The document discusses construction risk management. It defines risk management as dealing with hazards in commerce and industry. Every construction project has some level of risk. It outlines a three-tiered framework for risk management that includes risk detection, analysis, and response. Effective risk management requires open communication, monitoring of progress, adequate funding, and experienced personnel. A cooperative risk management model based on knowledge sharing and personal relationships can help lower costs and better allocate risks between parties.

1. CE 233 Construction Management Construction Risk Management Prepared by: Saransh Shah

2. Overview Construction projects are shared efforts of multiple parties Project outcome is delivered from complex network of activities But the implementation of risk management is very scarce Up till now research is going on how to implement and manage it

3. What is risk management? It is an approach or dealing with hazards In areas of commerce and industry Critical and sensitive procedure Each and every construction project has risk in more or less amount So clause of risk management must be included

4. Role of Risk Management There are two stages: (i) Proposal submitted for the client’s approval (ii) Receipt of tenders

5. Risk management framework Three tired system Risk detection It is ongoing process in many projects though not documented. They are part of different meetings to identify and handling. Identified before bidding through project manager. E.g. technical risks, environment risks etc. Risk analysis Qualitative and quantitative assessment of identified risks Probability of occurrence and potential impact Updating of risk management database

6. Risk management framework (cont.) Risk response Alternative approach to avoid risk Actions for reducing probability of risk Switching to different activities Increase work force Risk insurance

7. Preventive measures Effective communication Daily meetings Monitoring progress of the project Updating data Abundant finance Experienced engineers and skilled labors Experienced project managers

8. Co-operative risk management model Actor specific Knowledge, experience, main contractor: guidance and management Dyadic relational Reduced need for contracts, good personal relationships, partnering Network groups Meetings, standards, partnering, trust, self -guidance; macro culture, reputation, Collective Sanctions, careful risk allocation, risk& reward systems

9. Benefits of model Environment becomes flexible, trustful and professional Lowers transaction cost Better allocation of risks to parties Stronger bonding of relationship

10. Conclusion Risks are not absolute They must be defined for particular situation in advance to minimize impact of risk Depends upon experiences, background knowledge and education of an individual

11. Thank you