Ans 8 Most preferable method of identifying risk is Brainstorming.

Brainstorming sessions involve getting the key project stakeholders together to identify & priorities the risks in the project This technique enables the stakeholders to hear what the other members of the project team see as risks & use these ideas to inspire them in identifying additional project risks Interviewing project personnel from each discipline & staff within the organization, who have experience of similar projects, ensure that corporate knowledge & personal experience are utilized in the process of identifying risks. Risk Registers are documents, spreadsheets or database systems that list the risk in a defined project & their associated attributes. Each project has many risks, which depend upon technology, Country; Organization; & Institutional Involvement & the Contract & finance strategy applied. Check List of Construction Risk Drivers:Financial risks; Legal risks; Political risks; Social risks ;Environmental risks; Communication risks; Geographical risks; ) Geotechnical risks; Construction risks; Technological risks; Demand/product risks; Completion risk; Commissioning risk; Supply risks; Force majeure risk. Ans 9. Generally, the term Analysis is the estimation of what will happen, if an alternative course of action is selected. In this case, Risk Analysis is applied to the base case model to establish the implication of risks on a standard model. Here the team become aware of solutions that would help either to reduce, mitigate or transfer the Risk, while safely protecting the value achieved from the project. There are many techniques available for analyzing the risks. The perception of the term risk analysis has been generally shaped by the techniques to which they have been exposed. The principal factors on which choice of risk analysis techniques should depends are:- i) The type & size of the project; ii) The information available; iii) The cost of the analysis; iv) The time available to carry out; v) The experience & expertise of the analysts. vi) The purpose of the analysis. Sensitivity Analysis The purpose of the sensitivity analysis technique is to answer the What If question by isolating the key variables. Sensitivity analysis is a quantitative technique, which allows the effect of economic changes in a project to be explored that is one of the best known non-probabilistic risk analysis techniques.

A sensitivity analysis is carried out by identifying a project variable & giving that variable limits within which it is likely to vary. Scenario Analysis The analysis takes into consideration a series of risk or variables, at the same time, addressing the weakness of the sensitivity analysis. This analysis has been applied on several PPP projects & is consistently used for development of business cases This form of testing, establishes where stress may occur, as financers place specific triggers often linked to financial ratios, to protect their interests in the project. Monte Carlo Simulation Page 5 of previous Answers. Ans10. Sensitivity Analysis (definition in above question) How to of a Sensitivity analysis A number of points or steps, are examined around the deterministic value for the economic parameters. At each step, the value of project economic parameters are calculated, using the variable at that step. The type of analysis can pinpoint the most critical areas of a project, in terms of the risks, & indicates where confidence in estimates is vital o/p of sensitivity analysis is given by Spider diagram The Spider diagram presents the information produced from a sensitivity analysis & clearly shows the variables to which the project is sensitive, assumed to be most & shows the changes in the sensitivity of each variable. This technique emphasizes the point that variables can only be known within a certain range, which is defined by the person carrying out the analysis sensitivity of each variable.( scenario analysis is given in previous question) Ans 22. Value Analysis (VA) is a system, a complete set of Techniques, properly arranged, for the sole purpose of efficiently identifying unnecessary cost before, during, or after. VA may be defined as An organized creative approach that has for its purpose the efficient identification of unnecessary cost, that is, cost that provides neither quality nor use nor life nor appearance nor customer features.

Value Engineering (VE) is now defined as a system application of recognized techniques by multidisciplined teams, which identifies the functions of a product, process, service or system; establishes a worth for the functions; generates alternative through the use of creative thinking & provides the needed functions, reliably, at the lowest overall cost. The dictionary meanings of value are worth, utility, & price. In todays economic environment, VE lays stress on economic values (EV). The constituents of EVs are:i) Esteem value can be defined as that part of the product, process, service or system, which will force the person to own them. ii) Exchange value: is that value in the product, process , service or system, which can help to trade with some other things. iii) Use value: of the product, process, service or system is that value for which things has been created iv) Cost value is the cost of the product, process, service or the system. It is to be borne in mind that this cost is not only the acquision cost, but is the total cost, which in the parlance of finance is known as Life Cycle Cost (LCC). Ans 23. Mathematical expression of Value :The value may be expressed mathematically. The elements of the mathematical expression are performance ( or function) & cost. It can be stated as: Value = Performance (or function) / Cost. This expression is in the form of a ratio & can be improved as per various modifications ie the performance or function is improved, but the cost remains the same. Similarly the Performance or function may remain same but the cost decreases. Further, the performance or function can be improved & cost also can reduce. Moreover the performance or function can be improved at a greater pace than the cost increase.

23(a)To improve the value of a product, process, service or system is feasible, if one knows reasons for poor value. These may be identified as followings (9 nos):1) Lack of information- The more ( & latest) the information that is available, the more it helps one to come out with better valued outcomes. 2) Wrong beliefs- Many times it is seen that we fix our belief based on a single incidence, which is statically not correct. This type of wrong beliefs may create poor value of item. 3) Risk of personal loss- This is a psychological frame of mind. The fear that problem may arise, can inhibit a person to come out with maximum potential & efforts & thereby inculcate a poor value to item 4)Reluctance to seek advice- This arises from human behavior. Many people think what they know is the maximum for the occasion. They feel underrated in front of others & as such do not seek for advice. 5)Shortage of time- This is a common phenomenon in the Industry. There are occasions when designers & or planners are not given enough time for any new item. This happens sometime due to the fact that one company tries to come out with a new design ahead of its competitors. This shortage of time forces one to take a decision on the data that is available on hand only, which can in turn create poor value. 6) Negative attitude- Attitude plays an important role in the successful VE application. One should try to eradicate any negativity, which may arise & form a habit of aversion or negative attitude. This is because negative attitude will not allow putting full potential & thus, will induce poor value to items. 7) Changing technology- Every day is new & different than yesterday. This is possible because there is a continuous improvement in technology. New materials are developed & new processes. So one can rest assured that poor value exists, if old technology is used in the item. 8) Strict adherence to requirements- The dynamic environment needs changes. What was a need yesterday, is not required today or what was luxury has become a necessity. The needs, wants & desire of customer changes. Strict adherence will induce poor value to the item. 9) Poor human relation- This is the main factor for poor value. The outcome of a VE activity is arrived at through various interactions with people at different stages. It starts with team members & ends with interactions with the authorities for granting approval. Any problem of human relationships at any stage may hinder the final solution.

Ans 24. Function differentiates the VE initiative from other cost reduction technique. This is also called heart of the technique. Everything is created to serve certain purpose. The purpose is termed as Function. Function is also a communication tool. It translates the need, want & desire of the customers. There are two levels of functions. They are basic functions & secondary functions. The basic function is that function for which the item is created, whereas a secondary function comes into being because of the particular choice of the design. To identify a basic function, if one removes that function, the item will cease to exist. But in case of a secondary function even if one eliminate that function, the item will continue to exist. While defining a function one should be clear where the item is being used for, because on its purpose, the definition may change Cost can be defined as services obtained for a specific price. The basic anatomy/ingredients of cost consists of three elements. They are:a) Direct material cost It is the material, which goes into the product, process , service or system. The method of identification of this element of cost is that it should have direct relation with the unit b) Direct labour is that cost, which can be directly attributed to the item, that is, if one unit requires one hour then two units will take two hours. c) Overhead cost: The cost elements which cannot be directly associated with a product, process, service or system are considered as overhead. In the absorption costing method, the overhead is divided into three i.e. Production overhead; Administrative overhead & Selling and distribution overhead 24 (b)The life cycle cost is the total cost from acquisition of an item to the final disposal of the same after the life Acquisition cost- It is the material cost for manufacturing of the item including drawing & design cost as well as development cost. Operational cost- Customer spends certain amount of money to use the item, this comes under this operational cost. For Example- petrol/diesel cost for running a car. Maintenance cost- For maintenance of the item. Repair & replacement cost.- Under this the item may have wear & tear and may need repair after certain period of time. Salvage cost.- The customer may sell the product after its use & receive some amount in return. This amount is called salvage cost. of the item

25. There are two methods of calculating the life cycle cost. I.e i) Present worth method; ii) Annualized method. Present worth method Acquisition cost: Since the acquisition cost is in the first day of the calendar year, it is the present worth & its present worth factor is I. Operation & maintenance cost: These costs takes place every year. Using the discount rate & the year when operation & maintenance cost recur, the present worth factor is to be found out. To achieve the present worth of individual item, the costs to be multiplied with those factors Repair & Replacement cost: These are single payments, which may happen at any time of the life cycle. Using the discount rate & the year when repair & replacement cost recur, one can find out present worth factor. The present worth of individual item can be obtained by multiplying the cost with those worth factor. Salvage value:- This will happen at the end of the life cycle. This is the only item, which is an income, when all others are expenses. Using the discount rate & the year when it is being salvaged, one can find out the present worth factor. The present worth of the item can be obtained by multiplying the salvage value with that factor To arrive at the life cycle cost, all the items from sl. i) to iii) to be added, & then item iv) to be deducted from the total of i) to iii). 26. Annualised method Acquisition cost Since the acquisition cost is the first day of the calendar year, it is the present worth. To get the annualized cost, it is to be multiplied by the capital recovery factor, based on discount rate & the life of the items. Operation & maintenance cost- These costs happen every year. Hence, they do not require any further treatment. Repair & Replacement cost These are single payment, which may happen at any time of life cycle. Using the discounted rate & the year when repair & replacement cost recur, the present worth factor can be found out. To get annualized cost, it has to be multiplied by the Capital recovery factor, based on discount rate & the life of the items. Salvaged value:- This item will happen at the end of life cycle. This is the only item which is an income, when all others are expenses. Using the discount rate & the year in which it is being salvaged, the present worth factor can be found out. To get annualized cost, it has to be multiplied by the capital recovery factor, based on discount rate & the life of the items Life cycle cost ( LCC) :- To arrive at the life cycle cost, All the items from serial no (i) to (iii) to be added & then item iv to be deducted from that total.

27. Though each human being is different from the other, all human beings have the same ego-states, be it a kid, a man or a grandfather. In behavioural science these ego-states are called : Parent ego state: It is observed that each person changes its ego-state from time to time. There are certain indications which will reflect the state the person is in, at that moment. The parental clues are: Pointing index finger Head-wagging Hands on hips Hands on shoulders There are two different types of parental ego-states. They are: i) Controlling or critical parent ii) Nurturing parent. Adult ego state: In adult ego-state, one believes in inferences based on data. The indicators of adult ego-state, also known as thought concept of life may be enumerated as: Gathering information Reasoning things out Child ego state: The indicators of child ego-state, which is also known as felt concept of life are enumerated as: i) Hand raising for permission Laughter 28. The team building is an important aspect in Value Engineering. Normally, the members are from various disciplines & in most of the cases, may not be known to each other. So, they start the project as a group, which after some time gels together & become a team. There are a lot of tools in the VE concept itself, which helps them to transform a group to a team. There are three ways of transformation, which are: Physical transformation: In order to have physical transformation, each member has to agree to the followings: First, the team members unanimously decide about their leader. During this process of selection there will be a lot of discussions, which will indirectly help them to gel together. Second, the team members are coming from different areas, the team has to decide about the schedule of the meeting. The schedule to include normally items like meeting venue/days/time & Allocation of jobs. Teasing . Estimating capabilities.

Finally, all the team members should have a continuous dialogue, which will help the team members to arrive at a unanimous decision The mental transformation of the VE teams is based on Split Brain Theory. This theory states that the brain, which is central part of the body & responsible for directing the human being, is divided into two parts & they are: Left brain is responsible for analysis, logic, verbal etc. Most people use this part of the brain profusely to lead a regulated life. The right brain is responsible for some creative, & artistic work, which a person may require to do in his life time. Intuition & dream also make use the right brain. The VE team requires utilising both part of brain for improved performance. Spiritual Transformation:After transforming the body & mind, it is time to transform the heart. The essential requirements for this aspect are: i) Patience; ii) Discipline; iii) Mutual trust; & iv) Loyalty The process by which one can gain the above requirement is by opening an emotional account. This is achieved by : i) Understanding the individual; ii) Attending to little things; iii) Keeping the commitment; iv) Classifying the expectations; v) Showing personal integrity; & vi) Apologizing sincerely, when one makes a withdrawal.

29. In search of unnecessary costs, the VE technique has developed a systematic approach that is known as a job plan. The job plan consists of a number of phases. These phases have to be applied in a sequential way. The most important part of these phases is that some of the phases can be skipped. The other important point is that while working in a certain phase, the team can go back to previous phases that have been completed. Orientation phase: Using the following disciplines, the group can develop cohesion among the members : A consensus on having a regular meeting once a week should be decided along with the time & venue. If the management gives the project, the members should discuss all the positive & negative aspects of the project. All members should participate in the discussion. If the project has to be selected by the members, they can resort to the following criteria. Information Phase:

The information about the VE project is the backbone of the whole exercise. It is well known that the more one knows about the existing conditions, the better the alternatives would be. This is the phase where team members should put their expertise together in order to get the information from the correct/reliable source. The team can be benefited, if they make checklist for the same. Function Phase: This phase is the heart of the concept. During this phase, the team members should define the function of the product, process or system. The four basic questions that is asked about the product ,process or system are: i) What does it do?; ii) What must it be done; iii) What does it cost now; iv) What must it cost?. At the end of these phases, the team would be aware of the functions, activities & procedures, which have more value gap. They would be able to prioritize their thoughts, before launching the creative phase. The tools to be used in this phase are: i) Function-Cost-Worth Analysis; ii) Function Analysis System Technique.

Creative Phase: The creative phase divides the existing concept from the proposed concept. This is the line where the existing project ends & the proposed one begins, so long as all the relevant data have been collected & analyzed, keeping in mind the functional requirements. The tools to be used are: Brainstorming Technique Gordon Technique Feasibility Ranking of Ideas The Morphological Analysis Technique. Evaluation Phase: In this phase , the VE team comes up with alternatives. This phase of the job plan deals with the process which helps to find out the best alternative. The processes are given below: To find out the parameters for evaluation To fix the weightages of the parameters

To evaluate the alternatives for decision making Cost-benefit analysis. Recommendation phase On the basis of evaluation, the VE team should come out with their recommendations. This can be done in two phases. First the VE team should finalized their decision, based on an evaluation matrix & cost-benefit analysis. Second, the VE team will present their recommendations to the decision-makers. This should be on oral presentation as well as written presentation.: Implementation phase: The acceptance of a recommendation will not have any meaning unless it is implemented. Sometimes, the decision-maker may impose some conditions before implementation. The conditions may be Testing the component/assembly in test rigs Testing the component/assembly in the torture track Testing the component/assembly in a live environment. Whether it is conditional acceptance or a non-conditional acceptance, the VE team has to formulate an implementation plan. Audit Phase: Two types of Audit are usually necessary:Operational Audit This ensures that the VE change proposal has been implemented & benefits have started accruing. In Engineering industry, the following steps are followed:- i) Modification of the design & drawing of the product; ii) Incorporation & documentation of the process changes in the estimate sheet; iii) Updation of bills of material; iv) Provision of facilities. Financial Audit This ensures that the company has started accruing the benefits & it becomes a part of the financial accounts that include both profit & loss account as well as a balance sheet. The steps are followed as per standard norms for achieving the end result. 30. The Function-Cost-Worth Analysis is an excellent tool to identify the value improvement potential in any function. This tool will not only help to identify the potential, but also will also give some creative idea as to how to achieve that. This may also be considered the first step towards creativity. Procedure: Split the product into components & service/system into activities Define functions of components/activities

Define the total cost of product/service/service/system into components/activities cost. Process performed to achieve particular function; cost allocated to that function Component provided to achieve particular function; cost allocated to that function. Component accomplishes more than one function; allocation should be based on weight, volume, surface area & length Hold each function in isolation of the others to do this. 31. Concept of Worth: Worth is the minimum cost of achieving a function ;Worth is the indispensable element of VE. Worth varies with time. Worth depends upon information Worth is usually determined by developing other methods of performing function. Worth is just a technique, not an absolute value Where an item has several functions, the worth of each function to be determined separately & add to them to get overall worth. 31(a)FUNCTION ANALYSIS SYSTEM TECHNIQUE (FAST): The FAST is a systematic Diagramming Technique that logically identifies & visually displays the necessary function to accommodate a design purpose. The FAST diagram is used for followings: Organize random listing of problems Helps check for & identify missing function Simplifies the list of functions first generated Aids in identification of basic function Aids in setting scope of the study Deepens understanding of the problem Demonstrate that a thorough team analysis has been made. Classic FAST Technically oriented FAST Customer oriented FAST Diagramming Perspectives: It is just a tool, which can be used to clarify the project.

The process in making the diagram is important, not the perfection of the resulting diagram. As such there cannot be a unique FAST diagram. The value engineering team can draw existing systems or existing designs, as well as purpose system & propose design. Precaution to be taken :Do not include alternatives & choices not in the existing system. If one wants to use the FAST in the design stage, he should do followings: Restrict the diagram to a specific concept. The method selected to perform a function brings many other functions into existence. Use the future oriented questions. 32. Creativity:- Different people have defined creativity in different ways. Some of the definitions are: Creativity is the art of imagination, which brings something new to existence. Discovery of something that is novel, useful, relevant, economical, significant & different from the beaten track. Blocks to Creativity: Habitual block From early childhood everyday has been put in a system. This system forces them to think in a certain pattern. They are so accustomed that they cannot come out of that, even when a new procedure is available. So they always get the same result which they got earlier. Perceptual block- It has been said that many a time there may be some difference between what we see & what really is. In the process of creativity, this may create a block, which is known as the perceptual block. If one knows the cause of this block, then one can find ways to overcome. Cultural Block- Human beings are nurtured in varied environments. The effect of that particular environment forces them to think in a certain pattern. iv) Emotional block- The block will also be prevalent in a person because of the environment where one born & bought up. The following indicators may help one identify this & come out of this block: Fear failure Fear of criticism Fear of taking risk Failure to suspend judgment 33. The Brainstorming technique is widely used in the VE technique. The members of the group discuss among themselves & come out with various ideas to achieve the objective. In order to evaluate properly, one can use the following scale. Rating index for evaluating the ideas are:10) Technically feasible; significant cost &/or functional improvement.

9) Technically feasible; some cost &/or other functional improvement. 8) Technically feasible; minor cost &/or other functional improvement. 7) Could be significant improvement but requires additional analysis to verify concept & benefit 6) Alternate approach, but no significant benefit. Design changes to be suggested. 5) Cost reduction but some loss in functional requirement; 4) Benefits questionable. 3) Too many unknown to pursue further; 2) Significant disadvantages; 1) Does not meet programme requirement. Rules during Brainstorming Criticism ruled out. Adverse judgment of ideas must be withheld Freewheeling welcome, wilder the idea, the better. Quantities of ideas wanted; not quantity (at this point of time). Greater the number, more likely of a winner. Combination & improvement sought. Consider all ideas, even the most impractical. Do not ridicule any idea. Be careful not to judge ideas at this stage 34. ABC analysis- This analysis is a technique which help to identify the potential area of investigation. Technique try to identify the high value inventory, by categorizing A, B,C , depending on its value & % implication. Gordon Technique- Similar to Brain storming. Here the leader starts the discussion with some of the concept basics to or closely associated with, the problem under consideration. This help to generate more ideas which helps the team to come to some unconventional solution, which is expected from them. Attribute Listing- Here major attributes of an existing product is listed out & modify each attribute in the search for an improved product.

v) Morphological Analysis- Morphology means structure. This method calls for identifying the structural dimensions of a problem & examining the relationship among them. vi) Laddering- In this method by using the question how one can come down the ladder & can get different levels of abstraction 35. Managerial traits: It is the responsibility of an enterprise to inculcate managerial traits to its employees. These traits are not only required for the top executives, but also should be evident in the grass root employees. The enterprise has to follow the proverb United we stand & divided we fall. The five key traits are as follows:Teamwork Leadership Communication Innovation Entrepreneurship(explain in own words) 36. A strategic Approach to Capacity Development can be addressed effectively only with the active & enthusiastic preparation of the stakeholders. The process comprises awareness generation, education, training, Research & Development (R&D) etc. It further addresses putting in place appropriate institutional framework, ,management systems & allocation of resources for efficient prevention & handling of Disasters Institutional Capacity Development Professional Technical Education Training of Artisans Licensing & Certification Research & Development Approach Training of Communities DM ( Disaster Management) education in Schools Training of other Groups Knowledge Management Approach Road Ahead

Disaster can have far-reaching repercussions on a nations image. It can also impose serious restrictions on national development. It follows, therefore, that there needs to be prudent connection between development & Disaster Management policy The first is that most major departments within Govt. have a tangible & practical connection with Disaster Management. They have clearly defined roles & responsibilities throughout the total process of prevention, mitigation, preparedness, response & recovery. These roles & responsibilities are formally laid down in the relevant counter-disaster plans

The second point is that those Govt. Deptts, which are primarily concerned with development concerned with development planning do not usually have direct & practical connections with Disaster Management. These planning departments & sections involved in actions affecting recovery mainly & to certain extent prevention & mitigation. In most countries, the Ministerial portfolios involving national development & DM are those covering followings:National Development Finance The economy The environment Disaster Management

37 The reasons for unsatisfactory state of affairs & major causes of failures are listed below:Lack of effective coordination among various agencies involved in DM. Lack of inter-agency flow of information Lack of transparency & accountability - Regarding the money & material distributed to the effected people as well as left unused. Delays in release of materials & funds & thereby ultimate sufferings of the people effected. Bureaucratic management approach that is top down, non-integrated & piecemeal. Roles & responsibilities are not well defined. Past Experience in DM is not institutionalized & documented for use. It is normally lost with the individual, when left the assignment on normal transfer. Lack of Comprehensive Disaster Mitigation Plan (DMP) at national, state, district & local levels Lack of public participation in reconstruction programmes Lack of effective rehabilitation policies & programmes Peoples attitude & behaviors is casual & directed to short-term personal gains. Failures of Professionals Architects & Engineers in advising the people on magnitude of damage, if quality of building is compromised for cost considerations. Engineers do not feel accountable for damage to the buildings due to their faulty design or supervision. 38. A Comprehensive National Policy on DM need to be implemented on ground.

A separate new Ministry for DM will help in proper implementation on ground. Home guards & NCC personnel need to be trained , along with some Armed forces personnel & local Panchyat members. DM aspects like preparedness, community response etc need to form part of curriculum in primary, high schools & colleges throughout India. Identification & net-working of existing Centres of Excellence at the National & International is to be done. vi) Involvement & active participation of community in combating disaster needs to be increased. vii) All State Govt. should recognize their DM mechanisms & village DM communities need to be established. viii) A formal mechanisms to co-ordinate activities of NGOs ix) Alternative means of communications/stand-by communication systems need to be given priority There is an urgent need of careful study of all existing structures particularly in earthquake prone areas specially & strengthening measures is taken & in all future constructions measures are incorporated. xi) To establish credible R & D organizations. xii) Central Govt. should publish & circulate all lessons learnt in the post disaster. xiii) The existing warning systems, including infrastructure in disaster prone area need to be improved. xiv) There should be synergy between Armed forces & Civil Administration ( including NGOs) for providing efficient response. 39. 40. The guidance on how the process should be undertaken & executed in order to provide the project manager or client with meaningful, repeatable, supportable & useful information on which future decision can be based are as follows:Decision making: Initiating & managing construction projects requires decisions to be made. Risk management is a fundamental technique used to facilitates he decision making process. It may not always be possible to have complete information before taking decisions; however , it is important to recognize that the knowledge is incomplete & to try to assess the extent of the gaps & the potential consequences of taking action. Two common problems can arise. First a tendency to delay making a decision & second a tendency to seek more knowledge on the assumption that this will facilitate decision making. Normally Seeking more information delays the decision making process further.

Preparation for risk management: Broadly, risk management consists of potential risk source identification, risk impact assessment & analysis, & a managerial response to the risk in the context of the project. There are a large number of variations on this general theme, but one thing that all have in common is the risk must be managed in a systematic way via a number of stages, although the process should be regarded as iterative & the phases are not always sequential. The scope of the project & the plan to be modified & changed, as the risk management process progresses & it may also vary due to other external factors, which in turn may require changes in the identification or assessment phases. Usually a top-down approach is adopted & the project objectives are clearly defined, sometimes with the aids of the early stages of risk management process itself. The questions to be asked in identifying the riskier projects are: Is the clients business or economy sensitive to outcome of the project in terms of performance & quality of its product, capital cost & timely completion? Does the project require new technology or the development of existing technology?. Does the project require novel methods? Is the project large &/or extremely complex? Is there any extreme time constraint? Are the parties involved sufficiently experienced? Is the project sensitive to regulatory changes? Is the project in a developing Country?

Risk identification it is the recognition of potential sources of risk for our particular project, which are likely to have a high impact on the project & high probability of occurrence. These are filtered out of a longer list of risk sources, people in workshops, historical data & advisory checklists The most preferable method of .identifying risk is the use of brainstorming, or similar techniques, which focuses each project team member on the risks specific to the project. The process must be carefully managed to remove individual & group biases. There is also the danger that the group does have sufficient collective experience to identify all the key risks, even in a general form. This is why it is common practice to use external Consultants or facilitators to prompt & guide sessions to produce better balance assessment of project risk sources.

These potential sources of risk will form the framework against which relative riskiness of various project options can be assessed.

Risk analysis There are many methods of analysis, which require different levels of project knowledge & different data. These can range from the ranking of risks, which gives their relative importance but no quantifiable value, through to pseudo-quantitative techniques, which introduce time or other parameters, to full simulation methods which provide ranges of programme durations, costs & rates of return. The choice of method, or methods, or to be used should be governed by the appropriateness to the project & the circumstances at the time of undertaking the risk analysis. Simple & rapid methods of risk analysis should be undertaken as a first step, only progressing to more complex, time-consuming & expensive methods as necessary. If major risks are present in the project then it is likely that a full computer-based probabilistic analysis should be undertaken, if the impacts of the risks can be quantified Risk outputs: The types of output which are produced by computer-based risk analysis packages & describes how to apply to them to, explaining the key features & report options, communicating these findings in an appropriate form & considering their use in decision making. Monte-Carlo simulation produce results in tabular format & graphical format; usually latter is preferable. Typically, three graphs are of interest: risk exposure, downside risks & risk contributors within each of the main project areas. The projects risk exposure is the most important indicator of the projects riskiness. Models & resultant outputs: As a general rule, models should be kept as simple as possible.

It is good practice to identify the main risks separately & combine most of the other elements & treat them as single risk. Cost increases might be directly related to delays. While a full critical path analysis is not essential, it is important to understand the main activities which occur in a construction project & their logical sequence. it is useful to model the interfaces between key elements correctly The main interfaces include those: Between design groups; Between design groups & specialists; Between design & procurement; Between design & construction; Between the project manager & the client Communication: it is a primary function of risk management to communicate clearly to all members throughout the duration of the project.

Without effective communication, risk management cannot operate. Indeed, one of the biggest risks on any project is a lack of communication which can lead to a lack of shared understanding of the project & its objectives. The team need a high degree of involvement in the identification & quantification phases, & the results emerging from the analysis must be clearly understood & communicated within the project organization. This is crucial for any projects which wants to succeed using risk management as a tool to improve project monitoring, control & overall performance. Frequently, the communication can be undertaken using the risk output diagrams

41. As per draft IS, the risk analysis & management process needs to address followings: What are the Risks? What is the probability of occurrence of identified risks? What is the likely impact on the project in terms of time, cost & quality?7 What are the responses & their cost to the project? Will any response lead to other risks? How to reduce or eliminate the losses? What should be the management setup to deal with risks? 42. steps need to be taken (as per IS) : Risk management planning Risk Identification Risk assessment Risk response planning Risk monitoring & control Risk management feedback & lessons learnt. 43.

Pre-construction stage: Inadequate soil & other required investigations & surveys Inadequate Detailed Project Reports (DPRs) including inadequate cost estimates Delay in project specific clearances Inadequate handling of social issues Incomplete/inadequate project drawings & documents Inappropriate technology adoption decision B) Construction stage: Non-availability of site free of encumbrances Variation in geotechnical conditions Delay in issue of good for construction drawings Design variations & other changes by the consultants, client & other stakeholders Variation in construction programme Non-availability/shortage of adequate resources including manpower, material & machines Lack of commitment & leadership skills in senior management; x) Inadequate disputes settlement mechanism; xi) Lack of awareness of safety norms & lack of implementation of safety requirements; xii) Accidents; xiii) Multiplicity of laws to be followed & delay in project specific clearances required at the construction stages; xiv) Inefficient payment system/paucity of funds C) Commissioning & Handing over Stage: Final payments & related settlements; Contract closure Final project documentation Final disputes resolution Political interference/public pressure & Concessionaire's apathy (if applicable) 44. Risk management planning Required information about project is to be collected Planning meeting & analysis Risk management plan to be developed. ii) .Risk identification Risk identification process & Risk identification tools & techniques to be applied.