Managing risk in construction projects – how to achieve a successful outcome
Robin George (CMIOSH,MIIRSM,LEAD AUDITOR)
Occupational,Health,Safety & Environment Manager
Project risk and controls – Slaying the dragon
Contents
Background to the dragon Project risk management Project controls.
“No construction project is risk free. Risk can be managed, minimized, shared, transferred, or accepted.It cannot be ignored."
Project risks include….
?Quality and safety
?Cost management
?Time management (programme / schedule)
?Scope & change management
?Procurement & contracts
?People management
?Information management
?External influences
What happens if it is ignored?
?Increased costs
?Loss or reduction in profit
?Damage to brand / reputation; and at worst
?Disposal of the business or insolvency
How do you manage the risks?
?Identification
?Assessment / quantification
?Reduction
?Implementation
?Monitoring
Project controls
?Policies and procedures to ensure the efficient coordination, monitoring and management of a project
?What do project controls include?
?Risks
?Communication
?Roles and responsibilities…
?Are they separate?
Project controls
?Risks change throughout the project lifecycle and the controls need to match
?Risk and uncertainty poses opportunities as well as challenges
?Cost, time and quality impacts need to be considered together
?Can consider them in ‘function’ groups
Each area of the project is analysed to identify..
- risk
- control procedure
- monitoring control
Project controls – Daily Project Management Process
?Risks
?Lack of knowledge of project tracking
?Failure to recognise and develop responses to risk and opportunity
?Lack of timely resolution of issues as raised by various stakeholders
?Claims
?Contract administration
?Lack of compliance with project requirements
?Unnecessary legal liabilities or loss of entitlement
Control procedures
?Project management plan
?Risk and opportunity registers
?Issues registers
?Clear documentation of contract procedures and the like
?Regular, documented meetings to consider key risks
Monitoring controls
?Compliance to prescribed policy and procedures
?Regular project status meetings to review action list and responsibilities as agreed
?Regular formal assurance and expediting reports
?Formal up-to-date project management tools incorporating current information/issues and “as built” information
Project controls - Summary
?Project risk management is important to your business as a whole
?Project controls provide a framework to manage the project
?Project controls cover a full spectrum including,
?Risks
?Cost and schedule forecasting
?Business needs?But are yours comprehensive?
?Will it stand up to Internal Audit scrutiny by your business?
?Are records suitable for dispute resolution?
?Does the process have the knowledge or is it with the staff?
?Control the risk and slay the dragon!