Risk-Based Project Development

Risk management is integral to highway project development. Managing risk entails identifying uncertainties which could influence project activities, understanding how they can be mitigated or eliminated, and monitoring risk during project development. Many state transportation agencies have introduced methods for identifying risks, determining whether risks are high impact or low impact, and generating response strategies. These methods are often qualitative or semi-quantitative in nature due to the challenge of quantifying the likelihood of a risk and its effects. These approaches are nonetheless valuable for helping designers and project development teams remain mindful of negative risks which could pose significant hurdles. Building on recent work for the Kentucky Transportation Cabinet (KYTC) on risk-based construction inspection, this report discusses the creation of an Excel tool for managing risk on highway projects. Leveraging information gathered via interviews with KYTC stakeholders, subject-matter experts, and consultants, the tool identifies risks associated with key decision points and key execution points for four project types: new road and expansion, road rehabilitation and resurfacing, new or replacement bridge, and bridge rehabilitation. Embedded in the tool are high-level discussions of risks often confronted when completing different activities as well as best practices for mitigating or eliminating those risks. The tool has been designed to accommodate periodic updates, which can ensure material reflects the most up-to-date thinking about risk management and recent agency experiences.