Study of Risk Management in EPC Contracts in Highway Constructions: A Case Study of Kollam and Alappuzha Bypas

Abstract

An efficient project delivery method is the key factor for any venture. For rapidly growing constructions, an effective mode of contracting is needed. When compared with other modes of contracts, EPC (Engineering, Procurement, Construction) contracts have better risk allocation, fixed cost and fixed time. Governments also prefer contracting modes with less risks to them, and EPC is one among them. From review of literature, it has been found that EPC contracts are being extensively used in highway constructions. In Kerala, two prestigious projects, Kollam and Alappuzha bypass, have been done in the EPC mode. For the two bypass projects, risk identification, analysis, assessment and treatment strategies adopted are studied. Direct interviews and questionnaire surveys were conducted on the project personnel.