Assess the risks

The accurate assessment of risks at an early stage in the project lifecycle will help to ensure that the anticipated value and added value is not compromised or lost as the project progresses and inevitably changes.

You should consider:

Identify the broad project risks – not just construction risks

All construction projects contain risks eg. design risks, H&S risks, etc. most construction professionals are well used to managing these risks. However, the whole team needs to manage wider “whole project” risks to ensure success. These include time, cost and quality risks plus political risks such as stakeholder management, legislation changes, etc.

back to top

Develop a risk register

All project need a risk register.

Link to risk register website

back to top

Propose mitigation measures

Once the risks have been identified and assessed in terms of probability and impact the whole team need to consider measures to mitigate these. Workshops are a very useful way of addressing this.

back to top

Consider financial contingencies

Financial contingencies should be linked to specific risks rather than just accepting a percentage of the of the overall project budget.

This allows finances to be managed in a structured way ie. If a risk doesn’t materialise funding can be released from a risk contingency fund and reinvested into the main project. However, if a specific risk does materialise and the cost of mitigation exceeds the estimate then the financial model can be adjusted.

back to top