RISK ANALYSIS IN INFRASTRUCTURE

DOI: https://doie.org/10.65985/APER.2025885623

Authors:

Dr. B. Ravinder, M. Harshitha, M. Chandana, V. Chandrasilpa

Keywords:

EPC Contract, Risk Impact, Highways, Project Delays, Risk Management, Mitigation Strategies, Infrastructure Development.

Abstract:

This research delves into a risk impact analysis related to infrastructure development through the Engineering, Procurement, and Construction (EPC) contract model, specifically within highway projects. The EPC framework aims to enhance project delivery by consolidating design, procurement, and construction responsibilities under one entity. However, practical applications reveal persistent challenges, including project delays, mismanagement of resources, and inadequate stakeholder collaboration, indicating significant shortcomings in current risk mitigation strategies. The study employs the Telangana highway expansion project as a case study to explore these issues. It commences with an extensive literature review to pinpoint essential variables tied to EPC-related delays and risks. From this review, theoretical hypotheses regarding potential risk factors were developed. The research methodology included the creation of a structured questionnaire, which underwent pilot testing for clarity and feasibility, aiming to gather primary data from key stakeholders, such as project managers, contractors, and engineers. Following data collection, the analysis aimed to evaluate the hypotheses and measure the impact and significance of different risk factors affecting the project's success. The study confirms the reliability of its data and identifies the construction phase as the most vulnerable to risk impacts. Critical issues requiring immediate attention include labour shortages, delays in design approvals, and broader external pressures such as government policy shifts and economic instability. These findings indicate that although internal operational efficiency is essential, external macroeconomic and political factors exert a significant influence on project outcomes. The insights from this study offer stakeholders clear, actionable guidance. To improve project performance and ensure timely delivery in EPC-driven infrastructure development, stronger risk assessment and mitigation strategies are required—particularly for high-impact, high-probability risks linked to the construction phase and external environmental factors. Adopting robust risk management frameworks that prioritize proactive risk identification, thorough planning, real-time monitoring, and effective stakeholder coordination will be essential for strengthening outcomes in future large-scale infrastructure projects.

PDF