A Framework for Project Risk Management for the Underground Corridor Construction of Metro Rail

摘要

In this paper, we discuss a method of measurement of project risk, based on the expected value method (EVM). Project risk management primarily comprises cost and schedule uncertainties and risks associated with each activity of the project network. A case study of the underground metro corridor in the capital city of an emerging economic nation of South Asia has been considered for this research work. The methodology for this work is questionnaire based survey responded by experts associated and involved in this and other similar projects in metro rail. Based on this study we find that the project cost overrun and time overrun can be about 22.5 % and 23.4 % respectively. This would enable the project authorities to get an idea about the amount of the contingency funds that need to be allocated to mitigate the risks. Monte Carlo Simulation has been applied to make the proposed framework more realistic.