Risk management for underground projects: Cost-saving techniques and practices for owners

Abstract

Risk is a fact of life in all construction, and particularly so for underground projects. This paper discusses the types of risks inherent in construction projects; how risk allocation can benifit all parties and projects; philosophies and principles of risk allocation; and ways of integrating risk allocation language into contract documents and procedures. The paper discusses ways that owners are improving risk allocation of their projects, and describes an eight-step process for implementing risk allocation practices and procedures. © 1992.