Concepts of Risk Management in Relation to the RIBA Plan of Work - Case Study Example

Risk Management Name Date Course Risk Management Introduction The project involves the construction of a facility that will enable the community to access different services at the same place. The RIBA plan of Work 2013 framework will be used for the purposes of implementing the project. RIBA plan of work 2013 is aimed at ensuring that good buildings are delivered and the clients are satisfied with the process. The framework is effective as it ensure that the stakeholders are accountable. Sustainability can be achieved through the use of the framework and hence enabling the project to proceed without impacting negatively on the environment. The framework is important in ensuring that better response of the needs of the clients is achieved. RIBA plan of work 2013 is divided into different stages which ranges from stage 0 to stage 7 (Zanni, 2014). Risk management is an important aspect that of projects and it should be carried out in order to prevent the project from stalling due to the risks. The risks have the potential of increasing the costs of the project. The project may end up delaying due to the risks. The paper thus discusses the concepts of risk management in relation to the RIBA plan of work 2013 sate 0, 1 and 5. Part 3: Functional analysis Part 4 a: Strategic project risk Stage 0 This stage involves strategic definition and appraisal before the creation of a detailed brief. During the strategic brief, a review of the number of sites has to be carried out. This is for the purposes of ensuring that the site is suitable for the project (Fung, 2014). The scope of the project can be defined at this stage and an interaction with the client is useful in order to ensure that the project is successful. The site for the project has already been defined and a few risks may be encountered in relation to stage 0. Although the local council has allocated money for the project, there is a risk of the planning permission being refused. This may be due to various considerations including the concerns raised by the stakeholders. However the probability of this risk is low due to the high involvement of the local government authority. On the other hand, this risk can be prevented by carrying out intensive consultations with all the stakeholders involved in n the project. The building regulations pose a risk for the project during the definition of the scope. Safety and building regulations may impact negatively on the approval of the project (Barrett, 2013). This is considering that the project is huge and it may end up having a lot of impacts on the environment and the community as a whole. The probability of this risk is however low during the project. To minimize this risk, the team must engage in a dialogue with the building inspectors so as to ensure that all the safety requirements are included in the scope of the project. It is important to note that the appraisals have to be carried out after consultations with the stakeholders like the building inspectors. The project is located in a busy environment and this may contribute to third party risks. A lot of nose may be generated during the construction process. This has to be considered during the stage 0 and the definition of the scope. The neighborhood may end up being affected with the noise from the site. This risk may lead to restrictions being imposed and hence affecting the construction program. To minimize this risk, consultations with the stakeholders including the neighbors must be carried out. This will be useful in the definition of the scope and hence avoiding the restrictions (Leblanc, et al, 2013). The probability of this risk is high as a lot of activities will be involved in the project. Stage 1 Stage 1 involves the preparation of the policy brief and any related feasibility study. Assembling the project team and defining their roles and responsibilities is carried out at this stage. A lot of information exchange is therefore required at this stage. The project spatial requirements have to be considered during this stage (Chong & Phuah, 2013). The desired project outcomes needs to be considered at this stage and hence its relevance to the project. All the site information required for the project must be collected at this stage. The budget which forms an important part of the project has to be considered at this stage. The risk assessment has to be carried out to determine the types of risks and the parties that are likely to encounter the specific risk. The sustainability issues have to be considered and it should be included in the policy brief. The support tasks needs to be put in place for the purposes of ensuring that the teams are able to carry out their duties effectively. Schedule of services and well as the handover strategy has to be prepared at this stage. The authorities must be consulted at this stage in order to ensure that the project is fully compliant with the legal requirement (Tuohy & Murphy, 2014). This is considering that the local authority is a stakeholder of the project. This stage will be relevant to the project as it will ensure that all the requirements are in place before the design and construction begins. Several risks are likely to be encountered due to the nature of the activities that will be carried out. The local authority has allocated £ 9.5 million and the project is set to cost £ 12.5 million. A budget risk exists in the project due to the variations that may occur with regards to the cost. The budget may exceed the client brief and hence impacting negatively on the entire project. The probability of this risk is high due to the variations that may occur during the project. Contingencies are expected during the project and hence impacting negatively on the budget. The contingencies have a potential of increasing the cost of the project. Contingencies are usually unexpected activities that may occur during the implementation on of the project (Rezgui, 2013). Since the contingences are not planned for, the have the potential affecting the progress of the project. 10% the total cost of the project will be set aside as a contingency allowance. This will play an essential role in ensuring that the contingencies do not hinder the operations of the project. Inaccuracies may occur during the budgeting process. Any inaccuracies may impact negatively on the project and hence affecting the operations. This risk can be minimized by ensuring budget is prepared by experts and revised in order to minimize any chances of errors that may contribute to inaccuracies. During this stage, the preparation of the budget may be carried out when the economy is performing well. However, the risk of inflation exists and this may affect the overall budget of the project. The probability of this risk is low in Dubai. However, an inflation allowance of 5% has to be put in place so as to counter the risk. The local market condition presents a risk that may affect the budgeting process. The market tender price may increase due to the economic conditions and the availability of the materials (Harding, et al, 2014). The probability of this risk is high since some of the construction materials have to be imported to the country. This risk can be minimized by allocating more funds for the materials and process that will be involved in the project. The amount allocated for the processes and materials will not be exact and it be increased by 10% in order to deal with any incidence of market risk. The lifecycle cost may present a risk to the budgeting process. This risk will be prevented by including the maintenance costs to the budget. This will however require a proper analysis of the lifecycle of the project. The contingency of the contractor will be reviewed prior to the appointment of the contactor. This is considering that the process is part of establishing a team for the implementation of the project. The decision will be based on the cost analysis for the purpose of preventing the risks that are associated with the budget. The procurement risks may be encountered during the process of putting in place a team. Putting in place a team is useful at this stage and it has to be successful before the next process is carried out. Lack of interest in the project is a risk that may be encountered during the tendering process. The probability of this risk is low. However the project will be publicized and the tenders will be advertised in the national media. The tender is lucrative and the lack of interest in the project is thus low. The contractors may be unwilling to take up the construction risks and hence posing a risk in the development of the team (Leon & Laing, 2013). The probability of this risk is high since the construction risks are high considering the nature of the project. Surveys will have to be carried out to mitigate the risks to a level that the contractors can accept. On the hand, consultations will be carried out with the contractors for the purposes of reaching a consensus regarding the risks. A delayed agreement due to the contract conditions is a risk that the project may face at stage 1. The probability of this risk is however low as most of the conditions are not complicated. Amendments will be made to ensure that the contracts are in a standard form. Extensive consultations will be carried out to ensure that the contract is acceptable to all the parties. Minimizing the risks associated with the contracts will enhance the process of setting up a team. The site information has to be included in the initial project brief. Although other buildings have been constructed around the site, there is a risk that the ground conditions may be poorer than anticipated. The probability of this risk is low since high rise buildings have been constructed close to the site. However, to prevent this risk, site investigations have to be conducted in order to establish the actual condition of the ground. There is a risk that the existing services may be inadequate for the project. The probability of this risk is low as the site is located at the heart of the city. This risk will be prevented by carrying out a detailed service search in the area. Since the site is located at the heart of the city, there is a risk that the existing services like water pipelines or electricity lines are running across the site. The existing services need to be protected as any interference will affect the whole community. The probability of this risk is very high due to the location of the site. This risk can be minimized by carrying out a scan in order to establish the presence of the services (Harding, et al, 2014). On the other hand, working closely with the authorities and service providers will be required in order to establish the location of the services. Part 4b: Tactical project risk Stage 5 involves the construction of the building at the site in accordance with the construction program (Tuohy & Murphy, 2014). The components that have been fabricated at the site are done at this stage. The concepts of sustainability need to be considered at this point and this is for the purposes of ensuring that the process meets all the requirements. On the other hand, it is important to note that a lot of risks may be encountered at this stage as the actual construction is taking place. The table below is a risk register for stage 5 of the project. Risk identification Risk assessment Action plan Risk name Risk description Potential impact Probability 1-5 Time Impact 1-5 Cost impact 1-5 Risk ranking Action plan Action owner Adverse weather Heavy down pour or snow making it impossible for the work to proceed. Causes delays to the project 3 5 5 Allow for additional programme contingency. Contractor Poor quality Failure of the construction to meet the required quality Wastage of materials and increases the cost 1 5 5 Close monitoring of all the construction activities to ensure that the standards have been met. Contractor Health and safety Accidents during the constructions and inability of the construction to proceed normally. Can cause difficulties during the construction process and deaths of workers at the site. 2 5 5 All the aspects of buildability should be considered carefully. Sufficient workspace for buildability should be available. The process should be carried out on a step by step basis. Contractor and building inspectors Poor Performance The contractor may become insolvent and unable to continue with the construction. The project may end up stalling or experiencing a lot of delays. 1 5 5 The contractor must provide 10% performance bond. The contractors must provide information about their financial status Local authority, investors and the contractor. Variations The management changes of the client is carried out poorly The project may end up slowing down with wastage of materials taking place. 2 5 5 The contract document must be robust in order to minimize the client changes. The changes should be carried out immediately the brief has been signed off. Contractor User disruptions The pedestrians, motorists and the neighbors may be disrupted by the construction process due to movement of heavy machinery. Inconveniences may be caused to third parties. 2 4 3 The mobilization of the mechanical plants should be carried out at once to prevent inconveniences. Contractor Noise and vibrations The use of heavy machinery may cause excessive vibrations. The neighborhood may be affected by the noises and vibrations leading to inconveniences and noise pollution. 4 3 3 Noise and disruption strategies must be put in place to avoid the inconveniences. Contractor Poor disposal of wastes The waste from the construction site may be poorly disposed due to lack of proper planning or poor disposal mechanisms. High level of environmental pollution may occur and hence impacting negatively on the sustainability plans of the company. The locals may end up suing the owner. 1 3 5 As strategy for waste management should developed regarding all the wastes that will be produced during the construction process. Contractor. Poor coordination of the scope of work. The coordination of the different construction activities as well as materials and testing processes. The work may end up experiencing delays or poor workmanship may end up being experienced. 2 5 5 Strict ongoing monitoring must be carried out on a daily basis. Contractor. Handover Failure of the key element to be present during the handover process. Causes delays in the commencement of the different phases of the construction process. 2 4 5 An agreement has to be made with the contractor regarding the handover process. Contractor and the local authorities The following colours will be used for the risk ranking process. Extremely high Very high High Moderate Low Very low Conclusion In conclusion, it is evident that the RIBA plan of work 2013 plays an important role in ensuring that the project is carried out in an orderly manner. Some risks exist in stage 0 which involves strategic definition. It is evident that stage 1 has risks which can affect the operations of the project. A contingency allowance will be required for the purposes of taking care of any unexpected events that may occur. The unexpected events may cause delays as well as an increase in the cost of the project. The project register will play an important role in managing the construction process in accordance with section 5. The risk register has identified the risks as well as their potential impacts and severity. The stakeholders who will be involved in the management of the risks have been outlined in the risk register. It is evident that the risk register will contribute to the success of the project. References Barrett, P, 2013, Enhancing Building Performance, Construction Management and Economics, 31(7), 780-781. Chong, H, & Phuah, T, 2013, Incorporation of database approach into contractual issues: Methodology and practical guide for organizations, Automation in Construction, 31, 149-157. Fung, W, 2014, Capability of Building Information Modeling Application in Quantity Surveying Practice, Journal of Surveying, Construction and Property, 5(1). Harding, J, et al, 2014, Do Building Information Modelling Applications Benefit Design Teams in Achieving BREEAM Accreditation? Journal of Construction Engineering, 2014. Leblanc, H, et al, 2013, Developing a planned work process model for housing associations, Engineering, Construction and Architectural Management, 20(3), 232-249. Leon, M, & Laing, R, 2013, Cloud and Computer Mediated Collaboration in the Early Architectural Design Stages: A Study of Early Design Stage Collaboration Related to BIM and the Cloud, In Cloud Computing Technology and Science (CloudCom), 2013 IEEE 5th International Conference on (Vol. 2, pp. 94-99). IEEE. Rezgui, Y, 2013, A governance approach for BIM management across lifecycle and supply chains using mixed-modes of information delivery, Journal of Civil Engineering and Management, 19(2), 239-258. Tuohy, P, & Murphy, G, 2014, Closing the gap in building performance: learning from BIM benchmark industries, Architectural Science Review, (ahead-of-print), 1-10. Zanni, M, 2014, Defining the Sustainable Building Design Process: Methods for BIM Execution Planning in the UK, International Journal of Energy Sector Management, 8(4). Read More