The risks faced by investors, owners and contractors on large
infrastructure projects in Asia, South America, Africa and other
developing nations are varied. Large scale projects to build
infrastructure such as power plants, hydroelectric dams, highways,
railways, and airports can range from US$100 million to billions of
dollars in value. These projects often impact local populations,
industries, and the environment. Because local resources are often
limited, foreign contractors are called in to undertake the work.
Project structures can create a wide web of contracts, contractors,
and subcontractors subject to domestic and foreign regulations,
codes, and procedures. Project owners and contractors often fail to
consider project risks (or are too late in addressing them)
resulting in additional costs and delay, diminished profit, and
possible litigation. Risk cannot be eliminated but it can be
managed.
