There is a risk we may not assess the risk!

Through every project life cycle we will encounter risk.

From design through to construction and onto completion, how you manage risk will have an impact on your project success or failure.

The estimator should know the detail, the whole project, if they don't then its a risk!

As estimators its a key part of our role to have a good understanding of risk and how to manage it from start to finish.

Whether we are developing a clients budget or a contractors tender here are some key issues we encounter:

1. Design risk - at the early stage when you develop your concept design there is little detail, so being able to identify key risks is critical and will inform your client on where they need concentrate their effort. Is it affordable?

2. Contractual risk - How your client procures their project may put the burden of risk onto the tenderer. Depending on your appetite for risk you may or may not want to take on the tender?

3. Programme/schedule risk - the impact of under assessing key elements in your programme can be catastrophic. Time related cost and delay can break the biggest of organisations. The fall out from getting it wrong can lead to long term reputational loss, get it right and it can develop confidence in delivery, profit and future opportunities.

4. Construction risks - from temporary works to material shortages to inflation assessments the possibilities are endless. Experienced and strong management experience with a competent workforce and a reliable supply chain are a good start to mitigate construction risks but never be complacent and always continuously improve!

There are some good habits you can develop in order to better understand and manage risk.

A good start is to identify risk. It can be anything from lack of design detail, the level of liabilities. Capture them in a clear format and register the risks. Assess and allocate the risk correctly. Having the wrong person looking at the wrong risk can be a disaster. The risk owner should have the experience and capacity to manage and mitigate the risk.

Mitigation of the risk is a key consideration, whether its through design or within the construction phase it has to be safe, cost effective and practicable.

If you cannot mitigate the risk effectively then you have a residual risk, you will have to control and manage the risk.

There are so many benefits to managing risk. Good practice can minimise loss, protect/enhance reputation and drive confidence in your business. It can confirm whether your project is feasible and affordable. It can drive best practice and innovation towards an efficient greener solution.

Most of all it can drive safety and well being.

Your organisation should be endorsing a robust and efficient risk management culture so that your staff can work safely, confident in cost, programme and deliver amazing projects!

Remember;

• Identify

• Assess

• Mitigate

• Manage

• Monitor

The above is just the tip of the iceberg and only touches on some examples of what risks we encounter on a daily basis.

For help and guidance on how you can improve on your whole project risk identification and management get in touch @keyestimating.co.uk

If in doubt then get it assured! justask@keyestimating.co.uk