Risks are unpredictable and the risk management plan is key for any company. This plan helps to minimize the level of different risks which are likely to happen during the operation of the company. The risk management plan starts with the identification of the available risks which may be experienced in the course of work execution. In the process, a proper risk execution plan should be developed to ensure that the risk parameters are minimized as little as possible. There are different risks which are likely to happen in a construction site and project. The existence of all the risks makes the use of the risk management plan a vital tool in the projects. In many projects, the risk management plan are involved in the business plans. Nevertheless, for large projects, the risk management plans may appear as separate documents. This is because the large projects have a wide and different risks which are likely to affect the operations. Moreover, the different stakeholders in the project are able to play different roles when it comes to the implementation of the plan. The stakeholders have their roles in the mitigation plan which is critical in the risk management when the execution is under process. In every process, evaluation and monitoring is a key area which can never be ignored. Likewise, this process does happen in the risk management plan. This process is included in order to ensure that the mitigation goals are achieved. Risks in construction industry are able to range from contractual risks to technical risks, logistical risks, construction risks and even financial risks. The risk management plan is therefore key to ensure all these risks are kept under control and that they do not affect the operation of the company. The execution of WSI Blue Mountains TAFE project involves these key risks and therefore a proper risk management plan is required. This will ensures that the operations plan is followed and any upcoming risk is mitigated within the required timeline.
This paper will be able to represent a risk management plan for WSI Blue Mountains TAFE project. It will analyze the level at which each risk is able to affect the operations and the risk level it is able to pose to the project. In addition, this appear will able to create a risk mitigation plan for each risk and the responsible stakeholders who will be able to manage the risks.
The first stage of each construction project relies on the creation of proper contracts which involve different parties. This part is able to create a proper working team constituting of the roles and responsibilities of each party. The major assumption on this process is that the stakeholders will have the capacity to carry out the assigned tasks to the latter. The effect of getting on working parties is a great risk to the implementation plan for this project. Therefore, this risk need to be treated with care and ensure that the contracts which are selected are able to work and ensure proper implementation of the project goals. The availability of this risk can be noted at the early stages of work. Since the whole construction process of this project relies on the contracts and parties chosen to carry the specific tasks, its effect will be large if it occurs. There is high likelihood of this risks occurring if some activities are not taken into consideration. First, communication with the different stakeholders is key to ensure that the likelihood of this risk occurring is minimized. In this process, the stakeholders will be able to state their capability to undertake some aligned tasks and their competence even before the contracts are signed and effected. Therefore, the likelihood can be reduced to low with effective mitigation measures. In addition, communication channels need to be open to ensure that support on different parties can be reached when they are unable to perform some key tasks. This will ensure that the effect of wrong contractual party is mitigated and a solution or alternative party is found. This will ensure that the construction and implementation of the project proceeds are it is planned. All stakeholders need to be informed of any changes which happen concerning the contracts and the involved parties. This will ensure that the different personnel are able to plan themselves during their execution of the works.
The construction industry involves large part of the technical details which must be met. The technical aspects must be done perfectly to ensure that the implementation of the project is able to attain its set goals. One of the technical area of this project is on the designs. The whole process is able to rely on the design to enhance the implementation of the project. Availability of the design faults may be risky which may even lead to the stoppage of the construction works. With proper team in the design, the likelihood of this risk happening is low. The seriousness when it occurs is extreme since the effect will affect every activity and operation on the project. The errors in design and other technical areas are much costly and therefore proper mitigation plan is usually designed and implemented. In addition, it is highly to have a technical aspect, which will not be able to work. This is usually has to be prevented by getting the best technical personnel who will work together with implementing team. The design team needs to have time to review the implementation stages and ensure that what they produced is workable on site. Frequent analysis on the technical aspects will be able to ensure that the risk is mitigated whenever it is noticed. This will be able to enhance the control and continuous implementation of the project. Moreover, the technical department needs to keep constant communication with the implementation and other company’s department. This will be able to create a quick response mechanism to the risks when it appears to happen and therefore have a quick mitigating response.
Logistical issues are key when it comes to the management of the construction activities. Many of the projects are able to fail when the logistical issues are not well managed and they lead to the stoppage of the construction works. In general, the logistical risks have a high likelihood to happen. In many cases, the different parties and their coordination is a key factor to the seriousness of the logistical issue happening in the construction projects. On the WSI Blue Mountains TAFE project, the management will be able to coordinate and control the logistical issues in order to manage the risk. Constant communication between the different parties will be a key element which will be observed in this project in order to ensure that the likelihood of this risk happening is low. The logistical issues on the construction process are guided by ethical conducts of the different members. The conduct of the members will be key in the identification of the risk occurrence on the WSI Blue Mountains TAFE project. In this project, a code of conduct will be developed in order to control the likelihood of this risks happening. This code will be able to guide the different members on the way they will conduct the different activities in relation to the goals of this project. Evaluation of the members and they attaining of the different goals will be done on different times to ensure that they are able to adhere to the code, which is developed. This will be able to control the risks and ensure that its likelihood of happening is low.
Construction activities are tricky since the design evolve to develop new ideas in the industry. In this case, it is usually tricky during the construction stage in order to bring out the idea and implement it. Different strategies can be employed in the construction in order to bring out the designers idea into reality and mould it to what the designer had in mind. Therefore, in terms of measurement, the construction risks have high likelihood of happening. The control of these risks is critical to ensure the continuity of the construction process of the WSI Blue Mountains TAFE project. The identification of these risks in this project will be based on the previous designs, which have been able to implement different aspects of the design. This will help the different team members to identify the elements which h the people on such construction activities were able to face. The solutions will be derived on the activities, which were undertaken to control the risks and development of new measures to ensure that the risks are kept under check. In addition, in order to ensure that the likelihood of the risks is low, qualified personnel will be employed on the construction site to implement the project. The experience of the construction team will be a key factor since the seriousness of this risk in extreme. Participation of the whole team from the designers to the construction team will be carried out frequently. On this construction, the different teams will be able to present the challenges they are facing in relation to the implementation of the construction. This will help the teams to design a strategy to reduce the seriousness of the risks before they happen. Lastly, the monitoring of the different stages of the construction will be a key step to ensure that the risk does not happen frequently.
The construction projects are usually estimated to carry a certain financial weight. In many cases, financial plans are developed and are they ensure that the financiers will be able to plan the financing of these projects. The major assumption in the construction activity is that the prices of the major items in the industry will not be able to change and therefore be able to alter the financial plan. The financial risks have high likelihood of happening since the market has a share of controlling the different activities in the industry. Moreover, the financial team, the designers and the construction teams are key players who are able to keep the financial plan under co troll and therefore abler to control the financial risks happening. The designers of the project are able to come up with proper plan on the way different entities of the project will be treated and ensure that the financial aspect is kept under control. The financial risks have high likelihood of happening and its seriousness if extreme. This is because all the element of the WSI Blue Mountains TAFE project is able to depend on the financial aspects, which are developed by the designers. Constant review and monitoring of the activities are the changes of the entities in the market need to be made as a way to control and manage this risk in the project. This will keep the different members informed of the changes and therefore able to make the relevant consultant to control the likelihood of the risk happening.
Different team members will be in the control and mitigation of the above risks. The designers, the construction team and the financers will have different roles in relation of the control the mentioned risks. The level of the control and mitigation responsibility will vary according to the roles, which each team has on the respective areas. From the project management teams to the whole implementation team, each member will have a key entity to ensure that the strategy to control the risks is made and achieved.
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Rating of the risks and the seriousness of each risk |
|||
|
L |
Low |
E |
Extreme |
|
M |
Medium |
N |
Not accessed |
|
H |
High |
|
Combined Grading of seriousness and likelihood |
|||||
|
Seriousness |
|||||
|
Likelihood |
Low |
Medium |
High |
Extreme |
|
|
Low |
6 |
5 |
4 |
3 |
|
|
Medium |
5 |
2 |
3 |
1 |
|
|
high |
4 |
3 |
1 |
1 |
|
Recommended Action Plan for graded Risks |
|
|
Grade |
Mitigation plan |
|
1 |
No action plan needed |
|
2 |
No action plan needed |
|
3 |
Mitigation plan to reduce the seriousness and likelihood with proper communication |
|
4 |
Mitigation plan to reduce the seriousness and likelihood with proper communication |
|
5 |
Mitigation plan to reduce the seriousness and likelihood with proper communication |
|
6 |
Design a new strategy |
References
ISO Guide 73:2009, Risk management
ISO/IEC 31010, Risk management – Risk assessment techniques
Loosemore, Martin, John Raftery, Charles Reilly, and David Higgon. 2012. Risk Management in Projects. Hoboken: Taylor and Francis. https://www.123library.org/book_details/?id=79039.
Lyons, Terry. 2003. Project risk management in the construction industry: a review. Canberra: Australian Institute of Quantity Surveyors.
Puil van der, John, and Arjan Van Weele. 2014. International contracting: contract management in complex construction projects. https://librarytitles.ebrary.com/id/10801125.
Rowlinson, Stephen M. 2004. Construction safety management systems. London: Spon Press.
Smith, Nigel J., Paul Jobling, and Tony Merna. 2014. Managing risk in construction projects. West Sussex [u.a.]: Wiley.
Wu, Desheng Dash. 2011. Modeling risk management in sustainable construction. Berlin: Springer. https://public.eblib.com/choice/publicfullrecord.aspx?p=646508.
Yang, Jianming, and Agnes Zhang. 2017. Environmental management in mega construction projects. https://public.eblib.com/choice/publicfullrecord.aspx?p=4804620.
Zhao, Xianbo, Bon-Gang Hwang, and Sui Pheng Low. 2015. Enterprise risk management in international construction operations.
Zou, Patrick, and Riza Yosia Sunindijo. 2015. Strategic safety management in construction and engineering. https://site.ebrary.com/id/11041428.
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