A Risk Management Tool for Construction Sector India During Covid-19 Crisis

ABSTRACT

In construction industry, with the management of time and cost of the project, risk management is also especially important. Recently, COVID-19 pandemic has brought a huge crisis on construction sector. During this crisis, risk management becomes even more crucial to avoid further losses in the project. This study aims at identifying the risks involved in construction project during COVID-19 crisis, analyse them and develop a plan to bring the project back on schedule. Possible risks involved in construction sector due to COVID-19 are identified and defined. The risks are classified based on the categories like commercial risk, health and safety risk, completion risk etc. The project was analysed for all categories of risks using Expected Value Method (EVM) for statistical analysis. EVM evaluates the average outcome when the future events may or may not happen. Based on the analysis, Composite Likelihood factor, Composite Impact factor and risk severity has been computed. The EVM results shown that the commercial risk would be at a high level with a risk severity equals to 0.034 and completion risk would be at a low level with a risk severity equals to 0.003. Using this approach, the occurrence of risks at various stages of the project can also be predicted. EVM is found to be a convenient and accurate method to identify risks that might occur and prepare a contingency plan to avoid further losses. © 2023, Canadian Society for Civil Engineering.