1. RISK MANAGEMENT IN PROJECT DELIVERY (CONSTRUCTION)
Jeremy Stone
Director – Heritage and Culture
Greenwood Projects Ltd

2. Greenwood Projects Ltd Context & Definition Risk Management
Identification
Review and Analysis
Ranking
Determining the mitigation
Implementation of strategy
Monitoring, control and adjustment
Summary
Questions

3. GREENWOOD PROJECTS LTD
A Project Management and Quantity Surveyor practice.
Have been working in the Heritage Sector for over 25 years.
Approximately 70% of annual workload within Heritage & Culture Sector.

4. GREENWOOD PROJECTS LTD
Hadlow Tower
St Georges Chapel, Woolwich
SLT Old Fire Station
Wymondham Abbey
The Walronds, Cullompton
Fort Nelson

5. Context & Definition RISK (Verb):
Incur the chance of unfortunate consequences by engaging in (an action):
PROJECT DELIVERY:
a new construction, expansion, renovation, or replacement project for an existing facility or facilities.
RISK MANAGEMENT:
The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks.
However,
Acknowledge that risk can often lead to opportunity!

6. Risk Management Risk Identification Review & Analysis Ranking
Mitigation
Strategy Implementation
Monitor, Control & Adapt
Risk Management

7. Risk Identification Construction Risks generally grouped into:
Funding / Cashflowing
Financial / Commercial
Procurement Compliance
Planning & Statutory Consents
Professional Team Performance
Design Development
Client scope creep
Existing site / fabric conditions
Below the ground
Specialist items installations / Lead In
Contractor Performance
Stakeholder Management
Multiple supplier co-ordination
Post Practical Completion Impact
All can effect Programme (time) and Budget (cost) !
Risk
Identification
Identification

8. Risk Review, Analysis & Ranking
How could the risk impact :
- Programme - Resources - People - Current Capabilities - Finance - Legal - Reputation - Quality of Build / Exhibition - Relationships with Users - Operational Processes - Management / Trustees - Stakeholder Management
- Funders Requirements - Technology / Future Proofing - Business Planning - Asset Management
Risk
Ranking
Review & Analysis
Analysis
Probability x Impact
(score out of 5)
Risk
Ranking
Red – High / Unacceptable
Amber – Close Monitoring
Green – Low / acceptable

9. Mitigation
Acceptance: Do Nothing ! A common option when the cost of other risk mitigation options such as avoidance or limitation may outweigh the cost of the risk itself.
Avoidance: Putting in place an action that avoids any exposure to the risk whatsoever. Risk avoidance is usually the most expensive of all options.
Limitation: Usually the most common risk management strategy employed on projects. This strategy limits exposure by taking some action. It is a strategy employing a bit of risk acceptance along with a bit of risk avoidance.
Transfer: Transferring the risk to whom is deemed best able to deal with it and thus limiting or avoiding it. Within capital projects this is most commonly handing a risk to the contractor and supply chain.
However, Risk Transfer does not mean total avoidance
regardless of whom has ownership !

10. Strategy Implementation
Risk
Strategy Implementation
Capture all Risks and Mitigation into a holistic plan.
Ensure everybody is clear of who owns a specific risk.
Ensure that any deferred risk assessment or mitigation decision is captured on the project timeline.
Clearly brief other internal / stakeholders that may be effected over the duration of the project such as the Business Planner, Activities Officer, funder etc.

11. Monitor, Control & Adapt
Risk
Monitor, Control & Adapt
Prepare a comprehensive risk register as a monitoring tool.
Review the each risk post mitigation. Is there anything that is still unacceptable ?
Build in regular risk register review at Project Progress & Contractor Monthly meetings.
Identify those risks that have a large exposure to cost increase and allocate specific sums of project contingency against each risk. Does the cumulative total of all specific contingency costs exceed the overall project contingency ?

13. Summary
Be inclusive when identifying risks ! The more people involved the greater opportunity to highlight risk potential. Look to include the professional team and contractors / supply chain.
All risk items will have an impact on programme, project budget and/or quality of the capital works. Make sure these are all updated accordingly.
Be clear with project members as to who owns / manages a specific risk. Risk Transfer is not Risk Avoidance !
Understand the ramifications of risk mitigation action during the capital works on post build functions such as Business Planning , Activities, operations etc.
Promote a culture of constant risk monitoring and control through the adoption of a risk register.
Always allocate specific budgets to key risks from the overall project contingency.
Be open and transparent with funders and reporting on identified risks and how they are being managed.

14. Questions ?