Risk Management And Risk Assessment Of Design Bid Build Building Projects

Working to understand the risks a project may endure along with the cost associated is critical in every project management plan. Understanding potential risks based on the project type, resources needed, timeline and budget still leaves gaps that creates uncertainty for actually predicating the outcome of the project. There is not a true way to predict when and where a project risk will occur but designing a plan to properly address and manage those risks will increase confidence while eliminating the element of surprise.

Usually, the most common risk management strategies can be subdivided into multi-stage approach in order to obtain a better impression of the underlying risks and thus to increase the probability of mitigating the firm’s risks properly and successfully. Also General Motors Corporation has developed various rules and guidelines to help manage minimize the risks associated with their business and investment operations.

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering

Hillson, D & Simon, P. (2007). _Practical Project Risk Management: The ATOM Methodology_, Vienna, VA: Management Concepts, Inc.

During an engineering project life cycle, the common risk management process (risk identification, risk impact assessment, risk prioritization analysis, risk tracking, and risk mitigation planning implementation) meet the required protocols for early and continuous risk identification. The first step, risk identification, brainstorms potential risks that may develop during the engineering system to include environmental or human hazards. The second step, risk impact assessment, clarifies and details the damage of the risk. The third step, risk prioritization analysis, creates a hierarchy of the risks and determines which risk needs to be addressed first then so on. The follow-on steps have two different paths, one path is risk tracking and the other is risk mitigation

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

Construction projects can be extremely complex and fraught with uncertainty. Risk and uncertainty can potentially have damaging consequences for the construction projects. Therefore nowadays, the risk analysis and management continue to be a major feature of the project management of construction projects in an attempt to deal effectively with uncertainty and unexpected events and to achieve project success. Risk is inherent on construction projects and disputes frequently arise. One in four construction projects results in a dispute that leads to arbitration or litigation. With large scale, complex projects the likelihood of serious, time-consuming and expensive claims increases.

In order for a home building project to survive its purpose, risk analysis is essential so that occurrences that may affect the projects in the end can be identified, analyzed, assessed, managed and monitored. Because of the risky processes that are involved in the projects of home building construction, risk analysis and mitigation is the most useful tool in achieving good project and planning in home buildings as well as other constructions. If good risks management procedures are well conducted, the team’s level of confidence will be boosted, and this will enable or project to run and smoothly achieve its goals while facing and tackling each risk. Risk management will also come in handy as time will be saved as well as the

In order to perform project risk management effectively, the organization or the department must know the meaning of the risk clearly. With regards to a project, the management must focus on the potential effects on the objectives of the project, for example, cost and time (Loosemore, Raftery and Reilly, 2006). Risk is a vulnerability that really matters; it can influence the objectives of the project

Risk allocation is performed as part of the development of the project structure, which takes into account the distribution of responsibilities and risks during the planning, construction, financing and operating phases (Corner, 2006). The aim is to identify an efficient and effective structure that optimises the costs of the project and ensures that the risk occurrences do not damage the project (Delmon, 2009). According to Grimsey and Lewis (2007) risk allocation has two elements: optimal risk management and value for money. The first implies that the

This assignment is included in the 2014 session of the Risk Management module of the MSc in Project Management course at University of Aberdeen. The main purpose of the assignment is to demonstrate my understanding of the issues involved in Risk Management and how they are applied in my current Project environment. The assignment is split in to two questions as detailed below.

The completion of any project depends on the execution of various parameters mostly set at the beginning of the project. In order to complete the project to satisfactory levels, the project must be completed within the stipulated timelines, fall within the approximate budget and be of the required quality standards. However, most of the projects are affected by adverse changes and unforeseen events that occur during the execution period. Research shows that the magnitude of change is dependent on the size of the project, with large projects experiencing more uncertainties due to several factors including; planning and design complexity, interest groups having deferring opinions, resource availability, Economic and political climate and statutory regulations, which may necessitate change of plan. Most of the uncertainties are known to occur in the concept phase and if not intervened, they may affect the entire project. The burden falls on the management of such risk as some managers choose to ignore the uncertainties since they call for additional costs. Other inherent risks may go unnoticed and therefore remain unsolved,

This research is high standard but however comprehensive. This research will support project managers to decide whether they have all the elements of a risk management and an asset management system in place. This could be the matter even if the term risk management and asset management is not identified within the project. This research can be applied to review whether the project elements are combined and the interfaces between them optimised. Risk management successfully installed in the project offers the chance to gain a clear understanding of the goals, duties and contents of the service and the feasibility of the project. It provides an information basis for the quantitative data, sorted according to size, for the purpose of supporting decisions, such as e.g. the choice between costs and implementing goods or the comparison between several possible options. For this, however, it is necessary that a high quality of the status of information is always available in order to make determinations on the basis of useable and comprehensive information. Risk management can therefore only be implemented and enforced effectively if communication channels in the enterprise are created, which guarantee the direction of the information to the places concerned in each case. Through the risk management used, the overall risk of the project is broken down

The research paper is conducted to give awareness to all parties involved in construction industry and to identify the common hazards at site. In construction industry, accidents are likely to occur due to human error, hazards of the surrounding environment, and failure to comply with safety instructions. Generally, safety aspects should be the main priority at constructions site to minimize the accidents. The data were collected using questionnaire that distribute to Selangor and Kuala Lumpur area only. So, further research need to be conducted at other states in order to get more details and precise data.