Page 49 - Urban Construction Project Management

24 Chapter Two
Exhibit 2-3
Item Included
Sample outline
for a risk 1. Identify risks to the project, especially during
the preconstruction planning.
management plan.
2. Consider arranging for a risk workshop to assist
in identifying project risks.
3. Fill out a risk assessment form.
4. Document the risk in the risk management log
for proper tracking and administration.
5. Investigate the risk.
6. Quantify the risks, likelihood, and potential
impact on the project.
7. Review the risk to determine its overall priority
(low, medium, or high).
8. Take actions to resolve the low and medium risks.
9. Escalate high risks to upper management.
10. Describe the earliest indicator or trigger condition
that might indicate that the risk is turning into
a significant problem.
11. Continuously identify and update monthly the
top ten risks to the project.
12. Review risks and approve the appropriate set
of actions.
13. Where possible avoid, transfer, or mitigate risks.
14. The project manager will assign the actions
to the members of the project team and oversee
the implementation.
15. Members of the project team will implement
approved actions with diligence and timeliness.
16. Advise the owner of any impact to the project’s
budget, schedule, and logistics.
17. Obtain approvals as may be required for any
contractual costs that may be incurred.

Tools of Risk Management
The following is a list of tools used to manage risk for a construction project:

1. Contract language
2. Insurance
3. Administrative procedures
4. Operational procedures
5. Bonding and surety
6. Safety programs and loss prevention