Hooks Flashcards
Questions that I am likely to be asked
Risk Management:
What is risk
Risk is defined as an uncertain event or circumstance that, if it occurs, will affect the outcome of a programme/project.
What are the 4 types of risk that NRM 1 identify?
a. Design Development Risk – allowances during the design process
b. Construction Risks – site conditions, ground conditions, existing services.
c. Employer Change Risks – changes to scope
d. Employer Other Risks – acceleration, early handover, liquidated damages.
Group element 13 in a cost plan includes 4 risks, can you name them and provide examples of each one?
13.1 Design Development risks - inadequate or unclear brief, unclear design team responsibilities, or ineffective desin co-ordination.
13.2 Construction risks - contaminated ground, defects, archeological remains.
13.3 Employer change - change in scope of works, changes in tie, employer driven changes/variations at construction change.
13.4 Employer other risks - project brief (e.g. inadequate or unclear brief, timescales (unrealistic, insufficient tender evaluation time, early handover), financial (e.g. availability of funds).
How can you reduce risks from ocurring?
STARR
Share the risk
transfer the risk to the contractor
avoid the risk - alt design solution
risk reduction - mitigiate risk e.g. site investigation if risk is unacceptable
Retention - appropriate risk allowance identified in the cost plan and reserved and managed by the employer.
What is QSRA?
Quantitative Schedule Risk Analysis is a tool that is used to understand risk and how it impacts the programme.
It is a forecasting tool that helps understand and manage schedule and cost risk
It produces a more realistic programme while identifying potential areas where risk mitigation may prove necessary.
The process determines the risks which have potential to impact the project delivery and possible mitigiation actions and controls.
Can you name or give me an example of any risk analysis forecast you have used?
I have used Monte Carlo. MC is a computer generated simulation used to model outcomes. It provides a probabilistic risk analysis and due to the high level of outcomes it provides a reaosnable risk allowance to include in a cost estimate.
Have you heard of optimism bias and if so, what is it?
Yes I have. OB is the fact is when project appriasals are overly optimistic.
Is when people think things will be favourable for them.
A 3 point estimate should help reduce this from occuring. The more uncertainty on the cost data the larger the range.
‘Optimism bias is a cognitive bias that causes individuals to believe that they are less likely to experience negative events and more likely to experience positive events. This can influence various aspects of decision making, including cost estimations and risk assessments, often leading to overly optimistic projections and underestimations of potential risks’
What is quantitative risk analysis and can you give me an example of one.
- Quantitative analysis: probability and impact are given a value and multiplied to produce an objective score.
- Expected Monetary Value = Probability (0-100%) x impact (£)
- EMV is a statistical technique to calculate the contingency/risk allowance.
- Example Monte Carlo, QSRA.
what is qualitative risk analysis and can you give me an example of one.
Qualitative analysis: describes and understands each risk to assess its likelihood and impact (ranging from very high to very low).
- The purpose of qualitative analysis is to prioritise the risks in terms of importance, without quantifying (costing) them. This should be carried out during the first phases of the risk-management process.
- Risk Matrix is an example - measurement of risk severity level can be estimated by using a risk matrix to combine LIKELIHOODand IMPACT
What is a monte carlo simulation
MC is a ** computer generated simulation** used to model outcomes.
It provides a probabilistic risk analysis and due to the high level of outcomes it provides a reasonable risk allowance to include in a cost estimate.
What is a risk workshop
Risk workshops are conducted to identify, assess and analyse risks associated with the project.
What is a determinilistic programme
Used to assess the impact of specific events on exposure.
the programme is developed as a network of activities linked by dependencies (e.g. finish to start, start to finish). Critical path is identified and schedule follows a fixed path without considering probabilistic variations.
What are prolongation costs?
Expenses incurred as a direct result of project delays. Its the prelims and fees acruing while you wait for the issue to be resolved.
What is probabilistic risk analysis?
The probabilistic method is a more in-depth version of the simple method and sometimes called ‘3-point estimating’.
It applies a meaningful, yet subjective, probability to each risk in the register over a range of assumptions, usually best, likely and worst case.
The probabilities for all 3 should total 1 (100%).
This generates an expected value per assumption that can be totalled to apply an expected value to each risk. All risks can then be totalled to give an overall risk allowance for a cost plan
What are accruals
Revenues earned and expenses incurred.
RE
EI
Case study / Construction tech
What is Value Engineering?
VE is one of the processes of VM and is a reactive procedure to bring the anticipated cost of the development back in line with the project budget when a potential overspend is identified.
What is Value Management?
VM stands for Value Management and is the over-arching approach to identifying opportunities to increase value. It is a principle to be adopted at all stages of the project.
What is the difference between the two? (VE and VM)
Value management is the over-arching approach and looks at opportunities to increase value, while value engineering is a reactive approach looking at alternative solutions to reduce cost without impacting the end users requirements.
VM to increase value
VE reactive response to look for alt solutions to reduce costs.
What is Value for money?
Is achieving the optimum combination of whole life costs and quality.
What is the process of Value Management?
Understand the problem, identify different solutions, evaluate, develop the short list and identify the best solution and make recommendations.
Tell me a couple of examples of value engineering ideas?
With Project X we had a couple of options.
One was changing the roof from pitched to flat. This would reduce costs by not using roof trusses, however flat roofs require more maintenance and have a shorter lifespan than pitched.
I also consider a container for the armoury over a new build. This would reduce construction time and other army camps have used modular units before. However the lifespan is less than a traditional.
Why do flat roofs require more maintenance/ have a shorter lifespan?
Because they have poorer drainages and susceptible to water damage because of their design, water does not run off as easily as a pitched roof.
Construction Technology
You mention reducing scope will lead to higher operation and maintenance. So can you please provide any evidence on how reducing the scope would increase the operational and maintenance costs?
When you refurbish you add around 25 years to the life expectancy but unlikely you will gain the full efficiency as a new building and maintenance costs higher than if the building was brand new.
Refurb has lower energy efficiency - often lack insultation and efficient heating/cooling systems.
Reactive maintenance - wear and tear over time can lead to unexpected repairs. Need for more regular inspections and proactive maintenance.
you are never going to be as efficient as a brand new building.
You suggested the use of a container for the armoury how does this meet the fire regulations or what did you have to consider in relation to fire regulations?
Had to consider using fire resistant materials.
Good ventilation, so I added a dehumidifier.
Location will have to be considered – away from other structures and combustible items.