Risk Research And Evaluation Of The International Construction Project

As China gains its power, more and more Chinese enterprises start to reach out to the world market. Although there have been fast development for Chinese enterprises in international construction projects, these projects have features such as long implementation cycles, high capital cost and high risk. Foreign environment for construction project is quite different from domestic environment, leading to a loss in competitiveness of Chinese enterprises. Many enterprises undervalue the importance of risk management. They don’t have a sound risk management system, and they lack a quantitative analysis approach,which may cause severe losses such as the CRCC’s light rail project in Mecca and COHL’s highway project in Poland. To those enterprises undertaking international projects, an effective risk management approach is required for future investment.This article started from the features of international construction project,showing it is diversity, long period, overall project and regularity. And also categorize the risk in areas of political, economical, cultural, law, management and design. Meanwhile, it analyses the theory of risk identification, risk analysis and evaluation regarding international construction project, and introduces conventional approaches to risk identification and evaluation.Amongst all approaches to risk evaluation, this article chooses the analytic hierarchy process, with the supplement of fuzzy comprehensive evaluation. This combination makes the most of each approach, while avoiding their weaknesses.Not only does it solve the problem of weight acquisition in the fuzzy comprehensive evaluation, but also improve the accuracy of the model through figure evaluation.Lastly, the article looks into a port project in Nigeria. By identification of the risk factors, a quantitative analysis model is built to evaluate the risk of the project,and the respective countermeasure is provided according to the evaluation result.Meanwhile, the analytic hierarchy process software is introduced in the calculation process to reduce the amount of calculation and adjustment, making the model feasible to risk assessment by enterprises undertaking international construction projects.