Methodology based on MCDM for risk management in EPC projects: A Case Study of LPG Storage Tanks Construction

The most important aim of every project is on time completion, budget consideration and reaching the highest possible quality, based on contract. This paper suggests a methodology for risk management in engineering, procurement, and construction (EPC) projects. Risk management enables project teams to perform with minimum deviation from predetermined goals. The proposed methodology identifies and evaluates critical risks of EPC projects using multi criteria decision making (MCDM) techniques. Then, by the means of developed earned value management (EVM) technique and considering Project Risk index (PRI), this work will proceed to estimate the degree of risk effects on project objectives. The optimal control measures (CMs) to address the risks are found through a goal programming model. The methodology was implemented on a case study in oil and gas industry in Iran. Results of this study show the impact of critical risks on objectives of EPC projects.