Risk Management Plan - Report Example

Project Name: Risk Management Plan Rev Num Revision Description Prepared / Revised By Reviewed By Approved By Revision Date References Pinnacle Property Management Overview of the Project Pinnacle Project Management is a company that undertakes a number of buildings and construction projects for various clients. They provide a range of services such as buildings design, selection of the contractors, and establishment of electrical and mechanical composition that a building should have as well as establishing the labor requirements for the activities of a building. In this case, the contractors were involved in the construction of 4 bedroom storey buildings. The construction of such buildings is subject to various forms of risks that the project management team has to understand. In this case, the paper illustrates the processes to be followed in investigating various forms of risks likely to be encountered during the project. It illustrates the tools used to measure risks and how the outcomes can be communicated to the respective stakeholders such as project managers. Broad Strategy for Risk Management The purposes of risk management will involve establishment of areas where it has not been possible to achieve effectiveness in the construction of the building so that action can be taken to prevent such risks (Salminen 37). In addition, it illustrates the resources that are applicable in the management of risks in the organization in terms of allocation and use in improvement of the structure of the buildings for the purpose of ensuring the safety of occupants. Summary of Significant Risk Factors Risk Factor (s) Likeli-hood Impact Response Measure (RM) L, M or H L, M, H or C Defective design (incorrect) Inaccurate quantities L C Assessing the available quantities of materials and supplying additional materials Not coordinated design (structural, mechanical, electrical, etc.) M H Improving coordination in the performance of electrical, mechanical and structural functions Lack of consistency between bill of quantities, drawings M M Checking the bill of quantities and supplying the actual materials indicated Rush design L C Asking the constructors to perform tasks with concentration and care Supplies of defective materials M H Establishing the quality of the materials before supplying them Overall Assessment of Project Risk From the overall assessment of the project, it can be deduced that the most risky task that need to be carefully addressed is the Defective design and the supply of inaccurate quantities of materials. This is because; it has been assigned the impact of Catastrophic. Rush Design has also been assigned the impact of Catastrophic; hence there is the need to ensure the constructors of the building implement care during its construction. Other risks that need careful evaluation and prevention are Not Coordinated design of structural, electrical and mechanical and Supplies of defective materials that have been assigned the impacts of High. Various Risk Management Activities 1. Risk Register The following risk register enables understanding of the current status of the storey building in the case study PROJECT REPORT NO: DATE: Current Rank Prior Rank Risk What can happen How it can happen Occurrence AC L M U Impact Ma Hi Mo L Severity Level Existing Controls 1 Defective design (incorrect) Inaccurate quantities Likely – Possible errors during construction L Major – To redesign the sections with defects M H (1) Average 2 Not coordinated design (structural, mechanical, electrical, etc.) Likely – various professionals may not know the tasks to be performed by other professionals M Major –improving communication between various professionals Ma H (2) Average 3 Lack of consistency between bill of quantities, drawings Moderate – misinterpretation of the BQ M Major –Cross checking the bill of quantities before supplying the materials Ma H (2) Good 4 Rush Design Moderate – the need to complete the project quickly L Major – Enhancing care during construction Ma H (3) Good 5 Supplies of defective materials Moderate – Lack of assessment of the materials before purchase M High – Assessing the quality of materials before purchase Ma S (3) Poor 2. File Notes These are note illustrating the progress of the project and areas where success has been achieved. They also illustrate the challenges faced by organizations. The notes can be used as references for establishing areas where risks exist and the need to implement actions. In addition, the filed notes are used to determine the difficulties that were encountered by employees in the process of undertaking tasks of construction so that the possible risks resulting from such activities can be determined. 3. Issues Log The following issues log enables understanding the current risks affecting the building that has been constructed by Pinnacle Property Management RISK MANAGEMENT LOG Column Instructions For Completing This Document   Complete the Project Name, NC, Project Manager Name, and Project Description fields   For each risk identified, complete the following: A ID: The following are the respective ID of various risks likely to be experienced in the building A. Defective design (incorrect) Inaccurate quantities B. Not coordinated design (structural, mechanical, electrical, etc.) C. Lack of consistency between bill of quantities, drawings D. Rush design E. Supplies of defective materials B Current Status: This column should be populated with the risk's current status. o Open: The risk is currently open but is not yet an issue. o Closed: The risk is no longer considered an active project threat and can be closed with or without resolution. A. Defective design (incorrect) Inaccurate quantities (open) B. Not coordinated design (structural, mechanical, electrical, etc.) (open) C. Lack of consistency between bill of quantities, drawings (open) D. Rush design (open) E. Supplies of defective materials (open) C Risk Impact: This column should be populated with the potential impact of the risk if it did become a project issue. Valid options include the following: High, Medium, Low. These are defined as follows: A. Defective design (incorrect) Inaccurate quantities (High) B. Not coordinated design (structural, mechanical, electrical, etc.) (High) C. Lack of consistency between bill of quantities, drawings (Medium) D. Rush design (High) E. Supplies of defective materials (High) D Probability of Occurrence: This column provides the estimated probability that the risk will at some point become a project issue. The probabilities range from 0 to 1 A. Defective design (incorrect) Inaccurate quantities (0.7) B. Not coordinated design (structural, mechanical, electrical, etc.) (0.3) C. Lack of consistency between bill of quantities, drawings (0.5) D. Rush design (0.3) E. Supplies of defective materials (0.8) E Risk Map: This is a calculated field based on the values selected for both Risk Impact and Probability of Occurrence. o Green: LL (Low Probability, Low Impact), LM (Low Probability, Medium Impact), ML (Medium Probability, Low Impact) o Yellow: LH (Low Probability, High Impact), MM (Medium Probability, Medium Impact), HL (High Probability, Low Impact) o Red: MH (Medium Probability, High Impact), HM (High Probability Medium Impact), HH (High Probability, High Impact) A. Defective design (incorrect) Inaccurate quantities B. Not coordinated design (structural, mechanical, electrical, etc.) C.Lack of consistency between bill of quantities, drawings C. Rush design D. Supplies of defective materials F Risk Description: A. Defective design (incorrect) Inaccurate quantities: The design of the building does not meet the standards which ensure its stability B. Not coordinated design (structural, mechanical, electrical): There is no coordination in the order in which various engineering activities are undertaken C. Lack of consistency between bill of quantities, drawings: The bill of quantities show a different information from that provided in the site D. Rush design: The contractors are involved in performance of tasks quickly to complete the project E. Supplies of defective materials: Materials supplied to not meet the required qualities G Project Impact: A. Defective design (incorrect) Inaccurate quantities: Collapse of the building B. Not coordinated design (structural, mechanical, electrical, etc.): Interference with the activities of various engineering professionals C. Lack of consistency between bill of quantities, drawings: Supply of either more or less materials compared with those in the BQ D. Rush design: Likelihood of performing a task using inadequate skills with little qualities of high performance E. Supplies of defective materials: The use of defective materials that result into a building that does not meet the expected standards H Risk Area: A. Defective design (incorrect) Inaccurate quantities: Walls, roof and floor B. Not coordinated design (structural, mechanical, electrical): Electrical systems, water supply and drainage system C. Lack of consistency between bill of quantities, drawings: Construction site D. Rush design: Walls, roof, electrical system, plumbing systems, water supply systems E. Supplies of defective materials: , roof, electrical system, plumbing systems, water supply systems I Symptoms: A. Defective design (incorrect) Inaccurate quantities: lack of consistency in the structural appearance of the building B. Not coordinated design (structural, mechanical, electrical, etc: Absence of electrical components or plumbing components in some sections of the building C. Lack of consistency between bill of quantities, drawings: The supply of more or less materials compared with those stated in the BQ D. Rush design: Completion of some sections of the project too quickly E. Supplies of defective materials: inability of the components to construct a stable building K Risk Response Strategy: A. Defective design (incorrect) Inaccurate quantities: Improving the design B. Not coordinated design (structural, mechanical, electrical, etc.): Increased coordination of tasks between electrical, mechanical and structural professionals C. Lack of consistency between bill of quantities, drawings: creating a BQ that complies to the requirements of the drawings D. Rush design: monitoring workers to ensure they exercise care and do not rush in their activities E. Supplies of defective materials: replacing the defective materials with high quality ones Column Instructions For Changing the Contents of Drop-Down Menus C, D, H Highlight the cell of which you wish to change the content of the drop down menu. From the file menu click "Data" -> "Validation" and change the content of the source field Column Instructions For Filtering Data Any Highlight the header of the cell you wish to filter data on From the file menu click "Date" -> "Filter" ->"Auto Filter" Then select your filter criteria from the drop down menu that appears on your header cell 4. Post implementation Review The following checklist will be used during the post implementation review Building Functional Need Action  Are the benefits of the building delivered as expected?  Has a corrective action plan been put in place to address any shortfall in expected benefits? Operational aspects  Are all aspects of the solution working as envisaged?  Has a corrective action plan been put in place to address any shortfall in operational aspects?  Have all lessons learned been recorded and communicated to the relevant stakeholders? 5. Minutes of Meeting The outcome of the risk assessment will be presented in form of minutes where a report will be created from a meeting of stakeholders as an illustration of the possible risks when the building is c0ompleted. The stakeholders will then use the report of the meeting to create a contingency plan that prevents the possibility of their occurrence. 6. Review Documents These are documents containing information about ongoing activities during the construction of the building and presenting the areas where achievements have been made. In addition, the documents contain the assessments that have been done on the building and areas of weaknesses that have been identified and need to be addressed. Works Cited Skitmore, M., Lyons, T., Project risk management in the Queensland engineering construction industry: a survey, International journal of Project Management, 2004, Vol. 22, No. 1, pp. 51-61 Voetsch, R.J., Cioffi, D.F., Anbari, F.T., Project Risk Management Practices and their Association with Reported Project Success, Proceedings from IRNOP, 2004 Ward, S., Chapman, C., Transforming project risk management into project uncertainty management, International Journal of Project Management, 2003, Vol. 21, pp. 97-105. Read More