Cost Risk Appraisal: An Application of Project Risk Management Process in Libyan Construction Projects

TL;DRAbstract

Projects delay and cost overrun have become general facts in the construction industry. Project cost risk analysis considers the different costs associated with a project and focuses on the uncertainties and risks that may affect these costs. An implementation of PRM (project risk management) process on regional construction project has been carried out to maximize the likelihood of project meeting its objectives within its constraints. Qualitative and quantitative risk analyses have been carried out. The qualitative analysis is presented in a table that shows top ranked risks in Libyan construction projects based on probability-impact grid technique. In quantitative risk analyses, Mont Carlo simulation technique has been conducted to quantify and evaluate the overall level of risk exposure associated with the project completion cost. A project simulation uses a model that translates cost uncertainties into their potential impact on project objectives. A frequency curve model that repr

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