risk management in the construction industry of final

8/9/2019 Risk Management in the Construction Industry of Final

1/64


2/64

Members


3/64


4/64


5/64


6/64

What is a Risk?What is a Risk?

Risk

Unknown

Unexpected

Undesirable

Unpredictable

endeavor

action


7/64


8/64


9/64


10/64


11/64


12/64

Enshassi and Mosa( Palestine )

Tauha Ali ( Pakistan)

SCOTT BAKER ( UK)

Syed M. Ahmed ( Florida)

Anna Klemetti ( Finland)

Rizwan A. Farooqi (Pakistan)


13/64

Risks in ConstructionRisks in Construction

Contractor

Supplier

Project

ManagerEngineer

Architect

Client

QuantitySurvey

Inspector`

SocialFactor s

Political Factors

Economic Factors

E

nviron

mental

Fact o

rs


14/64


15/64


16/64

Risk Planning

Risk Assessment

Risk Identification Risk Analysis

Risk Handling

Risk Monitoring


17/64


18/64


19/64


20/64


21/64

Common PracticeObjective sources

Subjective sources


22/64

Delphi Method

Nominal Group technique


23/64


24/64


25/64

Study of the Identified Risks

Information to Judge the probabilityof Occurrence, if risk occurs


26/64

Experience

Data from Relevant lessonsExpert judgments


27/64

Cost evaluation

Schedule Evaluation


28/64

High Risk

Moderate RiskLow Risk


29/64


30/64

RISK

RESPONSE


31/64

Risk response/handling is a processthat identifies, evaluates, selects and

implements options in order to setthe risk at the acceptable level.The critical part of risk response

involves refining and selecting the

most appropriate handling option(s).


32/64

Can the option be feasiblyimplemented?

What is effectiveness of handlingoption? Is the option affordable? Is the time available?


33/64

It includes:# Risk Assumption

# Risk Avoidance# Risk Control# Risk Transfer


34/64

Risk assumption (i.e. retention) is anacknowledgment of the existence of

a particularly risky situation and aconscious decision to accept theassociated level of risk withoutengaging in any special efforts to

control it. It is suitable for the low risks.


35/64

Risk avoidance involves a change inthe concepts, requirements,

specifications and/or practices toreduce risk to an acceptable level. It eliminates the sources of high risk

and replaces them with a low risk

solution.


36/64

Risk control is an attempt to reduce,mitigate the risk.

It manages the risk in a manner thatreduces the likelihood andconsequence of its occurrence.


37/64

Risk transfer includes sharing of therisk or entire transfer of the risk.

Examples of risk transfer includesthe use of insurance, warranties,bonding (e.g. performance bonds,payment bonds).


38/64

RISK MONITORING


39/64

Risk monitoring is the process thatsystematically tracks and evaluatesthe performance of risk handlingactions against established metricsthroughout the acquisition process.


40/64

The key to the risk monitoringprocess is to establish a cost,

performance and schedulemanagement indicator system overthe program/activity that can beused to evaluate the status of theprogram/activity.


41/64

Selection of topic


42/64

Selection of topic.

Literature Review.

Research Technique

Design Of Questionnaire

Data Collection & Analysis

Conclusion and suggestions


43/64


44/64


45/64

1. Contractors perception about risk

2. Risk management program and

procedures

3. Risk identification process

4. Risk assessment process

5. Risk response strategies,


46/64


47/64

Awareness Level In Construction Industry


48/64

yMultan

70%

30%

Figure


49/64


50/64


51/64


52/64


53/64

Projectriskmanagementeffortsshou


54/64

20%

10%

30%

20%

Project risk management efforts shoutypically begin

Conceptual plannin

Conceptual design

Detailed design

Construction


55/64


56/64


57/64


58/64

Multans Construction Industry lackrisk related policies andmanagement support

Due to absence of risk managementsystems in the industry, most

contractors are either risk averse orrisk neutral.


59/64

Most of the Contractors do not usuallyhave a defined risk response strategyand hence responded invariably.

Educational level is low

No Workshops, No Training Programs

have ever been conducted in Industry


60/64

No Relation between the Industryand Institutions


61/64


62/64

Generate awareness, educateproject staff and change attitude.

Develop and document approach torisk management to projects.

Prepare project risk managementplans for all levels of work.


63/64

Promote staff participation andcontribution by pre-task meetingsand initiate brainstorming sessions.

Training workshop, and lecturesneed to be conducted

Industry must flow the Technicalproblems to the Institutions .


64/64

risk management in the construction industry of final

Documents