Risk management is an important part of construction project management. Like the old saying goes, it’s better to be safe than sorry. The reality is, accidents happen. And with the nature of construction work, certain risks should be expected.
A RANGE OF FACTORS NEEDS TO BE CONSIDERED, SUCH AS:
• Health & safety
• Procurement, contracts & cost management
• Project scoping & time management
• Staff management
• External influences (e.g. supplier issues).
Before you proceed with construction projects, take the time to learn about the possible risks, so you can manage or prevent them. Because no construction project is risk-free.
CREATING YOUR PLAN TO PROTECT YOUR CONSTRUCTION BUSINESS.
So, how do you prepare for risk? With a thought-out plan that identifies potential risks and creating a contingency plan.
When creating the risk plan, it’s good to cover five main areas. They include risk identification, assessment, control, management and implementation, and monitoring.
To begin with, outline all possible risks that can affect the construction project and proceed to quantify them based on probability and severity. After this assessment, you can draw up a plan to control individual risks, with actions alongside each one. Your industry experience will come into use here.
It’s essential to communicate this to relevant stakeholders in the project for implementation and monitoring. All participants in the project, including the client, contractor, and construction workers, will be fully aware of the risks they are exposed to and the actions to take.
EVERY PROJECT NEEDS A RISK MANAGEMENT PLAN.
A risk management plan is compulsory for certain council projects, government projects, and projects managed by tier 1 & 2 contractors. When properly done, a risk management plan greatly increases your chances of project tenders, project management certifications, and contract awards.
Your project history is also useful. Use them as a blueprint for what when right (and wrong. This is why it’s important that you get your risk management plan from qualified and experienced consultants.
At Solution for Construction, we assist with project risk management, either as a single service or part of a holistic plan. If you’re a construction business in Adelaide, we can help you maximize your projects.
With a rich background managing both residential and commercial projects, such as new home constructions and renovations, we’re here to help you create tailored risk management plans that meet your project needs.