The infrastructure construction sectors are usually complex. Zero risk construction projects are only an
assumption. The objective of this paper is to identify the risks factor associated with the urban infrastructure
construction projects causing delay. The research found that those risks are directly associated to clients,
contractors, sub-contractors that would cause delay in the construction work. Other factors are also
identified such as project, financial, political, technical, market risk, managerial, resource risk, and force
majeure. All risk factors affect the time, cost and quality performance of the construction project. From risk
management perspective, it is the process on which identifies the risks and analyzed with qualitatively and
quantitatively. All associated risks can treat by various mitigation processes and then mitigating method are
monitored to control the risks. Risk management distinguishes between success and failure of a project.
So, Nepal could use it effectively to meet its growing need of infrastructure and job opportunity
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33 article text-127-1-10-20181005
1. Research Article
Copyright (c) 2018 International Journal of Advanced Research in Civil & Structural Engineering
International Journal of Advanced Research in Civil & Structural Engineering
Volume 1, Issue 1&2 - 2018, Pg. No. 40-47
Peer Reviewed Journal
Abstract
The infrastructure construction sectors are usually complex. Zero risk construction projects are only an
assumption. The objective of this paper is to identify the risks factor associated with the urban infrastructure
construction projects causing delay. The research found that those risks are directly associated to clients,
contractors, sub-contractors that would cause delay in the construction work. Other factors are also
identified such as project, financial, political, technical, market risk, managerial, resource risk, and force
majeure. All risk factors affect the time, cost and quality performance of the construction project. From risk
management perspective, it is the process on which identifies the risks and analyzed with qualitatively and
quantitatively. All associated risks can treat by various mitigation processes and then mitigating method are
monitored to control the risks. Risk management distinguishes between success and failure of a project.
So, Nepal could use it effectively to meet its growing need of infrastructure and job opportunity.
Keywords: Risk, Risk factors, Delay, Risk Maangement
E-mail Id: m.koirala@unitedtechnicalcollege.edu.np
Orcid Id: https://orcid.org/0000-0003-3649-0198
How to cite this article: Koirala MP. Risk Factors Causing Delay of Urban Infrastructures Projects, Nepal. Int J Adv Res Civil Stru Engr
2018; 1(1&2): 40-47 .
Risk Factors Causing Delay of Urban
Infrastructures Projects, Nepal
Madhav Prasad Koirala
Professor of research Committee, U-TECH Collage, Bharatpur-11, Chitawan, Member of Subject committee, civil and
Architect, Pokhara University,ORCHID 0000-0003-4163-1995.
Introduction
In Nepal, infrastructures construction industry is one
the rapid growing unorganized and unmanaged industry
and providing enough employment to the people. âThe
attainment of sustainable economic growth remains a
paramount objective of every country. According to Koirala,
(2012), engineering management to urban development,
particularly construction projects are usually considered
a âhigh risk jobâ mostly because of, a lack of adequate
governmentâs act with necessary policies, environmental
information, and urban construction experiences.
Similar construction projects may have very different risk
characteristics of different development regions in Nepal.
A good construction practice of any construction project
refers that it is free from defects, right things at right
time and the continuous improvement of the project.
It is measured with the time, cost, quality and safety of
the project. A primary source required for achieving this
objective is through increased domestic productivity.
However, for this to occur, such country must be able to
create sufficient domestic physical capital to stimulate
such desired economic growthâ (Owolabi-Merus, 2015).
Most of the infrastructures projects, looking same in the
nature but different characteristics from one projects to
another. The peculiarities and complexities maintained by
everyone project to others. The same can be extended in
case of specific items required for successful completion of
the project. Each and every project involves risks. Risk is a
possible event in future which may cause adverse effect to
a project. Risk is a probability or threat of damage, liability,
loss, or any other negative occurrence that is caused by
external or internal vulnerabilities due to lack of knowledge,
application, understanding, ignorance, and which could
have been may be avoided through preemptive action.
The severity of risk depends upon the size and complexity
of project. Major projects can contain higher severity
risks. In the construction projects, the common practice
is to expect the expertise to identify the risks on a basis
of engineering drawings. Avoiding risk may leads to delay
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Koirala MP
Int. J. Adv. Res. Civil. Stru. Engr. 2018; 1(1&2)
in completion of construction projects. The delay in the
construction, referred as prolonged construction period or
time overrun or extension of time to complete the project.
Delay not only causes the risk of time overrun but it also the
cost of the project. To avoid risk factor, Risk Management
is a concept which is used in all industries, from IT related
business, automobile or pharmaceutical industry, to the
construction sector. Nepal has shown considerable increase
in the sector of Construction Project in the last few years.
Especially Construction projects are focused in the capital
city Kathmandu. Construction companies are faced with
more risk and uncertainty than ever before. In fact, many
projects have not been started even after approval from
the government authority.
One of the reasons behind this can be the associated risks
and uncertainties. In addition, clients expect more. Besides,
they do not want surprises, and are more likely to engage
in litigation when things go wrong (Mishra & Mallik, 2017).
Risk Management Process is a process which aims to
identify and quantify all risks associated in the project,
so that conscious decision can be taken to tackle it. Risk
managementâs objective is to assure uncertainty does not
deflect the endeavor from the business goals. The purpose
of this study is to identify the risk which may cause delay
in completion of the construction project.
Objective
The objective of this research is to identify the risks which
make delays the schedule of infrastructure projects. The
risk factors which lead the delay are composed from various
national and international research articles.
Literature Review
Many literature published in different international
research journal are collected and cited for the risk factors
which leads delay in construction projects. Time and cost
performance is the fundamental criteria for success of
any project.
According to Doloi et al. (2012), Construction projects
in India are experiencing widespread delays. Due to a
dramatic shift in the capacity and volume of the Indian
construction sector over the last decade, the need of a
systematic analysis of the reasons of delays and developing
a clear understanding among the industry professionals
are highly crucialâŚâŚ From the factor analysis, most critical
factors of construction delay were identified as (1) lack
of commitment; (2) inefficient site management; (3)
poor site coordination; (4) improper planning; (5) lack of
clarity in project scope; (6) lack of communication; and
(7) substandard contract. Regression model indicates slow
decision from owner, poor labour productivity, architectsâ
reluctance for change and rework due to mistakes in
construction are the reasons that affect the overall delay
of the project significantly. These findings are expected to
be significant contributions to Indian construction industry
in controlling the time overruns in construction contracts.
In the study of Haseeb et al. (2011), the construction
delay is a main problem in large construction industry of
Pakistan. Large construction industry is very important for
the development, economy and progress of PakistanâŚ.
Then we discussed the sixteen important causes, five
main effects of delay and related the effects with the main
relating causes
According to Chan & Kumaraswamy. (1997), (1) All three
major groups of industry participants felt that âpoor
site management and supervisionâ, âunforeseen ground
conditionsâ, âlow speed of decision making involving all
project teamsâ, âclient-initiated variationsâ and ânecessary
variations of worksâ appear to be five significant sources
of construction time overrun of projects. (2) Despite
some differing perceptions as to the relative importance
of delay factors suggested by each group of respondents,
there is general agreement between the clients and the
consultants on a further set of 10 principal factors, but the
contractors only agree with some of them. (3) The clients
and consultants mostly claimed that delays in construction
projects are attributed to a lack of contractor experience
in planning and monitoring on site but the contractors
asserted in general that they are initiated by a lack of
design experience of consultants (architects/engineers).
(4) The clients and consultants agreed to a large extent
on the ranking of the delay factor categories, whereas the
clients and contractors agreed less; and the consultants and
contractors agreed the least. (5) Furthermore, there were
differing perceptions as to the causes of construction time
overruns between the survey respondents in Hong Kong
and those in Saudi Arabia and those in Nigeria, indicating
particular differentials between construction industries in
different countries.
Unfortunately construction industry in Malaysia has
been regarded as industry facing poor performance
leading to failure in achieving effective time and cost
performanceâŚâŚâŚâŚâŚwill help the practitioners to
implement the mitigation measure at planning stage in
order to achieve successful construction projects (Memon,
et al, 2012).
Moreover, the project delay is still happening and will
continue to happen in the construction for various
known and unknown reasons such as unexpected factors,
bankruptcy from client, changes in design during the
construction, political issue, sudden price fluctuation,
severe weather conditions and change of circumstances
with projects manager in result of forcing him/her to leave
before completing the assigned job. However, time and cost
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Int. J. Adv. Res. Civil. Stru. Engr. 2018; 1(1&2) 42
overrun may not be prevented entirely but the evolving
new technology like BIM, new methods and past experience
could be used to reduce the impact from recognized risk
factors, particularly in the undeveloped and developing
countries (Shah, 2016).
The analysis of the participantsâ responses reveals that the
cost overrun in building construction projects is a severe
problem. 100% of the responÂdents indicated that the
average cost overrun that they have experienced is between
10% and 30% of the projectâs estimated cost. The study also
identified the risk map for 41 cost overrun factors. 26 factors
were concluded as critical factors. Inputs of the consultants
underÂline that the top five factors affecting cost overrun
in building construction projects are political situation,
flucÂtuation of prices of materials, level of competitors,
currency exchange, and economic instability (Mahamid
& Dmaidi, 2013).
A series of behaviors and conditions were identified
during the research that tended to lead to activity and
decisions that deviated from, or intervened within, the
risk management process described using expected
utility theory (EUT). In pursuing risk management using
the approach derived from EUT, risk managers and other
project stakeholders could expect the benefits of improved
certainty in the outcomes of the project with the additional
benefits of improved budget setting and reductions in
political and financial tension arising from surprises (Kutsch
& Hall,2005).
The findings of study revealed that 92% of construction
projects were overrun and only 8% of project could achieve
completion within contract duration. The amount of time
overrun was in between 5-10% as agreed by respondents.
In terms of cost performance only 11% of respondents
mentioned that normally their projects are finished within
the budgeted cost while 89% of respondents agreed that
their projects were facing the problem of cost overrun
with average overrun at 5-10% of contract price. The major
contributors of this poor performance include design and
documentation issues, financial resource management and
project management and contract administration issues
(Memon, Rahman & Azis, 2012).
In Vietnam, regularly, construction projects have met
delays and cost overruns. Twenty one causes of delay and
cost overruns appropriate with building and industrial
construction project were inferred and ranked with respect
to frequency, severity and importance indices. Spearmanâs
rank correlation tests showed that there are no differences
in the viewpoints between three principal parties in the
project. A comparison of causes of time and cost overruns
was done with various selected construction industries in
Asia and Africa. Factor analysis technique was applied to
categorize the causes, which yielded 7 factors: Slowness
and Lack of constraint; Incompetence; Design; Market and
Estimate; Financial capability; Government; and Worker.
These findings might encourage practitioners to focus on
delay and cost overruns problem that might have existed
in their present or future projects (Hoai, et al, 2008).
Construction delay has become endemic in Nigeria. It is
imperativetocreateawarenessoftheextenttowhichdelays
can adversely affect project delivery. This paper identifies,
by questionnaire evaluates and through empirical method
assesses the effects of construction delays. The findings
showed that time and cost overruns were frequent effects
of delay. Delay had significant effect on completion cost and
time of 61 building projects studied. Client-related delay is
significant in Nigeria. Acceleration of site activities coupled
with improved clientsâ project management procedure
and inclusion of appropriate contingency allowance in
pre-contract estimate should assuage the adverse effect
of construction delays (Aibinu & Jagboro, 2002).
In order to lay the groundwork for cost estimation accuracy,
this study sought to discover the major variables affecting
construction costs of industrialized building system (IBS)
project and via ranking, to examine the relationship
between them. The results reinforce that costs are
impacted by âProject/IBS characteristics and âEconomics and
Market conditionsâ and âContractorsâ attributesâ, above all
others. Of the seven broad categories identified, statistical
analyses revealed that there is strong agreement between
contractors and manufacturers in the ranking of the cost
factor groups; âProject/IBS characteristicsâ, âEconomics and
Market Conditionsâ, âContractorsâ attributesâ. Conversely,
factors which were grouped under âContract procedures
and procurement methodsâ, âConsultantsâ and Design
parametersâ, âExternal factorsâ and âGovernment/Authority
requirementsâwereproventohavelowagreementbetween
the respondents as indicated by a low related importance
index(RII) index(Baria et all,2012).
Delays and cost overruns are evidently frequent problems
in the construction industries of many developed and
developing countries. The purpose of this paper is to
assess factors leading to time overruns (delays) and cost
overruns in construction projects in the Gaza Strip. Since
there appear to be additional special contributors to delays
here, the relative perceptions of contractors, consultants
and owners are compared, based on a listing of causal
factors derived from previous studies elsewhere, together
with other factors arising from special conditions in the
Gaza Strip (Enshassi et al, 2009).
Projects investigated in this study exhibit a delay in some
construction sites in Benghazi city in Libya. In practice, this
phenomenon is expected to continue unless management
actions are taken to control these causes within the planned
element of the design and construction worksâŚâŚâŚ..In
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Koirala MP
Int. J. Adv. Res. Civil. Stru. Engr. 2018; 1(1&2)
summary, this paper summarized some reasons behind
the delays caused in these sites and proposes some
recommendation, which might enable the contractor
organization to develop in house competitiveness for the
achievement of one of the major goal in construction of a
project, on âtimeâ completion. Further research is needed
to investigate the limitations and potential improvements
to causes of delays within each construction site (Tumi et
al, 2009).
Time-delays and cost-increases associated with the
construction of private residential projects in the State
of Kuwait are determined. A person-interview survey
of 450 randomly selected private residential project
owners and developers in 27 representative districts in
metropolitan Kuwait formed the database for the study.
The socio-economic traits of the owners/developers,
and the pre-construction family planning, the design,
and the construction phases of the sample projects are
presented. Estimates of time-delays and cost-increases
are made, and their causes identified. The three main
causes of time-delays included changing orders, ownersâ
financial constraints and ownersâ lack of experience in
the construction business. Regarding cost overruns, the
three main causes were identified as contractor-related
problems, material-related problems and, again, ownersâ
financial constraints. A number of recommendations
end the paper. The minimization of time delays and cost
overruns in private residential projects would require:
the availability of adequate funds, allocation of sufficient
time and money at the design phase, and selection of a
competent consultant and a reliable contractor to carry
out the work (Koushki et al, 2005).
To improve delay control in construction projects in Egypt,
the influence of the main factors affecting it must be
identified and recognized. This research has identified
and, based on the quantified relative importance indices,
determined the influence ranks of ninety-nine (99) factors
causing delay in construction projects in Egypt. The explored
factors were classified under the following nine (9) primary
classifications: (1) Consultant related delay factors; (2)
Contractor related delay factors; (3) Design related delay
factors; (4) Equipment related delay factors; (5) External
related delay factors; (6) Labor related delay factors; (7)
Material related delay factors; (8) Owner related delay
factors; and (9) Project related delay factors. To study the
effect of participantsâ experience on the obtained results,
the results were grouped under experience based groups
of the participants and professional cadre of respondents.
The results were compared by studying all participants to
cope with all factors causing delay in construction projects
in Egypt (Aziz, 2013). Critical path method was popular for
planning the project. Weekly meetings were preferred by
client, consultant and contractor for monitoring of the
project progress. The overall findings of 62.86 percent of
parties involved in the project used to coordinate their
current schedule with master schedule.80 percent of client,
consultant and contractor had the association of cost
schedule with estimated time schedule .More than 74
percent of client, and consultant and contractor did not
use any software for planning, monitoring and controlling
of cost of project. Furthermore, the safety factors were
moderately used in construction project.
Also, 40 percent of meetings were conducted weekly for
the safety issues and there were less number of trainings
for the safety. Improvement in construction practice is
required for ensuring the safety and timely completion of
project within estimated budget (Chiluwal & Mishra, 2017).
For this purpose, 83 different delay factors were identified,
categorized into nine major groups, and visualized by the
Ishikawa (fishbone) diagram through detailed literature
review and interviews with experts from the construction
industry. The relative importance of these delay factors
were quantified by the relative importance index method.
The ranking of the factors and groups were demonstrated
according to their importance level on delay. According to
the case study results, the factors and groups contributing
themosttodelays(thoseneedingattention)werediscussed,
and some recommendations were made to minimize and
control delays in construction projects(GĂźndĂźz, et al, 2013).
According to Pourrostam and Ismail. (2011), studied
identified 10 most important causes of delay from a list
of 27 different causes of delay and 6 different effects
of delay. It was found the predominant causes of delay
are poor site management and supervision, delay in
progress payment by clients, change orders by client during
construction, ineffective planning and scheduling of project
by contractor, financial difficulties by contractor, slowness
in decision making process by client, delays in producing
design documents, late in reviewing and approving
design documents by client, poor contract management
by consultant and problems with subcontractors. The
results showed delay can lead to many negative effects
such as time and cost overrun, disputes, arbitration, total
abandonment and litigation. The paper forecasts some
future trends and suggests certain areas in which future
research on construction projects could focus on. Although
the research is devoted to Iranâs specific case, the findings
of construction management problems are common to
developing countries.
The field survey included 130 respondents made up of
39 contractors, 37 clients and 54 consultants. The relative
importance of the individual causes and the groups
were calculated and ranked by their relative importance
index. The overall results of the study indicate that the
respondents generally agree that financial group factors
ranked highest among the major factors causing delay in
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Int. J. Adv. Res. Civil. Stru. Engr. 2018; 1(1&2) 44
construction projects in Ghana. The financial group factors
were delay in honoring payment certificates, difficulty in
accessing credit and fluctuation in prices. Materials group
factors are second followed by scheduling and controlling
factors (Fugar &Agyakwah-Baah, 2010).
There is an increase in the number of construction projects
experiencing extensive delays leading to exceeding the
initial time and cost budget. This paper reviews 41 studies
around the world which has surveyed the delay factors and
classified them into Groups. The main purpose of this paper
is to review research which has categorized the causes
responsible for time delays and cost overruns in projects
(Ramanathan et al. 2012).
Methodolgy
The objectives defined in the preceding section were
achieved through the accomplishment of the following
tasks: The datum for this research is collected through a
literature collection and review. The design of this research
is descriptive with deductive approached. The literature
review was conducted through conference proceedings, the
Internet, and international project management journals.
Along with this process risk factors were identification,
analysis and responded. In this step, some of the risk
factors for delays that may be encountered in a construction
project were identified.
Risk management is a process in which the risk can be
identified and quantified in according with the risk can
be mitigated to minimize the loss damage or disruption of
project due to unforeseen events. Risks that might delay the
schedule of project are identified from client, contractors
and sub-contractors perspective. Risks causes were
classified into following groups according to the sources of
delay: project, managerial, resource risk, financial, political,
technical, market risk, and Force Majeure. Further, there
causes are divided into two groups i.e. Compensable delay
and Non Compensable delay.
Concept of Risk Management
Risk management is the process which consists of
identification, assessment, mitigate and review. Risk
identification is the first step in the risk management
process, as it identifies the source and type of risks. Many
tools and techniques is used to identify the risk such
as Brainstorming, Delphi Technique, Interview/Expert
Opinion, SWOT analysis. Then the risks are classified into
such groups: technical, financial, political, organizational,
environmental, or project management.
Figure 1.Conceptual Diagram of Risk factors
The risk assessment is the second stage in the risk
management process where collected data about the
potential risk are analysed. To analyse the identified risk,
generally two broad categories, namely, qualitative and
quantitative analysis are developed. Qualitative risk analysis
is the process of assessing the impact and likelihood of
identified risks. This process prioritizes risks according to
their effect on the project objectives. Tools and Techniques
for Qualitative risk analysis are: Risk probability and
impact assessment, Probability/impact risk rating matrix,
Risk categorization and Risk Urgency Assessment. The
quantitative methods estimate the impact of a risk in a
project. Tools and Techniques for Qualitative risk analysis
are: Modelling technique (Sensitivity Analysis), Probabilistic
Analysis (Monte Carlo Simulation), Decision Trees.
This third step of the risk management process indicates
what action should be taken towards the identified risks
and threats. The response strategy and approach chosen
depend on the nature of the risk. There are four mitigation
methods â risk avoidance, risk transfer, risk mitigation, and
risk acceptance, for treating risks in a construction project.
In the final step of risk management process all information
about the identified risks is collected and mitigating steps
are monitored.
Result
Various risk related client, contractor, suppliers and sub-
contractors:
A. clients
During feasibility study, improperly feasibility study
conducted by client in preparing a practical schedule
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Int. J. Adv. Res. Civil. Stru. Engr. 2018; 1(1&2)
allowing sufficient but not redundant time to accommodate
all design and construction activities. There are the chances
of variations by the client in the investigating, design and
execution. Project owner wanted âLetter of Intentâ to offer
for low bidder and inexperience contractor that can damage
and delay the project. Substandard quality of contractor,
incomplete approval and lack of proper documents from
government agencies usually occurs due to management
weakness to obtain the approvals. Lack of Clarity in the
project scope and lack of communication created other
confusion.
B) Contractors
Unsuitable construction management program may result
from inadequate project planning, scheduling, resourcing,
estimating,innovativedesign.Contractorslackofknowledge
inplanningandexecutingconstructionactivities.Insufficient
resources i.e. Man, Money and Machinery may delays the
construction project. Lack of coordination between project
participants may lead to chaos in the management of
construction team and programs. Due to use the new
technology or Improper construction method adopted by
contractor may result in time and cost overrun of project.
Risk of negligence of construction safety policy can cause
accidents frequently.
Risk of appointing unskilled, inexperience and
unknowledgeable sub-contractor may damage the schedule
of program.
Sub-contractors
Low management competency of subcontractors is key
risk related to subcontractors. Unlike a contractor who
continuously manages a construction site, subcontractors
normally allocate their manpower and other resources in
order to achieve maximum profit of their own business.
Improper instruction by contractor related to construction
work leads to construction mistakes and defective work.
Suppliers
Risk due to unavailability of construction materials and
the shortages is also another risk on site. Risk due to skill
and unskilled manpower at right time is another problem.
C) Consultants
Frequently not carry out the supervision work and slowness
in making decisions. Not able to check the bill which make
delay to proceed the bill and resulted not getting payment
at time. Improper decision made by consultant services.
Unsuitable construction management program may result
from inadequate project planning, scheduling, resourcing,
estimating, innovative design. Insufficient resources i.e.
Man, Money and Machinery may delays the construction
project. Payment delays by the client which affects the
completion of works on time.
Risk of negligence of construction safety policy can cause
accidents frequently.
The risk factors cause delays
All risk category, are classified in accordance with their
significance on the project cost, time, quality, environment
and safety. Critically the following risk factors affecting
construction time of projects are given as follows:
⢠Construction Project related Risk: in these categories
risks are associated due to disturbance to public
activities, constraint construction area, technological
risk etc. A common cause of cost overrun stems from
design changes and unforeseen weather conditions
during the construction phase. Construction project
related risk is an uncertain event or condition that if
it occurs has positive or negative effects on project
objective.
⢠Risk from Manager Desk: The risk from manager desk
or managerial risk is the risk related to managerial
team which consist inadequate planning, integration
or resource allocation. Weak communication between
construction parties is the common recognised risk
causes scheduling errors, contractor delays, and entire
project team suffered by conflicts. Before beginning the
project need to be sure that the sufficient skilled staff
and adequately defined their roles and responsibilities.
⢠Procurement Risk: Procurement risk includes the non-
availability of construction material, manpower, tools
and special equipment for project run. The specialised
items normally consist of engineering items like high
end equipments which are specially designed for the
particular project. The procurement of such item
contains high risks. Risk factors as described here have
to be mitigated properly in order to facilitate with the
help of policy and guideline, smooth procurement and
overall completion of the project.
⢠Technical Associated Risk: These risks are related with
engineering aspects. For example design, technical
specifications, quality and safety. The sever risk of the
technical risk is being unclear of the scope, schedule,
and cost of a project. For such cases contingency plan
is needed to tackle the technical risk related to project.
⢠Financial Risk: Financial related risk is for example
project cash flows might be insufficient to cover debt
service and then pay an adequate return on sponsor
equity, Non-availability of local or domestic finance
markets may lead to the higher risks and currency risks
involve the impact of exchange rate fluctuations on the
value of domestic currency. Similarly payments delay
by the client, financial status of client and contractor,
inflation, changes in financial policies, etc.
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Int. J. Adv. Res. Civil. Stru. Engr. 2018; 1(1&2) 46
⢠Political Risk: Political risk could include actions that
terminate the concession, the imposition of taxes
or regulations that severely reduce the value to
the investors, restrictions on the ability to collect
as specified in the concession agreement etc. Many
projects are delayed because of the difficulties of
acquiring right-of-way or environmental clearances,
change in government, changes in public policy,
corruption and favouritism, lack of sanctity of contract,
and arbitration difficulties. These risks are normally out
of the control of the project stakeholders. To minimize
the effects of political risk, a systematic approach to
the management and assessment of project risks and
uncertainties in the planning phase is required.
⢠Market Risk: This risk is that the project is enough
capable to meet the demand and result through the
project. Demand/revenue risk includes unexpectedly
high or low demand compared to initial market
estimation.
⢠Risks related Force Majeure: âForce Majeureâ is
âgreater forceâ that describes an event or condition
that can be neither predicted, nor stopped. For example
force majeure event is a natural disaster, including
earthquakes, hurricanes, wildfire, tornados, floods,
and droughts. Force majeure events also include âman-
madeâ events such as strikes, terrorism, and scarcity.
The special policy and guideline may help to mitigate
them.
⢠Limitation of this Study: The limitation of this research
is within the Nepal and delay to completing due to
various risk factors.
Conclusion
Infrastructures development growth in the country is
dependent on development indicators. Construction
infrastructure development plays an important role in
the economic growth of country and also create large
amount of job opportunities uses own raw materials. In
this research, the most effective risk factors causing delay
of infrastructure projects, which were a significant effect
on construction infrastructures projects are identified
and classified through a related literature survey. The risk
factors are either controllable or uncontrollable. The risks
which are controlled must treated by properly mitigating
each risk with risk mitigation process and uncontrollable
risks are unpredictable with have adverse effect on project
objectives. Risk management main objective is to ensure
that risks are managed most effectively. It shows that
risks events are threat to the objectives of the project and
avoiding risk factor may cause time and cost overrun of the
project. Infrastructures development growth in the country
is dependent on development indicators. Construction
infrastructure development plays an important role in
the economic growth of country and also create large
amount of job opportunities uses own raw materials. Risk
management distinguishes between success and failure
of a project. So, Nepal could use it effectively to meet its
growing need of infrastructure and job opportunity.
Recommendation for further study
The following empirical research articles recommended.
1. Kamandanga, Z.R., Yanga , J.B., and Wijatmikob, I.
(2017). An Empirical Study on Analyzing Schedule
Delays of Construction Project in Indonesia, 34th
International Symposium on Automation and Robotics
in Construction (ISARC 2017)
2. Rafat, K.F., Ahmed, R. (2017). Empirical Study on
Causes of Project Delays, World Academy of Science,
Engineering and Technology International Journal of
Industrial and Manufacturing Engineering Vol: 11,
No: 1, 2017
3. Allahaim, F. S. A. and Liu, L. (n.d). An Empirical
Classification of Cost Overrun in Infrastructure Projects
by Using Cluster Analysis, Fourth International Utzon
Symposium-Sydney Australia
Acknowledgement
The authors wish to thank Frinds family to giving such good
environment to write this article.
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Date of Submission: 2018-09-23
Date of Acceptance: 2018-10-01