Comparison of State Department of Transportation Practices in Analyzing Risks for Large Infrastructure Projects

Abstract

Construction projects are inherently associated with various risks that can increase the project costs. Identifying and analyzing such risks are essential to successfully managing construction budgets at state Departments of Transportation (DOTs). While many state DOTs have developed and/or adopted risk assessments methodologies and tools, Tennessee DOT (TDOT) lacks a comprehensive methodology and tool to analyze construction project risks. This study reviewed state DOT practices of analyzing various risks associated with large infrastructure construction projects. The comparison of risk assessment practices among state DOTs are summarized in three sections: a) risk management, b) major categories affecting project costs, and c) risk estimating tools and practices. The review finds that many state DOTs have similar practices of analyzing project risks and have developed spreadsheet-based tools to automate such analysis. While some risk analysis tools are used primarily for qualitative risk analysis, other tools are developed for qualitative and quantitative risk analysis. Such tools with qualitative and quantitative risk analysis can be used to quantify contingencies for various projects for budgeting purposes.