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CONSTRUCTION RISKS AND MITIGATIONS PLAN FOR KVMRT LINE 1 UNDERGROUND STATION VIJAY A/L SEVAM UNIVERSITI TEKNOLOGI MALAYSIA PSZ 19:16 (Pind. 1/13) UNIVERSITI TEKNOLOGI MALAYSIA DECLARATION OF THESIS / UNDERGRADUATE PROJECT REPORT AND COPYRIGHT Author’s full name : VIJAY A/L SEVAM Date of Birth : 11 SEPTEMBER 1990 Title : CONSTRUCTION RISKS AND MITIGATIONS PLAN FOR KVMRT LINE 1 UNDERGROUND STATION Academic Session : 2018/2019 I declare that this thesis is classified as: (Contains confidential information under the CONFIDENTIAL Official Secret Act 1972)* (Contains restricted information as specified by RESTRICTED the organization where research was done)* ✓ OPEN ACCESS I agree that my thesis to be published as online open access (full text) 1. I acknowledged that Universiti Teknologi Malaysia reserves the right as follows: 2. The thesis is the property of Universiti Teknologi Malaysia 3. The Library of Universiti Teknologi Malaysia has the right to make copies for the purpose of research only. 4. The Library has the right to make copies of the thesis for academic exchange. Certified by: SIGNATURE OF STUDENT SIGNATURE OF SUPERVISOR SX131290BECS04 Puan Fuziah Binti Ismail MATRIX NUMBER NAME OF SUPERVISOR Date Date 8/1/19: 8/1/19: NOTES : If the thesis is CONFIDENTIAL or RESTRICTED, please attach with the letter from the organization with period and reasons for confidentiality or restriction “I hereby declare that we have read this thesis and in my opinion this thesis is suffcient in term of scope and quality for the award of the degree of Bachelor of Science in Construction ” Signature : ________________________________ Name of Supervisor I : Puan Fuziah Binti Ismail Date : 8 JANUARY 2019 Signature : ________________________________ Name of Supervisor II : Assoc. Prof. Sr. Dr. Fadhlin Bt Abdullah Date : 8 JANUARY 2019 BAHAGIAN A - Pengesahan Kerjasama* Adalah disahkan bahawa projek penyelidikan tesis ini telah dilaksanakan melalui kerjasama antara Click or tap here to enter text. dengan Click or tap here to enter text. Disahkan oleh: Tandatangan : Tarikh : Nama : Jawatan : (Cop rasmi) * Jika penyediaan tesis atau projek melibatkan kerjasama. BAHAGIAN B - Untuk Kegunaan Pejabat Sekolah Pengajian Siswazah Tesis ini telah diperiksa dan diakui oleh: Nama dan Alamat Pcmeriksa Luar : Nama dan Alamat Pcmeriksa Dalam : Nama Penyelia Lain (jika ada) : Disahkan oleh Timbalan Pendaftar di SPS: Tandatangan : Tarikh : Nama : CONSTRUCTION RISKS AND MITIGATIONS PLAN FOR KVMRT LINE 1 UNDERGROUND STATION VIJAY A/L SEVAM A thesis submitted in fulfilment of the requirements for the award of the degree of Bachelor of Science in Construction Faculty of Built Environment and Surveying Universiti Teknologi Malaysia DECEMBER 2018 1 DECLARATION I declare that this thesis entitled “CONSTRUCTION RISKS AND MITIGATION PLAN FOR KVMRT LINE 1 UNDERGROUND STATION” is the result of my research except as cited in the references. The thesis has not been accepted for any degree and is not concurrently submitted in the candidature of any other degree. Signature : .................................................... Name : VIJAY A/LSEVAM Date : 8 JANUARY 2019 iii DEDICATION This thesis is dedicated to my father, who taught me that the best kind of knowledge to have is that which is learned for its own sake. It is also dedicated to my mother, who taught me that even the largest task could be accomplished if it is done one step at a time. iv ACKNOWLEDGMENT In preparing this thesis, I was in contact with many people, researchers, academicians, and practitioners. They have contributed to my understanding and thoughts. In particular, I wish to express my sincere appreciation to my main thesis supervisor, Pn.Fuziah, for encouragement, guidance, and critics. My fellow undergraduate student should also be recognized for their support. My sincere appreciation also extends to all my colleagues and others who have assisted in various occasions. Their views and tips are useful indeed. Unfortunately, it is not possible to list all of them in this limited space. I am grateful to my entire family member. v ABSTRACT The requirement for underground railway network is growing at a rapid rate especially in the southeast region. The new requirement for the construction project is on the rise and currently there is minimal documentation to investigate risk management in this type of underground railway station project. The objectives of this research are to identify construction risks that occurred and to identify mitigation method adopted in the construction of Klang Valley Mass Rapid Transit (KVMRT) Line 1 underground station. Structured interviews were adopted for this case study. Four respondents were selected to be interviewed for data collection representing four underground stations namely Pasar Seni station, Bukit Bintang station, Cochrane station and Maluri station. The research found that the operational risks, physical risks, safety and social risks, design risk, force majeure risks; and delay risks are largest contributors to project uncertainty during the construction of KVMRT Line 1. The financial and economic risks; and contractual and legal risk do not affect the KVMRT Line 1 construction although the severity of both risks are high. The mitigation measures to reduce the risk impacts toward the project are adjusted according to the risks involved. For example, different construction methods and equipment were adopted to mitigate physical and operational risks. vi ABSTRAK Keperluan untuk rangkaian kereta api bawah tanah berkembang pada kadar yang pesat terutamanya di rantau Asia Tenggara. Keperluan baru untuk projek pembinaan semakin meningkat dan kini terdapat dokumentasi yang minimum untuk menyiasat pengurusan risiko dalam projek stesen kereta api bawah tanah. Objektif penyelidikan ini adalah untuk mengenal pasti risiko pembinaan yang berlaku dan untuk mengenal pasti kaedah pengurusan risiko yang diambil semasa pembinaan stesen bawah tanah Transit Aliran Deras Lembah Klang (KVMRT) Fasa 1. Wawancara berstruktur telah digunakan untuk kajian kes ini. Empat responden dipilih untuk diwawancarai untuk pengumpulan data yang mewakili empat stesen bawah tanah iaitu Stesen Pasar Seni, Stesen Bukit Bintang, Stesen Cochrane dan Stesen Maluri.Hasil penyelidikan mendapati risiko operasi, risiko fizikal, risiko keselamatan dan sosial,risiko reka bentuk risiko alam semula jadi dan risiko penangguhan adalah penyumbang besar yang menimbulkan ketidakpastian semasa pembinaan KVMRT Fasa 1. Risiko kewangan dan ekonomi; dan risiko kontrak dan undang-undang tidak menjejaskan kerja pembinaan stesen bawah tanah Transit Aliran Deras Lembah Klang (KVMRT) Fasa 1 walaupun kesan kedua-dua risiko adalah sangat tinggi. Langkah- langkah pengurangan untuk mengurangkan kesan risiko terhadap projek diselaraskan mengikut risiko yang terlibat. Sebagai contoh, kaedah dan peralatan pembinaan yang berbeza digunakan untuk mengurangkan risiko fizikal dan risiko operasi. vii TABLE OF CONTENTS TITLE PAGE DECLARATION iii DEDICATION iv ACKNOWLEDGMENT v ABSTRACT vi ABSTRAK vii TABLE OF CONTENTS viii LIST OF TABLES xii LIST OF FIGURES xiv LIST OF ABBREVIATIONS xv CHAPTER 1 INTRODUCTION 1 1.1 Background 1 1.2 Problem Statement 2 1.3 Research Questions 3 1.4 Research Objectives 3 1.5 Scope of Research 3 1.6 Significant of the Research 4 1.7 Chapter Organization 4 1.8 Summary 5 CHAPTER 2 LITERATURE REVIEW 6 2.1 Introduction 6 2.2 Definition of Risk 6 2.3 Project Life Cycle 7 2.4 Category of Project Risk 9 2.5 Project Risk Management 11 2.6 Risk Management Planning 13 2.6.1 Identification of Project Risk 14 viii 2.6.2 Perform Qualitative Risk Analysis 15 2.6.3 Perform Quantitative Risk Analysis 16 2.6.4 Perform Risk Response 16 2.6.4.1 Strategy for Negative Risks or treat 16 2.6.4.2 Strategy for Positive Risks and Opportunity 17 2.6.4.3 Controlling Risks 18 2.7 Measuring Project Complexity 18 2.7.1 The Risk Register 19 2.7.2 Checklist 20 2.8 Risk Management Practice and Project Success 20 2.9 Project Milestones 22 2.10 Urban Subway 22 2.10.1 History of Development of Railway Industry in Malaysia 2.10.2 Project Brief of KVMRT Line 1 24 2.11 Overview of Construction Risks for KVMRT Line 1Underground Stations 27 2.11.1 Description of the construction risk 28 2.12 Summary 31 CHAPTER 3 RESEARCH METHODOLOGY 32 3.1 Introduction 32 3.1.1 Research Process 32 3.2 Stage 1 34 3.3 Stage 2 34 3.4 Stage 3 35 3.4.1 Project risk analysis criteria 36 3.4.2 Analysis of Likert-Scale 37 3.5 Summary 37 CHAPTER 4 DATA ANALYSIS AND RESULTS 38 4.1 Introduction 38 4.2 Characteristic of Respondent Profile 39 ix 4.2.1 Classification of working experience 39 4.2.2 Respondent by Role 40 4.2.3 Respondent by Most Nature Projects Involved 40 4.3 To Identify the Project Risk During Construction of KVMRT Line 1 Underground Station. 41 4.4 KVMRT Line 1 Underground Stations 41 4.4.1 Pasar Seni Station 41 4.4.2 Bukit Bintang Station 51 4.4.3 Cochrane Station 60 4.4.4 Maluri station and Crossover 68 4.5 Discussion on the risk at KVMRT Line 1 80 4.5.1 Financial and Economic Risks 80 4.5.2 Contractual and Legal Risks 81 4.5.3 Subcontractor Risk 84 4.5.4 Operational Risk 86 4.5.5 Safety and Social risk 87 4.5.6 Design Risk 92 4.5.7 Force Majeure Risk 95 4.5.8 Physical Risk 96 4.5.9 Delay Risk 99 4.6 Objective 2: To identify mitigation based on project risk during construction of KVMRT Line 1 SBK underground Station. 101 4.6.1 Mitigation Action Adopted for Financial and Economic Risk 101 4.6.2 Mitigation action adopted for Contractual and Legal Risk 102 4.6.3 Mitigation Action Adopted for Sub-Contractor Risk 103 4.6.4 Mitigation Action Adopted for Operational Risk 105 4.6.5 Mitigation Action Adopted for Safety and Social Risks 106 4.6.6 Mitigation Action Adopted for Design Risk 110 x 4.6.7 Mitigation Action Adopted for Force Majeure Risks 111 4.6.8 Mitigation Action Adopted for Physical Risk 112 4.6.9 Mitigation Action Adopted for Delay Risks 116 4.7 Survey Result on Construction Risk Ranking at KVMRT Line 1 118 CHAPTER 5 CONCLUSION AND RECOMMENDATIONS 122 5.1 Introduction 122 5.2 Research Conclusion 122 5.3 Problems Encountered 123 5.4 Recommendations for Future Research 123 REFERENCES 124 APPENDIX A 129 xi LIST OF TABLES TABLE NO.