A good construction project management plan will always have thoroughly identified risks and a risk management plan. Risk management is the identification, assessment, and prioritization of risks. The objective of risk management is to assure uncertainty does not deflect the endeavor from the business goals.
The “Mitigation of Risk in Construction: Strategies for Reducing Risk and Maximizing Profitability SmartMarket Report” published by McGraw_Hill Construction has identified the following factors as the most significant risks facing the industry:
- Changes in schedule/ scope creep
- Budget/cost overruns
- Project process approvals
- Safety
- Site Conditions
Risk Management Strategies for Construction
On closely observing the risks listed above, we notice that many of these factors are under the direct control of the project firm. This reinforces the fact “that mitigation strategies can directly have a positive impact.”The recommendations that emerge from the McGraw_Hill report offers practical solutions:
- Address risk early in the project to reap its full benefits.
- Communicate with other team members throughout the project.
- Implement a rigorous risk assessment and mitigation process.
- Embed risk management into your firm’s culture.
- Engage in activities that reduce the likelihood of litigation.
- Build a strong project team and assess the value of more formal collaboration, such as integrated design.
Ultimately, the report states “good project management must include good risk management”.
In this post, we discuss the top technology tools that can help you in managing and mitigating risks on construction projects. Risk management tools and techniques can be used at various stages of construction – from concept design to final site execution and even in the operation stages to determine whether business goals are being met.
So let’s jump in and get started…
