Risk Management in EPC Model -A Contractor's Perspective

Risk is inherent in infrastructure development, and EPC (Engineering, Procurement, and Construction) projects are particularly exposed due to their integrated nature. These risks arise mainly from unpredictable circumstances that can disrupt project flow. The nature and extent of risks differ across various contract types owing to their structural differences. This research investigates risk within EPC projects from the standpoint of contractors, considering each stage of the project life cycle. Employing a descriptive methodology and a random sampling survey of contractors, this study uses literature reviews and questionnaire data analyzed through risk matrix frameworks. It categorizes risks into financial, physical, construction, design, political, legal, and environmental domains. Among these, financial, construction-related, and physical risks emerged as the most critical. Financial risks, in particular, often reached catastrophic levels, while construction and physical risks were assessed as high to moderate. These insights illuminate the contractor's challenges in EPC projects and guide enhanced risk management approaches.