Risk Management Flashcards
What are the risk categories under NRM 1?
Design Development Risks – limited brief, unrealistic design programme, inadequate site investigations
Construction Risks – Underground obstructions, contaminated ground, asbestos
Employer Change Risks – changes in scope, changes in quality, employer driven variations
Employer Other Risks – availability of funds, acceleration of works, end user requirements
How would you manage risk over a construction project?
At cost estimate stage – a percentage allowance to each risk category
Cost Plan Stage – Producing a risk register and generating a risk allowance based on the cost of risk and the probability of it occurring
Identify - Analyse - Mitigate - Monitor
How do the different procurement routes apportion risk differently?
Traditional – generally low risk as there is a level of certainty around time, cost and quality, but employer keeps design responsibility, and the process is slow
Design & Build – contractor takes on risk for design and construction of project, client risk reduced
Construction Management – client bears much of the design construction risk. Cost certainty cannot be gained until the last package is placed
Management Contracting – client bears design risk. Poor cost certainty. No forms of appointment so employer and contractor could be at risk where design liability is not resolved through design subcontractors
On the Lighting Refurb, how did the risk profile change for each procurement route?
Option 1 – MC Procuring Light Fittings – 10% design and construction risk – requested as standard by the university.
Option 2 – UoM Procuring Lights – Additional Employer change risk if UoM remain responsible for lights and free issue.
Option 3 – Electrical Subcontractor acting as PC – same risk profile as Option 2 but may have a slight saving on prelims over a main contractor.
Option 4 – UoM Supply and Install, BWIC by others – additional 5% construction risk as unclear defects liability if UoM and another contractor work on the same area, no single point of contact.
What risk allowance would you include if the Client wanted to proceed with nominating a subcontractor on The Connection?
Can’t provide a specific number but I’d find the cost of the staircases, abortive costs as a result of terminated with a nominated subcontractor, and letting the package with a new subcontractor, and any associated prelims as a result of the delay. I’d then multiply that by the percentage likelihood of occurrence to get to a risk allowance figure.
What is a risk register?
A document used to track potential risks. Risks can be categorised, assigned to team members how the risk is to be mitigated and the cost of the risk.
