Construction industry is highly threat
lying, with multipart and vibrant project environments creating an atmosphere
of high insecurity and risk. This industry is susceptible to countless
technical, socio-political, construction and business risks. The path record to
bring about with these risks is non-virtuous in construction industry. As a
result, the people in the industry endure innumerable failures, such as, letdown
of aiding by quality and operational wants, cost overruns and certain postponements
A modern transportation infrastructure network is necessary for our
economy to function, and is a prerequisite for future growth. Businesses depend
on a well-functioning transport infrastructure system to obtain their supplies,
manage their inventories, and deliver their goods and services to markets. Likewise, it also make rural
areas for growth and makes cities internationally competitive. Transport
infrastructure facilities the transportation of people and goods and provides
them access to markets, employment and investment opportunities.
An efficient transportation system can have a multiplier effect on the
economy whereas a deficient transportation system can result in economic loss.
For efficient transport system, an adequate infrastructure is very important. Through swelling population
there is a compulsion to deliver matching transport infrastructure to avoid
overcrowding, overloading and poor maintenance of the availability
Transportation can be provided by various modes depending on the surface
over which one has to travel – land (road, rail, and pipelines), water
(shipping) and air. Infrastructure plays paramount role in the economic growth
of the country, infrastructure investment in India is growing at a constant
pace, and the 12th five year plan also has significant investment. In developing countries, an indispensible
requirement for commercial growth and sustainable improvement is the provision
of well-organized, consistent and inexpensive infrastructure services. A well
road set-up is critical for hasty growth.
1.2 ROAD STRUCTURE IN INDIA
Road transportation is enormous user of space
and has high repairs costs, both for vehicles and infrastructures. They are primarily
linked to light industries where very small units of cargo are requires to be
transported. They are useful
for everyday movement of people to their workplaces or to meet every day needs.
For efficient road transportation we need good quality roads with proper
signage and traffic regulation. The road transport infrastructure in India gas
expanded manifold during more than six decades after independence, both in terms
of spread (total road length and road density) and capacity (number of
registered vehicles on road and the volume of passenger and freight traffic
handled). Indian road
systems resides National, Expressways and
State highways with major district roads, village roads etc.
India is devising the 2nd largest
road systems in the world through above 33 lakhs km(Approximately) road length currently. The table
shows consisting of National Highways, Expressways, State Highways, Major
District Roads, other District Roads and village Roads. National Highways found
only about 1.7% of the road network but brings approximately 40% of the total
road traffic. There is huge potential
in Road sector investment, about 65% of freight and 80% passenger traffic is
carried by per annum over the last five years (Source:NHAI).
1.1 Road Network in India
Types of Road
Length of Road (in km)
National Highway (NH)
State highway (SH)
Major District Roads (MDR)
Rural road & Other District Road (ODR)
Total length of road
33.46 lakhs km
density is calculated both for area and population as accessibility and
congestion indicators of roads. The road length per 1000 population has
increased from 3.70 km in 2007-08 to 4.03 km in 2011-12, registering a CAGR of
2.2%. In terms of availability of roads per unit area, the road length per 1000
sq.km increased from 1288.74 km in 2007-08 to 1480.07 km in 2011-12.
of rural and urban road density indicates significant increase in urban road
network whereas that in rural area has remained almost same during last five
years. Rural areas are lagging behind in accessibility to roads whereas urban
roads are more congested with only 1.27 km of road per 1000 persons.
1.3 ROADWAY CONSTRUCTION
construction is a multifaceted business involving activities from the purchase
of raw land, formation of road, laying, operating and maintaining. Roadway
construction is different from other type construction in several ways like
stretch involved, confinement of area, activities involved, etc.
construction comprises the following major phases.
and Planning phases – Field study, population study and also include the purchase
of land, formation of embankment, construction of Curvets and bridges.
phases – way works – include earth cutting and embanking, spreading and
compaction of ballast, laying, placing of bitumen.
and Maintenances – Includes batch work, periodical Maintenances.
phases – Includes transfers to public use and to government.
complexity of the project decreases during stages of the development process,
ability to influence the project with commitment of capital declines. A high
level of uncertainty occurs in the early stages of a project and also when decisions
of major impact of project are made. The developers should consider the risks
in the projects by proper analysis and adjust the project suitably to minimize
them where possible.
1.4 RISK IN ROADWAY CONSTRUCTION
Risk and uncertainties are always incurred in all
projects, especially in the complicated projects. Risk can strongly influence
each project level from the project conceptual design, feasibility studies,
design and planning, construction and execution, Operation and maintenance and Transfer
stage. Irrespective of the size and type of the project, roadway construction
is subjected to risk that are related to Environmental Permission, Emotional Issue, Land Acquisition, Political,
Quality, Time, Money, Machinery, Rebound development around road analysis,
Labour, Natural Obstruction, Knowledge level of lead group. The risk arising from these factors occurs in the
various stages of the project lifecycles or Phases and they have effect on
overall project. However, Subjective factors such as community or social
objection of a project has been identified as having indirect consequence on
the project progress which in turn leads to delay in completion.
Risks in roadway
construction are knotted up by factors and the decisions of participants in the
project. The interaction of all these factors coupled with the wide range of
variables involved in the roadway construction process needs sophisticated risk
analysis which could also help developers to frame the decision making process
in development stage (Khumpaisal et al 2010).
1.5 NEED FOR STUDY or RESEARCH SIGNIFICANCE
sector is considered to be key driver of economic growth, time and cost
overruns threaten to limit the sector’s potential capital expenditure. It
deliberates on both the external reasons for risk, which are beyond the control
of implementing agencies and internal reasons, which can curtailed at the
project level with proper planning and project management.
infrastructure project carries higher risk throughout the project life, for
example Initiation and Planning risk, development risk, construction risk,
operating risk, technical risk, financial risk, market risk, political risk,
A/E Services risk, Commercial risk, due to longer project duration. A large
number of parties are involved and they bear different risks over various
phases of project life. Usually, the vast majority of project delays occur
during the four phases of project such as 1) Initiation and planning phase, 2) Construction phase 3)
O phase and 4) Transfer phase, where many unforeseen factors are always involved. Highest risk lies
during its phases which involves project delays, time and cost escalation,
flaws in design, changes in design and engineering etc. it is necessary to
identify the risk involved in various phases & bring out solutions to
minimize occurrences of risk similarly risk in time overrun and cost escalation.
1.6 ORGANIZATION OF THESIS
The research study was carried out to assess the
occurrences of the risk in highway project and the necessity for minimizing the
risk. The details regarding the research study are described in seven chapters,
Chapter one covers the background to the research, existing road
network in India, Risk in roadways project, and Research significance.
Chapter two explains the reviews
of relevant literature relating to the risk in Highway project and delay in
roadways and scope and research objective which includes identification of risk
Chapter three gives the
brief overview of research methodology. Road map of obtain the research
objectives. It describes the field investigation, quantitative data collection
(secondary data method), data analysis and methods for identifying the risk and
its causes for roadways project.
Chapter four elaborately explains the included methodology formation for this research study, using
various statistical methods like descriptive statistics, such as minimum,
maximum, mean and standard deviations, and inferential statistics to find the
relationship among the variable (Null hypothesis) using F-tests and t-tests
Chapter five describes the development of risk model at every phases of
the highway construction.
Chapter six establishes the detailed analysis for developing the
prediction model for percentage of risk in cost escalation and time overrun
(delay) in highway project using statistical model
Chapter seven conclude the derived
from results and discussion the most pronounced risk causes, risk models, suggestion
and recommendation for minimizing the cost escalation and time overrun.
chapter, a brief overview on road infrastructure is covered in Indian context.
It explained the existing road infrastructure in the country risk involved in
the construction of roadways. It also briefly explained various stage risks. It
discussed the threat to road construction project due to various risk affecting
the roadways project. After this background concept about road sector, this
chapter clearly gives the Research work carried out and the flow of thesis
compilation and its organization. In the next chapter will discuss the
background history of highways projects and their issues through literature