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
- Develop a risk register
- Propose mitigation measures
- Consider financial contingencies
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.
Develop a risk register
All project need a risk register.
Link to risk register website
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.
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.