A methodology for project control through risk analysis: the case of a pipeline project

Projects exposed to uncertainties can be effectively controlled with the application of risk analysis during the planning stages. The Analytic Hierarchy Process (AHP), can be used to analyze risks associated with such projects. The results from risk analysis along with activity analysis are combined to develop a logical contingency allowance for the project through the application of probability theory. Effective control of the project is possible by limiting the changes within the allowance for each work package and the utilization of contingency through proper appropriation. This methodology has been applied to a pipeline laying project in India. The example application demonstrates the effectiveness of the methodology for project control.<
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