Presentation is loading. Please wait.

Presentation is loading. Please wait.

School of Engineering and Electronics & Bovis Lend Lease

Similar presentations

Presentation on theme: "School of Engineering and Electronics & Bovis Lend Lease"— Presentation transcript:

1 School of Engineering and Electronics & Bovis Lend Lease
Risk Management in Construction Engineering

2 Introduction We have looked H&S legislation
It must be remembered that legislation alone will not protect – it is merely the ‘rules’ We have considered the behavioural and cultural aspects of H&S Management We have looked at practical aspects of health & safety on construction sites We have considered specific areas where hazards occur We have also considered the identification of hazards Today we will consider how H&S management is implemented at a site level the wider concept of engineering risk management

3 Health & Safety Hierarchy
General site safety management Fundamental topic: covered in greater depth

4 Health & Safety Legislation
As covered first lecture For example: The Health & Safety at Work etc Act 1974 The Management of Health and Safety at Work Regulations 1999 The Provision and Use of Work Equipment Regulations 1998 The Manual Handling Operations Regulations 1992 The Construction (Head Protection) Regulations 1989 Personal Protective Equipment at Work Regulations 1992 Control of Substances Hazardous to Health Regulations 2002 Construction (Design and Management) Regulations 1994 The Construction (Health, Safety and Welfare) Regulations 1996

5 Health & Safety File To recap:
contains all H&S information about the project for those that follow (i.e. clients & users) should contain information about the design & construction of every structure & element of the project responsibility lies with the CDM Co-ordinator who must keep it up to date deliver to client at end of project

6 The Method Statement A Method Statement defines the scope of the work to be performed in producing a significant section or phase of the project It is also produced as part of the Project Quality Plan It is a statement about the desired level of quality As a definition of the work involved it allows assessments of the risks involved to be made Once prepared it should be passed to every person involved in that part of the project – whatever capacity they may have


8 Method Statements – areas covered
A method statement is a large document and therefore cannot be prepared for all activities Work activities are therefore split into areas – usually geographic but also process areas The project manager is responsible for determining what method statements are required – he must find the right balance: too broad a scope and detail will be lost too narrow and the volume of paperwork will dominate

9 Method Statements – examples
On a road project we may have the following method statements: One for each major structure (e.g. bridges) One for a group of minor structures (e.g. culverts) Earthworks Fencing Site clearance Drainage Road surfacing Traffic management Safety fencing Any other specialist subcontractor operations

10 Preparation of a method statement
The project manager will decide which person in the team will prepare which method statements This person is usually the senior engineer for that area of work or the subcontractor Safety is just one (though major) part of a method statement All method statements should be set out on similar lines in order that the information contained can be easily identified

11 Content of a method statement
The operations concerned A risk assessment of the operations A listing of key drawings The direction and sequence of work The types of resources to be used A basic layout or sketch Delegated responsibility for the work Any other specific aspects of the work

12 Operation Plans The next level in the H&S hierarchy
It is prepared for each discrete activity of work There may be a number of operation plans for an area of work already covered by a method statement The operation plan is usually drawn up by the site engineer looking after the work A pro-form is usually used

13 Operation Plans – pro-forma

14 Risk Assessments ‘Risk’ is a large part of any project
financial, technical & safety risk It is just one stage in the overall risk management strategy prepared for every project We shall look at the subject in greater depth in a moment Each method statement will have detailed risk assessments:


16 Risk assessment only useful if the info in it is well considered...

17 Risk Management Risks are ever present
The management of risk is an area of significant expansion over the last decade. Within the construction and process industries the consequences of an accident can be significant (e.g.Piper Alpha) Detailed management of risks are routinely carried out, conducted at all stages of a project life cycle This lecture will: Define risk concepts Introduce the Risk Management Procedure Piper Alpha Case Study

18 Foolish Risks

19 Poor Planning...

20 Engineering: Small Risks

21 Large Risks - Piper Alpha (before)

22 Piper Alpha - After

23 Large Consequences: Hatfield & Ladbroke Grove Rail Crash

24 Definitions Harm BS8444: Part 3: 1996
“Physical injury or damage to health, property or the environment” BS8444: Part 3: 1996 In all aspects of project management, we want to minimise, if not eliminate any kind of harm Harm may be, for example: Employee accidents or death Financial collapse Environmental accident

25 Definitions cont. Hazard
“A source of potential harm or a situation with potential for harm in terms of human injury, damage to property, damage to the environment, or combination thereof” In project management terms, we need to control financial hazards as well as physical ones Examples may be: Falls from heights Collapse of excavations Dropped objects Poor environmental management Abnormal inflation Abnormal weather conditions

26 Definitions cont. Risk “The combination of the probability of an abnormal event or failure and the consequence(s) of that event or failure to a system’s operators, users or its environment” Risk involves two aspects: Probability of a hazard taking place, and The severity of the harm that occurs Low probability, high severity = high risk High probability, low severity = intermediate risk Low probability, low severity = low risk

27 Definitions cont. Risk Management
“The systematic application of management policies, procedures and practises to the tasks of identifying, analysing, evaluating, responding and monitoring risk” Five stages:

28 Risk Identification The stage where all potential hazards in a project are identified Three main methods of identification Individual Consultation interviews with project personnel lengthy & time consuming Group discussions formal brainstorming requires motivation & teamwork HAZOP HAZard and OPerability studies Formal questioning of processes, e.g design

29 Risk Estimation Potential hazards have been identified
Now need to assess: Probability of occurrence Severity if occurs Can be done in two main ways: Qualitatively in a linguistic manner usually done first; high probability/severity cases then may be examined: Quantitatively in a numerical manner

30 Risk Estimation cont Qualitative Techniques Fuzzy set analysis
expresses the likelihood and consequences of a risk in readily understood language terms. Interviewing and Brainstorming is an extension of two of the techniques employed in the identification stage. Personal and Corporate Experience if it exists should be exploited. Engineering Judgment

31 Risk Estimation cont Quantitative Techniques
Expected Monetary Value (EMV) i.e. putting a financial value to the expected result of a risk. Expected Net Present Value (ENPV) is an extension of EMV by calculating the net present value of a probability state. Decision Analysis looks at possible outcomes and determining optimal choices

32 Risk Estimation cont Quantitative Techniques cont Sensitivity Analysis
tests how sensitive an event outcome is to slight changes on the input variables. Delphi peer groups attempts to put quantitative values to results obtained in a manner similar to discussion groups and brainstorming. Simulation creates a probable life history of an event and thus allows its outcome to be predicted.

33 Risk Evaluation 3rd part of Risk Assessment
Need to combine the severity and probability of the identified hazards Can be done using a risk matrix:

34 Practical Risk Assessment Procedure
Identify the principal hazards that will be present in the operation. Assign a number 1 to 5 for both Consequences of Hazard and Probability of Occurrence. The Risk (i.e. the product of Consequence x Probability), indicates the level of action. Identify persons affected by the risk Respond to the risk Monitor and update as necessary.

35 Risk Response If risks are identified as being intolerable how can these be dealt with? There are four main methods of responding to such risks: Risk Avoidance Risk Transfer Risk Retention Risk Reduction

36 Risk Response Risk Avoidance
Managing or developing a situation in which the identified risks do not occur, e.g: not proceeding with the project tendering at a very high bid placing conditions on a bid changing design

37 Risk Response cont Risk Transfer Via Subcontractors Via Insurance
a third party undertakes the high risk portion of the work and the responsibility that goes with it Via Insurance A pre-determined insurance premium is often better than unexpected costs due to risk may be done using a captive insurance company involves excesses some risks may result in premiums higher than the probable financial loss

38 Risk Response cont Risk Retention Risk Reduction
Some risks may be better managed internally High frequency/low severity or very low frequency/high severity risks may be best retained Risk Reduction The most usual way in which to manage common risks is to reduce either the severity, the chance of occurrence or both. E.g: early warning systems improved maintenance better housekeeping

39 Risk Response cont The choice of method used to respond to risk will largely depend on company policy Using the risk matrix model, a typical company scenario may be:

40 Risk Monitoring The final stage of risk management
Risk situation will continue to change throughout the life of the project New hazards will become present Existing hazards will stop or change The management must be continually monitored, reviewed and improved Existing risks may be managed differently therefore Risk monitoring completes cycle back to risk identification

Download ppt "School of Engineering and Electronics & Bovis Lend Lease"

Similar presentations

Ads by Google