Risk Assessment and Mitigation Strategies for Construction Companies

This paper discusses the risk assessment and mitigation strategies for construction companies. It covers the analysis of the construction company, identification of solutions, risk assessment strategies, and reassessment and adjustment. The paper also includes the impacts of the strategies and the importance of effective communication.

Running head: SENIOR SEMINAR IN MANAGEMENT
Senior Seminar in Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................2
Risk Assessment:.......................................................................................................................2
Important Stakeholders:.............................................................................................................2
Stakeholder’s perspective toward the problem:.........................................................................3
Analysis of the Construction Company:....................................................................................3
Identification of the Solutions:...................................................................................................4
Risk Assessment Strategies:.......................................................................................................5
Identification of Impacts:...........................................................................................................5
Reassessment and Adjustment:..................................................................................................6
Conclusion:................................................................................................................................7
References:.................................................................................................................................8

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Introduction:
Analysis and management of the construction is very much important for successful
completion of a project. This document will address various aspects of a successful
construction project. In the aspects of a construction project problems related with the
project, solution regarding the problems and the opportunities of the construction project will
evaluated in this paper. Analysis of the construction company will be done in this paper.
From the analysis the solutions which are required for mitigating the assessed risk will be
evaluated and the assessment of the strategies for the proposed risks will be done. Further this
document will be discussing the constructing company in a broader way.
Risk Assessment:
In the initial stages the problems related with the construction organization is
evaluated. At this stage the main problem with the construction company is meeting the
projected deadline for the assigned project. It analysed that the most common issue which the
construction organization face is the time management issue (Padalkar & Gopinath, 2016).
The time management issue occurs in the construction companies because naturally they
handles multiple projects at the same time and it becomes very much difficult to handle all
the projects at same time. As the main problem is related with the time management the
construction company must solve the issues with the time management.
Important Stakeholders:
For a construction organization and for a construction project there are total five
major stakeholders (Hande & Phillippi, 2018). These stakeholders are the resource manager,
senior manager, project manager, raw materials suppliers and the customers.

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Stakeholder’s perspective toward the problem:
Considering the senior manager of the project, the main issue of this case does not
affect them because they are technical in the approach to the project outcome. The resource
manager will be affected directly as they have the role of the project timeline maintenance.
The customer does not have any type of prior role in project timeline maintenance. For the
project manager delivering the project is important for saving the cost. Delay of the suppliers
can affect the project and can also affect the resource manager.
Analysis of the Construction Company:
From the analysis of the client company which is a Construction Company, the main
determined issue is the time management. This time management issue occurred due to the
multiple smaller sub tasks. Due to this time management issue the client company might miss
the deadline of the project. To determine the issues, performed analysis has been begun with
gap analysis (Li et al., 2016). The gap analysis shown that the construction company is
leaving gap in the meeting. This will surely hamper the reputation of the construction
company. This type of issue occurs in the organization mainly for some of the individuals and
this includes the resource manager. When the resource manager make delay in outsourcing
and arranging the construction materials, then the project would be going to be delayed.
Suppliers and the project managers are also in this list. The organizational initiatives are also
responsible same for this delay because the senior manager must also provide some training
facilities to above mentioned personnel to run all the organizational process fluent (Darling &
Whitty, 2016). Training facilities can be used in this case for mitigating the issues of the
construction company. In some of the cases the issues can be design-centric. This type of
issues occurred because the projects can be very much complex from the architectural view
point. To mitigate this type of issues 360 degree performance benchmarking can be used.

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Kirkpatrick’s four level evaluation can be also implemented for the evaluation purpose of the
learning, behaviour and reaction which can help to meet the deadlines.
Identification of the Solutions:
From the analysis it has been assessed that the solution developed for the problem
must be focusing on the problem and it should be taken through the collective impact. By
focusing on the problem the developed solutions can help to solve the complex problems
(Dave, 2012). Using this steps the problems can be resolved with government departments
and by single policies.
Considering the strategies, it is used for building some of the unique relationship
which includes alignment of innovative techniques, mind-set and ideas, cooperation and
focus on strengthening. Building relationship is one of the step which can resolve the issues
by face to face communication and by nurturing the relationship.
In an organizations a group of members or a specific individual member assigned to a
specific task and they must be able to perform that task properly. For this reason, they must
have proper training and development that are aligned with the organizational roles.
Work environment is another factor for delivering good production. Work
environment should be conducive and well lit. Also, it is very much important that each of
the job roles should consists proper arrangements of seating.
Feasible study is required for determining whether the project is possible to perform
or not within the deadline. Also, the financial feasibility study is required. This construction
projects are financial feasible but the main issue in this case is the proper resource usage
(Frimpong, 2013). Also, proper critical path is required for successful project execution
efficiently.

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Risk Assessment Strategies:
Risk assessment is one of the main critical aspects of the business processes. Thus the
risk assessment is also important for the client construction company. In most of the
construction related project risk assessment crucial. In this case a demonstrating the risks
hypothetical case is chosen where the construction company faces cost overrun issue. In such
of the situation, the project manager fails to assess the cost implications.
This type of issues occurs due to the delay, inefficiencies, waste, mismanagement and
inaccuracy. To mitigate this issues some steps can be taken which includes the planning of
succession. The succession planning includes strategy for transition and timeline for transfer
("Succession planning roadmap for construction contractors | Insights", 2018). Training is
one of the best solution for the risks. Training can be provide to the employees if needed to
fix the project overrun issues. In the context of operations to mitigate the project overrun
issues, interdepartmental issues need to be identified (Hwang & Chua, 2011). Lack of
communication in the organization is another main reason for the project overrun. Effective
communication channel is required for the mitigating the overrun issue. The project overrun
issues impacts the internal operation and external reputation of the organization. Thus
planning and meeting with the major stakeholders are important for fixing the issues.
Identification of Impacts:
This strategies of the risk mitigation holds various type of impacts on the
organization. The changes which are implemented for tackling the issues with the budget,
quality and productivity, changes the structure of working of the construction company (Cai,
Loon & Wong, 2018). Thus some short-term impacts can be seen which includes changed or
low production rates as there will be some job role confusion in some initial days. Some new
management techniques can be applied for a better response from the employees. The

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changes which are introduced, also has some long term impact on the organization. These
long term changes occurs in the leadership styles, strategic management techniques and
changes in competitive advantages. Future policies can be improved bases on the long-term
impacts.
Lower level employees affected directly by these type of organizational changes and
as a result often they lose their develop habits and develop new habits according the new
workplace. The managers are responsible for settling down the existing employees. Due to
this the organization faces issue with the employee trust. The changes are also significant for
the external stakeholders including suppliers and customers. The external stakeholders
supports the changes when this is profitable for them (Raza, Khan & Mujtaba, 2018). In such
of the cases the impact of the customers remain neutral.
Reassessment and Adjustment:
From the project which is assigned to the current construction company it is analysed
that there are some serious issues which can elevate the previous cost implications. Actually
this increase cost implication raised due to the advanced technologies and equipment (Fulford
& Standing, 2014). For this the overall change management strategies got affected because of
not yielding the desirable results. Thus it can create dissatisfaction (Lines, Sullivan, Hurtado
& Savicky, 2015) among clients.
To fix this scenarios some reassessed solution can be provided for the effectiveness of
them. The effectiveness of the solution can be measured upon five factors which are the
specific, measurable, attainable, relevant and time specific. When the proposed solution
passes all these factors then it can efficiently help the organization to overcome the issues in
specific time period.

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Conclusion:
From the above discussion it can be concluded that risk management is very much
crucial for the successful project completion. The main risks which every construction
company faces is the project cost overrun issues which is again the main issue in this case. To
manage this type of risk, risk assessment has been done at the initial stages of the project and
the analysis of the construction company has been done. From the analysis the solution for
the risks has been assessed in this case. Risk assessment strategies are implemented for the
for mitigating the assessed risk but these strategies are having an impact short term and long
term impacts on the organization which has been discussed properly. Further the measuring
of the solution has been done using the five factors which are the specific, measurable,
attainable, relevant and time specific.

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References:
Cai, W. J., Loon, M., & Wong, P. H. K. (2018). Leadership, trust in management and
acceptance of change in Hong Kong’s Civil Service Bureau. Journal of
Organizational Change Management, 31(5), 1054-1070.
Darling, E. J., & Whitty, S. J. (2016). The Project Management Office: it’s just not what it
used to be. International Journal of Managing Projects in Business, 9(2), 282-308.
Dave, B., & Koskela, L. (2012). Collaborative knowledge management—A construction case
study. Automation in construction, 18(7), 894-902.
Frimpong, Y., Oluwoye, J., & Crawford, L. (2013). Causes of delay and cost overruns in
construction of groundwater projects in a developing countries; Ghana as a case
study. International Journal of project management, 21(5), 321-326.
Fulford, R., & Standing, C. (2014). Construction industry productivity and the potential for
collaborative practice. International Journal of Project Management, 32(2), 315-326.
Hande, K., & Phillippi, J. C. (2018). DNP Project Timeline Template: A Guide for
Successful Completion. Nurse educator, 43(3), 115-116.
Hwang, B., & Chua, P. (2011). Risk Management Software Utilization in the Singapore
Construction Industry: Evaluation and Improvement. Journal Of Construction
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Lines, B. C., Sullivan, K. T., Hurtado, K. C., & Savicky, J. (2015). Planning in construction:
longitudinal study of pre-contract planning model demonstrates reduction in project
cost and schedule growth. International Journal of Construction Education and
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Padalkar, M., & Gopinath, S. (2016). Six decades of project management research: Thematic
trends and future opportunities. International Journal of Project Management, 34(7),
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Raza, M. A., Khan, M. M., & Mujtaba, B. G. (2018). The Impact of Organizational Change
on Employee Turnover Intention: Does Stress Play a Mediating Role?. Public
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Succession planning roadmap for construction contractors | Insights. (2018). Retrieved from
https://bakertilly.com/insights/succession-planning-roadmap-for-construction-
contractors/