RISK ANALYSIS FOR INVESTMENT PROJECTS IN THE CONSTRUCTION INDUSTRY

The authors discuss the procedure of measuring and managing risks that investment projects in the construction industry may be exposed to in the process of their implementation. The qualitative analysis results in description of uncertainties characterizing the project as well as in the breakdown of the reasons for these uncertainties. Risks identified in the course of analysis should be ranked according to their significance and possible losses that they may involve. The main risks need research through the employment of the quantitative analysis to make assessments more accurate. The authors compare the applied methods used in practice to perform a quantitative analysis of project risks with the new ones based on the fuzzy logic concept. All models are broken down into three groups: stochastic (probabilistic), linguistic (descriptive) and non-stochastic (behavioral). Aims, advantages and disadvantages of methods are arranged into a table. Some methods can be implemented in combination to assure a reasonable efficiency of decisions