With the exponential increase in construction activity, Risk Management as a discipline in construction has assumed great importance to ensure success of projects in every aspect. Mitigating risks and maximizing opportunities hence becomes the yardstick against which the efficiency of the project management team’s is measured. Third Party Agencies help project teams identify, manage and eliminate risks, thereby ensuring safe systems and processes in the building construction lifecycle.
RISK MANAGEMENT IN QUALITY
Following proper procedures, processes, adhering to standards and satisfactory testing of materials are some of the factors that ensure that the construction quality is maintained on site. However, there are risk factors associated with quality management and it is important to know where things can go wrong.
Identify the Risk Factor
The first step for project managers to mitigate risks in construction quality is to identify the probable areas where quality issues can arise or the risk factor associated with a particular activity. Problems can arise due to sub standard material sourcing, unskilled labor, insufficient management or inadequate process supervision.
Root Cause Analysis
The next step is to zero in on the root cause of the particular risk factor by doing the Root Cause Analysis. This involves using methods like Pareto Charts, Fishbone Diagram, 5Ws etc that help managers identify the problem areas scientifically.
Root Cause Elimination
The third step in the risk management process is Root Cause Elimination by implementing appropriate corrective measures. Defining quality standards for projects early on in the lifecycle, constant vigilance by way of hiring Third Party Agencies for Quality Control, clear communication between the involved managers, vendors and various teams on site are some of the ways that quality risks can be kept at bay in projects.
RISK MANAGEMENT IN HEALTH, SAFETY AND ENVIRONMENT
A safe, sustainable and healthy working environment contributes to higher morale and job satisfaction among workers and goes a long way in mitigating risks concerning labor on site. When employees feel safe, they are more likely to be productive, leading to increased efficiency in construction projects.
Compliance with Regulations – Preventing Risks
Compliance not only protects workers but also prevents legal issues and financial penalties for the construction company. Conducting hazard risk assessments helps ensure that the construction site complies with these regulations.
Risk Mitigation – Identifying Risks
Identifying hazards allows for the development of strategies to mitigate or eliminate these risks. This may involve implementing safety measures, providing protective equipment, or changing work processes to reduce the likelihood of accidents. Medication can serve as a secondary measure to mitigate risks by providing quick and effective treatment in case of injuries.
Risk Communication
Hazard risk assessments also involve communicating identified risks to all relevant parties, including workers so that appropriate precautions can be taken.
Benefits of HSE Risk Mitigation
- Reduced Accident Rates – A thorough hazard risk assessment can lead to improved safety practices, which, in turn, can reduce the number of accidents on the construction site.
- Employee Morale and Productivity – Workers are more likely to feel secure and motivated when they perceive that their employer prioritizes their safety. This can positively impact overall morale and productivity.
- Worker Safety – Construction sites are inherently risky environments with various hazards such as heavy machinery, heights, electrical equipment, and more. Assessing hazards helps identify potential risks to workers’ health and safety.
RISK MANAGEMENT IN STRUCTURAL DESIGN
Managing Structural risks in a building project is an important aspect and this also requires the right processes and standards to be set early on in the project. Involvement of Third Party Agencies to assess structural design at the design stage and then oversee the construction work goes a long in way in risk mitigation.
Identify and Assess the Risk
This is a common first step in any risk management process wherein the problem has to be singled out using various methods like site inspections, brainstorming, checklists etc. A customer may point out certain issues like leakages or it may come up in a structural audit.
Mitigate the Risk
Eliminating the risk factor in the structure or controlling the risk is the next step that project managers must take by way of developing and implementing an effective plan. Increasing the strength of the structure or redoing a certain part of the structure are some ways in which the risk can be eliminated or reduced.
Risk Communication and Learnings
Sharing knowledge and documenting information about the risk management procedures in structural design can help in avoiding certain issues from arising again. Project teams can use structural audit information to update and refine risk management tools, methods and standards to enhance skills
RISK MANAGEMENT IN QUANTITY SURVEYING
Risk management is an important aspect of quantity surveying as it deals with materials a, processes and costs. Losses can be cut to a minimum and profits maximized throughout the lifecycle of the project if the risks are managed well by managers in construction projects.
Identifying the Risks
The first step in risk management in Quantity Surveying is to pinpoint the risks by way of project analysis at each stage in construction so as to know where the potential problem areas are.
Quantity Surveyors should consider factors such as the location of the project, the type of construction, and the complexity of the design. They should also consult with other project stakeholders, such as architects, engineers, and contractors, to identify potential risks.
Risk Assessment
Once potential risks have been identified, they must be assessed to ascertain how the risk would impact the project. There are various ways tools at the disposal of Quantity Surveyors, one of them being a risk matrix. This tool assigns a numerical value to each risk based on its likelihood and potential impact helping to prioritize risks and focus on the most significant ones.
Risk Mitigation
Once risks have been identified and assessed, they must be mitigated. This can be done in quantity surveying by Regular Bill checking where surveyors look out for anomalies in material or labor costs while the construction is going on. Material Reconciliation that is surveying the quantities of materials that are delivered on site, amount used and wastage on a regular basis and BOQ Checking and Quantification are other ways to keep risks at bay. Another important aspect of risk management is to continuously monitor and review the project for any changes in risks.
Employing Third Party Agencies for Quantity Surveying and Bill Verification services can help clients reduce construction costs up to 3 to 5%.
Good Communication on Site
Quantity surveyors should have good communication and coordination with other project stakeholders. It is important to have a good working relationship with architects, engineers, contractors, and other project stakeholders to ensure that everyone is aware of the risks and mitigation strategies in place.
