Risk and Safety Management in Construction Projects

The report explores the principles of opportunity and risk management in construction, emphasizing the need to balance risks with profits. It also examines supply chain vulnerabilities, including corruption, operational difficulties, and natural disasters, and suggests methods for mitigating these risks. The conclusion highlights the importance of regular risk assessment and site investigation to identify critical challenges associated with construction sites.

Risk and Safety Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Risk and opportunity report ............................................................................................................1
Supply chain vulnerabilities ........................................................................................................1
Principles of opportunity and risk management .........................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES ...............................................................................................................................4

INTRODUCTION
Safety management is one of the key component of construction project. Thus, it is very
essential that project development plans must include these elements. This report will discuss the
important principles of risk management and vulnerabilities of supply chain which can influence
the construction process.
Risk and opportunity report
Supply chain vulnerabilities
Supply chain vulnerabilities are defined as the disturbance or the breakdown of the
continuity of supply chain due to internal as well as external risk. The prison site project of
consortium can face several vulnerabilities which need to be addressed so that project cost, time
and efforts can be saved. Due to resource limitations there are various construction materials
which are supplied from overseas (Zhao and et.al., 2016). Thus, the delay in shipments can affect
the resource availability. Construction sector is also expanding towards globalisation and
digitalisation and thus supply chains are also getting advanced and digitalised. It is necessary to
ensure that skill gaps in digital technology does not put financial pressure on subcontractor.
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Illustration 1: Impact of supply chain vulnerabilities on project

(Source: Schoonwinkel, Fourie and Conradie, 2019)
Another critical vulnerability in supply chain is the corruption and operational difficulties
due to faulty machineries. These challenges can affect the quality of work as well as the overall
budget consideration of the project. The project can also be affected or blocked by random
events such as natural disaster or terrorist incidents. The natural disaster can not only affect the
construction activities but can also influence the material supply. At construction site there is
high risk of accidents thus it must also be taken into account. Further certain economic changes
such as change in fuel prices, transportation issues can also have severe impact on the supply
chain.
Principles of opportunity and risk management
To minimise the possible failure risk and vulnerabilities in supply chain it is vital that
various risk management principles are incorporated into construction. It must be assured by
project development team that construction site must have safety arrangements and safety of
workers is not compromised. There must be balance between risk and profits so that for reducing
operational cost the life of workers is not put at risk (Burtonshaw-Gunn, 2017.). There is
likelihood of having delay in the supply material thus contractor must have pre managed plan to
cope up with such situations. In order to enhance the growth opportunities and profitability the
organisation must also analyse the construction technology and effective materials which can
make building quality more improved.
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(Source: Schoonwinkel, Fourie and Conradie, 2019)
The improved technology and global integration in the planning and supply chain can make the
process more effective in terms of cost and quality. The organisation must perform the regular
risk assessment so that their severity can be analysed and suitable risk management strategies can
be developed. For this purpose the site investigation must be performed so that critical
challenges associated with the construction sites can be identified and risk can be eliminated.
CONCLUSION
It can be concluded from the above discussion that the failures of construction projects
can be reduced by considering various principles of risk management and vulnerabilities.
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Illustration 2: Methods of risk management

REFERENCES
Books and Journals
Burtonshaw-Gunn, S.A., 2017. Risk and financial management in construction. Routledge.
Zhao, D., and et.al., 2016. Stakeholder perceptions of risk in construction. Safety science, 82,
pp.111-119.
Online
Schoonwinkel, S,. Fourie, C. J, and Conradie, P D F., 2019. A risk and cost management analysis
for changes during the construction phase of a project. [Online]. Accessed through
<http://www.scielo.org.za/scielo.php?script=sci_arttext&pid=S1021-
20192016000400003>
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