Projects Fail to Consider Risk

According to a new report by law firm Blake Dawson, many Australian infrastructure projects are failing to asses risk adequately.

The report, Scope for Improvement 2011 - Project risk - Getting the right balance and outcomes, found inadequate risk assessment is contributing to cost blowouts and delays in infrastructure projects, and the important construction, mining and energy sectors. 10% of surveyed project participants had not undertaken formal risk identification processes before contract entry, and in a quarter of the projects, key risks were first identified after contracts were executed.

Inappropriate risk allocation can result in delays, disputes and cost overruns in major infrastructure projects.