Method of Assessing the Risk of Implementing Railway Investments in Terms of the Cost of Their Implementation

Jan Kowalski, Mieczysław Połoński, Marzena Lendo-Siwicka, Roman Trach and Grzegorz Wrzesiński
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Jan Kowalski: Institute of Civil Engineering, Warsaw University of Life Sciences, Nowoursynowska 159 St., 02-776 Warsaw, Poland
Mieczysław Połoński: Institute of Civil Engineering, Warsaw University of Life Sciences, Nowoursynowska 159 St., 02-776 Warsaw, Poland
Marzena Lendo-Siwicka: Institute of Civil Engineering, Warsaw University of Life Sciences, Nowoursynowska 159 St., 02-776 Warsaw, Poland
Roman Trach: Institute of Civil Engineering, Warsaw University of Life Sciences, Nowoursynowska 159 St., 02-776 Warsaw, Poland
Grzegorz Wrzesiński: Institute of Civil Engineering, Warsaw University of Life Sciences, Nowoursynowska 159 St., 02-776 Warsaw, Poland

Sustainability, 2021, vol. 13, issue 23, 1-11

Abstract: Exceeding the approved budget is often an integral part of the implementation of construction projects, especially those where unforeseen threats may occur. Therefore, each construction investment should contain elements of risk forecasting, mainly in terms of the cost of its implementation. Only a small number of institutions apply effective cost control methods, taking into account the specifics of a given industry. Especially small construction companies that participate in the structure of the implementation of large construction projects as subcontractors. The article presents a method by which it is possible to determine, with certain probability, the final cost of railway construction investments carried out in Poland. The method was based on a reliable database of risk factors published in sources. In this article, the main presumptions of the original method are presented, which take into account the impact of potential, previously recognized, risks specific to railway investments, and enable project managers to relate them to the conditions where the implementation of a specific object is planned. The authors assumed that such a relatively simple method, supported by a suitable computational program, would encourage teams that plan to implement railway projects to use it and increase the credibility of their schedules.

Keywords: threat identification; railway investments; risk; construction works planning; risk matrix (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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