Construction Project Risk Management – Uncertainty and Unknowns

Introduction

Following a recent on line survey in Asia on construction project risk management some interesting and valuable statistics emerged.

Construction sectors surveyed included:

• Buildings  26.47%
• Energy 26.47%
• Infrastructure 47.06%

The major areas of risk identified in the projects reviewed were:

• Schedule delays
• Safety related delays
• Workforce shortage
• Financial construction risks

Results

The application of risk management/mitigation techniques in project delivery options; and the application of project structure and organisation to manage the delivery process of a project. Where public private partnerships and “alliancing” fit within Infrastructure Australia, and the National PPP Guidelines as well as developing Public Sector Comparator acceptable to Government.

Methods

The presentation focuses on reviewing the history of project development in Australia. The advent of risk consciousness and risk management awareness and risk management tools available for construction projects. The development of risk mitigation strategies and the current focus on project delivery options related to project concept and commercial feasibility. A review of past and present delivery options with a focus on “alliances” and the differing successes and failures of public private partnerships, and the perceived reasons for their results. A case study on Construction Risk Management applied to a project

Conclusion

A successful risk mitigation strategy begins with the conceptual development of a project and the delivery option selected well before contracts are even considered. The delivery of a successful mitigation strategy is often governed by the organisational structure of the Project Management Office/Team.

In 2010, TBH expanded its operations internationally to Singapore, Hong Kong, The United Arab Emirates, Qatar and the UK. Brian has taken on the role of Director for establishing and operating the international business of the Group. Brian is a Life Fellow and a Past National President of the Australian Institute of Project Management (AIPM) and is regularly invited to give seminars and workshops to the construction industry, as well as to individual large construction companies.

In his past role as Chairman of the Professional Affairs Committee (for the Australian Institute of Project Management), Brian was instrumental in establishing the current development of National Project Management Competency Standards within the industry.