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Practice Areas: Construction, Risk Management
What are your top risk in Construction projects?
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In your experience what are the risks encounter in construction projects. I have quite a few but, I sure don't have a complete list.

It can go from the small one to major risk.

Often construction people say the risks are all in the digging part, there is a few there. And many more after.

One often overlook is possible fungus in and out of dry wall.

Let'S gather those you have identified or encounter in your projects.
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1. Unforeseen site conditions

2. Design aspects

3. External stakeholders influence
...
1 reply by Vincent Guerard
Nov 18, 2016 9:55 AM
Vincent Guerard
...
Thanks Manavasi
In three important, that I have see also
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It all depends on the project type, location, size and circumstances. Some of the risks we've faced:

1- Excessive De-Watering.
2- Unforseen soil conditions when doing piling.
3- Estimation Errors.
4- Weather Conditions.
...
1 reply by Vincent Guerard
Nov 18, 2016 10:00 AM
Vincent Guerard
...
Thanks Rami
Estimation error is almost not a risk, in the sense that it's a certitude, the magnitude is unknown.

Weather conditions, I guest you mean changing weather condition from historical data. Like we plan for something in the 1 by 10 years base on historic data, but the new 1 in 10 is closer to the 1 in 50.
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1. Customer uncertainties causing changes in scope;

2. Errors in executive projects;

3. Weather conditions;
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1 reply by Vincent Guerard
Nov 18, 2016 10:04 AM
Vincent Guerard
...
Thanks Erando,
Customer is always a risk in any industry, specially your first project with a new customer.

Error in execution, do you mean from error in the engineering or error by the trade workers?
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1. Changes in the work
2. Technical conditions
3. Accidents
4. Weather
...
1 reply by Vincent Guerard
Nov 18, 2016 10:09 AM
Vincent Guerard
...
Thanks Mauro,

What do you mean by "Changes in the work", by the client or by the constrain on site or error in the design?

Accident is an important one, all the Heart and safety issue can have a major impact on a project. Some accident can close the site for a day or more depending on gravity.
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  1. Zoning

  2. Environmental assessments

  3. Work unions

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1 reply by Vincent Guerard
Nov 18, 2016 10:17 AM
Vincent Guerard
...
Thanks Stéphane

Zoning, yes but that should have been deal with really early, not always the case, and there always the different level of government that can make it complex and get you a late response.

Environmental requirement are more and more clear but that has not reduce the risk associated with it, you right.

Worker union could be a pandora box.
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All comments above are very valuable inputs depending on their project situations. I just roughly list some categories of risks for construction domain based on my experience in various international civil projects for over 15 years. All listed below might be dependent on the real situations and durations in different projects since longer period will impose much more uncertainties in planning and executing the project.

1. Performing Organization
1.1. Resources
1.1.1. H/R
1.1.2. Equipment
1.1.3 Materials

1.2. Culture, communication and management engagement
1.3. Supporting departments
1.4. others

2. Client
2.1. Client Organization
2.1.1. Duplicated roles or responsibilities or vague communication channels
2.1.2. Biased decisions in conflict of interests.
2.1.3. Lack of expertise

2.2. Client Representative
2.2.1. Biased decisions
2.2.2. Lack of power
2.2.3. Lack of expertise

3. Design
Unclear design issues might create huge uncertainty impacts.

4. Site Condition
Unforeseen site conditions might be compensated though claim procedures but may not all.

5. Contract
Type of contract, unclear and/or arguable stipulations, procedures on unclear design and unforeseen site conditions etc. So many contract issues might affect the overall performance of project.

6. Schedule
Schedule risks might be dependent on the experiences and technical skills of estimators and team members.

7. Costs
Cost risks might be largely dependent on the experiences and technical skills of estimators and team members.

8. Project manager's leadership and technical skills

9. Weather condition

10. Force Majeure

11. Sellers or subcontractors

12. Applicable law or regulations

13. Environmental and safety effects

14. Workers' health effects

15. Insurance

16. Regional cultures or practices( for International projects)

17. External stakeholders like relevant authorities and residents

18. Site acquisitions

19.Lack of historical information

20. Labor union.
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1 reply by Vincent Guerard
Nov 18, 2016 10:23 AM
Vincent Guerard
...
Thanks Sungioon,

Very developed list.

What do you include in insurance risk? I usually see insurance as a mitigation.

By force majeur, you mean thing like EarthQuake!
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Nov 17, 2016 11:05 PM
Replying to Manavasi Ramesh
...
1. Unforeseen site conditions

2. Design aspects

3. External stakeholders influence
Thanks Manavasi
In three important, that I have see also
Network:62977



Nov 18, 2016 1:05 AM
Replying to Rami Kaibni
...
It all depends on the project type, location, size and circumstances. Some of the risks we've faced:

1- Excessive De-Watering.
2- Unforseen soil conditions when doing piling.
3- Estimation Errors.
4- Weather Conditions.
Thanks Rami
Estimation error is almost not a risk, in the sense that it's a certitude, the magnitude is unknown.

Weather conditions, I guest you mean changing weather condition from historical data. Like we plan for something in the 1 by 10 years base on historic data, but the new 1 in 10 is closer to the 1 in 50.
...
1 reply by Rami Kaibni
Nov 18, 2016 11:58 AM
Rami Kaibni
...
Hi Vincent,

Estimation Errors can be a serious risk "Cost Wise" so of course it is a risk. I recall on one of the large projects the following happened:

" The ROM was done by PMO Headquarters and then we submitted for the bid. After winning the bid and when construction started, we discovered that some of the pre-tensioned cables that should be embedded in the structure are not available locally and that we will have to purchase them from overseas with a lead time of 8 Months and additional cost of $150,000" - We tried to check design alternatives but we concluded that there is nothing much that can be done for the 90 m long structure except to order them from overseas" - Result: Schedule Delay, Extra Cost so yes it can be a risk sometimes.

As for weather, with global warming these days, the climate is changing and can be unpredictable at some point which can affect the environment and eventually pose a serious risk on a project depending on the nature and location of the project.
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Nov 18, 2016 7:57 AM
Replying to ERANDO SILVESTRI JUNIOR
...
1. Customer uncertainties causing changes in scope;

2. Errors in executive projects;

3. Weather conditions;
Thanks Erando,
Customer is always a risk in any industry, specially your first project with a new customer.

Error in execution, do you mean from error in the engineering or error by the trade workers?
Network:62977



Nov 18, 2016 7:59 AM
Replying to Mauro Sotille
...
1. Changes in the work
2. Technical conditions
3. Accidents
4. Weather
Thanks Mauro,

What do you mean by "Changes in the work", by the client or by the constrain on site or error in the design?

Accident is an important one, all the Heart and safety issue can have a major impact on a project. Some accident can close the site for a day or more depending on gravity.
...
1 reply by Mauro Sotille
Nov 18, 2016 10:50 AM
Mauro Sotille
...
In project management terms "Changes in the work" would be uncontrolled scope changes, caused by customer uncertainties or unforeseen conditions.
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