Risk Identification and Analysis of Construction Project

5/18/2019
Risk identification and analysis of construction project
EPM5760 - Project Construction
Management
Student Name: Bishoy
Abdelmesseh
Student ID: 4532649
Submitted to: Vinayaga
Sarma

Table of Contents
Executive summary........................................................................................................1
1. Introduction..............................................................................................................2
1.1 Aim.....................................................................................................................2
1.2 Methodology.......................................................................................................2
1.3 Project Timeline..................................................................................................3
2. Risk management....................................................................................................3
2.1 Risk Matrix..........................................................................................................4
2.2 Risk Register.......................................................................................................4
3. Case studies.............................................................................................................5
3.1 Case Study (A) San Francisco Oakland Bay Bridge.............................................5
3.1.1 Overview.......................................................................................................5
3.1.2 Risk Analysis.................................................................................................5
3.1.3 Risk management.........................................................................................7
3.1.4 Results..........................................................................................................8
3.2 Case Study (B) West Gate Bridge.......................................................................8
3.2.1 Overview.......................................................................................................8
3.2.2 Risk Analysis.................................................................................................9
3.2.3 Risk management.......................................................................................11
3.2.4 Results........................................................................................................11
3.3 Case Study (C) Opal Tower...............................................................................11
3.3.1 Incident.......................................................................................................12
3.3.2 Incident outcome........................................................................................13
3.3.3 Risk Analysis...............................................................................................13
3.3.4 Results........................................................................................................14
4. Conclusion..............................................................................................................14
Acknowledgements......................................................................................................14
References...................................................................................................................15
5. Appendix..................................................................................................................1
5.1 Project Gantt chart.............................................................................................1
Table of Figures
Figure 1 - Waterfall Methodology............................................................................................... 2
Figure 2 – Risk Matrix................................................................................................................. 3
Figure 3 - Opal Tower (Nick Sas 2019)....................................................................................... 5

Figure 4 - Damage from the crack inside the interior wall in level 10 inside Opal Tower at
Sydney Olympic Park................................................................................................................. 5
Figure 5 - The collapse of West Gate Bridge (Victorian Archives Centre 1970)..........................9
Figure 6 - West Gate Bridge arrangement (Australian Construction Achievement Award 2015).
................................................................................................................................................... 9
Figure 7 - Project delivery plan................................................................................................... 1
Table of Tables
Table 1 - Risk register................................................................................................................ 4
Table 2 - Risk register................................................................................................................ 7
Table 3 - Risk register.............................................................................................................. 11
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Executive summary
The paper mainly reflects on the method of procurement that is required to be selected
for getting the best result while managing risks as well as money that is associated with
the project. The paper mainly focuses on three different case studies including “San
Francisco Oakland Bay Bridge”, “West Gate Bridge” as well as “Opal Tower” in order to
analyze the risks as well as challenges that the project experiences during the
construction phase of the project. The paper highlighted different risk mitigation
strategies for each of the project risks so that the issues that are associated with the
project can get mitigated effectively.
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Introduction
Procurement is the method of agreeing on terms, acquiring and finding goods, or
services from an external supply, typically by tendering method and it includes obtaining
arrangements for construction, operation or maintenance of activities additionally to
subcontract arrangements. It conjointly determines the items to be procured with the
risks concerned, vendor management and timelines. The best selection of procurement
method will help in obtaining the best results for managing risks and money in addition
to balance critical factors such as quality, timeliness and cash flow rate of design and
construction. One of the procurement method's associated risks is the partnering risk
which includes lack of trust, communication, commitment, responsibility and teamwork.
1. Aim
This research aims to investigate procurement methods used in a variety of
development projects in addition to identifying and analyses construction projects
associated risks such as financial, reputational, commercial, operational, strategic,
compliance and market risks.
2. Methodology
The methodology which would be conducted in this research is Waterfall methodology,
which would involve (Lucidchart Content Team 2017). The main reason of selecting the
waterfall methodology is that this model is quite simple as well as easy to understand
and it generally helps in properly managing the rigidity of the entire model.
Furthermore, the model phases are generally processed as well as properly completed
at one time. Moreover, the waterfall model works properly for the smaller projects where
the project requirements are defined clearly as well as understood quite effectively.
1. A project timeline which would help in managing time throughout the research life
cycle.
2. Data capture by examining research papers and official websites in order to
provide two case studies and a suitable risk management plan.
3. Incident investigation of the two case studies which are provided and what types
of risks were involved in them.
4. The analysis of the founded risks, the assessing process of their impact, the best
solution given for each risk.
5. Verification process regards the information and providing the associated
references.
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Figure 1 - Waterfall Methodology
3. Project Timeline
Please refer to appendix [1].
Risk management
Throughout history, many engineers failed to meet the required standards which lead
to a catastrophic incident (Victorian Archives Centre 1970). Therefore, risk
management is a crucial stepping stone in creating any construction project effective
and successful as it detects and predicts the risks that may happen considering the
failures or several weak aspects related to the project. It is also very useful for
preventing and reducing any project related losses (Kenton 2019). While considering
the risks associated with any construction projects besides the health and safety of the
workers, there are some vital type of risks should be regarded as such as financial,
reputational, commercial, operational, strategic, compliance and market risks (Dziadosz
and Rejment 2015, Szymański 2017, Gauthier, Chinniah et al. 2018, Qazi and Akhtar
2018). These types of risks could be transferred by passing it over to another party,
e.g. an insurance company, avoided, mitigated by introducing viable solutions, or just
be accepted (Blackman 2014, Timofeeva, Ulrikh et al. 2017, Yuan, Chen et al. 2018).
These risks include:
Financial risks: A unexpected loss or delayed revenue caused by late payments
which could cause bankruptcy leading to project cancellation.
Reputational risks: A Lawsuit, negative publicity or negative criticism of involved
companies including staff or services. These could lead to failure of the partnering
process and cause trust issues.
Operational risks: Daily operation kind of risks such as an accident; for example,
employees bad performance or system failure. These risks could cause a postponement
that would lead to damage to the reputation or loss of revenue.
Strategic risks: Settling on the strategy of delivery and the way a company are going
to be promoted to the public; for example, the suitable type of customers need to be
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Project
Timeline
Requireme
nts
Investigati
on
Analysis
Verification