What is the main purpose of risk assessment in construction estimation?

The main purpose of risk assessment in construction estimation is to identify potential risks impacting costs and schedules. This process involves systematically evaluating the uncertainties that may arise during the project lifecycle, which can affect both the financial aspects and the timeline of the project.

By identifying these potential risks, estimators can create strategies to mitigate them, allowing for more accurate budgeting and scheduling. This proactive approach ensures that estimators can allocate appropriate contingencies, manage client expectations, and provide a more reliable overall project plan.

Options like modifying project designs or simplifying estimating processes do not encompass the primary function of risk assessment, which is focused on recognizing and understanding risks rather than altering designs or making the estimating process easier. Although eliminating all potential risks may seem ideal, in reality, it is often impossible to completely remove risk in construction. Thus, the core objective of risk assessment is to identify these risks so they can be effectively managed.