Construction Risk Management Strategies

Sounds funny! but its true.

We all talk of Risks in Construction, but it is very rarely that a stringent and religious implementation of Risk Management is being effected in all construction projects.

Risk Management doesn't necessarily enforce that separate team or individual to be nominated for performaing Risk Mgmt activities in a project. But every individual in the project team shall have to contribute to this.

At times a Risk Register or Risk Mgmt efforts looks very active and attractive towards start of the project just to get some contigency funds approved by top mgmt.

This approved risk fund forms a part of budgetory cushion for Project Managers instead of serving the purpose for which it was intended to.

Regulation in Work Time for  Engineers of their Energetic Works

the importance of an effective project management team/consultant cannot be overstated. this is often an interface between the client and the contractor and provides objectivity to both parties. prospective bottlenecks/problem areas can sometimes be missed by the contractor - these are anticipated by the consultant and issues which can develop into disputes can be ironed out by him. the consultant is also expected to be abreast of the market trends and advise the contractor/ client accordingly, thus speeding up the project besides improving quality and value.

There are lot of regulatory approval required from government.Many times there is abnormal delay which leads to the failure of construction project.Some times project are commenced in anticipation of approval and the approval gets delayed or refused by government authorities.In Reusal cases project has to be abandoned while in case of delay it causes lot of hardships to stakeholders.
Many times stay is given by the courts for non compliance of regulatory approvals.

Many construction projects are cdealyed due to non availability of adequate funds.

This happens due to change in priorities ,business strategy or inability to arrange the funds due to various reasons.

I agree with Nitin what he has explained.My point is that if all planning ,Design & Employee are Perfect.After That also Risk is involved in Construction .1 Accident 2 local Politics 3 Government Official (Regulatory Body ) dissent.4 Dissent with Client Local officer .I agree with Subhendu regarding Wise Insurance policy for Project. In These situation Project Manager Role is important & final.Yes Head office support is needed. Project manager has to use his personnel Contact & Resourses Urgentely at his own Risk.

Mainly in Indian construction field all the risks are due to resources management only. The environmental factors or weather conditions  can easily overcome by our project managers , but they have to fail only because of resourcs based factors only. even in design factors one can observe the what is next and by continuous communication with designengineers,  in advance, they may over come that type of risks. regarding costwise constrints we can able to solve the risks if we are continuously reviewing the types of risks occured by them.

Becuse we have documentary roles for all these suchas BOQ, ZCR, JCL, JCR.0R ERP ETC;but we are not maintaining any records or notes for resources or resource breakdown structure is not at all updated, even resources are not included to scedule of activities.All are programming only with Time constraints. and the resources are not entered in the packages. review meetings are only for the progresses and requirement of man resources only, If men, materials and equipments , like all resources are calculated and a brealdown structure and levelling  them, when &where needed/all have documented and included in the program means- you will easily come  across the scope , design and the scenario to be performed.thus we can not avoid the risks but the project team will understand the risks and aware of it. when you are updating the schedule itself the resources also updated and thus risks have  to overcome./mitigate.

Risk  awareness should be considered at all levels of organisation starting from managing director to the person who is on the tools. The magnitude and scope of risk for individual would vary. But important aspect is awareness. From the operation manager's point of view analysing client financial & contractual capabilities and integrity would determine the risk to company and subsequently margins on the job.Person working on site has to make sure his actions doesnt in shape or form tarnish the reputation of company. Proper job risk analysis of each and every task undertaken should be carried out. Risk level and assesment changes with individuals . Important aspect is solid understanding of principles of assesment and stringent norms to adhere to them.

Appetite for risk differs for individual or an organisation . Proper documented risk analysis for each task would make any project sucessful and free of any catastrophic situations