Risk Assessment in Construction Estimating: Identifying and Mitigating Uncertainties in Project Budgets

Authors: Abhiram Reddy Anireddy

DOI: https://doi.org/10.5281/zenodo.14059363

Short DOI: https://doi.org/g8qjpn

Country: USA

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Abstract: The construction industry has uncertainties from fluctuating material price, labor shortage, environmental factors and the changing regulations. These risks undermine the accurate cost estimation necessary to financial plan any project, and budget overruns and project delays follow. This paper covers a comprehensive study on the major risk which affect the construction estimating work, which cover financial, technical, environmental and operational risks. It explores how advanced tools and methods, including Building Information Modeling, (BIM), Monte Carlo simulation, artificial intelligence (AI) and blockchain can mitigate these risks. Using in depth case studies of projects with severe cost overruns and successful projects where proactive risk management took place, this paper provides practical insights for future projects. It also outlines the direction that construction risk management is heading and suggests the way risk assessment and estimation processes can be enhanced.

Keywords: Risk Assessment, Construction Estimating, Cost Overrun, Risk Mitigation, Monte Carlo Simulation, BIM, AI, Blockchain, Project Uncertainty, Construction Risk Management.

Paper Id: 231464

Published On: 2022-12-07

Published In: Volume 10, Issue 6, November-December 2022

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