CIVIL & ARCHITECTURE DOMAIN
Published May 2, 2025 | Version v1
Journal article Open

Risk Management in EPC Model -A Contractor's Perspective

Authors/Creators

Description

Risk is inherent in infrastructure development, and EPC (Engineering, Procurement, and Construction) projects are particularly exposed due to their integrated nature. These risks arise mainly from unpredictable circumstances that can disrupt project flow. The nature and extent of risks differ across various contract types owing to their structural differences. This research investigates risk within EPC projects from the standpoint of contractors, considering each stage of the project life cycle. Employing a descriptive methodology and a random sampling survey of contractors, this study uses literature reviews and questionnaire data analyzed through risk matrix frameworks. It categorizes risks into financial, physical, construction, design, political, legal, and environmental domains. Among these, financial, construction-related, and physical risks emerged as the most critical. Financial risks, in particular, often reached catastrophic levels, while construction and physical risks were assessed as high to moderate. These insights illuminate the contractor's challenges in EPC projects and guide enhanced risk management approaches.

Files

(1-19)Risk management in EPC model -A contractor’s perspective.pdf

Files (590.9 kB)

Additional details

References

  • 1. Abazid, Mohammad & Harb, Husameddin. (2018). An Overview of Risk Management in the construction projects. Academic Research International, 9(2), 73-79.
  • 2. Adeleke, A. Q., Bahaudin, A. Y., & Kamaruddeen, A. M. (2015). A partial least square structural equation modeling (PLS SEM) preliminary analysis on organizational internal and external factors influencing effective construction risk management among Nigerian construction industries. Rev. Téc. Ing. Univ. Zulia, 38(143), 143-55.
  • 3. Wibowo M.A, Hatmoko J.U.D, Nurdiana A 2018 Risk Management in Indonesia Construction Project: A Case Study of a Toll Road Project Intech Open pp 121-138. http://dx.doi.org/10.5772/intechopen.79457
  • 4. Tawalare, A. 2019 Identification of Risks for Indian Highway Construction IOP Conference Series: Materials Science and Engineering 471 102003 https://doi.org/10.1088/1757- 899X/471/10/102003
  • 5. Ou-yang, C. and Chen, W. 2019 A Hybrid Approach for Project Crashing Optimization Strategy
  • 6. Valeriano, D. D. (2001). Management of Risk in Information Technology Projects. Rio de Janeiro: Editora Brasport.
  • 7. Perry, J. G., & Hayes, R. W. (1985). Risk and its Management in Construction Projects. Proceedings of the Institution of Civil Engineers, 78(6), 499-521.
  • 8. Jafar, M. M. (2001). Risk Analysis and Management in Construction. Unpublished PhD Thesis, University of Manchester.
  • 9. Kartam, N. A. (2001). Risk and its Management in the Kuwaiti Construction Industry: A Contractors' Perspective. International Journal of Project Management, 19(6), 325-335.
  • 10. Raftery, J. (1994). Risk Analysis in Project Management. London: E & FN Spon.