Development of Risk Management Strategies for State DOTs to Effectively Deal with Volatile Prices of Transportation Construction Materials (Risk Management Systems for GDOT)

Project Description: 

The overarching objective of this project was to enhance transportation agencies’ understanding of the opportunities, challenges and best practices for utilizing risk management strategies for the asphalt cement price volatility in transportation projects. The final deliverable of this project is a comprehensive risk management guide that systematically addresses risk management for asphalt cement price volatility. The specific research objectives were:

  1. Identify and analyze the latest developments and trends in utilization of risk management strategies for the mitigation of asphalt cement price risk;
  2.  Identify key features for the most promising risk management strategies and establish their respective potential benefits and limitations;
  3. Enhance the assessment of risk management strategies considering the strategic objectives of transportation agencies and unique project goals;
  4. Enhance the quantitative assessment of risk management strategies considering their key respective parameters;
  5. Devise appropriate risk identification and allocation matrices for the successful adoption of asphalt cement price risk management strategies; and
  6. Transform research findings into educational and professional development activities.

Final Report:

Development of Risk Management Strategies for State DOTs to Effectively Deal with Volatile Prices of Transportation Construction Materials

Project Information Forms:

  1. January 2013
  2. July 2013 
  3. January 2014 
Describe Implementation of Research Outcomes (or why not implemented) : 

The implementation of this research lead to the development of a comprehensive guidebook that enhanced transportation agencies’ understanding of the opportunities, challenges and best practices for utilizing risk management strategies in transportation construction projects. This knowledge is critical to transportation agencies as it helps them optimally utilize risk management strategies and keep up with rapidly rising material price costs and cost overruns of transportation projects.

Impacts/Benefits of Implementation (actual, not anticipated): 

Time series analysis of asphalt cement (AC) index in the state of Georgia was conducted. Several time series models were created to explain AC index variation and predict future AC index value. This time series approach was developed and presented to Dr. Wu from GDOT Office of Materials and Research in a progress meeting. In addition, a transportation risk management education module was developed and taught in BC7100 class in the fall 2012.

Principal Investigator(s): 
Ashuri, Baabak
Principal Investigator(s) Contact Information: 
280 Ferst Drive, 1st Floor, Atlanta, GA 30332-0680 Phone: (404)385-7608 Fax: (404)894-1641 Email: baabak.ashuri@coa.gatech.edu
University(ies): 
Georgia Institute of Technology
Start and End Dates: 
05/1/12 - 06/30/14
Topic: 
State-of-Good-Repair

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