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Construction Project Risk Management Risk Research Paper

Table 2: Associated Risks on the Project

Cost Related Risks:

Index Scores

Tight project schedule

0.67

Design variations

0.49

Project variations from the client

0.46

Unsuitable construction project's program planning

0.42

Occurrence of dispute

0.42

Price inflation of project construction materials

0.41

Excessive approval procedures within the administrative government departments

0.40

Incomplete approval of document and other documents

0.39

Incomplete and inaccurate cost estimate

0.38

Inadequate program scheduling

0.38

Time Related Risks:

Index Scores

Tight project schedule

0.57

Design variations

0.48

Excessive approval procedures within the administrative government departments

0.48

Variations by the client

0.47

Incomplete approval of documents and other documents

0.45

Unsuitable construction project's program planning

0.45

Inadequate program scheduling

0.42

Bureaucracy of government

0.39

High performance and quality expectations

0.38

Variations of construction project's program

0.38

Quality related risks:

Index Scores

Tight project schedule

0.56

Inadequate program scheduling

0.41

Unsuitable construction program project planning

0.38

Incomplete and inaccurate cost estimate

0.38

Low subcontractors management competency

0.36

High performance and quality expectations

0.35

Variations of construction project's program

0.35

Non-availability of sufficient skilled labor

0.31

Design variations

0.30

Lack of coordination among project participant

0.29

Environment related risks:

Index Scores

Tight project schedule

0.39

Variations of construction project's programs

0.28

Non-availability of sufficient managers and professionals

0.27

Excessive approval procedures within the administrative government departments

0.27

Variations by the client

0.25

Insufficient and inadequate site information, which include soil test and survey report.

0.25

Low subcontractors' management competency

0.24

High performance and quality expectations

0.24

Inadequate program scheduling

0.23

Serious noise pollution come from construction activities

0.23

Safety related risks:

Index Scores

Tight project schedule

0.45

Low subcontractors management competency

0.37

Unsuitable construction project's program planning

0.33

Variations of construction project's programs

0.30

General accident occurrence in site

0.30

High performance and quality expectations

0.27

Design variations

0.26

Lack of coordination among project participants

0.26

Excessive approval procedures within the administrative government departments

0.25

Non-availability of skilled labor

0.24

Non-availability of sufficient managers and professionals.

0.24

The data in table 2 reveals that the 51 risks deemed to influence the project objectives. 10 factors were related to the project objectives while 11 factors related to safety. It is evident that many of the risks are repeated within the 51 risks which include:

Tight project schedule which was identified to influence all the five project objectives;

Risks associated with time, quality, cost and safety were also been identified to influence the design variation of the project.

These risks served as the key risks that influenced the project and they were 20 in number. All the risks and their abbreviations are presented in Table 3.

Table 3: 20 Key Risks

Abbreviations

Tight project schedule

TPS

Design variations

DV

Excessive approval procedures within the administrative government departments

EAP

High performance and quality expectations

HPQE

Inadequate project's program scheduling

IPS

Non-suitable construction project program planning

UCPP

Variations of construction project programs

VCP

Low subcontractors management competency

LMCS

Variations from the client

VC

Incomplete approval of critical document and other documents

IAD

Incomplete and inaccurate cost estimate

ICE

Lack of coordination among project participants

LCP

Non-availability of sufficient manager and professionals.

UPM

Unavailability of sufficient amount of skilled labor

USL

Bureaucracy of government

BG

General safety accident occurrence

GSAO

Inadequate and insufficient site information

Occurrence of dispute

OD

Price increase of construction materials

PICM

Serious noise pollution from the construction site.

SNP

6. Output analysis and Discussion

The study identifies 11 risk factors that had the probability of occurring in the Bullring project. Tight project schedule is the most significant risks out of the risks identified. It is revealed that the Bullring is a multi-million pound project and the project was scheduled to complete within three years. The most important strategy used to manage this risk was by formulating the most appropriate feasibility to ensure that the cost budgeted for the project was sufficient to arrive at the project outcomes. Typically, costs are closely correlated with the project schedule. If there are sufficient funds to complete a project, there is a high probability...

The major factor leading to a project failure in a construction environment is to design a lengthy schedule for a project. Thus, Bullring project team realized that a lengthy project schedule could wreck a project outcome. To address this problem, the Bullring stakeholders allocated sufficient budget and short schedule for the project, and the results was that the stakeholders were able to achieve the project objectives.
Risks related design is another top risks that could affect the project objective. Many projects fail because of defective designs. However, Bullring project teams understood that defective design could affect the project outcome. Thus, the design team and Bullring stakeholders full collaborated about the overall design of the project before starting the project. The strategy made the design team to fully integrate Bullring management objective into the project design. Typically, Bullring management chooses an experienced and responsible designer to minimize the inaccuracy in the project. Moreover, there was an effective communication between the management and the project design team, and this strategy assisted in completing the project on schedule.

More importantly, the project team carried out the soil test, had sufficient site information before project start date, and ensured that the site was excellent for the project. "Prior to any design scheme, bore hole, soil test and survey with the government agencies and nearby buildings should be conducted to ascertain the site conditions and reduce unexpected risks"(Zou, 2012 P. 9).

Other top risks are the risks associated with contractor and sub-contractor. The effective methods used to manage these risks were through systematic selection of contractor and sub-contractors. Typically, the Bullring management selected only experienced and competent contractors and subcontractors to carry out the project. Using this strategy, the management was able to minimize uncertainties within the project lifecycle, which successfully translated into successful project outcomes.

7: Recommendation of the Improvement

Analysis of the Bullring project in Birmingham reveals that the success of the project was due to the effective integration of risk management into the project lifecycle. Based on the successive outcome of the project, this paper recommends that project stakeholders should implement the risk analysis for a project before embarking on a project. Risk analysis is very critical for a project. To carry out the risk analysis, the following information should be included in the risk register:

Risk impact

Risk probability

Risk matrix score, using risk register spreadsheet to determine the impact and probability of the risks.

Risk priority, using risk register spreadsheet to determine the impact and probability of the risks.

Qualitative impact, which involves descriptive impact of potential risks.

8: Future Work

There is a need to carry out a future work on the strategy project teams could employ to minimize project risks on a project having tight project schedule and used minimum costs to complete the project. It is critical to realize that tight project schedule has been a major source of project failures. Projects with tight schedules and have been successfully completed involve huge costs before the projects were completed. Thus, a future research is very critical to assist project team to complete large project having tight schedule at minimum costs.

9. Conclusions

The project evaluates the risk management tools and techniques used for the Bullring project. The paper identifies that the company used various technique to manage the project risks. The team leader used both quantitative and qualitative techniques to manage the project risks. Using this strategy, the project stakeholders were able to achieve the project objectives.

List of References

Baker, W. And Reid, H. (2005). Identifying and Managing Risk, Frenchs Forest, N.S.W.:

Pearson Education.

Chen, H., Hao, G., Poon, S.W. And Ng, F.F. (2004) Cost Risk Management in West Rail

Project of Hong Kong, 2004 AACE International Transactions.

Klemetti, a. (2006). Risk Management in Construction Project Networks. Helsinki University of Technology. Laboratory of Industrial Management Report.

Schuyler, J. (2001). Risk and Decision Analysis in Projects (second edition), Pennsylvania:

Project Management Institute, Inc., USA.

Smith, N.J. (2003). Appraisal, Risk and Uncertainty (Construction Management Series),

London: Thomas Telford Ltd., UK.

Tah, J.H.M. Carr, V. (2000) Information modelling for a construction project risk management system, Engineering, Construction and Architectural Management, 7 (2):107-119.

Wang, J.Y. And Liu, C.L. (2004) Risk Management for Construction Projects, Beijing: China

Water Publication.

Washington State Department of Transportation. (2010). Project Risk

Management Guidance for WSDOT Projects. Administrative and Engineering Publications. USA.

WSP (2010). Birmingham Bullring, UK Europe's Largest Retail-Led City Regeneration Project.

WSP Group plc.

Zou, P.X.W. Zhang, G. Wang, J. (2010). Identifying Key Risks in Construction Projects: Life Cycle and Stakeholder Perspectives. Faculty of Built Environment, University of New South Wales, Sydney.

Sources used in this document:
References

Baker, W. And Reid, H. (2005). Identifying and Managing Risk, Frenchs Forest, N.S.W.:

Pearson Education.

Chen, H., Hao, G., Poon, S.W. And Ng, F.F. (2004) Cost Risk Management in West Rail

Project of Hong Kong, 2004 AACE International Transactions.
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