Risk analysis and methods in construction projects: An application to a petrochemical plant

The construction industry is developing rapidly in our country. Construction industry involves installation of the structures such as roads, ports, damns, bridges, factories and residential buildings as well as their concerning maintenance and repair works. In parallel to transformation of our country?s economy in favor of industry, construction of factory and residential buildings have increased significantly.The aim of this study is to evaluate risk management and to highlight its importance in the applications of construction projects prioritizing the project management. Within this study, a quantitative analysis of ?expected monetary value? have been used. The value obtained as a result of such analysis demonstrates possible cost of the risks which might cause an additional cost for the subject cost. The risk management which has been applied recently in our country is not yet considered during the project planning phase. In this study, a major construction project carried out in Turkey has been investigated and its activities of work breakdown structure have been studied. The possible risks which might be associated with a construction project have been investigated on the basis of articles studied earlier. Then, each activity has individually been analyzed and possible risks for the subject activities have been determined. After having specified the probability values of for the activities, impact of that activities on project, consequently the priority of the risk have been assessed. On the basis of cost of the project impacts of these risks have been converted to numerical values. Using the numerical values ?expected monetary value? analysis has been performed in order to assess the impacts of the risks on the subject project.According to this study, cost of the risks on the projects may be expressed as monetary value; so all the risks which might be encountered within a project can be classified and also their impacts can be reduced. In view of the Project Manager it is important reducing the impacts of the risks. In reducing the impacts of the risks, top management, project manager and project team bear responsibility in accordance with their authorization set out. Drawing attention to the fact that not only the planning phase but also all possible risks should be assessed in every stage of the project and necessary precautions should be taken on time, this study will be accepted as an indicator for future studies.Keywords: Project Management, Risk Management, Risk Management In Construction Projects, Expected Monetary Value