This case study concerns an alliance established to deliver a road improvement project with substantial civil works. An estimate of the uncertainty in the cost estimate was required, expressed in dollar terms. This was needed to enable a realistic ceiling price to be set for the project for funding purposes. It was also used to develop a target cost for the contract that would generate appropriate incentives for all the alliance parties and support an appropriate sharing of risks and rewards between them.
Creating value from uncertainty
Broadleaf Capital International is a specialist risk management consultancy. Our expert team brings decades of experience, leading methods and a deep understanding of risk and its management. We operate around the world.
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We have undertaken high-level independent peer reviews for important projects. These include qualitative and quantitative risk assessments and value improvement activities undertaken by other professional organisations. Drawing on decades of experience in this field, we have examined the design of the processes used, the information sources they draw upon, the implementation of the processes and the interpretation of their outputs.
This guide is designed for anyone needing to carry out or take part in a risk assessment who is not familiar with the process. Risk assessment is only part of risk management but it is often where people enter the process for the first time.