Capital investment decisions in construction projects involve substantial financial commitments, long project durations, uncertain costs, changing market conditions, and risks associated with time, demand, technology, and financing. A construction manager therefore needs systematic techniques to assess how uncertainty can affect the financial viability of a project. Sensitivity analysis and decision-tree analysis are two important methods used for evaluating capital risks. While sensitivity analysis examines how changes in individual variables influence project outcomes, decision-tree analysis evaluates alternative decisions under different possible future conditions and assigns probabilities to those conditions. Sensitivity analysis is a technique used to determine the effect of changes in important project variables on measures such as Net Present Value (NPV), Internal Rate of Return (IRR), payback period, profitability, or total project cost. In construction management, the estimated values of project costs and revenues are rarely certain. The cost of land, labour, cement, steel, equipment, transportation, financing, and maintenance may change during the project. Similarly, construction delays can increase expenditure and postpone revenue generation. Sensitivity analysis helps managers understand how vulnerable a project is to such changes. The basic procedure involves first preparing a base-case financial evaluation using estimated values for investment cost, operating cost, revenue, project life, discount rate, and other relevant variables. One variable is then changed while keeping the other variables constant. For example, a construction project may be evaluated by increasing construction cost by 10%, 20%, and 30%. The resulting changes in NPV or IRR are observed. The same process can be carried out for selling prices, rental income, construction duration, interest rates, labour costs, material costs, and expected occupancy. Sensitivity analysis plays an important role in identifying critical risk factors. If a small increase in the price of steel causes a significant reduction in NPV, steel price is a highly sensitive variable. Similarly, if a small delay in project completion substantially reduces profitability, the project is highly sensitive to construction time. This information enables the construction manager to focus risk-control measures on the variables that have the greatest impact on project performance. Another important role of sensitivity analysis is supporting feasibility studies. Before committing capital, investors and project managers can determine whether a project remains financially acceptable under adverse conditions. For instance, a residential construction project may initially show an attractive NPV based on an expected selling price of ₹6,000 per square metre. Sensitivity analysis can determine whether the project remains profitable if the selling price falls to ₹5,500 or ₹5,000 per square metre. This provides a clearer understanding of the project's financial strength. Sensitivity analysis is also useful for comparing project alternatives. Different construction technologies, materials, locations, or development strategies may have different cost and revenue structures. By testing the effect of changes in major assumptions,