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What are your top risk in Construction projects?

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Vincent Guerard Coach - Trainer - Speaker - Advisor| Freelance Mont-Royal, Quebec, Canada
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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MARK A ANNUNZIATA, Sr VP/EXPERT CONSULTANCY TO THE CONSTRUCTION INDUSTRY| ROMAN STRUCTURES, INC WELLINGTON FL Dammam, Eastern Province, Saudi Arabia
Jun 17, 2019 2:23 PM
Replying to Stephanie Willis
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I'd say when a contractor underbids a project, and/or subcontracts work to inexperienced businesses, that presents a host of risks, including (and especially) quality, cost and schedule. I'm not in construction but 2 decades ago, I worked for a couple of general contractors. I imagine it is an issue more in the residential space or small business space but nonetheless, it exists. The reason I hopped on this thread is because in my current company, we install/fiber optic cable, and thus deal with construction projects on a daily basis.
Stephanie-
You are absolutely correct. On my LinkedIn page, I have written some articles describing my experiences attempting to mentor a recent "Precon" Department. They mistakenly assumed that cutting deals with unqualified Vendors for the cheapest price actually produced savings for the Project Budget.
This attitude puts unskilled and low performing Subcontractors on the Project, causing extensive problems for the Execution Team and the Project Manager.
I recently witnessed 2 Major Multi-family Projects stalled due to Senior Management's inability to improve its Vendor pipeline. The 24 Month Projects were entering their 60th month. The PM's of these Projects are very upset!
You are very perceptive!

From the Trenches!
M
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Antonio Louro Director Africa| Insight International Luanda, Luanda, Angola
Nov 18, 2016 9:35 AM
Replying to Sungjoon Park
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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.
Agree 100% very good
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Yasir Masood PMO, Risk, Change & Portfolio Mgt, Project Controls, Risk Workshop Facilitation| Change & Risk Consultant Toronto, Ontario, Canada
Recently I wrote an article on LinkedIn, CONSTRUCTION RISK MANAGEMENT, A DIFFERENT PERSPECTIVE: WHAT? WHY? It highlights key areas for construction risk management.
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