Risk Analysis
Construction risk analysis is a quantitative evaluation of the risks associated with a project. Risk can be approached from a variety of angles depending on project needs including cost-risk analysis, schedule risk analysis, and qualitative risk analysis. The risk process can help the project team pinpoint the source of risk, monitor the risk exposure, and reduce risk. For example, in a cost-risk analysis of a construction project, PMSI can help you answer questions such as:
- What is the probability for the construction bid to be above or below the estimated value?
- How low or high can the total cost be?
- What is the appropriate amount of contingency?
- Which cost elements have the greatest impact on the building’s cost risk exposure?
- What are schedule risks?
- If you build it, will they come?
If you select PMSI to conduct a cost-risk analysis, you’re choosing one of the most well-qualified companies because PMSI helped to develop the standards on cost-risk analysis. The Standard Practice for Measuring Cost Risk of Buildings and Building Systems (ASTM E 1946-02) was developed based on a paper written by PMSI called Measuring Cost Risk of Building Projects.