Design risk - deciding the level of control to keep over design and therefore the level of risk that remains with the client in terms of design.Feasibility risk - the decision to go ahead backed up by a robust business case, considering options and presenting the preferred solution.Risk management considerations for the client may include: See Risk Transfer as a risk mitigation strategy.Ĭlient risks are around cost time and quality. For example client-led design and build puts the weight of the risk on the client and the design phase whereas contractor finance or PFI puts the weight of risk firmly on the contractor through the design and construction phases. There are numerous procurement routes that construction projects use each with a different balance of risk either towards the client or the contractor. Risk Types in ConstructionĬonstruction risk is greatest at the earliest stages of the project starting with the choice of procurement route. More detail on risk assessment and the risk assessment process. The image below shows a risk assessment procedure and illustrates the concept of residual risk, that is, those risks that have not been identified or that remain/persist following risk control measures. To do this it is necessary to identify the hazard, assess the extent of the risk, provide measures to control the risk and manage any residual risks. Risk Management Risk management in construction is designed to plan, monitor and control those measures needed to prevent exposure to risk. Thus the task of effective risk management in construction is the prevention of losses caused by exposure to risk for example accidents, loss of money or time, damage to property or loss of reputation. However it is often the unidentified hazards for which provision has not been made that will have the most significant impact on a project. Often risk is ignored or dealt with in an arbitrary way on construction projects and it is common practice to add a 10% contingency to manage risk ( Thompson and Perry in Cooke & Williams, 2004, p73). This is not a statutory requirement, but can have a severe detrimental impact if it is not included. Work Breakdown Structure (WBS) Checklistįollowing the Turnbull Report which came into effect in 2001 construction companies have been required to show procedures to manage risk in their accounts.Highlighting tasks in Microsoft Project.
0 kommentar(er)
