Impact of Critical Risks on the Major Constraints of Small Engineering Projects
In this research, generic and specific risks related to the critical activities of the engineering projects are identified. The surveys and interviews from various project managers and engineers of the leading consultant firms conducting engineering projects in Pakistan are the core identifiers. Specific risks associated with the common engineering projects are qualitatively analyzed to prioritize the risks according to their impact on the schedule and cost of the project. Critical activities related to the specific risks are identified. Estimated manhours without and with quantitative risk assessment have been determined to study the impact of including risk analysis on the schedule and cost of the engineering projects. The relationship between the critical activities and the total man-hours have also been developed to identify the most critical activity or activities influencing the man-hours and ultimately the cost of the project. The likelihood of occurrence of risks are also related to the man-hour completion, to analyze the effect of certainty of the man-hour’s determination, which is an important aspect of estimating schedule, EMV and finally cost. Using the analysis, it has been inferred that the 95% confidence level is not suitable all the time for the estimation of risk impact on the schedule and cost. It increases the man-hour estimation resulting in less competitive proposal to win the project.