Analysis of plant construction accidents and loss estimation using insurance loss records

Abstract

There are many risks and uncertainties in plant construction projects, because of their complexity, difficulty in loss prediction and size of construction being large. The risk management of plant construction projects should not be relied solely on experiences and intuition of the contractors or the construction managers as it has been in the past. Therefore, a new quantitative and empirical risk analysis is required, in order for the development of a risk assessment using risk indicators for the plant construction projects. This research used the insurance payout record from a global insurance company to reflect the actual quantitative loss in the risk assessment model for plant construction project. The researchers adopted the geographic information as well as construction information (construction phase and commissioning phase, schedule rate, total duration), as the independent variables, which found to be statistically significant in the analysis in this study. It was found that the relationship between damage ratio and the valid variables was statistically significant, and thus, the damage model is also statistically significant. This research suggests that the regression model containing such valid independent variables could be beneficial in terms of providing foundational guidelines for the plant construction project risk analysis.

Keywords

• plant construction project
• risk assessment
• quantitative assessment
• regression model
• insurance payout