. Therefore, not only estimation of the costs but also an analysis of the...

An important consideration in cost risk analysis is the amount of correlation between different cost elements. If correlation is ignored, both the probability and magnitude of costs overruns could be significantly underestimated. The two major difficulties in implementing correlation addressed...

Recent trends in the construction industry indicate continued use of alternative procurement methods such as design-build, construction management, build-operate-transfer, and privatization. Increased use of these evolving methods produces higher levels of uncertainty with respect to long term...

There are just two Indian construction companies in the ENR 'Top 225 Global Contractors 2006' list and Indian construction companies have only a 0.05% market share of the $3-4 trillion global construction business. International construction experience in India is limited, but enormous scope for...

Recent research has produced frameworks for integrating safety risk data into project schedules, visual models and other construction planning tools. Unfortunately, only a few studies have attempted to quantify base-level safety risk for construction tasks and no study has attempted to quantify...

In integrated project delivery methods such as build-operate-transfer (BOT), a thorough financial risk analysis model should incorporate completion risk analysis into operation risk analysis as the timing of financial events such as refinancing and debt servicing depend on the construction...

Unbalanced bidding models have largely ignored the risk aspect of item pricing. Many researchers have acknowledged that there are considerable risks associated with unbalancing a bid but little has been done to describe these risks, let alone model them. A new framework is proposed by which all...

Formal risk analysis techniques applied in managing construction project risks tend to focus on risks that lend themselves to 'objective' methods of economic analysis. Although subjective probabilities and Bayesian methods are applied successfully in other industries to manage 'subjective' risks...

Many developing countries are now attempting to finance new infrastructure projects through private sector participation. This paper outlines a methodology based on financial and risk analyses that a government or a government utility can use to analyse the viability of private sector...