Project Risk Analytic Assessment Using the Hierarchy Process

Often, construction projects fail to achieve their time, budget, and quality goals. This is frequently due to the failure of the contractor to analyze and assess unanticipated risks. The analytic hierarchy process (AHP) is a new approach that can be used to analyze and assess project risks during the bidding stage of a construction project and to overcome the limitations of the traditional approaches currently used by contractors. The AHP presents a flexible, easily understood way to assist the decision-maker in formulating his problem in a logical and rational manner. The paper also includes a review of the AHP and its application in the assessment of the riskiness of constructing the Jamuna Multipurpose Bridge in Bangladesh. Keywords-Risk management; project management; construction management; risk assessment; the analytic hierarchy process; risk models; risk analysis; decision modeling.