Risk Management in the Built Environment Management of Risk in Construction By Professor Simon Burtonshaw-Gunn – licensed under the Creative Commons Attribution – Non- Commercial – Share Alike License

Risk Management in the Built Environment School of the Built Environment MSc Construction Management Risk Management in the Built Environment Presentation 3: Risk Management in the Project lifecycle Professor Simon Burtonshaw-Gunn

Risk Management in the Built Environment Risk Management in the Project Lifecycle With respect to construction projects it is suggested at risk management can be undertaken at a number of levels or stages of the project

Risk Management in the Built Environment Project concept Tender Implementation Delivery UseRisk Management at Company level Risk Management in the Project Lifecycle With respect to construction projects it is suggested at risk management can be undertaken at a number of levels or stages of the project

Risk Management in the Built Environment Risk Management at the Company Management level – The first stage is elimination of threats in the general approach towards a given investment. The basic elements, which should be taken into account include: Perception of the problem by the client. Influence of taxes. Requirements of clients. Repayment period. Comparison of various approaches to investment. Public procurement. Initial assessment and identification of risks. Depreciation. Comparison of initial risk assessment with expected rate of return of capital. The expected cash flow. Market trends.

Risk Management in the Built Environment Project concept Tender Implementation Delivery UseRisk Management at Company level Risk Management at Strategic level Risk Management in the Project Lifecycle With respect to construction projects it is suggested at risk management can be undertaken at a number of levels or stages of the project

Risk Management in the Built Environment Risk Management at the Strategic Level includes more specific problems such as: The contractor selection procedure. The designer selection procedure. Cost control methods. Project management information systems. Control of key issues of the project, control of critical path. Selection of insurance. Financing of the project. Priorities of the project. Result on the initial analysis. With respect to construction projects it is suggested at Risk Management can be undertaken at a number of levels or stages of the project

Risk Management in the Built Environment Project concept Tender Implementation Delivery UseRisk Management at Company level Risk Management at Strategic level Risk Management at Project Implementation level Risk Management in the Project Lifecycle With respect to construction projects it is suggested at risk management can be undertaken at a number of levels or stages of the project

Risk Management in the Built Environment Risk Management at the Project Implementation level – this stage is associated with the work on the project to a greater extent with the participants of the design and implementation process and it consists of more practical problems, such as..... What do you think are the risks during project implementation ?

Risk Management in the Built Environment Shortage of materials. Accidents. Weather. Changes in orders. Delays in designing. Liquidation or bankruptcy of a contractor. Additional cost of contractors. Safety. Quality of employees. Unknown parameters of the construction site. Safety and environmental protection. Interpretation of the project. Risk Management at the Project Implementation level – this stage is associated with the work on the project to a greater extent with the participants of the design and implementation process and it consists of more practical problems, such as.....

Risk Management in the Built Environment In looking at Risk Management within the life-cycle of a construction project this topic needs to use robust plans that will survive in the real world. Whilst the response to known risks are typically proactive, managed, planned and budgeted for, on the other hand the response to unknown risk is often reactive, unmanaged, not budgeted or resourced and often encourages unplanned reactions.

Risk Management in the Built Environment Planning is followed by the Assessment of the risk looking to qualify and quantify the risk against a set of consistent criteria using various analysis techniques to determine the risk significance and the means for managing its consequences. Decisions evolve around the need to make choices, either to do or not to do something, or to select one option from a range of options. The choices available are often constrained by social, technical, business, safety and environmental requirements and objectives.

Risk Management in the Built Environment Risks are usually spoken about using a Condition- Cause- Consequence approach, for example:

Risk Management in the Built Environment Risks are usually spoken about using a Condition- Cause- Consequence approach, for example: There is a risk that lack of support will cause the project to stall resulting in team being deployed on other work. There is a risk that our customer will be unable to specify the internal fit-out requirements in a timely fashion caused by their lack of experience in procuring this type of equipment resulting in delayed payment, project overrun, and delayed initiation of support contracts. There is a risk that the client will wish to bring forward the completion date for the project and cause us to execute the work by additional shift working or more resources resulting in an overall cost increase from that contractually agreed.

Risk Management in the Built Environment School of the Built Environment MSc Construction Management Risk Management in the Built Environment Presentation 3: Risk Management in the Project lifecycle Professor Simon Burtonshaw-Gunn