Cost risk management in underground construction investment projects in Hanoi

Abstract

In the context of rapid urbanization, Hanoi is experiencing an increase in population and demand for infrastructure. At the end of May 2024, the urbanization rate reached approximately 49.2%, which indicates substantial pressure on public services and transportation infrastructure [6]. This indicates that the construction of underground urban projects in Vietnam, especially in Hanoi, is becoming a strong development trend aimed at addressing urban space and traffic issues. However, building underground structures is a complex activity that faces many challenges and carries high risks; therefore, risk management has become an essential and inseparable part of this activity [19], including cost risk management. This article will present the theoretical basis for cost risk management, the current status of cost risk management in several underground projects in Hanoi, and summarize the results achieved as well as the limitations and challenges that need to be addressed. From there, the article proposes several major solutions to improve cost risk management in future underground projects.