Dentifying and Quantification of Risk on BOT Projects

V Balasubramani¹, M Chinnasamy²

¹PG Student, ²Assistant Professor, Department of Civil Engineering,
Vel Tech Rangarajan Dr. Sangunthala R&D Institute of Science and Technology, Chennai, India.

Abstract

As of today, the total length of road network in India is 70,548 km. Agencies like National Highway Authority of India (NHAI) and Public Works Department (PWD) carry out the road projects. NHAI executes most of the road projects and these projects are carried out through Build Operate Transfer (BOT) type of contract. Every construction project is greatly affected by various risk factors that will greatly influence the project cost and duration of the project. So, this study is mainly to counteract the cost overrun due to several uncertainties. Various risks such as acquisitio of land, securing necessary clearances, project funding; resource availability, etc are studied as a part and parcel of this research. This research involves study of Model Concessionaire Agreement (MCA) in BOT projects followed by risk identification and quantification. A questionnaire survey is conducted among industrial experts to know the cost percentage involved in a project due to uncertainties. The reliability of the questionnaire is tested using IBM SPSS software package. To quantify the risk, Monte Carlo Simulation techniques were used. As a result of this research, various types of risk can be identified, quantified and minimized in BOT road projects to improve the quality, performance, and avoid cost overrun, delays etc.

Keywords

• BOT Projects, Model Concessionaire Agreement, Monte Carlo Simulation, Cost overrun

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Cite this Article as Follows

V Balasubramani, M Chinnasamy. Dentifying and Quantification of Risk on BOT Projects. International Conference on Global Environmental Changes and Sustainable Development (2019): 89. Print.