Heckroodt / Evaluation of investment Risk and sensitivity The risk associated with each project, seen within the broad spectrum of other internal and external risk factors, seems to be the biggest concern of investors and developers. Financing of construction projects is the second highest factor, and can be of critical importance. Despite the statement of Stals [l 995] that one of the more important elements to cure high inflation, is extremely high interest rates, investors participating in the survey placed inflation rate on a much lower level of priority than other factors that may have an influence on investment. The Quantity Surveyor and/or Cost Engineer should play an important role in project planning, project management, risk management and the cost of projects, paying special attention to the feasibility of specific projects in terms of project demand, project life, cost savings on projects and control of materials and plant used on site. The risks associated with construction investments should be carefully managed and monitored, so as to act proactively on the possible negative effects of the indicated influencing factors. There are various means of managing risk, as indicated by South African investors and represented in Figure 2 [Heckroodt: 1997]. Project life evaluation | 
