Risk Management Plan for Construction Project - Desklib

This Risk Management Plan is helpful for developing the identification of the operations and aligning with the formation of the effective and improved mitigation process. It includes risk matrix, consequence table, likelihood table, escalation table, assessing top 10 risk, risk register table, required time contingency, and required cost contingency.

Running head: RISK MANAGEMENT PLAN
Risk Management Plan
Name of the Student:
Student ID:
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Author’s note:

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Table of Contents
Introduction......................................................................................................................................2
Risk Matrix for Construction Project..............................................................................................2
Consequence Table for Construction Project..................................................................................4
Likelihood Table for Construction Project......................................................................................5
Escalation Table for Construction Project.......................................................................................6
Assessing top 10 risk for Construction Project................................................................................7
Risk Register Table for Construction Project..................................................................................9
Required Time Contingency..........................................................................................................10
Required Cost Contingency...........................................................................................................10
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................12

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Introduction
The risk management plan is helpful for developing the identification of the operations
and aligning with the formation of the effective and improved mitigation process (McNeil, Frey
and Embrechts 2015). The risk management comprises of identifying the probable factors of risk
or any measure of uncertainty on project objectives. The prospect of construction of the
underground hole would be done while considering the implication of the effective and smart
alignment process. The utilization of proper and successive management would allow the ease of
modifying the tools and techniques for digging the underground holes.
The following assignment has been developed on the case of construction of digging an
underground hole by XYZ organization and it would include the formation of risk priority
matrix, consequence table, likelihood table, escalation table, assessing top 10 risk, risk register
table, required time contingency, and required cost contingency. The alignment has been
successful for implementing the usage of proper and effective management process.
Risk Matrix for Construction Project
The risk matrix is a specific tool for deciding the evaluation of the risk for listing final
development process (Lam 2014). The influence of the improved functional and development
management is helpful for listing the management process. The risk matrix would be developed
for aligning with the utilization of risk factors and forming the management process. The matrix
would be implied for listing the proper and identical management process. The utilization would
be managed for forming the analysis of the proper risk identification. The probable risk factors
are rate of excavation, underground services, larger amount of rock when compared to soil,
equipment damage, weather, site access, contaminated soil, person getting injured by excavator

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or falling into excavation hole, delay in completion, and economic loss. The following is the risk
matrix that can be used for analysing the risk in the construction projects,
Rating Low Medium High
Severity
Likelihood
Minor Moderate Major Severe
Almost
Certain
(Above
70%)
underground
services
Likely
(45%-70%)
Delay in
completion
rate of excavation
larger amount of
rock when
compared to soil
weather
Unlikely
(20%-45%)
economic loss
equipment
damage
Rare
(5%-20%)
contaminated
soil
person getting injured by
excavator or falling into
excavation hole
site access
Table 1: Risk matrix for Construction Project
(Source: Created by the author)
The matrix development would be formed for listing the probable implication and
development. The management would be effectively managed for providing the utilization and
usefulness integration (Agca et al. 2016). The risk matrix would be deployed for aligning the
utilization of the proper integration process. The identified risk has been classified into

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likelihood and severity factors. The completion of the project would require the formation of the
effective risk management and development of operations.
Consequence Table for Construction Project
The consequence table is the deployment of the project activities and aligning the
formation of the effective risk impact analysis. The consequence table would be made by
analysing the impact of the risk identified. The consequence table for construction project is
shown below,
Score Risk Name Rating Cost Time
4 Underground services Devastating $400.00-500.00 4
1 Equipment damage Devastating $400.00-500.00 2
3 Delay in completion Minor $100.00-200.00 3
1 Site access Minor $100.00-200.00 2
1
Person getting injured by excavator or
falling into excavation hole Moderate $200.00-300.00 2
2
Larger amount of rock when compared to
soil Devastating $400.00-500.00 2
3 Contaminated soil Significant $200.00-300.00 3
2 Economic loss Significant $300.00-400.00 2
3 Rate of excavation Devastating $400.00-500.00 3
3 Weather Devastating $400.00-500.00 3
The table has shown the impact of the risk factors of rate of excavation, underground
services, larger amount of rock when compared to soil, equipment damage, weather, site access,

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contaminated soil, person getting injured by excavator or falling into excavation hole, delay in
completion, and economic loss on the factors of cost and time.
Likelihood Table for Construction Project
The likelihood of the risk can be evaluated with the help of the likelihood table developed
for the construction project. The identified risk would be evaluated based on the probability of
the occurrence of the risk factors. The project completion likelihood would be formed for listing
the probable inclusion of the factors of development. The likelihood of the occurrence of the
project risk factors are shown below,
Risk Name Score Rating Description
Underground services 4 Most
Likely
The underground services would result in
causing the risk of damage to the construction
operations.
Equipment damage 1 Rare
The damages to the equipments while executing
the construction activities would also act as a
major risk for the organization.
Delay in completion 3 Likely
The performance delay due to any problem
would result in bringing out the project
completion
Site access 1 Rare
Unable to access site would also result in
forming problems for the completion of the
project
Person getting injured by
excavator or falling into
excavation hole
1 Rare Health and safety issues is the primary reason for
occurrence of project completion
Larger amount of rock when
compared to soil 2 Unlikely
Excavation of rocks would provide a major
problem for easing the utilization of the
successive options
Contaminated soil 3 Likely Soil contamination would result in forming major
problems of the implication model
Economic loss 2 Unlikely
Economic loss to the project would result in
forming major problems for the project
operations
Rate of excavation 3 Likely Excavation of activities would be implied for
easing the utilization of the operations

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Weather 3 Likely
Weather climatic conditions would be implied
for forming issues in execution of the project
activities of construction
According to the table made above, the all the ten risks of rate of excavation,
underground services, larger amount of rock when compared to soil, equipment damage,
weather, site access, contaminated soil, person getting injured by excavator or falling into
excavation hole, delay in completion, and economic loss can be evaluated on the 4 rating/score
of Almost Certain (4), Likely (3), Unlikely (2), and Rare (1). The table also involves the
description of the risk in an effective method for allowing the implication of management issues.
The description of the risk has been included in this table.
Escalation Table for Construction Project
The risk evaluation results in getting the escalation for the analysis of the possible
problems of the project. The identified risk would be evaluated based on the consequences on the
project operations and functions. The escalation table of the occurred project risk factors are
shown below,
Risk Name Risk
Severity
Ratin
g
Action Item Requirement
Underground services Severe 4 Cause Decrease of profit and harm to the
operations and reputation of the company
Equipment damage Severe 4
Probable Increase in the contractor’s
payment, violation of operations, and issues
in development
Delay in completion Minor 1 SLA violation, Time SLA disagreement, and
bad reputation of organization
Site access Minor 1 Issues to the health policy and harm to the
operations of development
Person getting injured by
excavator or falling into
Moderate 2 SLA violation, harm to the social and
cultural environment of the company

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excavation hole
Larger amount of rock when
compared to soil Severe 4
Probable Increase in the payment, harm to
the social and
cultural environment of the company
Contaminated soil Moderate 2
Cause decrease of profit, issues to the health
policy, harm to the operations, reputation of
the company
Economic loss Major 3 Cause decrease of profit, issues to the health
policy, and SLA violation
Rate of excavation Major 3
Cause decrease of profit, harm to the
operations, social, and cultural environment
of the company
Weather Severe 4
Cause decrease of profit and impact on
operations
According to the table made above, the all the ten risks of rate of excavation,
underground services, larger amount of rock when compared to soil, equipment damage,
weather, site access, contaminated soil, person getting injured by excavator or falling into
excavation hole, delay in completion, and economic loss can be evaluated on the 4 rating/score
of severe (4), major (3), moderate (2), and minor (1). The table also involves the description of
the requirement of action for allowing the implication of management issues. The action item
requirement for the identified risk factor has been included in this table.
Assessing top 10 risk for Construction Project
The top ten risk of the construction projects are rate of excavation, underground services,
larger amount of rock when compared to soil, equipment damage, weather, site access,
contaminated soil, person getting injured by excavator or falling into excavation hole, delay in
completion, and economic loss. These risks would form the impact on the financial, health and
safety, environmental, legal, reputational, social, and cultural options of the construction
projects.

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Underground services: The underground services would result in causing the risk of
damage to the construction operations.
Equipment damage: The damages to the equipments while executing the construction
activities would also act as a major risk for the organization.
Delay in completion: The performance delay due to any problem would result in
bringing out the project completion
Site access: Unable to access site would also result in forming problems for the
completion of the project
Person getting injured by excavator or falling into excavation hole: Health and safety
issues are the primary reason for occurrence of project completion. It is highly possible that the
human labours would get hurt during working due to accidents.
Larger amount of rock when compared to soil: Excavation of rocks would provide a
major problem for easing the utilization of the successive options
Contaminated soil: Soil contamination would result in forming major problems of the
implication model
Economic loss: Economic loss to the project would result in forming major problems for
the project operations
Rate of excavation: Excavation of activities would be implied for easing the utilization
of the operations. However due to problems in excavation the project can be delayed.

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Weather: Weather climatic conditions would be implied for forming issues in execution
of the project activities of construction

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Risk Register Table for Construction Project
The risk register table would be developed for aligning the utilization of the operations and listing the successive formation management. The risk register table would be aligned for forming the management of the improved functional development. The risk register table has been shown
below,
Risk Identification Controls Risk Analysis Treatment Residual Risk Analysis Cost Consequence Schedule Consequence
Risk Title Risk/
Opportunity
Control
Measure
Control
Effectiven
ess
Control
Owner
Consequen
ces (1-5)
Likeliho
od (1-5)
Ris
k
Sco
re
(1-
25)
Treatm
ent
Decision
Treatment
Measure
Responsibi
lity
Co
st
Due
Date Status Consequen
ces (1-5)
Likeliho
od (1-5)
Ris
k
Sco
re
(1-
25)
Best
Case
Most
Likel
y
Wors
t
Case
Assumpti
ons for
cost
consequen
ces
Bes
t
Cas
e
Mos
t
Like
ly
Wor
st
Case
Assumpti
ons for
schedule
consequen
ces
Underground services Risk
Quality
Improveme
nt Plan
should be
included
Strong Contract
or
4 4 16 Mitigate
Quality
Improveme
nt Plan
should be
included
Contractor 12/6/20
18
Complet
ed
3 3 9 $400.
00
$450.
00
$500.
00 - 3 4 5 -
Equipment damage Risk
Negotiation
Should be
implied
Weak Contract
or
4 1 4 Avoid
Negotiation
Should be
implied
Contractor 18/6/18 Complet
ed
3 0 0 $400.
00
$450.
00
$500.
00 - 1 2 3 -
Delay in completion Risk
Time
Manageme
nt
Strong Planner 1 3 3 Accept
Time
Manageme
nt
Planner 21/6/18 Complet
ed
0 2 0 $100.
00
$150.
00
$200.
00 - 2 3 4 -
Site access Risk
Proper
Documentat
ion
Medium Documen
ter
1 1 1 Share
Proper
Documentat
ion
Documente
r
4/7/201
8
Complet
ed
0 0 0 $100.
00
$150.
00
$200.
00 - 1 2 3 -
Person getting injured by excavator or falling into
excavation hole Risk
Training
shoud be
given
Medium Workers 2 1 2 Avoid
Training
shoud be
given
Workers 10/7/20
18
In
Progress
1 0 0 $200.
00
$250.
00
$300.
00 - 1 2 3 -
Larger amount of rock when compared to soil Risk
Negotiation
Should be
implied
Weak Workers 4 2 8 Share
Negotiation
Should be
implied
Workers 16/7/18 In
Progress
3 1 3 $400.
00
$450.
00
$500.
00 - 1 2 3 -
Contaminated soil Risk
Contractor
should be
included
Strong Supplier 2 3 6 Transfer
Contractor
should be
included
Supplier 26/7/18 In
Progress
1 2 2 $200.
00
$250.
00
$300.
00 - 2 3 4 -
Economic loss Risk
Contractor
should be
included
Medium Budgeter 3 2 6 Transfer
Contractor
should be
included
Budgeter 6/8/201
8
In
Progress
2 1 2 $300.
00
$350.
00
$400.
00 - 1 2 3 -
Rate of excavation Risk
Quality
Improveme
nt Plan
should be
included
Strong Quality
Analyst
3 3 9 Mitigate
Quality
Improveme
nt Plan
should be
included
Quality
Analyst
12/8/20
18
Not
Started
2 2 4 $300.
00
$350.
00
$400.
00 - 2 3 4 -
Weather Risk No Action Weak NA 4 3 12 Accept No Action NA 20/8/18 Not
Started
4 3 12 $400.
00
$450.
00
$500.
00 - 2 3 4 -

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Required Time Contingency
S. No Risk Name
Time
best case
(a)
most
likely
(b)
worse case
(c)
Expected
((a+(4*b)+c)/
6)
1 Construction Issues 3 4 5 4
2 Contractor Disagreement 1 2 3 2
3 Delay in completion 2 3 4 3
4 Documentation Issues 1 2 3 2
5 Human Mistakes 1 2 3 2
6 Labour Unrest 1 2 3 2
7 Lack of Materials 2 3 4 3
8 Over budget 1 2 3 2
9 Quality Issues 2 3 4 3
10 Weather Condition 2 3 4 3
Total 16 26 36 26
Required Cost Contingency
S.
No Risk Name
Cost
best case
(a)
most
likely
(b)
worse case
(c)
Expected
((a+(4*b)+c)/6)
1 Construction Issues $400.00 $450.00 $500.00 $450.00
2 Contractor Disagreement $400.00 $450.00 $500.00 $450.00
3 Delay in completion $100.00 $150.00 $200.00 $150.00
4 Documentation Issues $100.00 $150.00 $200.00 $150.00
5 Human Mistakes $200.00 $250.00 $300.00 $250.00
6 Labour Unrest $400.00 $450.00 $500.00 $450.00
7 Lack of Materials $200.00 $250.00 $300.00 $250.00
8 Over budget $300.00 $350.00 $400.00 $350.00
9 Quality Issues $300.00 $350.00 $400.00 $350.00
10 Weather Condition $400.00 $450.00 $500.00 $450.00
Total $2,800.00 $3,300.00 $3,800.00 $3,300.00

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Conclusion
The risk management plan was helpful for developing the identification of the operations
and aligning with the formation of the effective and improved mitigation process. The
assignment has been developed on the case of construction of digging an underground hole by
XYZ organization and it had include the formation of risk priority matrix, consequence table,
likelihood table, escalation table, assessing top 10 risk, risk register table, required time
contingency, and required cost contingency. The alignment has been successful for
implementing the usage of proper and effective management process. The utilization of proper
and successive management had allowed the ease of modifying the tools and techniques for
digging the underground holes.

12RISK MANAGEMENT PLAN
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13RISK MANAGEMENT PLAN
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