Understanding And Managing Risks in Large Engineering Projects

Cover Understanding And Managing Risks in Large Engineering Projects
Understanding And Managing Risks in Large Engineering Projects
Donald R Lessard
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Supply risks are similar to market risks: both involve price and access uncertainties. Supply can be secured through contracts, open purchases or ownership.
• Completion Risks Projects face technical risks that reflect their engineering difficulties and novelty: some of these risks are inherent in the designs or technologies employed. Construction risks refer to the difficulties that sponsors, prime contractors, and contractors may face in the actual building of the project. Operational risks r
...efer to the possibility future income flows will not materialize: such risks can be reduced substantially by the selection of an operator with an economic interest in enhancing revenues and controlling costs.
• Institutional Risks The ability of projects to repay debts and investments depends on law and regulations that govern the appropriability of returns, property rights, and contracts. Some countries are governed under constitutional frameworks and the rule of law, while others are led by powerful political parties or clans.


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