Strategic Risk Management for Kilby House Renovation Project

This report provides a comprehensive risk management analysis for the Kilby House renovation project in Birmingham City Centre. It identifies key strategic risks inherent in construction projects, including safety hazards, change orders, incomplete drawings, contractual issues, rising material costs, labor shortages, and subcontractor problems. The report then conducts a qualitative analysis of these risks, emphasizing the negative impacts on project costs, schedules, and quality. It proposes mitigation strategies such as improved project planning, communication, the use of new technologies, and systematic risk management approaches. The report also references relevant academic sources to support its analysis and recommendations. Desklib offers a platform for students to access this and other solved assignments.

Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION
RISK MANAGEMENT ON KILBY HOUSE RENOVATION
Name of the Student
Name of the University
Author note

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 (Bal et 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 are Issues 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

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 enables to 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 construction projects. 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) and safety: Automatic safety checking of construction models and
schedules. Automation in Construction, 29, pp.183-195.
Zhao, X., Hwang, B.G. and Low, S.P., 2013. Developing fuzzy enterprise risk management
maturity model for construction firms. Journal of Construction Engineering and
Management, 139(9), pp.1179-1189.

Running Head:RISK MANAGEMENT ON KILBY HOUSE RENOVATION