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

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Presentation on theme: "School of Engineering and Electronics Civil Engineering Management School of Engineering and Electronics & Bovis Lend Lease Risk Management in Construction."— Presentation transcript:

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

2 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management Health & Safety Hierarchy General site safety management Fundamental topic: covered in greater depth

4 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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

7 School of Engineering and Electronics Civil Engineering Management

8 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management Operation Plans – pro-forma

14 School of Engineering and Electronics Civil Engineering Management 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:

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16 School of Engineering and Electronics Civil Engineering Management Risk assessment only useful if the info in it is well considered...

17 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management Foolish Risks

19 School of Engineering and Electronics Civil Engineering Management Poor Planning...

20 School of Engineering and Electronics Civil Engineering Management Engineering: Small Risks

21 School of Engineering and Electronics Civil Engineering Management Large Risks - Piper Alpha (before)

22 School of Engineering and Electronics Civil Engineering Management Piper Alpha - After

23 School of Engineering and Electronics Civil Engineering Management Large Consequences: Hatfield & Ladbroke Grove Rail Crash

24 School of Engineering and Electronics Civil Engineering Management Definitions Harm 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: uEmployee accidents or death uFinancial collapse uEnvironmental accident

25 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 systems 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management Practical Risk Assessment Procedure 1.Identify the principal hazards that will be present in the operation. 2.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. 3.Identify persons affected by the risk 4.Respond to the risk 5.Monitor and update as necessary.

35 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management Risk Response cont Risk Transfer Via Subcontractors –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 School of Engineering and Electronics Civil Engineering Management Risk Response cont Risk Retention 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 School of Engineering and Electronics Civil Engineering Management 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 School of Engineering and Electronics Civil Engineering Management 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


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