Effective cost and risk management is essential for the success of large infrastructure projects, as demonstrated by a long history of cost overruns. Key processes necessary to identify and manage risks on complex tunneling projects have been developed over the last 20 years to implement risk-based approaches for better cost and schedule estimation. Cost and schedule, however, were mostly treated separately instead of integrating them into one model. This integration is highly relevant as schedule delays are very often the root cause for severe cost overruns. This lecture presents a fully-integrated probabilistic cost and schedule model that provides a basis for further analysis (e.g. what if) on a management level. The application is based on combination of practice-proved approaches to add a powerful tool for the management of complex risk environments. Particularly with alternative project delivery has a shared risk mechanism. Owner and contractor work together to identify risk and determine a budget.     «

Effective cost and risk management is essential for the success of large infrastructure projects, as demonstrated by a long history of cost overruns. Key processes necessary to identify and manage risks on complex tunneling projects have been developed over the last 20 years to implement risk-based approaches for better cost and schedule estimation. Cost and schedule, however, were mostly treated separately instead of integrating them into one model. This integration is highly relevant as sch...    »