Risk Management in Construction of Oil Industry Projects in Sudan

Abstract

In any country, infrastructure development increases the growth of countries economy and generates the large amount of job opportunities. Hence those projects involve a large amount of investment to carry out. In view of that, if any sort of waste (either time, resources etc) occurs that would lead to huge monetary losses. These losses occur due to various risks associated with such mega projects. Consequently, these risks play a crucial role for the completion of project within the time schedule and planned budget. In this connection, this study mainly discusses the critical risk factors and their assessment techniques through comparative study of construction projects in oil field in Sudan. Three projects with different Clients, Contractors and Consultancy have been reviewed. The review resulted that a simple analytical tool will be developed for each project task to assess the risk easily and quickly by interview, lessons learnt from previous projects and designed questionnaire for this study, which will encourage the practitioners to do risk analysis in their projects. This review concluded that the earlier risk identification in the project and assessment during the stage of the project will lead to a better estimation of on the escalation cost and time overruns (from conceptual phase till commissioning phase). Such risk assessment help to include in the budget and scheduling for the successful completion of the project.