This document provides an overview of risk management in construction projects. It discusses identifying, analyzing, assessing, controlling, and monitoring risks. Key risks in construction include project finance, construction issues, environmental/geotechnical factors, and staffing problems. Risk identification methods like brainstorming and checklists are outlined. External risks beyond a organization's control, like economic/political changes, are also important to consider in risk management using tools like PESTLE analysis. The goal of risk management is to reduce costs and delays by planning for potential issues in a construction project.
Reasons for the Delay and Cost Overrun in Residential Projects - 2017Sankalp Swarnkar
This work found out the most significant reasons of time and cost overrun for ongoing residential projects, along with this, the study focuses on formulating recommendations for improving construction performance. At the end of this work, I have reached a conclusion that what are common issues that are attributing to time and cost overrun in projects.
Reasons for the Delay and Cost Overrun in Residential Projects - 2017Sankalp Swarnkar
This work found out the most significant reasons of time and cost overrun for ongoing residential projects, along with this, the study focuses on formulating recommendations for improving construction performance. At the end of this work, I have reached a conclusion that what are common issues that are attributing to time and cost overrun in projects.
In this presentation we have done earlier a project for Phillip Morris (Pakistan) for the access control system and canteen management system. It is the project presentation for our subject Planning and Scheduling. i hope it is the best for the understanding Project planning and scheduling.
Construction Claims generally comes up between two parties of the construction contracts, and there can be several reasons which result in a claim such as a delay in the project, uninformed changes, misinformation, unforeseen circumstances and general conflicts. In UAE, as the constructions are on the rise, so the disputes are. Professional construction claims consultants Dubai offering services protecting the values of both the clients and the contractors.
Site organisation in Construction is one of the major things, that needs major attention for effective running of Construction Projects. How can we use Construction technology to improve site organisation.
In this presentation we have done earlier a project for Phillip Morris (Pakistan) for the access control system and canteen management system. It is the project presentation for our subject Planning and Scheduling. i hope it is the best for the understanding Project planning and scheduling.
Construction Claims generally comes up between two parties of the construction contracts, and there can be several reasons which result in a claim such as a delay in the project, uninformed changes, misinformation, unforeseen circumstances and general conflicts. In UAE, as the constructions are on the rise, so the disputes are. Professional construction claims consultants Dubai offering services protecting the values of both the clients and the contractors.
Site organisation in Construction is one of the major things, that needs major attention for effective running of Construction Projects. How can we use Construction technology to improve site organisation.
Episode 25 : Project Risk Management
Understand what risk is and the importance of good project risk management.
Discuss the elements involved in risk management planning and the contents of a risk management plan.
List common sources of risks in engineering and information technology projects.
Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register.
SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
The length of the implementation period in the construction of projects may lead to a change in
circumstances which expose them to many risks because of the length of the implementation period and multiple
stages, beginning with the start-up phase and even phase of the project, and this leads to increased circumstances of
uncertainty and increasing the probability of the occurrence of risks, and this is reflected negatively on the
construction contracting and construction economy.In this research questionnaire was developed to identify the
risks encountered in construction. Projects have been distributed to some local and foreign construction companies
in Libya, having been identified the risks that may face the projects. Through questionnaires and interviews with
engineers and project managers of companies, and making risk analysis qualitatively, there was a need to prepare a
checklist of the risks facing projects in Libya, and know the benefit of the contractor and the owner based on the
results. This paper examines the most important risks faced by construction projects in Libya, which is difficult and
how they are able to implement these projects and housing companies, the research explains a formulated model to
evaluate companies before being contracted to know the financial and technical capabilities.
International Journal of Engineering and Science Invention (IJESI)inventionjournals
International Journal of Engineering and Science Invention (IJESI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJESI publishes research articles and reviews within the whole field Engineering Science and Technology, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
1. Project Risk Management (25 Points)You have been tasked to.docxdorishigh
1. Project Risk Management (25 Points)
You have been tasked to manage a facilities construction project for a non-profit organization. Specifically, the organization is undertaking a large project to build a 6000 square foot office and an attached building with 20 hotel style rooms for its beneficiaries (building a shelter). The budget is tight and the organization needs to have these facilities as soon as possible. The project is in the planning stage and you have some requirements documents and funding available. How would you use risk management on this project? Why would you use risk management? What are your most important considerations? What are the steps of your risk management process (use any model you like ie PMP, textbook, DoD etc)? Provide a Risk Breakdown Structure for the project. What risk identification tools would you use on the project? Why?
Assume you are talking to a key stakeholder (donor) about your plan.
1. PROJECT RISK MANAGEENT (40 Points)
Meaning of Risk Management
Risk management is very important part of planning for project, the process of risk management is developed to reduce the risk of certain events happening which are having negative impact on overall project. Risk management is the identification, assessment and prioritization of risk followed by coordinated and economical application of resources to monitor, minimize, and control the probability and impact of negative outcomes.
0. How would you use risk management on this project?
Our proposed project of constructing 6000 square foot office and twenty hotel style rooms is in planning stage; this is a plus point for the management as they can develop detailed risk management activities.
Risk management depends on the understanding of the overall project in other words in order to develop detailed risk management activities the understanding of the project is very important. To use risk management for the project, we will create a detailed risk management plan which is also used to understand the whole project. The contents of risk management plan are as follows:
1. Project Description
· Project objective: to construct 6000 square yard office and 20 rooms building.
· External Dependencies: acquiring construction material, services of architects etc.
· Stakeholder analysis: reaction of local residents, local government regulations, negotiation with donors, requirement of client etc.
1. Risk Management scope and objectives
· Variance threshold: two main constraints in this project is time and funds. Calculated variance should be calculated for these two variables that is how long each activity could be stretched while keeping project feasible. By doing this we can identify the threshold of timing and budget after which project become in viable.
· Prioritization of project objectives: in order to complete the project in time, a schedule of activities required showing activities of project needs priority and others which could be delayed.
1. ...
Risk management Phase 1-5 Individual Project
Table of Contents
Introduction 3
Project Outline 3
Project risk identification 4
Project risk assessment 6
Project Risks, Responses Strategy 7
Project Risks Monitoring & Control Plan 10
Project Risks WBS & Budget Updates 11
Project Risks, Communications Plan 11
References 12
Introduction
The project that is planned by the company is to divest and move into a global perspective. Let’s ay for instance a possible expansion in the expansion of an oil refinery plant, such as a sulphur plant, my project will be to research Savage Gulf Sulphur Services. The project is supposed to ensure that the company will generate more revenue, and then it shall move into a global perspective. With the project, the company shall also increase its production due to large demand generated by the new market in the globe. Every project is faced with a certain degree of risk in the activities that it takes in an organization. It is important for organizations should carry out risk assessment procedures that are inclined in ensuring that an effective strategy shall be formulated to eliminate risk. This paper will discuss the risk management strategy and the processes that are taken in the management of risk in an organizational structure.
Project Outline
The project is it intended to increase the organized capacity and move into the global market structure. This will involve the purchase of new factors of production such as land, investors and business owners invest large amounts of capital to such investments. The project will also
Risk management justification
Risk management is identified and can be described as an assesment that has all these prioritization of risks, the management of risk could involve precise coordination and ecomonical application strategies with ereasons to minimize, control and monitor the probability and impact of unfortunate events. Risk management also helps in maximization and the act of realization of opportunities. In an organizational structure, risk management has a variety of functions which makes it an important department in an organization, based on the many roles that the risk management. This is the implementation of a strong and effective risk management and controls within securities firm, a helps in promoting stability throughout the entire firm. Risk management controls are divided into two categories. The internal and external control categories help in providing useful and effective control systems. The internal controls help in protecting the firms against market, credit, operational and legal risks. Secondly, it helps in protecting the financial industry from all the systemic risks in the organization structure (Merna, 2008)
Risk management is useful in protecting the firm's customers from enormous and large non-market related losses such as misappropriation of resources, fraud and firm failure. Such failures can result in enormous risk in the organization. R ...
Table of Contents
Introduction 3
Project Outline 3
Project risk identification 4
Project risk assessment 6
Project Risks, Responses Strategy 7
Project Risks Monitoring & Control Plan 10
Project Risks WBS & Budget Updates 11
Project Risks, Communications Plan 11
References 12
Introduction
The project that is planned by the company is to divest and move into a global perspective. Let’s ay for instance a possible expansion in the expansion of an oil refinery plant, such as a sulphur plant, my project will be to research Savage Gulf Sulphur Services. The project is supposed to ensure that the company will generate more revenue, and then it shall move into a global perspective. With the project, the company shall also increase its production due to large demand generated by the new market in the globe. Every project is faced with a certain degree of risk in the activities that it takes in an organization. It is important for organizations should carry out risk assessment procedures that are inclined in ensuring that an effective strategy shall be formulated to eliminate risk. This paper will discuss the risk management strategy and the processes that are taken in the management of risk in an organizational structure.
Project Outline
The project is it intended to increase the organized capacity and move into the global market structure. This will involve the purchase of new factors of production such as land, investors and business owners invest large amounts of capital to such investments. The project will also
Risk management justification
Risk management is identified and can be described as an assesment that has all these prioritization of risks, the management of risk could involve precise coordination and ecomonical application strategies with ereasons to minimize, control and monitor the probability and impact of unfortunate events. Risk management also helps in maximization and the act of realization of opportunities. In an organizational structure, risk management has a variety of functions which makes it an important department in an organization, based on the many roles that the risk management. This is the implementation of a strong and effective risk management and controls within securities firm, a helps in promoting stability throughout the entire firm. Risk management controls are divided into two categories. The internal and external control categories help in providing useful and effective control systems. The internal controls help in protecting the firms against market, credit, operational and legal risks. Secondly, it helps in protecting the financial industry from all the systemic risks in the organization structure (Merna, 2008)
Risk management is useful in protecting the firm's customers from enormous and large non-market related losses such as misappropriation of resources, fraud and firm failure. Such failures can result in enormous risk in the organization. Risk management also helps in the act or protecting the fi ...
What is BOT project what all are the criteria for the viability to get the project and case study of the project. and what all risk is been faced in this project
Review on DCR (Development Control Regulation) and what it output in the construction field and what all rules and regulations need to be followed. Follow the rules and regulation in new development and construction
Keep Your Home Naturally Cool and Warm Out Change in Seasons
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Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
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Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
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https://listingturkey.com/property/the-ka-housing/
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Total Environment Tangled Up In The Green - Residential Plots Where Nature an...JagadishKR1
Embark on a journey where lush landscapes and contemporary living converge at Total Environment's Tangled Up In The Green Residential Plots in Devanahalli, Bangalore. Surrounded by verdant expanses, these plots offer an idyllic setting for your dream home. Immerse yourself in the serenity of nature while enjoying the finest amenities and design, where every moment is a harmonious blend of luxury and tranquility.
Recent Trends Fueling The Surge in Farmhouse Demand in IndiaFarmland Bazaar
Embarking on the journey to acquire a farmhouse for sale is just the beginning; the real investment lies in crafting an environment that contributes to our mental and physical well-being while satisfying the soul. At Farmlandbazaar.com, India’s leading online marketplace dedicated to farm land, farmhouses, and agricultural lands, we understand the importance of transforming a humble farmland into a warm and inviting sanctuary. Let's explore the fundamental aspects that can elevate your farmhouse into a tranquil haven.
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
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☑️ What are the returns like?
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☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Serviced Apartment Ho Chi Minh For RentalGVRenting
GVRenting is the leading rental real estate company in Vietnam. We help you to find a serviced apartment for rent in Ho Chi Minh & Saigon. Discover our broad range of rental properties in Vietnam.
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Discover Yeni Eyup Evleri 2, nestled among the rising values of Eyupsultan, offering the epitome of modern living in Istanbul.
With its spacious living areas, contemporary architecture, and meticulous details, Yeni Eyup Evleri 2 is poised to be the star of your happiest moments. Situated in the new favorite district of Eyupsultan, claim your spot and unlock the doors to a peaceful life alongside your loved ones. Nestled next to the historical and natural beauties of Eyupsultan, embrace the comfort of modern living and rediscover life.
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With 1+1, 2+1, and 3+1 apartment options, Yeni Eyup Evleri 2 is designed with first-class materials and craftsmanship. The doors to a safe and comfortable life are here! Choose the option that suits you best and step into your dream home.
Project:
Yeni Eyup 2 is conveniently located, with Istanbul Airport just 26 minutes away, the Mecidiyeköy Metro Line 4 minutes away, and the Tram Stop 5 minutes away, making your life easier with its central location.
Location:
Your home is positioned in a privileged location, providing easy access to the city center, shopping malls, restaurants, schools, and other important places.
Yeni Eyup 2 offers 1+1, 2+1, and 3+1 apartment options designed to meet different needs. Find an option suitable for every lifestyle and open the doors to a comfortable life in your dream home.
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500 acres of brilliance await you here at Riverview City which offers modern living, effortless convenience, and a beautiful natural setting. It is a mega township by Magarpatta City in Loni Kalbhor, Pune. Enjoy easy access to work, schools, and fun while experiencing a perfect work-life balance.
Visit - magarpattacity.developerprojects.in
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Simpolo Tiles & Bathware
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Construction project management & risk mitigation
1. 1
CONSTRUCTION PROJECT MANAGEMENT &
RISK MITIGATION.
ANALYTICAL STUDY OF ANY OF THE RISK
MANAGEMENT TOOL IN CONSTRUCTION PROJECT
Report submitted to the
Institute of Real Estate and Finance
BY
Group B
Sachin Kumar Rai
Dilip Mehta
Rajlaxmi Pardeshi
Vikrant Wagh
Parag Jagtap
PGP (real estate construction finance management)
UNDER THE GUIDANCE OF
Mr. Chetan More
2. 2
ACKNOWLEDGEMENT
We would like to express our sincere gratitude to our director Mr. Abhay Kumar for all the
support and guidance throughout and for giving us the opportunity to work on this report which
helped us to understand Analytical Study of Any of The Risk Management Tool in Construction
Project deeply, and we came to know about so many things and allowing us to use its application
and how companies are applying it. Secondly, we would also like to show our gratitude towards
our mentor Mr. Chetan More for giving us an opportunity to work on such a report. This
opportunity led us to the pathway of deep knowledge of Analytical Study of Any of The Risk
Management Tool in Construction Project.
3. 3
TABLE OF CONTENTS
1. INTRODUCTION
2. RISK
3. RISK MANAGEMENT
4. RISK IN CONSTRUCTION PROJECTS
a) Identifying Risks
b) Analysing Risks
c) Assessing Risks
d) Controlling Risks
e) Monitoring Risks
f) Controlling Goals
5. RISK IDENTIFICATION
6. CASE STUDY
7. CONCLUSION
8. REFERENCES
4. 4
INTRODUCTION
Construction projects are exposed to risks at the time of their coming into existence. In the different stages, the risks
that the owner wants to take to counter measures and the cost of those measures must firstly be considered. In order
to prevent errors in the future, it is required to identify risks, possible risk cost, measures, and cost of the measures,
and to identify appropriate measures. In all construction projects, the willingness of real estate developers to risk
causing cost is common. Risk costs are generally not permitted in advance and thus their profit margin is reduced.
Risk costs are generally not permitted in advance and thus their profit margin is reduced. It is therefore worth
considering the issue of risk management and, consequently, also try to minimise costs by failing to take or
completely avoid precautions. The development, design, implementation and operation of construction projects
vary. In order to more closely consider the project-specific and known risk, recurrent processes in these phases can
still be used as a key to identifying risk. Despite their uniqueness, the implementation and realisation phase is
particularly important in this respect. While in the past, claims for damages were almost always made on the basis
of real or fairly apparent damage or loss to the structure, the argument is now increasingly being made on the basis
of defects that have not resulted in damage or loss to the structure. Ineffective rules about contractual penalties,
errors in the collaboration in the award of the contract, and errors in the reviewing of invoices are all examples of
lawsuits for damages for resulting expenses and other money related biases suffered by the contractor. As a result,
risk management in the offices of architects and engineers can become an integral part of project management.
RISK
Risk is the probability of any incident which can deviate your gains from the actual result, or the result you have
expected from the project or any incident or the risk is defined as the possible occurrence of negative or adverse
effects that lead exclusively to damage or loss, another way of defining it as the possibility of occurrence of either
negative or positive effects.
RISK MANAGEMENT
It is the management of minimizing and mitigate the impact of risk. You can control the risk by using some of the
techniques that participate in identifying and evaluating the risk, which helps to assess the level of risk. Risk
management is applied mainly in all construction processes. All potential risks which can harm the project, are
identified from all construction process, then it is analyzed how much part of the project is affected by that type of
particular risk, after that they are classified according to their risk level or harm level whether it is low, medium or
high. After that, reduction measures that may include avoidance, transference, acceptance, or mitigation are put in
place.
Risk management involves four steps. Based on it, we can work on our risk identification and evaluation. The first
step is the assessment of risk, followed by evaluation and management of the same. The last step is measuring the
impact. They are followed by each other in the form of a process, and this process is named as risk management
cycle. To understand the steps of this cycle, we are going to introduce the two terms, which are usually the parameter
for checking these steps: -
• Likelihood: The probability of the risk event occurring within the time period of the project.
• Impact: The financial value of the risk event’s effect.
5. 5
Following are the four types of steps in the risk management cycle: -
1. Assess- To identify and assess the risk factors which include in the construction process.
2. Evaluate: - evaluate those risks on the parameter of likelihood and impact. For instance, there are very high
chances of miscommunication among clients, consultants, and contractors on the site this shows the
likelihood and delay in construction due to which time and cost are affected, shows the impact of this event.
3. Manage: - find the method of managing, monitoring and controlling techniques that help in minimize the
effect of risk
4. Measure: - classify each risk on the parameter of likelihood and impact means which risk has low likelihood
but high risk, high likelihood and low risk, high likelihood and high risk, low likelihood and low risk.
risk
management
assess
evaluate
manage
measure
Fig 1: - Risk management cycle
cycle
Fig 2: - Line 1 shows the construction project without risk management & line 2 shows the
construction project with risk management. We can see that after applying risk management quality
of planning has increased and cost of realization and processing time has decreased. So, this graph
shows the benefit of risk management.
Line 1
Line 2
6. 6
RISK IN CONSTRUCTION PROJECTS
Risk management is of great importance for construction projects, although an increase in costs is incurred at the
start of the project, in particular by introducing risk management, this is compensated for by risks. In the planning
phase, possible risks can be identified and reduced for the future success of the project. This has particular
implications for the compliance with fixed dates and deadlines as well as for project cost maintenance. The principal
attaches great importance to the observance of its due date for the implementation of an operating unit. A project's
risk potential analysis determines how project risks influence the company's risk situation. Without detailed
consideration of the risks, risk potential should be estimated at the lowest possible expense. The risk management
process is initiated depending on the risk potential assessment. Risk management includes the integration of basic
risk policy principles, risk awareness, and corporate integration. It stimulates the risk management processes and is
fully aware of the current risks situation and responsible for the control of risks. The project can be prepared for
inevitable issues by managing risks, increasing transparency, and many problems can be avoided by proactive action
from the beginning. By This can mitigate the impact and retains the control of the project manager on his/her project.
There are many steps in the risk management process.
1) Identifying risks
Risks that are not recognized during the planning of a project cannot be assessed, and you also can’t deal with them.
However, we can say that covering all risk parameters is impossible. Because few risks may haven’t recognized
during the start of the project. But after execution, it emerges from the site. Therefore, the work of risk management
is to cover the essential risks as completely as possible. We should apply the risk management in a way that should
be in line with the project means it should be forward-looking and in line with the project. So, we can divide the
risk into two parts which become easy for classification of risk- 1) internal risk 2) external risk.
risk
identification
risk analysis risk assessment risk control risk monitoring
controlling
goals
Fig. 3: - Risk management flowchart in construction projects
7. 7
1. Internal risks are specific to companies, projects, and any other type of problems or risks faced in previous
projects. It basically depends upon the past experience of the project, which they can improve on to their
next project.
2. External risks are those risks about which there are fewer data available, and there is no control of
organization or person on that factors, and no method is available for identifying these factors and
challenging to identify.
2) Analysing risks
The goal is to fully and accurately describe the risk situation and to prioritize the risks. For this purpose, the
identified risks related to their likelihood and their effect on the project are examined. This means that we will see
the probability and impact of the activities. We took into consideration the portfolio and the risks are parameters of
our classification. It is important to identify criteria for assessing and comparing individual risks with each other.
Risk is always described as damage to or loss of an event that can be assigned a given value.
3) Assessing risks
This risk assessment includes qualitative assessment and quantitative measurement, including the relationship of
their effects, of individual risks. A project's risk portfolio can be illustrated and compared with others with the help
of risk evaluation results.
Quantitative method: -
In general, the quantitative assessment includes key indicators of performance. If you want to compare many data
and figures, you are preferably consulted for risk assessment. The threshold values from which a risk warning exists
are determined for the key performance indicators. Average operating costs, average rent and vacancy rates or the
average interest on external capital are the typical key performance indicators for the real estate sector.
Qualitative method: -
Where there is no objective data, risks still need to be assessed by quality. This assesses the risks subjectively based
on their likelihood and the amount of damage or loss.
4) Controlling risks
Risk control means that the risks determined in the risk analysis are actively influenced. Risk management measures
can be distinguished between causes and effects. Cause-related actions are supposed to avoid or reduce risks, while
the action-related measures serve to reduce or protect against the expected amount of damage or loss in case of
damage or loss. Strategies of controlling risk are accordingly the following:
- Avoidance
- Reduction
- Passing on the risk
- Bearing the risk by oneself
8. 8
5) Monitoring risks
The monitoring of risks is a continuous process that is operative in control by which you can judge the effectiveness
of the risk control measures. Again, the goal of risk management is not completely eradicating the risk. This process
helps in guarantee that the risk position of the project is in line with the risk situation.
6) Controlling goals
Actions to control objectives need to be taken after all steps of identifying, analyzing, assessing, controlling,
monitoring, analyzing and risk assessment. The control process can be divided into subprocesses: target value
identification, actual value determination, target/real comparison and variance analysis. In order to determine if the
risk control is carried out in due form, risk identification, analysis and monitoring are checked in the monitoring as
a permanent process.
RISK IDENTIFICATION
Risk identification involves various processes which are used in the risk management process during the planning
of a project. The processes are brainstorming, delphine technique, interview/expert opinion, past experience,
checklists.
1) Brainstorming
A project includes various risk factors that can be interrelated with building communication etc., and external factors
such as coronavirus that are not controllable by anyone. Brainstorming sessions include the relevant project
stakeholders and discuss the project's risk with relevant project expertise. There are a number of sessions where
people try to find the risks by talking and answering questions. A facilitator notes and differentiates between
necessary or unnecessary the important issues which were raised and discussed in the sessions.
2) Delphine technique
A group of expert panelists in rounds, followed by a converge on a mutual response after successive rounds, answer
questions anonymously by improved judgement. After a defined stop criterion, the process is stopped (no. of rounds,
stability).
3) Interview/Expert opinion
Experienced people and relevant stakeholders are consulted for advice and suggestions to avoid the risk. And their
experiences regarding past projects risks and obstacles which can improve in the following projects.
4) Past experience
From the past projects, if any similarities are found out their mistakes are identified, every project is rigorously seen
so that we can rectify it.
5) Checklists
All the risks and mistakes which are noted down in a predetermined list, they start to delve, draw from juxtaposing
from the previously completed projects.
9. 9
Brainstorming is the most common risk identification technique used in risk management. We can divide the
brainstorming session into two phases 1) idea generation phase 2) idea selection phase. The process involves getting
subject matter experts, project team members, risk management team members and anyone else who might benefit
from the process in one place and asking them to start identifying possible risk events that come under the idea
generation phase. The idea selection phase involves the selection of risk which also involves four phases.
(i) Criticism is ruled out – evaluation of ideas must be withheld until later
(ii) Free-wheeling is encouraged
(iii) Quantity is wanted- the greater the number of ideas, the more likely is the chance of having useful ones
(iv) Combination and improvement.
We are going to use brainstorming techniques for identifying the risk for any project, whether it falls under internal
or external risk or any type of risk involved in it. The question arises here why use the brainstorming technique for
analysis. Because it is the most common technique using for risk identification. It involves various people from
different experiences and needs, and people are creating real-life scenarios by sharing their experiences. Phases such
as idea building, problem-solving, removal of unnecessary ideas and different meetings between experts and
important stakeholders that minimize and mitigate risk in the implementation phase.
There are two types of broadly classified risk 1) internal risk 2) external risk, where internal risk is associated with
the factors which have a great impact on the site. For example, if architecture doesn’t give a proper drawing of the
project, it affects the project to a large extent. There are following risks are involved in internal risk: -
1) Project finance risk- when there is risk involved with the cash flow and balance sheet of the project. When the
owner isn’t able to give the fund to the project whatever the reason. It can be, the bank refuses to give an additional
loan to the owner, poor management of cash flow in various projects, or the owner expend all of his money on the
project. Finance risk is a major reason for the closure of various projects.
2) Construction risk- when the project manager executes the plan there is various risk which doesn’t involve in the
planning phase are coming in front of project manager and It impacts a project a lot in the form of time and cost.
brainstorming
delphi
technique
interview/
expert opinion
past
experiences
checklists
Fig.4: - Tools of risk identification
10. 10
3) Environmental and geotechnical risk- when risks are related to the geology of site when project construction
starts, there are lot of geological problems standing in front of construction leads to delay in the project which affects
time and cost.
4) Project staff risks – risks related to staff members of the project who are under the umbrella of consultants,
contractors, client groups. From labour to client or all internal stakeholders involved in the project. We should assess
all the risks involved with the staff members.
All other risks like standards and regulation risks, sponsor risks, design risks, subcontractor risks, equipment
risks, site location risks, and many more risk comes under the internal risk.
External risk
External risks are those risks about which we don’t have a lot of information or very little is known. There is very
less data available for this risk because it is based on our surroundings, and no one can predict how it can affect the
project. It is uncontrollable by the organization or any other person. Risks are beyond the control of the organization.
For example, COVID-19 pandemic in the world, no one can actually control the situation. We are going to use the
technique which can surely help in identifying external risk. “PESTLE TECHNIQUE” is a strong tool borrowed
from strategic management techniques of business management to identify external risks in construction projects
help to solve the factors in the risk management process. PESTLE stands for political, economic, social,
technological, legal, environmental.
Political- This variable talk about how much a government will influence the economy or a particular industry. For
example, a government may implement a new tax or obligation as a result of which an organization's entire revenue-
generating structure may alter. Tax policies, monetary policy, trade tariffs, and other political factors that a
government can levy during the fiscal year can have an impact on the economy. And it may affect the business
environment to a great extent.
Economical- These are determinants of an economy's success that have immediate and long-term consequences for
a business. For example, an increase in the rate of inflation in every country will have an effect on how businesses
market their goods and services. Furthermore, it will have an effect on a consumer's buying power as well as
demand/supply models in that economy. Inflation, interest rates, foreign exchange rates, global growth trends, and
other economic factors are all factors to consider. It also takes into account FDI (foreign direct investment) in the
sectors that are being studied.
Social- All activities that have a social impact on the economy and society are considered by the sociological
element. As a result, the benefits and drawbacks to the residents of the project area must be weighed as well. Cultural
expectations, norms, demographic dynamics, health consciousness, job altitudes, global warming, and other
activities are examples of these events. These determinants examine the market's social climate and assess
determinants such as cultural patterns, demographics, and population analytics, among other things. Buying patterns
in Western nations, such as the United States, are an example of this. During the holiday season, there is a lot of
demand.
Legal- This element considers all legal aspects such as jobs, quotas, taxes, energy, imports and exports, and so on.
There are external and internal aspects of these variables. There are certain regulations that influence a country's
11. 11
economic climate, as well as certain policies that businesses maintain for themselves. The legal review considers all
of these perspectives when laying out plans in light of these laws. Consumer rules, safety regulations, labour laws,
and so on.
Environmental- All factors that affect or are influenced by the environment are included in this category. Climate,
weather, geographic location, global climate changes, environmental offsets, land conditions, ground pollution,
nearby water supplies, and other factors are all included in a business environmental study.
PESTLE Analysis is useful for four main reasons:
1. It assists you in identifying the company or personal prospects, as well as providing early notice of major
threats.
2. It shows how one's market climate is changing. This aids in shaping one's behaviour so that one can work
for rather than against progress.
3. It aids in the avoidance of projects that are destined to fail due to circumstances beyond one's control.
4. When entering a new nation, area, or market, it can help you break free from implicit assumptions by allowing
you to gain an analytical view of the new world.
Use PESTLE to create a list of the changes that are taking place in our environment. Determine the topics to be
covered and adapt the questions to the company's unique needs. Make a list of potential risks or problems. Take the
necessary measures. During the project's lifecycle, review the risks and appropriate mitigation steps on a regular
basis to prepare for changes.
CASE STUDY
This case study explains how to identify risks in community-based construction projects, which is the first step in
risk management. It explains how the brainstorming approach was used in Zambia to define threats in community-
based construction projects. The objective of the case study is: classify all possible risks in community-based
construction projects; and assess the essential risks in community-based construction projects.
Zambia is a landlocked country in Southern Africa, covering 752,614 square kilometers. It is a highly urbanized
country, with more than half of the country's population living in cities or peri-urban areas. As per capita GDP of
US$709.00 is projected for the region (CSO, 2005). Zambia's population was just over four million at the time of
independence in 1964. The population had more than doubled by the early 1990s, putting a lot of strain on the few
socio-economic service assets such as schools and hospitals that did not rise in proportion to the population growth
due to unfavorable economic factors. As a result, the government needed to act quickly. As a result, more schools,
health centres, and other infrastructure including roads and bridges were needed by the government. To that end,
with the help of cooperating partners, a community-based construction model was implemented. Communities were
expected to participate in the project procurement process by contributing 25% of the project cost in terms of local
labour and resources such as burned bricks. The following are the main benefits of community-based procurement
over traditional methods:
• Less expensive, considering scarce resources and the country's economic downturn.
• To instil a sense of ownership in the community after the projects were commissioned.
12. 12
The following are some of the drawbacks of the community-based system:
• Poor quality work done, resulting in unbudgeted for repair work.
• Delayed project completion due to community unpreparedness and other factors.
• As a consequence of the above, project cost overruns have occurred.
As a result, brainstorming was selected as the study's tool for assessing threats. It was used at the community level
in the form of group discussions with project management committees (PMCs) to identify possible threats impacting
their specific projects. Based on previous experience, guiding questions for the brainstorming sessions with PMCs
were established and categorized into risk factors. To ensure the clarity of the questions, the questionnaire was pilot-
tested by conducting brainstorming sessions with two PMCs and a few experts. The clarifications were integrated
into the list of guiding questions, resulting in a reduction of 11 to 7 questions. In each of Zambia's nine provinces,
sample units were PMCs from a completed or ongoing project. Members of the project PMCs were among the
discussants in order to determine possible project risks. Table I displays the brainstorming session's sample project
units.
Project no. Province District Name of project Type of project Status of project
1 Central Mkushi Kasokata basic
school
Construction of a
classroom block
Completed
2 North Kaputa Kaputa basic
school
rehabilitation of a
classroom block
Completed
3 North-western Kasempa Lufata basic
school
Construction of a
classroom block
On-going
4 Copperbelt Ndola Northrise basic
school
Construction of
a classroom block
On-going
5 Luapula Mansa Lukangaba basic
school
Construction of
a classroom block
On-going
6 western Kalabo Namatindi basic
school
Construction of
a house
On-going
7 Lusaka Chongwe Chinyunyu basic
school
Construction of
a house
On-going
8 Southern Namwala Kabulamwada
basic school
Construction of
a laboratory
On-going
9 Eastern Nyimba Fumba basic
school
Construction of a
class block and a
house
On-going
Table 1: - Sample units were PMCs from a completed or ongoing project
13. 13
Nasir et al. (2003) divided risks into categories based on their origin, while Baker et al. (1999) identified six types
of construction risks: financial, technological, time, organizational, environmental, and political. Similarly, the risks
in community-based projects were divided into six groups based on the research subject and reviewed literature.
(1) project initiation;
(2) community contribution and participation
(3) budget and finance
(4) skilled labour
(5) materials procurement; and
(6) technical supervision and quality control.
1) Project initiation risks
Since most community-based construction projects are initiated by the community as beneficiaries, it was critical
to identify project initiation risks. After the brainstorming sessions of project initiation risks there are seven risks
emerges out from the session which are- 1) unconfined sources of funds 2) lack of technical advice 3) lack of
consensus 4) lack of community sensitisation 5) poor organisation 6) lack of organisation 7) Delays in
commencement. But we realise that there are three factors among all which impacts a lot on our project which are
described under the following table: -
Item no. Identified risk Description
1 Lack of technical device A lack of clarification about the project's criteria resulted in the
purchase and preparation of products that did not follow standard
engineering specifications.
0
10
20
30
40
50
60
70
80
90
100
Project initiation risks
Fig 5: - Types of risk emerges after brainstorming session of project initiation risks
14. 14
2 Lack of consensus Some members of the community did not completely participate
in the project due to a lack of agreement on the project's need and
form.
3 Uncommon source of funds Untrustworthy or unverified funding sources prevented
involvement and hampered full cooperation in terms of material
contribution.
2) Community contribution and participation risks
One of the major activities carried out by the beneficiary community for a project was to provide upfront locally
available materials and unskilled labour. The materials may include crushed stones, river sand, building sand, timber
and burnt bricks in some cases. In the process of preparing upfront materials, a number of risks that could manifest
were identified. After the brainstorming sessions of community contribution and participation risks there are twelve
risks emerges out from the session which are- 1) adverse weather conditions 2) logistical problems 3) lack of
cooperation 4) non-conformity to standard specifications 5) inadequate bricks 6) lack of technical skills 7)
inappropriate construction materials 8) stake holder conflicts 9) ungraded crushed stones 10) inadequate financial
contributions 11) poor time management 12) lack of firewood. But we realise that there are only five factors which
impacts a lot on our project which are described under the following table: -
89 89
67
56 56
44 44
33
22 22 11 11
0
10
20
30
40
50
60
70
80
90
100
Community contribution and
participation risks
Table 2: - Risk comes after the brainstorming of project initiation risks
Fig 6: - Types of risk emerges after brainstorming session of Community contribution and
participation risks
15. 15
Item no. Identified Risk Description of risk
1 Adverse weather conditions Project materials were difficult to prepare due to heavy rainfall,
floods during the rainy season, and other environmental factors. As
a result, proposals for implementation were pushed back.
2 Non-conformity to standard Brick shapes and sizes differed due to a lack of quality control
requirements in the manufacturing process. As a result, the
brickwork was of low quality.
3 Inadequate bricks Insufficient quantities of bricks were moulded in relation to project
goals. As a result, the implementation was pushed back.
4 Logistical problems Material transportation issues arose as a result of the poor state of
feeder roads, posing challenges in material mobilization. As a result,
the implementation was pushed back.
5 Lack of cooperation Owing to the government's free education programme, community
members were unable to participate and contribute to the project.
Some residents expected the government to carry out the projects.
3) Budget and finance risks
Community-based building projects are no exception when it comes to financing. Risks associated with project
budgeting and funding were established during group discussions based on this assumption. After the brainstorming
sessions of community contribution and participation risks there are six risks emerges out from the session which
are- 1) Adequacy of project funds 2) Insufficient information on budgets 3) Phased disbursement of funds 4) Delayed
financial disbursements 5) Inadequate budget due to delayed implementation 6) Delayed financial retirements but
we realise that there are only three factors which impacts a lot on our project which are described under the following
table 4.
78
67
56
44
33
11
0
10
20
30
40
50
60
70
80
90
Budget and finance risks
Table 3: - Risk comes after the brainstorming of Community contribution and participation risks
Fig 7: - Types of risk emerges after brainstorming session of Budget and finance risks
16. 16
Item no. Identified risk Description of risk
1 Delayed financial retirements Financial retirements through the District Education Office have
been postponed. This caused a delay in the release of additional
funds and, as a result, the completion of projects.
2 Delayed financial disbursements As a result, start-ups were delayed, inventory acquisitions were
phased in, and implementation was delayed.
3 Inadequate budget due to
delayed
Due to the delay in execution, the budget's worth was eroded,
resulting in a deficit and eventual budget overrun.
4) Skilled labour risks
Skilled labour is critical in the implementation of community-based construction projects, as it is in all construction
projects. As a result, it was wise to identify potential risks associated with this resource during brainstorming
sessions. After the brainstorming sessions of technical supervision and quality control risks there are thirteen risks
emerges out from the session which are- 1) unavailability of skilled labour in local areas 2) PMC incompetent to
recruit skilled labour 3) incompetent labour 4) inadequate training provisions 5) irregular payments to contractor 6)
inadequate conditions of contract 7) failure of payment by contractor to labour 8) delayed engagement of contractor
9) use of unskilled labour 10) labour disputes 11) high cost of labours 12) non-technical contractors 13) dishonest
contractors. But we realise that there are only three factors which impacts a lot on our project which are described
under the following table: -
56 56 56
44
33
22
11 11 11 11 11 11 11
0
10
20
30
40
50
60
Skilled labour risks
Table 4: - Risk comes after the brainstorming of Budget and finance risks
Fig 8: - Types of risk emerges after brainstorming session of skilled labour risks
17. 17
Item no. Identified risk Description of risk
1 Incompetent labour Because the skilled labour available was inexperienced, poor
quality work was produced.
2 Unavailability of skilled labour Scarcity of skilled workers in the project location. This led to the
recruitment of contractors from other locations and too late
implementation in the locality
3 PMCs incompetent to recruit The PMCs did not have the power to interview qualified workers.
This led to incompetent contractors being involved.
5) Material procurement risks
In the timely execution of construction projects, the procurement of non-local materials is an important aspect. This
was also true for projects in the community, and it was therefore imperative to identify risks associated with this
aspect. After the brainstorming sessions of technical supervision and quality control risks there are twelve risks
emerges out from the session which are- 1) unavailability of non-local materials in local shops 2) lengthy tender
process 3) high cost of transportation 4) purchase of substandard materials 5) incomplete material lists 6) high cost
of materials 7) inadequate procurement time for PMC 8)insufficient knowledge of materials by PMC 9) incorrect
estimates of materials 10) purchase of unspecified materials 11) non- availability of some materials 12) PMC not
involved in procurement process. But we realise that there are only four factors which impacts a lot on our project
which are described under the following table: -
78
67 67
56
22 22 22
11 11 11 11 11
0
10
20
30
40
50
60
70
80
90
Material procurement risks
Table 5: - Risk comes after the brainstorming of skilled labour risks
Fig 9: - Types of risk emerges after brainstorming session of Material procurement risks
18. 18
Item no. Identified risk Description of risk
1 Purchase of substandard Materials were obtained from substandard materials like door
frames and window frames. The PMC bought poor quality
materials in the absence of technical advice. This resulted in poor
work quality.
2 High cost of transportation In the provincial centres, several kilometers away, materials were
obtained from hardware shoppings. This resulted in high transport
costs and higher costs.
3 Lengthy tender process The materials were procured by the District Secretary's Board of
Education or the Provincial Education Officer's Bureau through an
extensive tendering process. The execution was delayed.
4 Unavailability of non-local In the nearest local shops, no non-local materials were found in
local shops. This meant material could be obtained only several
kilometers away in the provincial centres. The execution was thus
delayed.
6) Technical supervision and quality control risks
Quality is one of the three factors used for measuring a project's success, including community-based projects. It
was important, therefore, to identify risks that hinder good work performance in community projects. After the
brainstorming sessions of technical supervision and quality control risks there are eight risks emerges out from the
session which are- 1) lack of work schedules 2) inefficient supervision 3) inappropriate materials 4) lack of qualified
and construction supervisors 5) Poor training and general incompetence 6) incompetence and inadequate skills 7)
lack of quality control 8) absenteeism on part of supervisors. But we realise that there are only four factors which
impacts a lot on our project which are described under the following table: -
89 89
67
44 44
33
22 11
0
10
20
30
40
50
60
70
80
90
100
Technical supervision and quality
control risks
Table 6: - Risk comes after the brainstorming of material procurement risks
Fig 10: - Types of risk emerges after brainstorming session of technical supervision and quality
control risks
19. 19
Item no. Identified risk Description of risk
1 Purchase of substandard Materials were obtained from substandard materials like door
frames and window frames. The PMC bought poor quality
materials in the absence of technical advice. This resulted in poor
work quality.
2 High cost of transportation In the provincial centres, several kilometers away, materials were
obtained from hardware shopping. This resulted in high transport
costs and higher costs.
3 Lengthy tender process The material was obtained either through the District Education
Council or through the Provincial Education Officer's office
through a long tendering process. The execution was delayed.
4 Unavailability of non-local In the nearest local shops, no non-local materials were found in
local shops. This meant material could be obtained only several
kilometers away in the provincial centres. The execution was thus
delayed.
CONCLUSION
First of all, we have talked about the definition of risk, which defines as the possible occurrence of negative or
adverse effects, exclusively lead to damage or loss, while the possibility of negative or positive effects is defined by
others or the probability of uncertainty. You can’t completely end the risk in any project, but we can mitigate or
minimize the risk. For e.g., Share market involves the risk of either losing money in the market or gain big money
by investing in the share market. But if you carefully invest in the share market by considering all the factors of
shares, then you can minimize risk and when you do this minimisation and mitigation of risk, then it comes under
risk management. From the previous example of the share market, we are able to define the risk management process
completely. It is the management to reduce the risk impact. The risk may be controlled through certain techniques
involving risk identification and assessment which helps to assess the level of risk. In all construction processes,
risk management is applied in particular. Every construction process identifies all potential risks that may harm the
project. The study then analyzed the amount of risk affected by the project and then classified it according to its
level of risk or damage. Subsequently, reduction measures are implemented, including avoidance, transfer,
acceptance or mitigation. Risk management consists of four steps. We can work on identifying and evaluating our
risk on this basis. The first step is assess followed by evaluate, analysis and the final step is measure. They are
followed in a process is called the risk management cycle. It is of great importance in the case of construction
projects, although at the beginning of the project. During the planning phase, potential risks for future project success
can be identified and reduced. This has special consequences for the compliance of fixed dates and time limits and
for the maintenance of project costs. The main point is that it observes its due date for the establishment of an
operating unit. A risk potential analysis of a project determines the impact of the project risks on the risk situation
of the company. Through the cycle, we understand the process of risk management in construction projects. Then
Table 7: - Brainstorming session of technical supervision and quality control risks
20. 20
we emphasize on all the processes briefly. The first step in identifying risk is to identify the risk through the broader
classification of internal risk and external risk. The second step consists of risk analysis which involves the analysis
of risk. We analyze the risk on the probability of occurrence and their impact. We took the portfolio and our
classification parameters are risk costs. Criteria have to be identified based on the assessment and comparison of
individual risks. Then the process of assessing risk comes after analyzing. It involves quantity & quality assessment
where risk is assessed through data and numbers, and in the latter, the risk is assessed through likelihood and impact.
Then we control and monitor risk through avoidance, reduction, passing on the risk, bearing the risk by oneself.
After that, we execute all the processes in controlling the risk and its impact. Afterwards, we explore the risk
identification, which lies under the scope of our report. Risk identification involves various processes which are
brainstorming, delphine technique, interview/expert opinion, past experience, checklists. Then we define all the
processes briefly. In order to identify risk, whether it is internal or external or any type of risk involved in any
project, we will use brainstorming techniques. There arises the question of why brainstorming is used for analysis.
Because it is the most common risk identification technique. It involves various people from different experiences
and needs and by sharing their experiences people create a real-life scenario. Stages such as creating ideas,
troubleshooting, deleting unnecessary ideas and holding various meetings between experts and key stakeholders to
minimize risks during implementation. The brainstorming session can be divided into two phases 1) Phase of idea
production 2) phase of idea selection. The process involves bringing experts, project team members, risk
management team members and anyone else who may benefit from the process to the same location to begin
identifying possible risk events. The selection of ideas involves a risk selection that also takes four phases- 1)
criticism is ruled out, 2) free-wheeling is encouraged, 3) quantity is wanted 4) combination and improvement. Then
we apply brainstorming on internal risk and external risk. Internal risk involves all the risk which is associated with
the internal issue of project and internal stakeholders like project finance risk, construction risk, environmental and
geotechnical risk, project staff risks etc. external risk is identified by the technique of PESTLE, which is political,
economical, social, technological, legal, environmental. Pestle technique covers around all the factor of risk which
can impact the project. The various reason for using this technique is, it can help you to identify the company or
personal outlook and to notify you in advance of serious threats. It demonstrates how changing is the market
environment. This helps to shape one's behaviour to work for and not for progress. It helps to prevent projects that,
in circumstances beyond our control, are destined to fail. It can help you free yourself from implicit assumptions
when entering a new country, region or market by enabling you to acquire an analytical view of the world. After
that, we have taken the case study of Zambia to define threats in community-based construction projects. The
objective of the case study is: classify all possible risks in community-based construction projects; and assess the
essential risks in community-based construction projects. After the increase in the population of Zambia, there is a
lot more strain on Zambia for the construction of buildings and hospitals. The main benefits of community-based
procurement over traditional methods less expensive, considering scarce resources and the country's economic
downturn. To instill a sense of ownership in the community after the projects were commissioned and the
disadvantages of the community-based project is poor quality work done, resulting in unbudgeted for repair work,
delayed project completion due to community unpreparedness and other factors. As a consequence of the above,
project cost overruns have occurred. Brainstorming was therefore selected to be the tool of the study to evaluate
threats. It was used at community level to identify threats impacting their specific projects by group discussions
with Project Management Committee (PMCs). Based on past knowledge, guiding questions have been identified
21. 21
and classified as risk factors during brainstorming sessions with PMCs. The survey was pilot-tested with
brainstorming with two PMCs and some experts in order to ensure the clarity of questions. The clarifications were
included in the list of guidelines, leading to 11-7 questions being reduced. Similarly, the risks in community-based
projects were divided into six groups based on the research subject and reviewed literature. First is project initiation,
second is community contribution and participation, third is budget and finance, fourth is skilled labour, the fifth is
material procurement risks, sixth is technical supervision and quality control risks. We have done an analytical study
of all these processes by making tables and graphs of all identified risks under these all processes by which we see
the analytical use of the brainstorming process and had seen the benefits of using the brainstorming process.
REFERENCES
• Morano, Cássia & Martins, Claudia & Ferreira, Miguel. (2007). Application of Brainstorming Technique in
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