Financial Risk Management For Underground Construction

Risks in underground construction are often viewed as technical in nature; "running ground, " "squeezing ground" and "chimneys" are terms that appear in construction managers' nightmares, and occasionally in their underground projects. Financial consequences of these and other project risks are reviewed. Special attention is paid to sources of cost overruns. From this study a structure evolves for setting priorities for risk management actions; these actions can also be tested for impact and potential effectiveness. Finally, case study reviews of six underground projects indicate the "state of the practice" for financial risk management.