Cost and risk analysis for a construction project in Lebanon

Abstract

The purpose of the following report is to detail the preliminary work done by a project manager before endeavoring to start the construction process of a three story building in the Zahle region of Lebanon. The different activities required to complete the building are listed. Each activity requires different resources that include manpower machinery and materials, the different quantities and numbers of these resources are calculated. The activities required to complete the construction of the building as well as their respective resources durations and costs are obtained from a survey conducted between contractors that work in the region. Primavera P6 is used to schedule and update the activities in order to make sure the work is being done according to the scheduled time and budget. A risk assessment is done using Pertmaster to find the likelihood of the project going over/under budget and schedule and to find out which activities are most vulnerable in order to mitigate their risk. This report will show the necessary steps that need to be taken in order to schedule any project in terms of cost and duration as well as what needs to be done in order to stay ahead of any unforeseen problems that could cause an overrun in the calculated cost and duration. The objective is to attain an accurate estimation of the cost and duration of the construction project that are as close to the actual figures as possible. This is essential in order to bid on the project the with the least cost and duration as to win the bid while maintain a profit.