A Conceptual Framework of Financial Risks Activated by Geo-Environmental Factors in Transportation Infrastructure Projects

Abstract

Geo-environmental factors wield substantial influence in both the design and construction of transportation infrastructure.Managing the financial risk associated with geo-environmental factors is key to the successful implementation of transportation infrastructure projects. Ground Investigations are the primary avenue to minimize financial risk due to geo-environmental factors. Limiting ground investigations to desk studies and preliminary reconnaissance based on superficial site inspection, or carrying out reactive post-contract ground investigations, however, appears to be a pervasive culture of construction projects. A conceptual framework of financial risks triggered as a consequence of inadequate geo-environmental risk management is developed, to synthesize the literature findings. The study further outlines a qualitative methodology to investigate cost overruns caused by geo-environmental factors, due to the inadequacy of ground investigations carried out by highway agencies on highway projects executed in the Niger Delta. The study outcome corroborates the consistent referrals to the inadequacy of ground investigations carried out on Niger Delta’s highway projects, which serves to trigger cost overruns. The study provides a foundation for further investigation and recommendations to improve the technical and financial management of highway infrastructure projects in the Niger Delta region.