Assessing Risks of Aging Infrastructure: Sector Analysis & Remedies

This report investigates the risks associated with aging infrastructure in the transport and manufacturing sectors, emphasizing the economic and safety implications of neglected infrastructure. It identifies specific risks such as poor road conditions, collapsing bridges, energy infrastructure failures, and deteriorating water mains. The analysis extends to the manufacturing industry, highlighting risks related to obsolete machinery and safety regulation negligence. The report outlines potential remedies, including increased investment, proactive maintenance, and continuous management plan reviews. It also addresses excavation and construction-related risks, weather-related risks, labor union issues, and inflation risks, providing optimistic, most likely, and pessimistic scenarios with associated probabilities and outcomes. Furthermore, the report includes a contractor selection process based on technical and price proposals, ultimately recommending the best value contractor based on a penalty-adjusted score.

Question 1 of part 1
Transport sector
Introductions
The objective of having an infrastructure is to facilitate a country economy and strive to improve
a better quality of life within the country. The investigation that will therefore involve aging
infrastructure is fundamental in a sense that it will be supporting healthy and energetic
communities. Published reports have indicated that I direct relationship that will coexist between
investing in infrastructure and production of gross product which in turn create more jobs
opportunities. However, the opposite of this is also true, where neglecting the infrastructure
elements will affect the economy and result to numerous challenges that a country may have
both in businesswise and its citizen in general. Over last decade the have been insufficient funds
for investment on the aging infrastructure in order to upgrade them and maintain their quality all
over the continents. America Society of Civil engineers on their report stated that deficiencies of
infrastructure will have an effect on both the quality and quantity of the U.S. jobs in its economy
and based to this there has been a result of loss in the disposal income. A prediction has too been
given to state that by the year 2025, the households each will be incurring about 3400 US dollars
due to losses brought about with under investment of aging infrastructure, similar margin will be
experienced both on economy and GDP losses on the same period of projection (Bivens, 2014).
Objectives
1. To identify the risks
2. To determine the affected sectors
3. To evaluate the identified risks and define their remedies
4. To implement stipulated remedies
Identification of risks
Major roads within continents are at a poor state conditions , example, based in ASC America
has around 32 percent of its road in a poor state condition, this has been brought about with low
infrastructure investment, this has resulted to increase in congestion of vehicles in the roads.
The state of road bridges similarly are also another aging infrastructures facing the same problem
of being neglected, their collapse will total disconnect the road from linking to another part and
also can lead to loss of lives and negatively economic impact to the regions they serve through
linking them.
Energy infrastructure comprises of three segments, which includes oil, electricity and natural
gas, business and industries relies on supplied power for their effective operations, but there is

insufficient investment in this type of infrastructure to satisfy the growing need. There has been a
growing and developing challenges based on the provision of this segment of energy
infrastructure to the demand of the energy in the growing population worldwide (US Energy
Information Administration, 2011). The aging service to this infrastructure type has led to
disruptions of power and also vulnerable to the cyber-attack, the breakdown of power leads to
the risk on safety of public through shutdown of telecommunication networks, services offered
by financial sectors and supply of water.
The other infrastructure that is included to be aging is water mains for fresh water supply and
sewage lines which have been neglected to point where they are broken and are prone to damage
roads hindering emergency efforts that may require the use of water and accessibility through the
damage road.
Dams are also categorized under water infrastructures, though their initial design met the
requirement but with time now their lifespan has been deteriorating, therefore many are believe
they are not capable of withstanding the projected floods and earthquakes. But there neglecting
can lead to their failures which will contribute to losses of other neighboring structures and risk
the public safety.
Affected sectors
The risk associated with neglected road is expected to hinder agricultural sectors and free
mobility of the public.
The risks associated with neglected road bridges are expected to affect the link between several
places that are separated by large flowing rivers.
The risk associated with neglecting energy infrastructure is expected to hinder communication,
operation of industries and domestic lighting in houses.
The risks associated with water infrastructure are expected to hinder supply of fresh water,
sewages and responses to emergencies like fire.
Remedies to the risks identified
Several measures can be put in place in order prevent the risks associated with aging
infrastructure from taking place, which includes;
 Gathering all the information regarding the infrastructure, which reflects the initial state,
the current state of the infrastructure and framework to repair or replace the aged
infrastructure.

 Increasing the investment funds to the infrastructure in order to ensure active inspection
and correction and maintenance is done.
 Continuous review of the of the management plan of the infrastructure.
Implementation of remedies plans
Immediately the risks are identified, the remedies outlined then the final action is to implement
the set plan either through repairs if the conditions are not adverse, but if the conditions are
worse then a replacement plan will be used.
Manufacturing industries
Manufacturing industry over the past decades have been concentrating on how to advance the
management and its production activities in order to sustain the industry, enhance its productivity
and improve on it innovation activities, over the resident time now the manufacturing industries
have started incorporating management risks this after several emerging issues which did not lie
on management side and production activities that initially were always focused.
Objectives
1. To comply with the standard code and regulations to prevent occurrence of accidents
2. To provide safety designs in all the production infrastructures
3. To apply the occupation safety and health to the employees and the community
Identifications of the risks
The first aging infrastructure in the manufacturing industry is abandonment of breakdown
production machines which are more expensive.
Lack of the spear parts on the worn out parts of operating machines of the manufacturing
industry..
Neglecting the standard regulations safety for the public and employees..
Implementation of remedies

Several measures can be put in place in order prevent the risks associated with aging
infrastructure of manufacturing industry taking place, which includes;
 Gathering all the information regarding the manufacturing infrastructure, which reflects
the initial state, the current state of the infrastructure and framework to repair or replace
the aged infrastructure.
 Increasing the investment funds to the manufacturing infrastructure in order to ensure
active inspection and correction and maintenance is done.
 Continuous review of the of the management plan of the manufacturing infrastructure.
Implementation of remedies plans
Immediately the risks are identified, the remedies outlined then the final action is to implement
the set plan either through repairs if the conditions are not adverse, but if the conditions are
worse then a replacement plan will be used.
Conclusion
The risks associated with aging infrastructure on transport sector and manufacturing sector are
mainly viewed to arise from the negligence by the concern authority, the risks are vital both
economically and safety wise, from the positive perspective the risks can be resolved if the
concern areas are either funded or serviced and always the reference point will be their design
lifespan, and incase the feasibility studies on this aging infrastructure are done and
recommendation on them is that they can no longer serve their purpose intended, then it will be
advisable to prevent further risks that may arise on their permanent failures through either
constructing new type of infrastructure in relation to transportation sector or purchasing new
machines in relation to manufacturing industry.
Question 1 of part 2

a) excavation and ground water infiltration risks;
Optimistic Most likely pessimistic
Scenarios Analysis of hydrological
resistance on different
layers of excavated soil
Analysis of infiltrated
precipitation to subsoil,
which increases phreatic
level of water all over the
building.
Unexpected
settlement caused
by large system of
dewatering
Outcome $5,000 $20,000 $25,000
Probability 0.1 0.4 0.5
b) geotechnical risks for foundation and other substructure construction (i.e. affected by
eventual geotechnical conditions);
Optimistic Most likely pessimistic
Scenarios Large volume of grout
that is required to be
drilled
Damage of pile tips at
variation of bedrock
elevation
Grounded pile
stability on weak
soil
Outcome $50,000 $200,000 $250,000
Probability 0.1 0.4 0.5
c) weather related risks for superstructure construction (excluding finishes);
Optimistic Most likely pessimistic
Scenarios Moderate warm
temperature throughout
the season
Change in weather
temperature always at
evening due to
precipitation
Continuous freezing
and thawing
weather
temperatures
throughout the
season
Outcome $1,000 $3,000 $6,000
Probability 0.1 0.3 0.6
d) risks related to interior and exterior finishes (mainly by means of rework and changes);
Optimistic Most likely pessimistic
Scenarios Partial peeling of
plastered finishes due to
incorrect mix of sand and
cement
Roughness of the interior
plastered surfaces
Complete peeling of
the plastered
surface

Outcome $10,000 $12,000 $18,000
Probability 0.25 0.3 0.45
e) labour union problems during the project delivery
Optimistic Most likely pessimistic
Scenarios Agreement in terms of
payment with the union
members
Partial disagreement with
union member on the
time the employees will
be reporting and leaving
the site
Strikes with the
labour union
members on
allowances to
receive on overtime
activities
Outcome $5,000 $20,000 $25,000
Probability 0.1 0.4 0.5
f) inflation risks (i.e. with respect to economy growth and central/reserve bank rates);
Optimistic Most likely pessimistic
Scenarios Low economic growth
and reserve bank
increases by 5 %
Moderate economic
growth reserve bank
increases by 10 %
High economic
growth reserve bank
increases by 15 %
Outcome 7% 13% 20%
Probability 0.175 0.325 0.5
Question 2 of part 2

Prequalified
DBM
contractors
Technical
proposal for
DB
component
Price
proposal for
the DB
component
(dollars)
Time
required for
the DB
components
(days)
Price
proposal for
M
components
(dollars per
year)
Technical
proposal
score for the
M
component
Alpha 76.9 2,940,000 369 150,000 80.5
Beta 79.5 3,060,000 335 160,000 76.8
Gamma 68.7 2,880,000 385 125,000 84.3
Delta 84.2 3,900,000 394 175,000 88.8
Theta 78.5 3,850,000 357 160,000 83.1
Rho 80.0 3,000,000 365 140,000 80.0
Calculations
Price Time Technical Selection

quoted
by that
contract
or for
DB +
Price
propose
d by that
contract
or for
M)
value’
penalty
adjustme
nt for DB
compone
nt]
score of
that
contracto
r’s DB
componen
t +
Technical
score of
that
contracto
r’s M
proposal
score of a
contractor
’s DBM
proposal
3,090,00
0 880000 157.4 25222.363
41
3,220,00
0 -6600000 156.3 -21625.08
3,005,00
0 4400000 153 48398.692
81
4,075,00
0 6380000 173 60433.526
01
4,010,00
0 -1760000 161.6 13923.267
33
3,140,00
0 0 160 19625
a) Select a best value DBM contractor
Beta which has the lowest value of -$21625.08
b) Based on the Beta he willing to provide to provide his or her services at its own cost
based on the calculations , so it will best if he or she is choose

References
Bivens, J., 2014. The Short-and Long-Term Impacts of Infrastructure Investments on US
Employment and Economic Activity. Budget Taxes and Private Investment.
US Energy Information Administration ed., 2011. Annual Energy Outlook 2011: With
Projections to 2035. Government Printing Office.