Risk Management case Essay

Project:

3 unit of 3-storey University halls of residence for 54 students together with external works including tarmacadam and concrete block paving, fences, planters, landscaping, services and drainage at Tyndall Avenue, Bristol.

MICRO-EVENT 1

Direct skin contact with hazardous substances. E.g.: mortar

This event is categorized in direct associated and predictable. Bricklayer is a person who lays brick, hence, directly exposed the person to the mortar where mortar is the bonding agent for brick. Most of the building will be enclosed with brick internally and externally as the building envelope. Thus, it is predictable that most of their hand will cause dermatitis and burn. (Health and Safety Executive, 2008)

Risk Identification:

By interviewing the project personnel, the risk can be identified based on their experience. Skin that is directly exposed to mortar is highly likely to suffer dermatitis and burnt. Dermatitis is the inflammation of skin as a result of irritation or allergic reaction to external agent. Most of the labourers will ignore using gloves while working because it is inconvenience and uncomfortable while working.

Risk Analysis:

  • As a solution, the project manager should use qualitative analysis because there is insufficient information available to proceed with quantitative assessment.
  • Based on previous experienced of the project manager, it is notable that mortar is a hazardous agent to our skin.
  • Thus, project manager will need to identified the likelihood of the risk occur and also the impact of potential risk. A qualitative risk analysis is used to evaluate the risk.

Probability of occurrence

High

Low

Impact

High

1

3

Low

2

4

The risk is categorized in Grade 2 where the probability of occurrence is high but the impact is low. This event is likely to happen everyday as many labourers need to deal with mortar in their work. The impact of this event is identified as low because only the consequences of the accident do not affect the overall project’s schedule. In this case, only the victim of the accident will be affected.

Risk Responses:

a) Avoid the risk:

– Avoid direct skin contact while handling mortar, used PVC gloves

– Use cement or cement containing products within the use-by date

b) Mitigate the risk:

– Conduct a talk to explained the risk of dermatitis and cement burns and precautions to be taken

– Provide washing facilities with hot and cold water supply, soap and basins large enough to wash forearms

– Training on how to treat exposure to be given to all operatives

– Be aware of anyone with early signs of dermatitis by supervisor

(Health and Safety Executive, 2008)

MICRO-EVENT 2

Weather condition. E.g.: Continuous rain

This event is categorized as not direct associated but it is predictable. The progress of the construction project is not related to the season or weather. No matter what season is it, the progress of work in construction still have to be carry on. The weather can be forecasted. It is reasonably have been foreseen by an experienced contractor.

Risk Analysis and Risk Responses:

A qualitative assessment is carried out to analyse the risk due to the inclement weather condition. This technique is used because there is no figure available from the risk to adopt quantitative analysis. The risks are identified by project personnel based on own knowledge of the previous or similar projects. (Caltrans, 2007)

Reference No. : 02

Date: 4 April 2009

Potential of risk:

Weather condition, such as continuous rain will affect the construction progress

Importance of risk :

Probability :

Impact :

Low

High

Stage of the project affected by the risk: Construction stage

Statement of the risk:

  • The whole construction progress is affected
  • Machineries are not functioning
  • Labourers fall sick
  • Increase dampness in the structure of the building
  • Materials such as timber and steel will be affected
  • Concrete defects; such as honeycomb occur in concrete

Cause(s) of the risk:

  • Project manager did not plan the schedule of the work properly
  • Lack of experiences in commencing a new project
  • Wet condition of floor

Relationship or dependency on other risk(s):

  • Whole construction delay
  • Contractor suffer financial loss in paying compensation to the Client and also

extra cost needed due to buying new plants and materials

Responses:

– Commence the project at the beginning of the year so that external work can be completed earlier before the raining season in the end of the year

– Erect temporary weather shield over the site

– Work overtime or weekend to done the external work on time

– Provide safety boots and raincoat to workers

MICRO-EVENT 3

Amendment on construction design due to architect favour.

E.g.: Softwood timber wall change to traditional brick wall.

This event is categorized in direct associated but not predictable. It is an important and sensitive case for the changes of a design in a project because it will directly affect the construction method and cost spent on the materials. However, it is unpredictable that the amendment of the design will be changing the whole specification of the particular elements.

Risk Identification:

Based on the structured interview meeting with a qualified professional and risk audit interviews with key staff, the risk for this event is identified. It includes involves additional cost to buy bricks and cement, recruit skilled labourers for bricklayers and termination of contract with sub-contractor.

Risk Analysis:

  • Amendment of a design will only take place if an agreement is being brought upon with the client and the client is then willing to accept the likelihood of risk and impact to the project either in cost or time.
  • The changes made are to improve the quality of the building with a better design as the brick wall will last longer and more worthwhile.
  • A quantitative technique adopts in this event is to calculate the total cost increasing due to the price of bricks and cost of labourers.

Input Variables

Lower bound

Base Value

Upper Bound

Bricklayer/day

190

170

190

210

Carpenter/day

178

168

178

188

Brick/m2

6.95

4.95

6.95

8.95

Timber/m2

2.33

1.33

2.33

3.33

Schedule duration (days)

90

Quantity/m2

1,388

Total Additional Cost

7,492.56

(Ellery, 2008)

* Assume that the duration for erecting the wall is estimate for 90 days and the area of the wall is 1,388 m2.

* Hence, it clearly shows that the amendment of the wall will cause the contractor to pay extra amount of � 7,492.56 for the cost.

Sensitivity Analysis is also used to evaluate the effects of the incremental changes in the values of bricks and salary for bricklayers if the prices are varied.

SensIt Spider Numerical and Chart Output

* On the spider chart above, lines that are approaching the horizontal axes where small percentage changes do not have much effect on the output value is the cost of timber.

* While the lines that are approaching 90� have a greater affect on the output value are the cost of bricks and the salaries for bricklayers.

Risk Responses:

a) Avoid the risk

– The client should engage a more professional and experienced architect to in charge design of the project and make the best decision before choosing the type of construction and the use of the any relevant materials to avoid any argument with contractor.

b) Mitigate the risk

– Provide workshop for the labourers to teach them how to lay brick wall so that it can reduces cost to engage new group of bricklayers.

– Client is responsible to pay more on the additional cost to the contractor if the works is sure to be carried on.

c) Retention of risk

– The risk produces only a small, repetitive loss of the total cost. Hence, it is more suits to be retain where as it will cut down the problems or termination of the contract and will not affect the reputation of the contractor.