Risk Assessment and Allocation for Highway Construction Management

Risk Management Matrix - High Probability, High Impact

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Figure 19. Diagram of one branch of an event tree. Along the right side, from the top of the diagram are Factors, such as Period in engineering, Feasibility of alternative designs, and whether Additional environmental impacts exist. Below these are Consequences, including Delay to completion and Construction cost overrun. The most likely events are indicated by bold arrows and described herein. At the top of the branch, a Delay in Right-of-way Purchase occurs at an Intermediate stage in engineering (as opposed to an early or late period). This leads to the question: Are alternative designs feasible? If not, are there additional environmental impacts? If these impacts exsist, they may cause a Delay to Completion lasting 2 to 6 months and will likely result in a Construction cost overrun of $1 million to $10 million. Alternatives shown to the 2-6 month delay are 1-2 months and 6-12 months. Other cost overruns include zero to $100K and $100K to $1M.

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