Risk Management Flashcards
Risk
1. What is a monte Carlo analysis?
a. Although I’ve not used one in practice, I understand it is a mathematical approach to calculating risk-based outcomes and the probability they will occur.
- What input have you had in a Risk Register?
a. I have allocated costs to risk items on the dental hospital demolition project
- When you were EA or CA (on Dental Hospital Demo) how did you manage the risk register?
a. I continually reviewed the register on a monthly basis as part of the cost reporting process, throughout the project. I chaired and held risk management workshops with the contractor and client where the risks were reviewed as to whether they had been mitigated in the month, or passed. Then if not it was worked out the new probability of the risk occurring based on progress
- Can you give a specific risk and when this was mitigated?
a. There was a significant risk of asbestos being found in the demolition. This was mitigated by consistent reporting and testing throughout the project
b. There was a risk of dust, and projectiles damaging and settling on a nearby carpark. This was mitigated with water cannons, and netting being erected during high volume demo activities.
- How do you calculate risk?
a. When compiling a cost plan , I will endeavour to produce an itemised and calculated risk register which is added to the total.
b. When compiling an order of cost I apply percentage based additions to the total under NRM rules.
- How do you calculate the cost of the risk?
I will take the worst case estimated cost of that risk, and multiply that by the probability of that risk materialising. This will then be reviewed and inputted into by the client and design team.
How do you estimate the probability of a risk?
Communicate with the Design Team, Client and Project Manager.
How did you estimate the cost of asbestos removal?
So this was on a demolition project. The cost was calculated by assuming worst case scenario of asbestos being everywhere, and multiplying by the probability of this happening.
on Havant, why did you advise on defined PSum?
As the design information was only finalised late on in the tender before entering into contract, but he had enough time to include in the programme, but not enough time to price the works accurately. It was therefore included as S3 design in the contract, and taken as client risk and included as a PSum.
What is the difference between a retention bond and retention?
Retention bond is taken out by the contractor in the first instance, and offers the benefit of not having money deducted from his cashflow, generally more admin. Works in the same way. Usually same value as retention.
