Construction is filled to the brim with risks, meaning that the risk management process needs to be integrated to all functions otherwise something important is bound to get missed. All uncertainties are associated to one or more functions of the construction project management, and each of them has the potential to negatively affect the scope of the work, the schedule for completion, and the estimated cost.
To achieve an optimal risk identification, establish an effective assessment process, and then develop a comprehensive action plan, the whole process of risk management needs to be integrated into the construction management functions. Our approach is to fragment and distribute this step of the work to the associated engineering teams, essentially integrating risk management in all of our distinct operational areas, and then reunite everything on a common risk management platform for an overall assessment and correlation.
Here are the eight pillars of risk management integration as applied in KEN International:
1. Scope of work – What are the client expectations, and what is the feasibility of the project?
2. Quality Assurance – What are the requirements and designated standards?
3. Time – What are the milestone objectives and what the time constraints?
4. Cost – What are the budget restraints and how is the financial plan laid out?
5. Contract Management – What are the associated services and material orders?
6. Human Resources – What is the productivity availability and how can it be formed?
7. Information Control – What is the data exchange plan and how is accuracy assured?
8. Project Management Integration – What are the life cycle and environment variables?
Having dedicated teams work in each of the above sectors and associating possible risks with their scope of functionality is key to completing the integration quickly and effectively. All of the identified risks are added in the section of the PMS (Project Management Software) tool, so the association and determination of the linkages between each field are carefully evaluated in the next step.
By following this carefully structured method of risk management in large-scale projects, and by maintaining our standard level of transparency which allows clients and stakeholders to check everything that is being done in real time, we have clearly identified numerous benefits that arise from it. For example:
• We are enabled to allocate risks to the most appropriate engineering team.
• We focus on internal auditing programs.
• We focus more on risk reduction/elimination rather than risk recovery/mitigation.
• We gain a more in-depth insight on which are the new opportunities that can be grasped.
• We have the capacity to develop a mechanism to review the risks and their status changes.
• We can enhance the communication between contractors, suppliers, and the client.
• We can present a more systematic business planning strategy.
• Our clients are reassured that their project is professionally handled from day one.
• We can support decision making on how to utilize the available resources effectively.
• All stakeholders have a common platform for communication.