Risk Management in Construction Projects: A Quantitative Analysis of Cost Overruns

Thesis Abstract

Abstract
This thesis investigates the critical issue of risk management in construction projects, focusing on the quantitative analysis of cost overruns. The construction industry is notorious for cost overruns, which can lead to project delays, financial losses, and disputes among stakeholders. Effective risk management practices are essential to mitigate these risks and ensure project success. This research aims to identify the key risk factors contributing to cost overruns in construction projects and develop a quantitative analysis framework to assess and manage these risks. The study begins with a comprehensive review of the literature on risk management in construction projects, highlighting the current challenges and best practices in the industry. The research methodology section outlines the approach taken to collect and analyze data, including case studies, surveys, and statistical analysis techniques. The findings of the study are presented in detail, with a focus on the identification of common risk factors leading to cost overruns and the development of a quantitative model to predict and manage these risks. The discussion section delves into the implications of the findings for construction project stakeholders, including owners, contractors, and project managers. The study reveals that factors such as poor project planning, design changes, and inadequate risk assessment contribute significantly to cost overruns in construction projects. The quantitative analysis framework developed in this research provides a systematic approach to identify, assess, and mitigate these risks, thereby enhancing project outcomes and minimizing financial losses. In conclusion, this thesis underscores the importance of proactive risk management in construction projects to address cost overruns effectively. By leveraging quantitative analysis tools and best practices in risk management, stakeholders can enhance project performance, improve decision-making, and foster collaboration among project teams. The findings of this research contribute to the body of knowledge on risk management in construction projects and offer practical insights for industry professionals seeking to enhance project success and mitigate financial risks.