Abstract Risks are inherent in almost every work done by human so as in construction projects. Lives, property and money are lost due to these risks. These losses can happen due to human carelessness or extreme environmental conditions and these losses can be mitigated by proper risk management plan. Construction projects are vast and complex. The risks vary by varying construction projects types. This paper addresses the most common construction risks in all types of construction projects and their mitigation strategies. Introduction A hazard is something that is dangerous or something that presents a danger. Hazards are prerequisite to a mishap. And mishap is something that affects the success of project. These hazards can be identified through …show more content…
These damages that could occur due to these hazards are accidents to workers, accidents to the general public, loss of skills and experience, damage to property, loss of time and production, loss of money on contracts, loss of reputation and future business. These factors can be divided and categorized into financial risks, environmental risks, management risks, transport risks and technical risks. The biggest risk for a contractor is around a tender stage when cost and a timescale commitments are given. Edges can be lost if the bill of amounts is not precise. Subcontractors may not remain by their quotes and work might be costlier than evaluated if the decision of development technique turns out not to be …show more content…
After doing analysis and measuring risk the prioritization has to be done using risk index number. And the risk with high index no should be attended with plan of action immediately. Risk response planning Some of the common risk mitigation plans for above risks are conducting technical classes to increase local labor skill and knowledge, developing proper environmental analysis and following all government regulations, focusing attention on major material purchase which is sensitive to commodity and exchange rate volatility, assessing cost risks, various suppliers, engaging experienced consultants. Response to risk can be divided into four types in construction projects accepting risk, avoiding risk, mitigating risk, transferring risk. Accepting risk is the part where nothing is done to mitigate risk. The company just accepts the risk as the outcome of risk is cheaper than the risk mitigation
Reese, C.D. and Eidson, J.V. (1999). Handbook of OSHA construction safety and health. Boca Raton, FL. CRC Press
Risk management is among the most important practices in the field of project management. A successful project completion and risk management often go side by side. An interesting aspect of project management is that a project can sti...
Nonprofit Risk Management Center. (August 23, 2004). Fact Sheet. Construction and Building Repair (No date), Retrieved May 28, 2014, from https://www.nonprofitrisk.org/tools/workplace-safety/nonprofit/c6/construct.htm
The risk mitigation activities for this company should involve learning on the trends of the industry so as to make sure that they remain competitive. This will make their finances to perform consistently well and investors will be impressed and invest even more. As well, the company should do research on shows hat that
This chapter describes the terms for contractors and sub-contractors, contractor responsibility for the management of safety at construction sites is also important to ensure that the construction work can be carried out smoothly. Safety management also cannot be done well without the cooperation of all parties involved.
I believe falling hazards remain a problem due to the complexity of these projects, worker’s behaviour and misjudgement. These factors become critical concerns when the employer does not have the proper planning and procedures in place, the supervisor and workers are not fully utilizing there training adequately and efforts are not being made to improve the program by all stakeholders. Many companies experience an incident of this nature when these factors take place, especially when control measures of the hazard is prolonged and neglected it becomes the norm and creates a negative
The risk management process needs to be flexible. Given that, we operate in the challenging environment, the companies require the meaning for managing risk as well as continuous improvement in identifying new risks that will evolve and make allowances for those risks that are no longer existing.
Some include risks at the enterprise level, managing risks in complex projects and dealing with turnarounds and large capital projects. Liu, Zou, & Gong (2013) explore how enterprise risk management (ERM) may influence the ability and performance of project management risk (PRM) by considering the features of the construction industry, its businesses and projects. Managing risks within projects such as these has become an important process to achieve project objectives in terms of the scope, time and cost. The results show that enterprise risk management can positively influence the implementation of project risk management. This can be achieved through implementing a risk focused culture, setting up risk management departments and setting up risk procedures. This will help control the project risk and improve the performance of project risk management. Communicating the concerns with other team members can help identify the risks earlier on rather than later in the development of the project. If the Stakeholders and managers involved are satisfied then the project outline becomes a
Over the past decade, risk and uncertainty have increasingly become major issues which impact business activities. Many organizations are raising awareness to minimize the adverse consequences by implementing the process of Risk Management Framework which plays a significant role in mitigating almost all categories of risks. According to Ward (2005), the objective of risk management is to enhance a company’s performance. In particular, the importance of the framework is to assist top management in developing a sensible risk management strategy and program.
As the first step, identify potential risks plays a crucial role in the risk management process. The core purpose of identifying risk is to figure out causes of risk and analyze result caused by the risks and its probability . Hence, risk identification can begin with the source of problem, or with the problem itself. The chosen method of identifying risk may depend on culture, industry practice and compliance. The identification
After that, they will move to the new construction site. As a result, the contractor or the sub-contractor is not willing or not able to provide training for these temporary workers. The firm may think that it is a waste of money to educate workers about workplace safety. Therefore, this temporary employment practice is one of the cause of the ignorance of the construction site safety by the workers. Besides, usually the construction workers learn their skills through the job. However, they seldom learn about construction site safety from it. As a result, they forgo and ignore the importance of the safety. Then this leads to the high accident rate in the construction site. Low education level of workers is another cause of the high accident rate. As they are not well-educated, the knowledge and the awareness of the construction safety are not instilled properly and adequately, so they are more easily to be exposed to the construction accident, then results in high accident rate in the construction industry compared with other
A hazard is a potential damage, adverse health or harm that may effects something or someone at any conditions. Other than that, the risk may be high or low, that somebody could be harmed depending on the hazards. Risk assessment is a practice that helps to improve higher quality of the develop process and manufacturing process. It is also a step to examine the failure modes of the product in order to achieve higher standard of safety and product reliability. Unfortunately, it is common that a product safety risk assessments are not undertaken, or not carried out effectively by manufacturer. Mostly an unsafe and unreliable product was produced and launched on to the market. Thus, the safety problems are mostly identified after an accident happened or after manufacturing problems arisen. In order to prevent risk, a person should take enough precautions or should do more to prevent them because as a user should be protected from harm that usually caused by a failure for whom did not take reasonable control measures.
A hazard is defined as an activity or object that has the potential to cause harm if contact is made with the person, object or activity (MHS, 1996; Harmse, 2007; HSE, 2006). These hazards in a work place need to be identified and dealt with accordingly to prevent any harm to employees or any individual acquainted to a certain activity or establishment. The key roles and principles of occupational hygiene are Anticipation, Identification, Evaluation and Control (Schoeman and van den Heever, 2014; Harmse, 2008; SAMTRAC, 2012). To practise in accordance to the above principle; a hazard identification and risk assessment needs to be conducted. Anticipation is the foreseeing of the activity
Risk Management allows us to identify the problems which are unknown during the start of the project but may occurs later. Implementing an efficient risk management plan will ensure the better outcome of the project in terms of cost and time.
Construction is one of the most dangerous works during this era. The advanced technologies are to be utilized in the construction work but still it is not really safe work. Many of the human beings are now involved in the construction work. It is one of the most typical working fields. Most of the persons who have lack of knowledge, degree and skills join the construction teams in order to earn living. It is said that most of the workers related to the construction industry are not really well educated. This becomes that major cause of their less focus on the work. This proved sometimes very critical condition. One of the most important things in this regard is that workers sometimes not really work with taking great care.