Question

Case Scenario Analysis:

Managing risks in construction projects has been recognized as a very important management process in order to achieve the project objectives in terms of time, cost, quality, safety and environmental sustainability. A study aims to identify and analyze the risks associated with the development of construction projects from project stakeholder and life cycle perspectives. The study identified following risk factors.

1.Tight project schedule

2.High performance/quality expectations

3.Low management competency of subcontractors

4.Incomplete or inaccurate cost estimate

5.Lack of coordination between project team members

6.Unavailability of sufficient professionals and managers

7.Serious air pollution and noise caused by construction activities

Develop understanding on how and on what level three factors of your choice can generate risk in achieving project objectives. Finally, identify a set of measures that you as a project manager would like to plan and implement to reduce risk and ensure achievement of project objectives and contribute in business development.

Hint: Your answer should include the way the factor develop risk in the achievement of project objectives and its level. Finally, you need to develop measures or actions you would like to implement to manage and/or minimize the risk.

Answer 1

The three most important factors which can generate risk in achieving project objectives and set of measures :

1. Improper feasibility study and Improper utilization of resources :

Before a starting project management always perform a feasibility go through of the project and prepare feasibility report. Under this the serial of all the activities, amount of resources that will be allocated to the different activities and time of activities are projected, cost estimates are prepared etc.

So, Improper feasibility check lead to improper resources utilization for example under the feasibility study a part is to identify the avoidable and unavoidable delays in the activities. So if the avoidable delays are minimised we come up with better resources utilization and time of activities will also come down.

Measures :

For the pre planning part of the project which most of the management teams seeks to be just a compulsion and doing. We have to make focus on all the aspects which are physical, geographical, resources based, time based etc in the pre planning phase only and conduct the feasibility study properly for the implementation of the above.

2. Poor or no environmental impact assessment :

Now a days environment is a big issue and government is very focused toward it. If project harms environment directly or indirectly while you are awared or unawared it can lead to revocation of the project.

Projects like constructions pollute environment as transmission of particulate matter to the air, emissions from the construction vehicles and machineries, noise pollution, local people unacceptance toward your project etc all comes under the impact which needs to be assessed for the success of the project.

Measures : As a project manager we can hire a team of experienced environmental consultants for the study of environmental aspects related to the project and prepare environmental impact assessment reports in order to get environmental clearance from the pollution board.

3. Not prepared for the contingencies during the project :

Contingency for construction projects:

i) Design contingency : It addresses the changes during the design process for factors such as incomplete scope definition and inaccuracy of estimating methods as well as data.

ii) Construction contingency : Addresses the changes during a construction process. Under a traditional procurement arrangement, the contract typically contains a variation clause to allow for changes and provide a mechanism for determining and valuing variations.

So as per the pre planned project path have gocreated by us we have gone through everything and then prepared the estimate by various project estimation tools like CPM or PERT based modelling but in actual conditions due to any change or our modelling is not working efficiently can prove detrimental to the project.

Measures : Managers should always have to conduct checks and should have a keen observation toward the project working efficiently as pre planned or if not then be ready for the contingencies solution and have acceptability don't only stick to preplanned path and by doing the changes timely can take our project toward efficiency and on time completion.