Impact of Correlation on Cost-Risk Analysis for Construction Highway Projects

Major construction projects are often constructed by dividing the project into smaller, more manageable segments. Managing these projects is a complex task due to risk and uncertainty. Many studies have proposed risk analysis frameworks to analyze the impact of risk on project outcomes. However, a limited study has addressed the effect of considering correlations on the cost-risk analysis frameworks. Capturing correlation between variables during the risk analysis process is an important, but a challenging task. This paper examines the impact of correlation between project phases/segments on total project cost. The Federal Highway Administrative cost-risk analysis framework was investigated. The correlation coefficient assessment was determined based on a comprehensive review of literature and several risk management frameworks used in transportation and transit sectors. The paper includes a case example that discusses the impact of correlation on the total project cost uncertainty in detail. The findings from this paper contribute to a construction risk analysis and management domain by showing the effect of considering correlation on the cost-risk analysis process. The results from this paper also help the highway industry to better manage their projects by performing a more accurate risk cost estimate.

• Record URL:
  https://doi.org/10.1061/9780784479827.068
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780784479827
• Supplemental Notes:
  • © 2016 American Society of Civil Engineers.
• Corporate Authors:

  American Society of Civil Engineers

  1801 Alexander Bell Drive
  Reston, VA  United States  20191-4400
• Authors:
  • Tran, Dai
  • Bypaneni, Sai
• Conference:
  • Construction Research Congress 2016
  • Location: San Juan Puerto Rico, United States
  • Date: 2016-5-31 to 2016-6-2
• Publication Date: 2016

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 668-678
• Monograph Title: Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan

Subject/Index Terms

• TRT Terms: Cost estimating; Project management; Risk analysis; Risk management; Road construction; Uncertainty
• Subject Areas: Construction; Finance; Highways;

Filing Info

• Accession Number: 01606184
• Record Type: Publication
• ISBN: 9780784479827
• Files: TRIS, ASCE
• Created Date: Jul 28 2016 10:03AM