Measurement and Prioritization of the Risks - Essay Example

The risks are likely to affect the construction of high-rise buildings that may result in a delay in the completion of the high-rise project and overrun of cost allocated for the project. The brand name of the construction company is also likely to be affected by these risk factors.

Measurement and prioritization of the risks
The exposure to the identified risk factors is likely to affect the high-rise construction project as it would impact the project cost and schedule of the construction of the high-rise building. Thus the prioritization of risk is done based on the anticipated overrun of cost and time of the high-rise construction project. The delay in approval from the government, conflict of interest over the proposed construction, etc. may lead to a delay in the completion of the high-rise construction thereby incurring additional expenses for the project. Since the high-rise building is being constructed in a commercial district, the schedule of construction is extremely important as the floors are to be sold to the corporate houses which have paid a considerable proportion in advance.

The allocated budgetary expenses for construction also need to be met as an overrun of the cost would lead to financial risk for the construction company. Thus schedule risk and financial risk are the most important in the construction of the high-rise building (Karim, 2012, p.1). Apart from the schedule and financial risk, the technical political, and social risks are also important. Technical risk may occur due to a lack of communication between the company and its workers due to which the quality of construction may be hampered. Political interventions may crop up on issues like labor wages, the safety of the workers, etc. Apart from the political risk, any form of non-cooperation by the labor, and injunctions from the people of the community may pose a social risk which is considered by the company for building a high rise in the commercial district.

Possible treatment of the risk exposures
After identification of the possible risks, the treatment of these risk exposures is a must to reduce the vulnerability of the high-rise construction project and also to reduce the insurance cost, cost of business interruption, and damage claims. The possible treatment by the company includes preplanning of required actions for the construction of the high-rise building. The processing of necessary documents and formalities to obtain required approvals from the government is to be executed in a planned manner by the company to avoid unwanted delays in the project. The instruction of work is to be passed to the workers in the field to avoid possible interruption of work. The company needs to maintain an amicable relationship with the labor unions the political parties and the community, at large to avoid possible disruption of work (Conrow, 2003, p.48). These treatments of risk exposure are likely to mitigate the risks associated with the construction of high-rise buildings in the commercial district. Read More