Risk Management To Avoid Delays In Road Construction Construction Essay

stake trouble To Avoid Delays In Road spin Construction EssayThe challenges in the social organisation pains atomic number 18 of aforesaid(prenominal) nature irrespective of geographic locations. The sur reflexion argonas of concern in construction control caution atomic number 18 timely completion of flips within the allocated constitute, also salutary concerns about resources utilization and throw endning/control measures. jeopardy c atomic number 18 is the art or practice of dealing with jeopardy. It includes political platformning for gamble, assessing ( pick outing analyzing) luck issues, maturation lay on the bankers bill handling strategies, and monitoring lucks to determine how they arrive changed. My core area of pee-pees is in the field of engineering consultancy for various driveway images in Dubai, which includes communicate be afterning and monitoring the performance of these proposals, most of the times we face delays as intimately up as cost overrun at these work outs. intension of doing the assure work in this area is to form a mathematical process/systematic overture for identification and prudence of various perils in the course project with the help of various lean tools and TOC concepts.The run a attempt steering is non spick-and-span to the organizations where as in that location is lack of awareness and systematic get towards it. peril direction plan is successfully being implemented in Banks, Oil Companies, Health care etc also the IS 31000 suggests the frame work which advise be implemented in every kind of industry irrespective of type place. IS 31000 guide originations can be modified as per the specialized industry requirements. (Ref ISO 31000 page v Introduction) try is an uncertain event or power that, if it bumps, has an event on at least maven of the following project objectiveComplete puke in allocated timeComplete the project in allocated budgetMaintain all quality standa rds as per tint wariness intendCover entire scope of works confinement has cognise as thoroughly as isolated lay on the lines, in which known risks are considered for the risk management plan which can be determine, analysed and reaction plan can be mastermindd but to handle unknown risks we can have a contingency plan ready.The project work testament require access to highly sensitive data of RTA (Road tape transport Authority Dubai ) Parsons Overseas Ltds road projects and use of these data pass on 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(prenominal) the client has to pay for these projects another(prenominal) than the budgeted cost. (Ref graph 1 for Days map 2 for Cost)Chart 1Chart 2The data above is taken from ten road projects in Dubai which clearly suggests that the delay in days has ca employ the respective increase in the cost this cost also may include the variation in scope.Causes merchantman the delay in these kinds of projects are foreign as well as internal, e.g. the global 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 factor for the road projects where as the delay in sensible bribe is an internal factor. My work is more focused on the internal operable risks in these projects, where the data base in of ten RTA road projects allow for be used where as the sample risk management plan will be spend a pennyd based on ongoing 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 exercising.Objectives tush peril management plan Encourage proactive rather than reactive managementBe aware of the need to identify and treat risk throughout the organiza tion ameliorate identification of opportunities and threats. keep abreast with relevant legal and regulatory requirements and international normsImprove reportingImprove corporate governanceImprove stakeh white-haireders confidence trustEstablish reliable basis for decision making and planningImprove Controlin effect allocate and use resources for risk treatmentImprove operational military strength and efficiencyImprove incident management and preventionMinimize deprivationImprove organizational learning assay MANAGEMENT STRATEGYPARSONS GOALS control industry in SafetyContinuously enhance the value of Parsons societyMaintain sustainable growth consistent with the demand in individually marketGrow consolidated net ope judge income and sales at least 10% annuallyMaintain a strong counterpoise sheet.PARSONS STRATEGYProvide responsive, high quality service to our customersDevelop abundant term relationships with customers who share our values.Promote best value solutions to our customersThis document 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 reserve 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 institution phase is not considered for the exercise more often than not emphasis is on construction activities.As a part of nonstop improvement this plan has to be updated bimonthly or whenever necessary modifications are need to be done, with the consent of chance Management squad.SCOPE OF strain PROJECTThis project is a component of the overall R800 Project reticular activating system Al Khor Crossing Corridor. This Contract matches R800/5 Contract on one side. It involves the construction of a major grade-separated interchange to replace the existing shift No. 1 at Shaikh Zayed Road. The new interchange involves the construction of some(prenominal) couplets and underpasses to allow free flow of relations and caters for the high volumes of traffic that will access new developments such as the Burj Dubai Developments, Business verbalize and Dubai International Financial Center (DIFC) from Shaikh Zayed Road. The bridges of this project are affiliated to the elevated viaducts above Doha Road that will be streng consequentlyed 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, Etisalat, gutter, storm Dra inage and Irrigation Systems. guideM/s Parsons Overseas Limited contractorM/s Salini Costruttori S.p.A.Contract Sum (Dhs.)AED 617,871,651.00Project Commencment Date11 October 2006Contr veritable Completion Date28 March 2009 ( Work is in Progress )Time of Completion730 DaysROLES AND RESPONSIBILITIESThe risk management team up is not a separate task from the project management it is an intrinsic 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 specialiseed certain responsibilities. group MEMBERRESPONCIBILITYPROJECT MANAGERRESIDENT ENGINEERForm a risk management teamReview the risk management reports conclude 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 look back the status of all risk mitigation eff orts.RISK OFFICERPLANNING ENGINEERThe Risk officer has the following responsibilities and dictumCoordinating 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 organise, Structural EngineerQuantity surveyorMaterial EngineerThe Risk Officer will assign apiece newly identified risk to a project member. respect the exposure and luck for the risk factor and report the results of that analysis linchpin to the Risk Officer.Assigned project members are also responsible for acting the steps of the mitigation plan and reporting progress 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 valuable to provide enough resources time for risk management activities. To start the risk p lanning the following major inputs are necessaryScope of projectSchedule management planCost management plan colloquy 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 used, 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 look 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 dash down structu re that can provide a systematic approach to identify risks from different categories from the RBS.Risk luck, impact and matrix The risks for qualitative as well as quantitative analysis can be measurable as a defined scale and the specific combinations can be rated for planning response.Reporting Out come of the risk management processes to be documented and reported.Tracking How risk activities will be recorded for the well-being of the current project as well as for future call for and lessons learned, as well as the audit of the risk management processes. get a nervous strain THE RISKSThe risk identification study is to be collected from all departments apply tools such as document review, unstructured interviews, check list, assumptions, and experience from old projects.The risk team can extend this task to all other projects team members in identifying the risks then it can be compiled together to prepare a risk register. The risk identification can be initiated by f orming a risk division structure.RISK BREAK DOWN anatomical 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 expressOnce the risk break down structure is final then the risk identification can be done and can be listed in the following format called Risk Register.Sr NoRiskRisk WBSProbabilityRemark1132 kv electic railroad relocationObs gain0.9Obstructing NW bridge21200mm dia piddle lineObs returns0.9Bridge work3Sewerage lineObs Utility0.9Can delay the traffic diversion4Etisalat LineObs Utility0.75Obstructing NW bridge5militarisationRes- Manpower0.4Overall project6Trial infringe worksInt- Authority Approvals0.8Utility motility works7 art deflection purpose carrying into actionObs- Traffic Diversion0.9Utility Relocation as well as bridge works8Toyota BuildingObs- Expropriation0.8Traffic Diversion9Diversion of the existe nt 600mm 300mm Water DiversionObs Utility0.8affecting bridge UW310Programme entry and approvalPM- Planninng0.8Overall project11132 Kv electric line, pissing squall valves , irrigation pipe valves , long lead stuffInt- Material0.8Relocation works12Soil investigation , Pilling, Rebar subcontractor finalisationInt-Subcontractor0.8Road Structure works13 workings machinaryRes- Machine0.414utility line crossing on Sheikh Zaid RoadInt-Method literary argument0.3Special works required15Change in designInt-Scope0.5QUANTITAVIE RISK ANALYSIS ( Monte Carlo Simulation )Monte Carlo mask is a statistical method used to produce number of trials to determine the expect value of a random changeable.The Risk register mentioned above indicates a variable Risk Probability the major task in a risk management plan is to ascertain 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 . Aim of the simulation exercise in to derieve Expected probability value. This exercise is done on MS Excel separatly results of which are link in adjunct D counterbalance step is to prepare a table as shown down the stairs 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 lead material4612Soil investigation , Pilling, Rebar subcontractor finalizatin4713 deeds machinary3614Utility line crossing on 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 MaximumProba bility 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 valves , long lead material465.012Soil investigation , Pilling, Rebar subcontractor finalizatin475.513Plant machinary364.514utility 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 reach MatrixWith the help of risk register, risk m anagement plan the risk will be identified for qualitative analysis. These risks are listed and appoint 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 categorised as per the matrix established below.The numbers in the matrix represents the risk numbers from the risk register, from the above matrix we can establish the below categories laid-back Risk, Medium Risk Low Risk.Sr NoRiskRisk RatingProbabilityRisk Type1132 kv electic line relocation88.5senior high school21200mm dia water line78.0 broad(prenominal)3Sewerage 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 / ongoing 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 recuperation plan.The above major risks are here classified by modern reality tree method Appendix E and thePlan Risk answerThe process of developing options and actions to enhance opportunities and disregard threats to project objective. observe 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, repose or delay the achievement of objectives stated earlier. Also consideration has to be given to all risks whether they are with in the control or not in control.Risk Assessment Questionnaire, historical delay events/reports of other projects will be used to identify the risk. The questionnaire will be asked to the Design Engineers, resident physician Engineer, Civil Engineer, Structural Engineer, Quantity Surveyor, Quality/Material Egg, readying 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 consider risks one of these tools will be used to analyze the risk and forecast the impact.D. Prioritize Risks 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. As signed a cod date where risk responses are time sensitive Incorporated this information into the Risk Response PlanF. Monitor Risk history 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 quantify effectiveness of actions taken Status of actions to be taken Validate preliminary risk assessment (likelihood and impact) Validate previous assumptions State new assumptions get word 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 actio ns 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 alteration the Risk Assessment Questionnaire and other risk management documents to capture results of mitigation actions. Revise Risk Response Plan Communications4.8. AssumptionsOnly the project tie in risks are considered, the corporate issues, economy risks are not considered.Separate risk management plan is to be prepared for Occupational Health, Safety purlieu 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 i n analysis.