Research On Total Risk Cost Management In Infrastructure Project

Since the infrastructure projects are usually big in scale and investment, complicated in construction technology, their risk management is of great significance and the costing risk management is among the top priorities. This paper, based on project risk management theories, aims at exploring applicable infrastructure projects risk cost and total risk cost management methods.The author discusses current construction project cost management methods in China and other countries, explores the problems occurring in infrastructure projects management, and proposes total risk cost management (TRCM) system and technical methods. The main research findings and conclusions are as follows:1. The paper analyzes the main reasons of national and international infrastructure projects costing inflation, explains the deficiency of the application of current total process cost management, total cost management, and project lifecycle cost management theories, and points out the significance of infrastructure project total risk cost management.2. The author puts forward a system framework of Total Risk Cost Management(TRCM), including TRCM theoretical base, component module, and applicable TRCM methods for infrastructure projects.3. The paper, according to the TRCM system framework for infrastructure projects, focuses on the study of risk cost management technical methods, defines the costing and controlling measures of project risk cost and total risk cost though the an integrative research in the identification of project risk and risk cost, measurement of project risk and risk cost, and calculation of project unpredictable expenditures. The author further provides a simplified triangle method for the project risk costing normal distribution,βdistribution and S distribution.4. The author takes a ship lock project as an example, analyzes the risk cost of the project's construction part , compares it with existing costing methods, and concludes that the cost level resulting from the existing costing methods, as compared to the TRCM costing method, can only partly ensures the success of the ship lock project construction and calculate the probability of the success.