1. Risk Factors
Infrastructure projects
Prepared by: S. A Emke

2. Risk Factors For Infrastructure
Projects
• Poor planning and budgeting
• Poor risk assessment and risk allocation
• Poor consultation
• Inconsistent procurement procedures e.g.
tenders being re-advertised more than once
• Late starting of projects
• Poor quality work delivered
• Inadequate over sight by implementing agencies
and the client departments

3. Risk Factors
• Poor Risk Assessment and Risk allocation
at the front end of a projects life cycle
resulting in other significant risks, e.g.
poor planning, lack of in-depth
consultation, etc….

4. Continue…
• Lack of appropriate Infrastructure
Management skills
• Inadequate capacity in client departments,
implementing agents and contractors (
especially emerging contractors)
• Unplanned and costly rework of designs and
construction
• Slow payment or non-payment of contractors

5. Resulting in…
• Significant time-delays
• Cost overruns
• Failed procurement practises
• Compromising of quality control
• Poor quality project outcome
• Under expenditure

6. Mitigation Strategies
• Provincial Departments (of Arts and Culture)
should adopt and adhere to a multi year planning
and budgeting approach.
• Adopt a risk management approach throughout
the life cycle of the project.
• Strengthening Supply Chain Management
processes
• The Implementing Agents ability to manage the
contract must be assessed and strengthened if
necessary.

7. Continue….
• Vetting of service providers and ensure that
they are registered with relevant professional
bodies .
• Stakeholders are advised to identify risks and
value drivers, such as delays or increases in
material prices, from the outset and decide
who will be responsible for each of these. This
provides a mechanism to drive contractor
behaviour and ensure ongoing accountability.

8. Mitigation Strategies
• It is vital to ensure that required expertise in
planning, structuring, and so on is brought in
early on, and that due diligence is conducted
on contractors before selection.
• Vigorous and in-depth consultations to avoid
undue land disputes.
• Strengthening project and monitoring controls
in departments to ensure early warnings to
address bottlenecks.

9. Achievement Summary: 2007-2014
• Total number of new libraries: 81
• Total number of libraries upgraded: 343
• Total number of modular/containers/wheelie
wagons: 137
• Dual Purpose Libraries: 10