Introduction to Risk Mitigation

Added on - 28 May 2020

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1. Executive SummaryRisk mitigation is a key process for the construction project. In order to ensure properproject completion for the WSI Blue Mountains TAFE project (19735 Project 4) is attained,proper identification, analysis, evaluation and treatment of the risks will be important. Thisdocument will therefore analyze the risks which can be experienced during the project executionand provide the mechanism of mitigating the risks available (Jackson, 2010). Moreover, the levelof likelihood of the risks occurring is different from one risk to another. The order to action willdetermine the seriousness which can be awarded during the mitigation process. Different riskscan occur at the same time and this will mean that the action taken will depend on the impactwhich the risk has on the progress on the project execution. In addition, project uncertainties dueto the available risks are taken care of when the risk management plan is available. In thisproject, the key risks which will be addressed include the risk during contract awarding. Some ofthe key risks in this stage may include involvement of incompetent personnel during thenegotiation process. This means a wrong deal which may hinder the implementation stage isachieved.2. IntroductionRisks are likely to occur during the project implementation stage. The only action whichcan be taken to ensure that the implementation stage continuous well is coming up with a perfectplan to mitigate the available risks. From the contract negotiation to the handover, risks are everpresent. The risk plan therefore has to identify the risks available in the projects right from thecontracting period (In Ratay, 2012). This will ensure that successful completion of the project isattained. Some of the key risks in the contractual documents include wrong contract sumawarding to the project. This will mean that the contract sum will not be able to complete the
project and lead to stalling of the project. Involving proper personnel with experience will ensurethat the project negotiation details are well done and ensure that the time allocation and projectsum mare sufficient to complete the project. Another key risk which may be experienced is onthe technical part of the project. Many construction projects are able to stall due to lack ofworkable technical details. The technical parts are important. The contract must be able toanalyze all the technical details and ensure they are well workable. This will ensure that theprogress on work is not hinders through evaluation of the technical details when found theycannot be implemented on field. In addition, in order to ensure work progress is maintained,proper logistics must be placed on board. The logistics ensures that all the requirements aredelivered to the team for them to ensure they complete the work on allocated team (Bissonette,2016). In addition, the logistics ensures that all the project details are well clarified and issues areaddressed on time. The logistics ensures that the contract period is well kept and works arecompleted on time for handover. Unclear plan on material deliver on site, payment of workersand poor quality materials are some of the logistical issues which may be experienced during theproject execution. In addition, another area which has risks is the construction process. Lack ofproper planning is one of the key risks which are experienced in the construction process. TheWSI Blue Mountains TAFE project (19735 Project 4) is not different and likely to experience thesame risk. Therefore proper planning to solve such risk and mitigate them are needed. Theplanning for mitigation of the risks needs to be done early enough to ensure proper projectcompletion. In addition, financial risks are key problems which affect construction projectsduring project implementation. Proper contract agreements must be arrived at on matters ofpayment. Securing financial assistance early enough is a key resolution which will ensureprogress of works is done well. Financial difficulties are key risks which are able to make project
stall and lead to their incompletion. Proper address of the financial risks will ensure that theworks continue well and completion timeline is met. In addition, addressing these risks willensure that the workers are well motivated since they are able to receive their financialcompensation on time. This paper will analyze all these risks and look at different ways whichcan be implemented to mitigate them in relation to the WSI Blue Mountains TAFE project(19735 Project 4) project.3. Risk AssessmentAll processes are able to carry some level of risk in them. This is the same in constructionproject implementation. The major part for the projects is to identify the risks and be able tocome up with a mitigation plan (Pritchard, 2015). The risk assessment is able to help in the riskidentification in the different processes of the project implementation. This will be done inrelation to the WSI Blue Mountains TAFE project (19735 Project 4) project. This part willidentify the different risks which are likely to occur and assess their level of occurrence. Therisks are likely to affect the project output and therefore their output is important to ensure thatthe work progress is not affected.3.1 IdentificationThe contractual process is important for any project implementation. There are key riskswhich are likely to affect the implementation or a project once the contractor is chosen. Properdetail analysis is one of the processes which must be done by the contract. This includes the sitevisitation to ensure that the working conditions in site are well laid off (In Fraser, In Simkins &In Narvaez, 2015). Land issues and risks are key risk which has been able to hinder the start offof projects at different site. This happens where the contractor is not aware of the working siteand has not done any background check on the site. Proper site visitation and site background
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