Risk Management To Avoid Delays In Road Construction Construction Essay

venture focus To Avoid Delays In avenue Construction Construction EssayThe challenges in the construction manufacturing be of same nature irrespective of geographic locations. The beas of concern in construction look prudence are timely completion of expulsions within the allocated damage, also terrible concerns about resources utilization and honk grooming/control measures.Risk charge is the art or practice of dealing with luck. It includes mean for jeopardize, assessing ( secernateing analyzing) attempt issues, developing assay handling strategies, and monitoring lucks to determine how they have changed. My core area of flora is in the field of engineering consultancy for various road projects in Dubai, which includes project planning and monitoring the performance of these projects, most of the times we face stick ups as hale as cost overrun at these projects. Intension of doing the project works in this area is to form a procedure/systematic cash advance fo r identification and management of various risks in the road project with the help of various feed tools and TOC concepts.The risk management is non new to the organizations where as there is lack of awareness and systematic approach towards it. Risk management plan is successfully be implemented in Banks, Oil Companies, Health care etc also the IS 31000 suggests the frame work which depose be implemented in whatsoever(prenominal) kind of industry irrespective of type place. IS 31000 guide limns can be modified as per the specific industry requirements. (Ref ISO 31000 page v Introduction)Risk is an uncertain event or narrow that, if it occurs, has an effect on at least iodin of the following project objectiveComplete Project in allocated timeComplete the project in allocated budgetMaintain all quality standards as per Quality Management PlanCover entire scope of worksProject has known as well as unknown risks, in which known risks are considered for the risk management plan which can be place, analysed and rejoinder plan can be prepared but to handle unknown risks we can have a contingency plan make pee.The project work pass on require access to passing sensitive data of RTA (Road Transport Authority Dubai ) Parsons Overseas Ltds road projects and aim of these data will be limited up to academic purpose only. working with the various road projects in Dubai, I first derived the basic data which shows how many projects are delayed in terms of time/days as well as how much more the client has to pay for these projects other than the budgeted cost. (Ref chart 1 for Days Chart 2 for Cost)Chart 1Chart 2The data above is interpreted from ten road projects in Dubai which clearly suggests that the delay in days has ca utilise the respective increase in the cost this cost also may include the variation in scope.Causes behind the delay in these kinds of projects are external as well as internal, e.g. the planetary recession has caused client (RTA) to change the policy in terms of executing some projects, changing the priority, suspending some works etc is an external constituent for the road projects where as the delay in real purchase is an internal factor. My work is more focused on the internal operational risks in these projects, where the data base in of ten RTA road projects will be used where as the sample risk management plan will be prepared base on current project R800/6 for analysis purpose. Also the risk management plan for occupational Health safety as well as environmental risks are not considered for this exercise.Objectives behind Risk management plan Encourage Proactive rather than reactive managementBe aware of the need to describe and treat risk throughout the organizationImprove identification of opportunities and threats.Comply with relevant legal and regulatory requirements and international normsImprove reportingImprove somatic governanceImprove stakeholders confidence trustEstablish reliable basi s for decision making and planningImprove viewEffectively allocate and use resources for risk treatmentImprove operational effectiveness and efficiencyImprove incident management and preventionMinimize lossImprove organizational larnRISK MANAGEMENT STRATEGYPARSONS GOALSLead industry in SafetyContinuously enhance the value of Parsons CorporationMaintain sustainable growth conformable with the demand in from each one marketGrow consolidated net operating income and sales at least 10% annuallyMaintain a strong balance sheet.PARSONS STRATEGYProvide responsive, high quality service to our customersDevelop long term relationships with customers who share our values.Promote best value solutions to our customersThis record describes how we will perform the job of managing risks for RTA road projects in Dubai. It defines roles and responsibilities for participants in the risk processes, the risk management activities that will be carried out, the schedule and budget for risk management activities, and any tools and techniques that will be used.The objective behind this plan is to give systematic approach to identification, analysis, and monitor the various risks involved in the construction of Road/Bridge projects in Dubai and to avoid delay in the project.The risk identification at design phase is not considered for the exercise largely emphasis is on construction activities.As a part of continuous improvement this plan has to be updated bimonthly or whenever necessary modifications are need to be done, with the consent of Risk Management team.SCOPE OF SAMPLE PROJECTThis project is a component of the overall R800 Project Ras Al Khor Crossing Corridor. This Contract matches R800/5 Contract on one side. It involves the construction of a major grade-separated commutation to replace the existing Interchange No. 1 at Shaikh Zayed Road. The new interchange involves the construction of several couples and underpasses to allow free flow of barter and caters for the h igh volumes of traffic that will access new developments such as the Burj Dubai Developments, business organization Bay and Dubai International Financial Center (DIFC) from Shaikh Zayed Road. The bridges of this project are connected to the elevated viaducts above Doha Road that will be built as part of Contract R800/5s. The existing Interchange No. 1 structure will be demolished as part of this projectThe project also include the construction of roadway signage and pavement marking, landscaping, street lighting, irrigation ducts, diversion and/or protection of services such as DEWA-ED, DEWA water supply, Etisalat, Sewerage, Storm Drainage and Irrigation Systems. take aimM/s Parsons Overseas LimitedContractorM/s Salini Costruttori S.p.A.Contract Sum (Dhs.)AED 617,871,651.00Project Commencment regard11 October 2006Contractual Completion Date28 March 2009 ( Work is in Progress )Time of Completion730 DaysROLES AND RESPONSIBILITIESThe risk management team is not a separate task fro m the project management it is an integral part of the project and requires team work. So as the construction team at project site is the part of risk management plan, where as to organize this work following members are assigned certain responsibilities.TEAM MEMBERRESPONCIBILITYPROJECT MANAGERRESIDENT ENGINEER forge a risk management teamReview the risk management reportsDecide a mitigation / contingency plan.Decision making.Review the exposure assessments for any new risk items.The Project Manager and other members of the Project Management team shall meetbiweekly suggestedto review the status of all risk mitigation efforts.RISK officeholderPLANNING ENGINEERThe Risk Officer has the following responsibilities and authorityCoordinating risk identification and analysis activities.Maintaining the projects risk list.Notifying project management of new risk itemsReporting risk resolution status to management.Project Member Assigned a RiskCivil send, Structural EngineerQuantity surveyo rMaterial EngineerThe Risk Officer will assign each newly identified risk to a project member.Assess the exposure and probability for the risk factor and report the results of that analysis back to the Risk Officer.Assigned project members are also responsible for performing the steps of the mitigation plan and reporting leave to the Risk Officer biweekly.ROJECT RISK MANAGEMENT PROCESSESPLAN RISK MANAGEMENTThis is the controlled document to be prepared which suggests how to conduct risk management for projects. Risk planning is important to provide enough resources time for risk management activities. To start the risk planning the following major inputs are necessaryScope of projectSchedule management planCost management planCommunication management planThe output of this process in a Risk Management Plan which can be modified as the project progresses also as the project scope changes.Risk management plan includesMethodology How to approach the risks, what are the tools to be u sed, data sources to be used in order to perform risk management.Roles Responsibilities Risk management is not an individual task it is a team work. Organization chart to be prepared.Budgeting Assign resources, estimates funds needed for risk management in case of contingency plans if any. This part we are not considering at present for our risk management plan assuming the budgeting is readily available.Timing Establish the review for RMP during tenure of the project as well as establish a mile stone to prepare and approve RMP before the commencement of actual project woks.Risk Category Prepare a Risk Break down structure that can provide a systematic approach to identify risks from different categories from the RBS.Risk probability, impact and matrix The risks for qualitative as well as quantitative analysis can be measured as a defined scale and the specific combinations can be rated for planning response.Reporting Out come of the risk management processes to be documente d and reported. tracking How risk activities will be recorded for the benefit of the current project as well as for future needs and lessons learned, as well as the audit of the risk management processes.IDENTIFY THE RISKSThe risk identification teaching is to be collected from all departments using tools such as document review, unstructured interviews, check list, assumptions, and experience from old projects.The risk team can elicit this task to all other projects team members in identifying the risks wherefore it can be compiled together to prepare a risk register. The risk identification can be initiated by forming a risk breakdown structure.RISK BREAK DOWN STRUCTUREAs per the project scope and nature of the project the risk breakdown structure can be prepared, for the sample project the risk are identified using the following risk breakdown structure.RISK chargeOnce the risk break down structure is final then the risk identification can be done and can be listed in the fo llowing format called Risk Register.Sr NoRiskRisk WBSProbabilityRemark1132 kv electic communication channel relocationObs return0.9Obstructing NW bridge21200mm dia water lineObs Utility0.9Bridge work3Sewerage lineObs Utility0.9Can delay the traffic diversion4Etisalat LineObs Utility0.75Obstructing NW bridge5MobilizationRes- Manpower0.4Overall project6Trial deep worksInt- Authority Approvals0.8Utility Relocation works7 trading Diversion scheme implementationObs- Traffic Diversion0.9Utility Relocation as well as bridge works8Toyota BuildingObs- Expropriation0.8Traffic Diversion9Diversion of the Existing 600mm 300mm Water DiversionObs Utility0.8affecting bridge UW310Programme unveiling and approvalPM- Planninng0.8Overall project11132 Kv electric line, water tubing valves , irrigation pipe valves , long path materialInt- Material0.8Relocation works12Soil investigation , Pilling, Rebar subcontractor finalizationInt-Subcontractor0.8Road Structure works13Plant machinaryRes- Machi ne0.414 value line crossing along Sheikh Zaid RoadInt-Method Statement0.3Special works required15Change in designInt-Scope0.5QUANTITAVIE RISK summary ( Monte Carlo Simulation )Monte Carlo simulation is a statistical method used to produce number of trials to determine the expected value of a hit-or-miss variable.The Risk register mentioned above indicates a variable Risk Probability the major task in a risk management plan is to reckon the probability right. The above variable can range from minimum to maximum probability limits which are taken from individual interviews as well as the experts opinion. go of the simulation exercise in to derieve Expected probability value. This exercise is done on MS Excel separatly results of which are attached in Appendix DFirst step is to prepare a table as shown below whichSr NoRiskProbability MinimumProbability Maximum1132 kv electic line relocation71021200mm dia water line6103Sewerage line5104Etisalat Line48.55Mobilization446Trial Trench works697Traffic Diversion scheme implementation798Toyota Building699Diversion of the Existing 600mm 300mm Water Diversion6910Programme submission and approval2211132 Kv electric line, water pipe valves , irrigation pipe valves , long go away material4612Soil investigation , Pilling, Rebar subcontractor finalizatin4713Plant machinary3614Utility line crossing along Sheikh Zaid Road4615Change in design46Once the table is ready the data is transferred to the excel sheet to perform simulation. The results from the simulation are summarized belowSr NoRiskProbability MinimumProbability MaximumProbability From Simulation1132 kv electic line relocation7108.521200mm dia water line6108.03Sewerage line5107.54Etisalat Line48.56.25Mobilization444.06Trial Trench works697.57Traffic Diversion scheme implementation798.08Toyota Building697.59Diversion of the Existing 600mm 300mm Water Diversion697.510Programme submission and approval222.011132 Kv electric line, water pipe valves , irrigation pipe val ves , long lead material465.012Soil investigation , Pilling, Rebar subcontractor finalizatin475.513Plant machinary364.514 service line crossing along Sheikh Zaid Road465.015Change in design465.0The above simulation is just a guide line to reach to a specific probality figures where as there are limitations to this method , one it is assumed that these variables for each risk are independent and analysed independently but practically there can be relationship between two or more risk issues.PERFORM QUALITATIVE RISK ANALYSISRisk probability and Impact MatrixWith the help of risk register, risk management plan the risk will be identified for qualitative analysis. These risks are listed and assigned a risk rating using Risk probability and Impact Matrix.Aim of this method is to identify the critical risks based Risk rating which represents frequency of occurrence and the risk probability it self. The listed risks are then categorized as per the matrix established below.The poesy in the matrix represents the risk numbers from the risk register, from the above matrix we can establish the below categories High Risk, Medium Risk Low Risk.Sr NoRiskRisk RatingProbabilityRisk Type1132 kv electic line relocation88.5High21200mm dia water line78.0High3Sewerage line67.5High4Etisalat Line46.2High6Trial Trench works57.5High7Traffic Diversion scheme implementation88.0High8Toyota Building37.5High9Diversion of the Existing 600mm 300mm Water Diversion87.5High15Change in design65.0High10Programme submission and approval32.0Low5Mobilization54.0Medium11132 Kv electric line, water pipe valves , irrigation pipe valves , long lead material45.0Medium12Soil investigation , Pilling, Rebar subcontractor finalization25.5Medium13Plant machinery44.5Medium14utility line crossing along Sheikh Zaid Road35.0MediumROOT CAUSE / CURRENT REALITY TREE ANALYSISThe above identified and categorized risk need to be further analysed to identify the root cause in order to avoid a potential delay or prepare a mitigation plan or to prepare a recovery plan.The above major risks are here classified by authoritative reality tree method Appendix E and thePlan Risk replyThe process of developing options and actions to enhance opportunities and reduce threats to project objective.Monitor Control RiskThe process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk processes effectiveness throughout the project.Indentify RisksThe risks to be identified based on historical events of other projects as well as the expertise opinion on the current project.1. Risk management methodology to be usedRisk Identification The objective behind this is to prepare comprehensive list of risks based on those events that might enhance, prevent, degrade or delay the achievement of objectives say earlier. Also consideration has to be given to all risks whether they are with in the control or not in control.Risk Assessment Questi onnaire, historical delay events/reports of other projects will be used to identify the risk. The questionnaire will be asked to the Design Engineers, Resident Engineer, Civil Engineer, Structural Engineer, Quantity Surveyor, Quality/Material Egg, provision Engineer etc. The data to be entered as per the formats attached in Appendix 1A.B. Categorize Risks The data collected from risk identification templates will be categorized as per the risks High Risks, Medium Risks, Low Risks also the probability of risk occurrence to be mentioned. The data to be entered as per the formats attached in Appendix 1B.Risk Impact Assessment For the each risk identified, the probability of risk occurrence for the particular risk will be established then asses impact of the same in terms of cost and time delay.Monte carols simulation, Decision tree analysis, and Failure Mode effect analysis to analyze risks one of these tools will be used to analyze the risk and forecast the impact.D. Prioritize Risk s Risks that meet the threshold criteria will be recorded in the Risk Response Plan.E. Risk Response Planning For each risk in the Risk Response Plan, determine the options and actions to reduce the likelihood or consequences of impact to the projects objectives. Determine the response based on a cost/benefit analysis (cost vs. expected effectiveness). Describe the actions to be taken to mitigate the risk Describe the actions to be taken when the risk event occurs (contingency plan) Assign responsibilities for each agreed upon response. Assigned a due date where risk responses are time sensitive Incorporated this information into the Risk Response PlanF. Monitor Risk Document the dates and the actions taken to mitigate the risk Document the actions taken when the risk event occurred (contingency plan) Document any subsequent actions taken Incorporate this information into the Risk Response PlanRefer appendix 1F for the templates. Establish systematic reviews and schedule them in the project schedule. These reviews are to ensure All of the requirements of the Risk Management Plan are being implemented Assess currently defined risks Evaluate effectiveness of actions taken locating of actions to be taken Validate previous risk assessment (likelihood and impact) Validate previous assumptions State new assumptions Identify new risks Risk Response Tracking CommunicationsH. Control Risk Validate mitigation strategies and alternatives. Take corrective action when actual events occur Assess impact on the project of actions taken ($$, time, resources) Identify new risks resulting from risk mitigation actions Ensure the Project Plan (including the Risk Management Plan) is maintained Ensure change control addresses risks associated with the proposed change edict the Risk Assessment Questionnaire and other risk management documents to capture results of mitigation actions. Revise Risk Response Plan Communications4.8. AssumptionsOnly the project link risks are considered, the corporate issues, economy risks are not considered.Separate risk management plan is to be prepared for Occupational Health, Safety Environment as per IS14000 18000.The other significant assumptions to be mentioned if any.The application of the risk management plan is only limited to the construction workThe objective behind risk management exercise is to implement a plan for a new project where as for dissertation purpose I have taken a old, ongoing project which gives realistic picture of delays happened so far and helps in analysis.