Book

Construction projects are rarely delivered under stable conditions. Each product is unique and built on site. Many organisations are involved, durations are long, and early decisions are made with limited information. Evidence from Indonesian toll road projects shows that the highest risks often arise before physical work begins. The main sources are land acquisition, utility relocation, and inter-agency coordination. This book responds to these conditions. It presents construction project risk management as a systematic process that links analysis with decisions on budget, schedule, contracts, and field control. The book consists of fourteen chapters. Chapters 1 to 3 establish the foundation. They define risk as the effect of uncertainty on objectives and treat the construction project as a system within its environment. They also explain the principles, framework, and process of ISO 31000:2018 and compare them with the PMI standard and the SHAMPU framework. Chapters 4 and 5 cover risk management planning, identification techniques, the Risk Breakdown Structure (RBS), and the risk register. They also cover the probability-impact matrix and the Relative Importance Index (RII), including instrument testing and the limitations of qualitative analysis. Chapters 6 to 9 address quantitative analysis, Monte Carlo simulation, cost and time risk, and contract and procurement risk. Chapters 10 and 11 apply the process to technical, quality, safety, and environmental risks, and then to human resource, stakeholder, and social risks. Chapter 12 discusses response strategies, residual risk, contingency reserves, key risk indicators, and risk dashboards. Chapter 13 integrates risk management with value engineering and decision analysis, including decision trees, the value of information, AHP, and robustness testing. Chapter 14 combines all of these tools in an integrated toll road case study. The case moves from identification and Pareto analysis to triangular distributions, P50, P80, and P90 estimates, residual risk, and monitoring. Each chapter contains learning objectives and theory linked to construction practice.