This article discusses the risk management strategies for the Kilby House renovation project, including the identification and classification of strategic risks and qualitative analysis of risk mitigation.
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Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION RISK MANAGEMENT ON KILBY HOUSE RENOVATION Name of the Student Name of the University Author note
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Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION Risk management: Answer to question B of risk management: Identification and classification of the main strategic risks for the client: The construction is a risky form of business. The construction projects are unique which has its own sets of risks and challenges. The identification of the risk in a construction project needs proper and careful execution of the planning. In this case, we have evaluated the risk management of the Kilby house renovation and construction that is located in the Birmingham City Centre comprises of a block with six storied roof level plant room and another building which is eleven storeys high and has a roof level plant room. Another facility of the building is that the two blocks are connected by a common and central lift stair case and common lifts. During the renovation of the building the comprised matters will be the design, extension, conversion and defects rectification of the Kilby House into a two hundred and two roomed enabled suite studio apartments that includes external based works and associated circulation. For identifying and managing the risks, it is important to know about the types of risks that are inherited on all the construction projects (Harris and McCaffer, 2013). The risks can be of financial, operational, and Contractual based and even environmental risks which can be initiated and caused by the both sources of internal types and external types of risk and management. Some common strategic risks that are identified for the clients includes, the concerns of safety and hazards that results to accidents for the workers and also the people who are already residing in the apartments as it is a case of renovation and not a new project so there are people
Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION residing besides the renovation work will be in progress. The second concern of risk is in managing of the change orders by the builders which ultimately becomes a headache for the workers as well as the people residing there as they have to go through the construction havoc for longer days (Balet al.,2013). The incomplete drawings of the architecture and also the unwell designed and defined scope creates problem to consumers. The poorly maintained and written contractual processes are also included in the strategic risk concern for the client. There are number of cases where we have witnessed the contractual agreements are misguided and not followed by the builder which creates extra problem on the clients with shifting dates that gets delayed. The unexpected and sudden rise in the material costs that are shown by the promoters to the clients are out of the contract and create an argumentative problem and financial problem to the clients. Other risks that are also applicable are the shortages of the labour, theft and damages caused to the tools or the equipments that are used for the construction purpose causing a delay of the work. There areIssues with the subcontractors and also suppliers creating risk for the clients. Poor management of the project also includes the availability of the materials required for the building construction. When risks actually happen, they can severely affect the project's costs, schedules and efficiency also. This risk therefore causes delays and problems that bring down the quality of the project(Fewings, 2013).The most popular and unavoidable risks for construction projects, such as tax risks, interface risks and local site risks. Other risks that are less likely to happen are the force major occurrences or legislative changes, but when these risks actually take place, they would have a significant effect on the project.
Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION Answer to question C of risk management: A qualitative analysis of these risks and how they might be mitigated or avoided: There is a huge negative impact of the risk on the progress of the construction. The risks in Kilby House project can cause a serious impact on the expense structure, schedules and the quality of the performance that directly leads the project in delaying and creating more disputes. Risks can be managed and mitigated with nice project planning and management (Zhao, Hwang and Low, 2013). The organizational owners and the clients of the major projects face series of critical issues. There are many building organizations that face capital expenditures that are reaching to high pace. This represents huge risks in many aspects of the project delivery. Construction projects are prone to cost overruns, fraud, misconduct, waste and abuse, and are carried out in a restricted and requesting atmosphere relating to increased scrutiny(Aminbakhsh, Gunduz and Sonmez, 2013).Major capital projects execution presents huge challenges to owners. It is critical to have an adequate level of supervision and control in place, so that risks can only be mitigated. The risk issues like the safety hazard that leads to the accidents of the workers and the residence peoples can be avoided by proper management like keeping warning boards that will indicate everyone about the site of construction. The use of newest technologies in the construction fields with enough safety and precautions can avoid such accidents and mitigate a very important risk factor.Appointing well educated managers who have good communication sense to communicate withy the clients can improve the condition of the risk factor of changing orders. The risks associated with the construction project are interconnected and interdependent. The customary origins like the performance, quality and scope of technology issues are the major risks that are needed to be mitigated. It is essential to encapsulate all
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Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION possible risks in a project and pull all necessary measures or make regulations to eliminate or prevent them. The systematic approach to the risk management can reduce the risk factors. Addressing the risk early in the project helps and enablesto take full advantage of it. Communication with the stakeholders and the team, members so as to keep the customers satisfied throughout the project, implementation of risk assessment and new technological tools like Building Information Modeling can reduce the risk(Zhang et al., 2013).
Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION References: Aminbakhsh, S., Gunduz, M. and Sonmez, R., 2013. Safety risk assessment using analytic hierarchy process (AHP) during planning and budgeting of constructionprojects.Journal of safety research,46, pp.99-105. Bal, M., Bryde, D., Fearon, D. and Ochieng, E., 2013. Stakeholder engagement: Achieving sustainability in the construction sector.Sustainability,5(2), pp.695-710. Fewings, P., 2013.Construction project management: an integrated approach. Routledge. Harris, F. and McCaffer, R., 2013.Modern construction management. John Wiley & Sons. Zhang, S., Teizer, J., Lee, J.K., Eastman, C.M. and Venugopal, M., 2013. Building information modeling(BIM)andsafety:Automaticsafetycheckingofconstructionmodelsand schedules.Automation in Construction,29, pp.183-195. Zhao, X., Hwang, B.G. and Low, S.P., 2013. Developing fuzzy enterprise risk management maturitymodelforconstructionfirms.JournalofConstructionEngineeringand Management,139(9), pp.1179-1189.
Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION