Guidelines for Risk Analysis

Abstract and project information last updated: 1 March 2011. Project updates are dated below.

AUTC
Project
Number
107059
Principal
Investigator
Robert A. Perkins (UAF)
raperkins@alaska.edu
Funding
Agency

US Department of Transportation (RITA)

Permafrost Technology Foundation

Project
Budget
21707
Start
Date
3 August 2007
Estimated
End Date
30 June 2009

Abstract

“Work changes are common in construction contracts, especially for large projects. When contract changes must be made, how the owner (the organization paying for the work) and the contractor (the firm performing the work) agree on a fair and reasonable cost can be as complex as a good poker game. It is usually in the owner’s best interest to negotiate a lump sum price for changes before the new work starts (forward-pricing). Forward-pricing passes considerable risk (such as work delays, changing weather, getting new materials to remote sites, and re-scheduling other projects) to the contractor, who deserves some compensation for assuming it. The owner wants the best deal possible, and the contractor is the best judge of his (or her) own costs. The stakes can be higher in Alaska, where a short building season and remote locations can push a project into an additional year, with extra staging costs, staffing, and scheduling nightmares.
This project, lead by UAF engineering science management specialist Robert Perkins will produce a guide for AKDOT&PF managers and engineers that will better prepare them for judging project risk and estimating costs.”

Final Report

Evaluation of Risk in Change Orders Report for AKDOT&PF Construction Staff
29 Jan 2014

Evaluation of Risk in Change Orders Report for AKDOT Construction Staff
Dr. Robert A. Perkins, PE
107059.Appendix-D-with-attachments.pdf
107059.Perkins.-Final.pdf

Related Project Activity

29 January 2014

Evaluation of Risk in Change Orders Report for AKDOT&PF Construction Staff

by

107059.Perkins. Final107059.Appendix D with attachments