Part 2 Flashcards
What are the three distinct aspects of cost according to Woodward (1997)?
Project total cost, cost as a measure of progress, and cost control.
What are the two main methods of cost planning?
Costing a design and designing to a cost.
What is the purpose of cost planning?
To establish more detailed project costs as the design develops. It starts with cost per unit benchmarks, then derives figures per square meter, followed by an elemental cost plan, and finally a detailed bill of quantities.
What are value engineering and value management?
Techniques to ensure the client gets “value for money”. Value engineering identifies unnecessary costs partway through design.
Value management ensures the proposed project is the correct solution at the beginning.
How can cost be used to measure project progress when steady-state production is not possible?
By using S-curves and costed bar charts to track actual vs planned costs over time. This is possible because cost information is readily available even if units of output are not.
Why is risk management critical for project success?
Because all projects involve change, and change is inherently risky. Risks must be identified and managed proactively.
What are some key sources of risk in construction projects?
Ground conditions, permissions/approvals, interdependencies between activities, site safety, quality of work, availability of labour and materials, weather, etc.
What are the main steps in the risk management procedure?
1) Identify and classify risks
2) Analyse likelihood and impact of risks
3) Respond to risks using the “4 Ts” - Treat, Tolerate, Transfer, Terminate
4) Monitor risks and refine assessments over time
What is a risk register and why is it important?
A risk register is an evolving document that captures identified risks, their analysis, response plans and owners. It is critical for tracking and communicating about project risks over time as they change.
What are the “4 Ts” of risk response?
Tolerate (accept the risk), Treat (reduce the risk to an acceptable level), Transfer (pass on via contract or insurance), Terminate (avoid the risk entirely).
Who are considered project stakeholders?
Any actor that will incur (or perceive they will incur) a direct benefit or loss as a result of the project. This includes both those contracted to the project (internal stakeholders) and those impacted by it (external stakeholders).
What are the four main stages of the stakeholder management process?
1) Identify potential stakeholders 2) Analyse their interests, influence and likely responses 3) Plan stakeholder engagement 4) Manage stakeholder relationships
What are some key principles of effective stakeholder management according to the APM?
Communicate, consult early and often, plan thoroughly, focus on relationships not just process, compromise, and take responsibility. Understand that it is challenging but critical.
What are the main categories of internal and external project stakeholders?
Internal: project owner, project professionals, suppliers/contractors, customers.
External public: local/national authorities, the public. External private: interest groups, trade/industry, media.
What are some of the key benefits of proactive stakeholder management?
Increased trust and certainty, robust risk management, greater awareness of issues, more innovation and alignment with strategic priorities. It reduces uncertainty, reactive planning and conflict.
