A Report On The Construction Sector Essay

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It

As the world is chaotic (Djavanshir and Khorramshahgol, 2006) it is impossible to always predict the future accurately. Teller at al (2012) describes project management as balancing the “iron triangle”, where changes to any one of the planned costs, quality or scope will change the other elements. Risk management allows contingency to be put into project plans, (APM, 2012) minimising negative effects and maximising the benefits of uncertainty.

Founded May 6th 1902, the Turner Construction Company is known as a company that builds non-residential buildings but it is self described as a risk management company. Their success is accredited to their project management tool called the Indicated Outcome Report (IOR) system that was implemented into the company’s management methods in the 1920s. It is with the IOR system that the company is able to assess risk effectively as the program is designed to help identify the anticipated financial and operational problems within any one of their projects at any level. This report is produced on a quarterly basis with 6-week updates and is reviewed in quarterly team meetings where team member participation is critical so that no unexpected costs

Understanding the reason of the construction industry being so vulnerable has been a major focus and a cornerstone for providing the basic health and security measure for the prevention of such hazardous events, that remains the foremost key to cease such events at construction sites. However, all the activities conducted at the research site comprise of series of tasks that are to be executed by the operatives responsible for construction. The foremost aim and objective for the prevention of any such hazard at the construction site include reducing the accident rate at the construction site by improving the level of the hazard identification at the construction site which may vary from project to project that the construction company is working

In 1998, Sir John Egan identified five key drivers for change including “integrated processes and teams” (Egan, J 1998). Egan noted significant changes required to the culture and structure of UK construction industry to help improve the “relationships between companies”. Sir John Egan (Egan, J 1998). In a subsequent report issued in 2003, Egan suggested that the UK Office of Government Commerce (OGC) recommends integration of the project team as an enabler of change. The proposal from the OGC on the adoption of standard forms of contract that encourage such team integration and collaboration between the various parties would help eliminate the inherent adversarial culture deeply rooted in the construction industry (Egan, J 2003).

Risk management or lack of, can be one of those attributes. It has been written; “risk management is a critical success factor for delivering projects in predefined cost, time and quality” (Benta, D., Podean, I. M., Mirecean, C. 2011.Page 142). However, when you are dealing with a project like the ISS, how do you predetermine the cost and time when the project spans over three decades? Many sources of construction risk must be identified. The following sections will first review the sources of timeline, costs, international collaboration, and complexity of project. Next, the review sources of risk with systems that need to be addressed during the construction and then the fault tree analysis.

Along with this challenge comes many difficulties. This includes estimating, planning, budgeting, and scheduling, to name a few. However, the most important factor of managing a construction project is jobsite safety. Unseen by many people, jobsite safety is determinate to the completion of the construction project, while delivering the highest satisfaction to the owner, and doing so all under budget. Modern day projects brings multiple risks to owners and contractors when they face new construction. Owner’s must be concerned with potential risks to their employees, tenants, and property while also being concerned with the risk carried by the construction manager.

There are numerous challenges facing today’s construction manager. Some are new to the industry, and some are centuries old. Many of these challenges are a direct result of construction operations, while others a result of indirect, peripheral activities. A surprising number of challenges are not construction issues but must be addressed and managed by the construction manager (CM) to ensure project success. Some of the construction issues include workforce considerations, safety, time constraints, and

The Construction industry in the United States is a well-known sector of the Country’s economy. This sector of the economy has made tremendous impact as a result of the seasoned professionals who have come together in their various set skills to carry out functions as it relates to them. These professions usually comprises of the Architect, Project Managers, Construction Managers, Estimators etc.

The construction industry is a major contributor to the UK and the world in general’s economies as a whole. In 2012 in the UK alone the gross value added was £83 Billion accounting for 6% of the total economy for the UK according to the paper produced by Chris Rhodes for the House of Commons titled Construction Industry: statistics and policy. (1)

Conventional Civil and Building projects in the construction industry use a number of traditional, popular and familiar forms of contracts. These have a good track record in meeting time, cost and quality requirements for straightforward projects; however, they are unlikely to meet the timeframes and budget constraints expected by Governments when undertaking complex and high risk projects were the scope of the work is not yet defined (Ma & Xin).

incorporated into the questionnaire. According to Gould and Joyce (2002) there are a number of risks which can be identified within the construction industry itself and those risks are evident in every construction project regardless of the project size or its scope. Tummala et al. (1999) has argued that oftentimes changes in design and scope in addition to time frames or schedules are considered the most common risks for the construction sector based on the study conducted. As the construction project progresses there 's bound to be changes in scope or design which are implemented causing the need for more resources, time and cost. Baker, et al. (1999) notes that if a project is completed ahead of its scheduled time, it may be as troublesome as one scheduled late. Karim et al. (2015) has argued that extremely quick completion maybe a resultant of planning which is insufficient or problems within the construction design which caused shortening of completion time. This may also lead to overall low quality of the final construction product and there may be an increase in the overall cost of the project (Karim et al. 2015). Gould and Joyce (2002) argues that setting a delay in a schedule garners a great cost that becomes the burden of both the contractors and the investors in differing ways. Zhang and Xing (2010) urges that there is great importance in keeping balance between the concepts of time-cost-quality trade-off which manifested over the past decade. This concept of

Victoria has one of the strongest economies in British Columbia (Greater Victoria Chamber of Commerce, 2012). Greater Victoria has a fast-growing knowledge based economy with growing business opportunities in its more significant sectors including “advanced technology, tourism, marine, government, and education - as well as other sectors, including construction [See Figure 1 in the Appendix for the trend in major projects in the Vancouver Island/Coast Region], retail, agriculture, and arts and culture, contribute to the overall strength of the economy and demonstrate the healthy diversity of the business environment” (Greater Victoria Chamber of Commerce, 2012).

The construction industry has the most adverse and complex projects due to the involvement of large funds, infrastructure, economy of a nation and also large portion of the society. Due to this complexity, the projects suffer a lot of fragmentations, conflicts and disputes, large production of waste, project cost and time overruns etc. Due to increase in these types of projects, there are lots of new techniques being developed in the industry i.e. partnering, joint venture, outsourcing, alliances, enterprise resource planning, Total quality management(Hai, Yusof et al. 2012) to tackle the challenges. We have seen a lot of projects which are not delivered on time due to all these reasons. All the techniques work on one important and vital aspect i.e. coordination, without it there can be no successful completion of any project. The more the project is complex the more complexity involved in coordination. Christchurch rebuild has faced similar problems during the last 5 years, the reason to which it has not been completed until now is lack of proper coordination between the involved parties. There is lot of misunderstanding between the parties involved in the process of construction due lack of proper coordination mechanisms and techniques. The delay in delivery of the project is hampering the image of Christchurch on a global scale. I have addressed a few

Nowdays, the construction sector in Malaysia is one of the very important and can contribute to the country's economic rise. Various employment opportunities available to the parties involved in the construction -based business can also help economic growth. In the next 30 years, the construction industry in Malaysia will continue to increase due to the increasing demand for transport, education, housing, water supply and others. This is assumed by the Construction Industry Board Malaysia (CIDB) for construction sector rising nowadays.