Risk management is an important aspect of project management. When working on any project there can be uncertainties that arise that could either have a positive or negative impact on the project. Preparation is essential in situations like these. Having a risk management plan ensures that any adverse situations are dealt with, and that small issues are prevented from turning into emergencies. This paper provides a risk management plan for a house construction. The main assumption here is that the house is mine, and the risk plan is developed as relates to my understanding of what the major kiss are.
Thus the risk plan is a ‘Sponsors risk management plan’ as opposed to the Contractors’ risk management plan. RISK MANAGEMENT PLANNING The two main methods of risk management are the ATOM process and the MAMBO Guide process. Both methods will prove effective but for this project the MAMBO process will be applied. A structured approach in Risk management is important because it makes the process way easier to follow. Figure 1; Risk management plan To create the risk management plan, a scope statement and WEBS for the project have to be created. Project Scope Statement
PROJECT TITLE Family House Construction PROJECT PURPOSE/ OBJECTIVE This project is being undertaken to establish a new family residence. The house will be built on a 4 acre lot located at a lot in North Dallas and involves planning, designing and building the house. All work is expected to be completed within 6 months with a cost not exceeding 250,000 dollars. The construction will be overseen by the Phoenix Home Builders who may us baccarat components of the construction effort. The project is to commence on 5th April 201 5 and will be completed no later than 15 October 015.
PROJECT DELIVERABLES Layout drawings including a 3-D rendering of building and 2-D technical drawings in AUTOCRAT format A 2600 sq Ft 3-bedroom, 3-bathroom finished house A sheet rocked finished garage Installed Kitchen appliances to include refrigerator, oven, dishwasher and microwave Installed Laundry Appliances ;Washer and Dryer High-efficiency gas furnace with programmable thermostat MILESTONES Architectural drawings complete and approved Building Permits Approved Lot preparation and clearing complete Foundation excavation complete, Foundation poured, foundation set
Interior and Exterior wiring complete HAVE complete Interior and Exterior plumbing complete Interior and exterior Finish Complete Acceptance Review and Final inspection PROJECT REQUIREMENTS Office must meet local building codes. All windows and doors must pass INFER class 40 energy ratings. Building meets Electrical specifications Building meets Structural specifications Building meets Mechanical/HAVE specifications Building meets Security specifications Building meets Environmental specifications Structure must pass seismic stability codes. PROJECT CONSTRAINTS Cost: Budget is pre-defined (Fixed).
Time: Project completion By October 1 5th 201 5 Legal: Restrictions and regulations placed by local council Obtain pre-construction, final construction, and register business: Cannot start work without preconception permit. LIMITS AND EXCLUSIONS Site work limited to Monday through Friday, 8:00 A. M. To 6:00 P. M. Contractor reserves the right to contract out services. Contractor responsible for subcontracted work Air conditioning is not included but preparing is included Owner responsible for landscaping ACCEPTANCE CRITERIA Meet all deliverables within scheduled time and budget tolerances.
Risk management plan in case of any schedule delays and budget overruns Accomplish the project overall performance within the project scope. PROJECT ASSUMPTIONS The final completion date of the project will be October 15th 2015 Cost of the resources accounted for in plan will be approximately the same at the time of the implementation of the project, if plan is approved. Cost: worker compensation are based on an err and rah week Support and attention will be provided by the sponsor Resources will be available to adequately staff the project AUTHORIZATIONS
The Scope Statement, WEST, Project Schedule, Project Budget and Risk Management Plan are approved by the: Project Manager project Sponsor Project performance baseline changes will be approved by the: Project Sponsor Project Manager Project deliverables will be approved/accepted by the: Project Sponsor Key Stakeholders Table 1 Scope statement authorization WEBS For House construction 1. 0 SITE PREPARATION 1. 1 Layout 1. 2 Grading 1. 3 Excavation 2. 0 FOUNDATION 2. 1 Erect structure 2. 2 Pour Foundation 2. 3 Remove forms 3. 0 FRAMING 3. 1 Frame exterior walls 3. 2 Frame interior walls 3.
Install roofing Trusses 4. 0 UTILITIES 4. 1 Finished Electrical; install wiring, outlets, fixtures 4. 2 Finished plumbing install water lines, gas lines, B/K fixtures 5. 0 WALLS 5. 1 Hang shoetrees 5. 2 Tape and bed 5. 3 Install Drywall 6. 0 ROOFING 6. 1 Install sheathing 6. 2 Install shingles 6. 3 Install vents 7. 0 FINISH WORK 7. 1 Install Appliances 7. 2 Install Carpet 7. 3 Paint walls 7. 4 Install cabinets 7. 5 Install furnace 7. 6 Lay tile 8. 0 LAND ESCAPING RISK IDENTIFICATION It would be difficult to have a risk response plan without having identified the risks to the project.
Identifying the risks helps us know how to manage them this reducing their impacts (or enhancing them if they are positive risks). Using the MAMBO Guide, the risk identification is done after the risk management planning has been completed. Some methods used to identify risks are; Brainstorming, checklists, Delhi, Nominal group, STOW, Historical records, How diagrams among others. The methods used for this project were brainstorming (by the construction team and sponsor) and Expert interview; NEGATIVE RISKS POSITIVE RISKS Fixed Schedule (schedule risk) Fixed schedule (early completion)
Fixed Budget (cost risk) ; if more money is needed to complete the project Fixed budget (if less money is used to complete the project); under budget Design variation(cost risk) ;more expensive design, higher cost Design variation (if cheaper design, lower cost) Natural events beyond control e. G weather,(bad weather increases project timeline) Natural events egg. Weather (good weather throughout may lessen project timeline) Price inflation of Construction materials( higher prices) Price inflation (lower prices) Delivery on time and schedule Contractual risk (competency of subcontractors) Competency of subcontractors
Technology (new Technology might prove difficult if not properly understood) Technology (New technology can hasten process) Change in laws and regulations (might hinder construction for a while) Change in laws and regulations( might have a positive effect on project) Excessive approval procedures for permits Early completion of a project milestone Equipment Breakdown General safety accident occurrence Unavailability of sufficient skilled labor Inadequate/ insufficient site information (soil test and survey report) Environmental matters poor project planning and Control Delay in material delivery
Ambiguity ties, inconsistency of specifications Improper construction methods/defective works Table 2; risk identification QUALITATIVE RISK ANALYSIS After identifying the risks, it is important to analyze them and rank them. This is done through assessing each risk for its impact and its probability. Further the risks have to be categorized and assigned to different individuals. When all this was done, a risk register was developed. The risk register assists in documenting the qualitative risk analysis, quantitative risk analysis, and risk response planning. No Risk Probability Impact Strategy(accept/control)