Risk Analysis Services
Our risk and uncertainty analyses involve the preparation of sophisticated cost and schedule models that, with the client’s input, forecast a range and probabilities of outcomes to better define the uncertainties of claim values or project completion dates.
Our risk analysis methods have been successfully applied to mega-projects.
Risk is inherent to every aspect of construction, and project management is no exception. Project stakeholders manage risk throughout the project life cycle for the benefit of their interests and for successful project execution. Risks may include cost or schedule overruns, construction claims, contract issues, workforce labor availability, as well as many other concerns.
To analyze risk, we identify the variables that may impact the project. Then, we use sophisticated cost and schedule modeling software tools with robust Monte Carlo simulation capabilities to evaluate thousands of scenarios to produce substantive guidance from probable outcome analyses to inform real-world decisions that impact the project. This method not only rates probable outcomes but also gives information as to the sensitivity of the project to the variables. These results provide our clients with an extra measure of understanding for making good management decisions.
Our risk analysis methods have been successfully applied with the following common uses:
- Contingency development for capital cost estimates
- Project feasibility assessments comparing capital and operating costs with projected revenues (production quantities and market prices)
- High-level claim evaluations
- High-level schedule and completion date evaluations
- Workforce, materials, and equipment management and optimization
- Cost forecasting