Project risk management in massive construction project

Abstract

The purpose of this research is to manage the risk and uncertainty in the massive construction project. The tool used in this research is project risk management. The objectives of this research include minimizing the impact from delay of the schedule and the budget overrun to finish the construction project on time within the given budget. This research focuses on two main factors that affect the construction project, construction cost and project schedule by using the contract and their addendum of contract between contractor and client. The variation orders from the contract and their addendum during the construction project are the main causes of changes in the construction cost and project schedule. The result of the cost impact is the rise of construction cost over 10% (about 300 million baths) and the lag from the schedule for 50% (435 days). The results from this research analysis demonstrate that the requirement from the user of the building and the client of this construction project are the main causes of the variation orders. Moreover, the law and regulation during the construction project are the external factors that have a significant effect on the payment process between the client and contractor. Lastly, the delay of the schedule and the increase of the cost are mainly caused by the architecture and interior works when the function and layout of use are modified from the contract drawing not by the engineering and technique changes. Moreover the research recommended the preventive action and the result of the implementation can reduce RPN up to 90%.