Integrating Project Risk Management and Value Engineering in Tendering Processes

Risk is highest in the early stages of the project lifecycle. This research focuses on practices of risk management in construction companies in order to submit competitive bids which achieve the project constraints and project success criteria within the acceptable profit margin. 1 Background for the Research problem Construction companies tend to win bids in order to achieve their profit margins and business goals. It is the responsibility of estimation departments to write the bids and achieve the awarding of projects. The problem background arises due to the tremendous pressure to consider the global business challenges facing construction companies and to encounter for the high severity of risks in the industry. Risks from business challenges need to be considered in the top management strategy plans and risks from construction need to be dealt with in an effective risk management framework plan to avoid overruns and losses. 2 Research question  How do we achieve accuracy, accountability, and consistency in risk-based cost estimation at tender stage?  How can value engineering address a specific risk event or a series of events when implemented effectively during tendering processes as a risk response tool?