Risk Management in Construction Projects

There is never enough time!   That’s the typical excuse.  And its true.  If you are a project manager of a construction project, time is one thing that is always in too short supply.    So for most people, a risk analysis or risk management practise and procedure is just another task that is left on the to-do list.

So here is the compelling reason for every project manager, including you, to do a risk analysis and risk management:   you want to go home at night at a reasonable hour.  It will save you time in the long run.

Here is how:

Every experienced PM and site manager  already know where most of the risks are.  There is just no good place to record them and no process to address them. During planning stages, you could actually plan around them or put in the contingency.  If you identify it as a contingency, precon or management will probably try to give it away before the project starts.

To communicate the risk, you need to record it, present it and explain it.  A good risk management tool, such as RISKMP  will allow you to do just that.

Careful examination of the project plan, scope, time, costs will allow you to identify the items that have some risk associated with them.  A good risk management tool or process will allow you to record the items that you identified, analyse them and arrange them in order of probability and impact, to develop contingency plans, and then finally to track and monitor the risks and manage the contingency plans as you go through the project. Now you are anticipating what can go awry and being proactive.  Since you know what is coming, you can plan to get it done as it needs to be done.  This is not about fire fighting.   You are making sure that the flammable substances are not ignited in the first place and thats how you get to go home at a reasonable hour.

Risk Management is planning ahead for those things that can go awry and putting a plan in place to address them.  Basically you are making sure that first of all there is a fire escape and secondly that the fire escape is not locked or blocked by boxes of stuff.  Every project manager knows that this is never a waste of time.

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