Cost risk of railway project and its effective mitigation strategies

Abstract

Mega infrastructure project like the railway is very complex, unique, and impactful in nature. Many studies were carried out and shown how critical the subject needs to be given attention and focus. The railway projects are known for various risks. The presence of technical risks in the railway construction projects is needed to be understood in detail so that it will be managed effectively especially ones that involving cost impact. Hence, this paper is determined to assess the technical risk factors that contribute to cost impact on railway construction projects and identify its response strategies. There are 9 technical risks that are found to be critical based on the results that had been analysed with the frequency analysis and Relative Importance Index (RII) method. Furthermore, the risks are filtered and found to avoid, mitigate, and escalate as effective response strategies. The study is also confident that this can give guidelines to professionals that involve in the railway construction project.