Project Management

Project Management Central

Please login or join to subscribe to this thread

Topics: Change Management, Cost Management, Risk Management
due to COVID-19 pandemic, how the risk need to be handled from Contractor till Client.
Managing Risk from Contractor (also from their Sub-contractors) till Client during COVID-19 outbreak in Infrastructure project. Lot of stakeholders are involved in an Infrastructure project, supply chain and manpower mobilization is a challenge during this time. Any solution / suggestion are welcome.
Sort By:
Unfortunatelly what you stated is mostly forgotten by most of the companies. Companies do not understand that when you will create a solution with the help of external people all related to project is impacted by mainly quality and risks/issues. If you have this into account then no problem (generally speaking obviously) with that. The problem is companies do not have an strategy for outsourcing most of the times. With that said, I have "to fight" a lot in my actual company when I was in charge of a hugh transformation that involves things like that, mainly because there was a component of infraestructure (with all related to it) outsourcing. If you are in a place where you have prevented it so you have to react to the situation then the only thing that have helped me is sit around the table to all parts and working togther to understand that every part is a key component on the chain for creating the solution. Previously to that you have to make your work relating you will have to make flexible some parts of the contracts then you need help from your legal and procurement people before working with your providers.
...
1 reply by Ramakrishnan Manavalan
Mar 20, 2020 8:18 AM
Ramakrishnan Manavalan
...
Thanks for your valuable reply. Legal intervention is vital in this moment.
Mar 20, 2020 7:39 AM
Replying to Sergio Luis Conte
...
Unfortunatelly what you stated is mostly forgotten by most of the companies. Companies do not understand that when you will create a solution with the help of external people all related to project is impacted by mainly quality and risks/issues. If you have this into account then no problem (generally speaking obviously) with that. The problem is companies do not have an strategy for outsourcing most of the times. With that said, I have "to fight" a lot in my actual company when I was in charge of a hugh transformation that involves things like that, mainly because there was a component of infraestructure (with all related to it) outsourcing. If you are in a place where you have prevented it so you have to react to the situation then the only thing that have helped me is sit around the table to all parts and working togther to understand that every part is a key component on the chain for creating the solution. Previously to that you have to make your work relating you will have to make flexible some parts of the contracts then you need help from your legal and procurement people before working with your providers.
Thanks for your valuable reply. Legal intervention is vital in this moment.
...
1 reply by Sergio Luis Conte
Mar 20, 2020 8:21 AM
Sergio Luis Conte
...
You are welcome. At least, is what I lived in other situations because this is not new, just to remember SARS, Flu A and others. But if you ask me, the hard point is to help your organization that is a matter to make flexible and work together to create the solution. That´s sometimes is hard due to the culture and strategy of some organizations related to provider management.
Ramakrishnan -

Whether the work is done solely by internal staff or you are relying heavily on external partners, effective risk management is needed.

While you can certainly build in some terms & conditions into your contracts to protect yourself from partners experiencing delays or other issues due to the pandemic, unless you have the ability to easily switch to a different provider, a better strategy might be to actual partner with the prime contractor to come up with a holistic risk management approach.

Kiron
...
1 reply by Ramakrishnan Manavalan
Mar 20, 2020 9:28 AM
Ramakrishnan Manavalan
...
we have prime turnkey contractor. but as owner's engineer cum Planner I wish to know Risk events & its mitigation plan.
Mar 20, 2020 8:18 AM
Replying to Ramakrishnan Manavalan
...
Thanks for your valuable reply. Legal intervention is vital in this moment.
You are welcome. At least, is what I lived in other situations because this is not new, just to remember SARS, Flu A and others. But if you ask me, the hard point is to help your organization that is a matter to make flexible and work together to create the solution. That´s sometimes is hard due to the culture and strategy of some organizations related to provider management.
Mar 20, 2020 8:20 AM
Replying to Kiron Bondale
...
Ramakrishnan -

Whether the work is done solely by internal staff or you are relying heavily on external partners, effective risk management is needed.

While you can certainly build in some terms & conditions into your contracts to protect yourself from partners experiencing delays or other issues due to the pandemic, unless you have the ability to easily switch to a different provider, a better strategy might be to actual partner with the prime contractor to come up with a holistic risk management approach.

Kiron
we have prime turnkey contractor. but as owner's engineer cum Planner I wish to know Risk events & its mitigation plan.
In Italy there's a bad situation, so you can have some chance just in teleworking and smart working sector, the relationship between the contractor and the client is quite compromised, the only solution is to improve innovative form of network and contact.
It is true however, managing project risks is not the issue here it is crise management.
Coronavirus pandemic it is complecated crise where contractors and supply chain and manpower and personal and all stakeholders are effected.
Ramakrishnan

This is totally a force majeure situation and in every contract whether it follows FIDIC or other contractual authorities, there is a clear explanation as to how to deal with those risks.

Managing those risk closely and effectively is very important.

RK
Dear Ramakrishnan,
In complex projects contractors review their global schedules against this kind of risk, general update is made against as everything is significantly impacted
Any mistakes can generate huge amount to be paid especially if they lost work forces,
I guess this is covered under force majeur
Thanks
Hamid

Please login or join to reply

Content ID:
ADVERTISEMENTS
ADVERTISEMENT

Sponsors