Lima Airport Development Programme, Lima, Peru

Key processes, necessary to identify and manage risks on complex projects, have been developed over the last 20 years in order to implement risk-based approaches for better project management with improved cost and schedule estimation.

Cost and schedule, however, have mostly been treated separately instead of integrating them in one model. This integration is highly relevant as schedule delays are very often the root cause for severe cost overruns – therefore, such integrated systematic processes and tools are needed for the effective management of these complex projects.

This new methodology involves an open risk culture; the separation of base cost, risk and escalation; taking full account of cost and time uncertainties at the beginning of the process; integrating cost and time schedules; and a continuous monitoring of risk throughout the life of the project.