Risk Management Strategies for Construction Projects

If you're in the business of leading projects, then at least 10% of your time should be spent on identifying and planning around risks. At least, this is what I was taught in my first PMI project management course years ago. And while reasonable people can disagree on the specific amount of time needed, the point is solid - one of the major roles anyone in production or program management type roles is assigned to take on is risk assessment and mitigation. Unfortunately, for a lot of producers in the game industry, this isn't something they were formally trained on, particularly if you came into the role from another discipline in games (such as QA or Design) or if your only formal training came from a two day Scrum course. I saw the subject come up in the Building Better Games Q&A call and I was actually excited when Aaron Smith brought up the same techniques I was trained on years ago and have adopted (and adapted) ever since. It's the way I teach my own teams and while it requires dilligence and consistency, it's not hard to pick up (it's easier than the rules for the board game "Risk"). 1 - Identify risks On a regular basis, you should be asking your team what are the risks they see. Every time a decision needs to be made, a story is written, or a feature is spec'd, you should think about what could go wrong. Those are your risks. 2 - Document Keep the risks written down in a doc everyone has access to (Gdocs, Confluence, etc). The way I prefer (and what I saw Aaron advocating) is a spreadsheet. Each risk gets a line item and a category (if the risk happens, what would be impacted - costs? security? people? players?). 3 - Impact You should also track the potential impact - how bad is this risk if it happens? Is it a trivial risk or a catastrophic one? Would it involve some work to reboot a service or would it potentially take down your entire data center? Assign these risks a score. I prefer 1 to 5, Trivial to Catastrophic. 4 - Probability You should score out how likely each risk is to occur. Is it highly unlikely or nearly certain? Score these out also on the same scale, typically 1 to 5. 5 - Prioritize Multiply the Impact and Probability to come up with your score, somewhere between 1 (something trivial that is highly unlikely) to 25 (a nearly certain, catastrophic event) and then sort or at least color range your spreadsheet accordingly to show your risks in a way that prioritizes your attention. 6 - Action Plans The last column I make sure to include is what type of plan is in place to address the risk. Something with a minor impact may be something we just accept where something more serious may require a full mitigation plan. The value here is that you've documented these risks and can communicate them out (as well as what needs doing). You're addressing risks before they become real problems in this way. #production #risks #gamedev #bettergames

“11 % of major global projects are at risk of delay or cancellation … ” An recent Andy Day MRICS, MAIQS, CQS post highlights familiar culprits: poor early planning, contractual disputes, underestimated complexity and workforce gaps. As professionals who live and breathe risk management, we recognise another underlying issue: Success in a $1 B+ programme can’t be judged by a single deterministic date or price tag. Costs WILL change. That is the only deterministic assumption we can have. Mega-projects operate in a landscape of shifting scope, evolving regulations and strategic realignments. Pretending we can “lock-in” certainty up-front creates a false binary of on time/on budget = success versus any variance = failure. A more realistic, and taxpayer-focused, approach is to govern against risk-based ranges: Rethinking “success” for mega-projects 1. Value for Money, Not Just Variance Does the project still deliver the socio-economic return promised in the business case, even if the baseline shifts within an agreed tolerance? 2. Strategic Adaptability A governance model that anticipates complexity (scenario planning, stage-gates, agile funding tranches) enables proactive pivots rather than reactive firefighting. 3. Commercial Alignment Contracts that balance incentives and risk-sharing discourage disputes and keep the supply chain focused on total lifecycle value, not baseline preservation. 4. Transparent Confidence Intervals Reporting P-values (P50, P80) for cost and schedule gives decision-makers a probability-weighted view, protecting public funds without penalising prudent risk responses. The Project Cost Estimating Manual (PCEM), (Transport and Main Roads, Australia) seems to be a good approach. Build risk-adjusted contingency inside the authorised budget, released only via evidence-based change control. Use Last Planner, AWP or similar pull-based methods to couple the master schedule with field realities. Use Project Management Institute and AACE International best pratices to define costs, riscks and schedule will enhance the propability of success. Publish a “range-based scorecard” alongside the traditional S-curve—green if we stay within the confidence band, amber/red if we breach it and can’t justify the value gained. Delay or budget growth may be symptoms, not diagnoses. A mega-project can miss “Plan A” yet still succeed if it captures opportunity, mitigates emergent risk and safeguards long-term public value within a realistic corridor. How do you define success when uncertainty is the only constant? #MegaProjects #gigaprojects #RiskManagement #ProjectControls #projectmanagement #Infrastructure #contractmanagement

In the construction world, success hinges on meticulous planning and adherence to project plans and specifications. As a construction superintendent, managing risk while following these blueprints is essential for project success. Here are the key things to focus on can that can help you manage risk as a Superintendent. -      Review Plans and Specs Thoroughly: To start, carefully examine the project plans and specifications. Understand the requirements.   -      Prioritize Safety: Think about how the plans affect safety on the site. Make preparations for safety measures ahead of needing them.   -      Identify Potential Risks: Look for problems or questions in the plans. Highlight areas of concern to work through before they become problems.   -      Seek Clarifications: If you find mistakes or things you don't understand, ask the architects or engineers. Document these clarifications and if needed submit RFI’s.   -      Manage expectations: Meet with your subcontractors ahead of their mobilization. Review their scope and discuss the requirements.   -      Quality Control is Key: Make sure the work matches the plans by setting up a strong quality control system. Regular checks are important to confirm everything is going as planned.   -      Document Changes: If you need to make changes because of unexpected issues, keep good records. This includes schedules, plans, details, change orders and approvals.   -      Maintain Clear Communication: Keep talking with your project team and subcontractors. Everyone should know what's expected and be working in tandem.   -      Thorough Record-Keeping: Keep detailed records of the project, like daily reports, change orders, and meeting notes. Good documentation can be critical to success.   -      Legal and Contractual Awareness: Make sure you understand your contractual obligations. Make sure you're doing everything the contract says about the plans and specs.   -      Report Issues Timely: You have a small window of opportunity to hold people accountable especially for damages. Be proactive by documenting these issues and reporting them in a timely manner.   -      Transparent Reporting: If you run into big risks, issues, or changes, tell the higher-ups or project owners right away. Being open and honest is the key to good risk management. By following these steps and taking proactive measures to address potential risks or deviations from plans and specifications, you can guide your construction project to success while reducing the chances of costly disputes and delays.   Follow me and together let’s find ways to achieve more success. Innovate. Adapt. Overcome. #construction #leadership #success

🚧🔬 Leveraging the Power of Innovative Subsurface Utility Engineering (SUE) and Utility Coordination (UC) for Successful Projects 🔬🚧 Are you tired of encountering unexpected utility conflicts and delays during construction projects? Looking for ways to enhance safety, reduce costs, and streamline project timelines? Look no further! Subsurface Utility Engineering (SUE) and utility coordination (UC) are the necessary game-changers. SUE combines cutting-edge technology, innovative techniques, and meticulous data analysis to accurately locate and map underground utilities. By categorizing utility information into different Quality Levels, SUE provides invaluable insights for project planning and design. So, why should you consider incorporating SUE and utility coordination into your projects? Here are some key benefits: 1️⃣ **Risk Mitigation**: Identify potential conflicts and risks before construction begins, saving you from costly redesigns and delays. 2️⃣ **Cost Savings**: Minimize utility-related conflicts and redesigns during construction, leading to significant cost savings. 3️⃣ **Enhanced Safety**: Prevent accidental utility hits, protecting workers and the public from potential injuries. 4️⃣ **Regulatory Compliance**: Ensure compliance with safety standards and regulations, avoiding legal complications. 5️⃣ **Improved Communication**: Foster effective communication and collaboration among all project stakeholders. 6️⃣ **Technology Advancements**: Utilize advanced technologies like remote sensing, augmented reality, and machine learning to streamline data collection, analysis, and visualization. 7️⃣ **Accurate Utility Location**: Precise utility mapping reduces the risk of accidental utility strikes and associated repair costs. 8️⃣ **Efficient Resource Allocation**: Optimize resource allocation by leveraging accurate utility data. 9️⃣ **Enhanced Asset Management**: Access accurate and up-to-date utility information for improved asset management. 🌟 Embrace the power of SUE and utility coordination to unlock project success! 🌟 If you're interested in learning more about how innovative SUE and utility coordination can transform your projects, feel free to reach out to us. Let's connect and discuss how we can optimize your construction processes and achieve outstanding results. We can build a safer, more efficient, and cost-effective future! 💪🏗️ #SUE #UtilityCoordination #ConstructionIndustry #Innovation #ProjectManagement #UndergroundUtilities #Technology #Safety #CostSavings #DataAnalysis #Collaboration #AssetManagement #Efficiency #Construction #Infrastructure #Engineering #RiskMitigation #RegulatoryCompliance #Communication #ResourceAllocation #AccurateMapping #FutureofConstruction #ConstructionTechnology #StreamlinedProcesses #Success David P. Acosta, PS Construction Survey Technologies, Inc Andrew Acosta

The Risk Management Process Step one of the risk management processes is to have each person involved in the planning process individually list at least ten potential risk items. Often with this step, team members will assume that certain project risks are already known, and therefore do not need to be listed. For example, scope creep is a typical problem on most projects. Yet it still must be listed because even with the best practice management processes in place, it could still occur and cause problems on a project over time. Therefore it should be addressed rather than ignored. Step two of the risk management process is to collect the lists of project risks and compile them into a single list with the duplicates removed. Step three of the risk management process is to assess the probability (or likelihood), the impact (or consequence) and the detect ability of each item on the master list. This can be done by assigning each item on the list a numerical rating such as on a scale from 1 to 4 or a subjective term such as high, medium, or low. Detect ability is optional, but it can be simple to assess - if a risk is harder to see, such as with scope creep, then it's a riskier item. If it's easier to catch early, such as loss of management support or loss of a key resource, then it's lower risk. Step four of the risk management process is to break the planning team into subgroups and to give a portion of the master list to each subgroup. Each subgroup can then identify the triggers (warning signs) for its assigned list of project risks. All triggers should be noted, even minor ones. Normally there will be at least three triggers for each risk. Step five of the risk management process is for those same subgroups to identify possible preventive actions for the threats and enhancement actions for the opportunities. Step six of the risk management process is for the subgroups to then create a contingency plan for most but not all project risks - a plan that includes the actions one would take if a trigger or a risk were to occur. This plan will be created for those risks scoring above a certain cut-off point, which is determined after looking at the total scores for all risks. This keeps the risk management process manageable. The risk management process is not effective if it is so time-consuming that it is never done. Step seven, the final step in planning the risk management process, is to determine the owner of each risk on the list. The owner is the person who is responsible for watching out for triggers and then for responding appropriately if the triggers do in fact occur by implementing the pre-approved and now established contingency plan. Often, the owner of the risk is the project manager, but it is always in the best interest of the project for all team members to watch for triggers while working on the project.

Some risks are worth taking, but many are not.   Without proper risk management, unnecessary risks can derail your project's success.   I've learned this the hard way over my years leading complex projects. Here are a few tips from my experience:   Identify all potential risks upfront through brainstorming, risk interviews with stakeholders, and risk analysis techniques.   Don't let risks sneak up on you.   Evaluate each risk for probability and impact.   Prioritize the biggest threats to your project objectives.   Mitigate high-priority risks by avoiding them, controlling them, transferring them, or accepting them with a contingency plan.   Don't ignore them and hope for the best.   Implement your risk response plans. Continuously monitor risks and watch for new ones.   Adjust responses accordingly. Manage risks proactively.   Proper risk management takes time and effort but pays off tremendously in avoiding surprises.   It enables you to deliver projects successfully in a structured way.   Don't gamble with your project's outcome.   Let me know if you need any risk management advice!  

When you hear "construction risk" do you immediately think of either: 1) jobsite safety or 2) insurance? Yes, 𝗷𝗼𝗯𝘀𝗶𝘁𝗲 𝘀𝗮𝗳𝗲𝘁𝘆 𝗶𝘀 𝗲𝘅𝘁𝗿𝗲𝗺𝗲𝗹𝘆 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁. And yes,𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗶𝘀 𝗼𝗻𝗲 𝗰𝗿𝘂𝗰𝗶𝗮𝗹 𝗽𝗶𝗲𝗰𝗲 of a construction risk management system. 𝘽𝙪𝙩 𝙧𝙞𝙨𝙠 𝙞𝙣 𝙘𝙤𝙣𝙨𝙩𝙧𝙪𝙘𝙩𝙞𝙤𝙣 𝙞𝙨 𝙨𝙤. 𝙢𝙪𝙘𝙝. 𝙢𝙤𝙧𝙚. Every construction project hides risks that are invisible until they hit the bottom line hard. These are the 𝐑𝐢𝐬𝐤 𝐁𝐥𝐢𝐧𝐝 𝐒𝐩𝐨𝐭𝐬 we never see coming. In the world of construction, success hinges not just on what we know, but on 𝘰𝘶𝘳 𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘵𝘰 𝘢𝘯𝘵𝘪𝘤𝘪𝘱𝘢𝘵𝘦 𝘵𝘩𝘦 𝘶𝘯𝘬𝘯𝘰𝘸𝘯. Risk Blind Spots represent those unforeseen challenges that can derail even the most meticulously planned projects. They lurk in the shadows of 𝗮𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀, hidden by 𝗼𝘃𝗲𝗿𝗰𝗼𝗻𝗳𝗶𝗱𝗲𝗻𝗰𝗲, and masked by 𝗿𝗼𝘂𝘁𝗶𝗻𝗲. 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲𝐢𝐧𝐠 𝐚𝐧𝐝 𝐚𝐝𝐝𝐫𝐞𝐬𝐬𝐢𝐧𝐠 𝐭𝐡𝐞𝐬𝐞 𝐛𝐥𝐢𝐧𝐝 𝐬𝐩𝐨𝐭𝐬 𝐢𝐬 𝐜𝐫𝐮𝐜𝐢𝐚𝐥 𝐟𝐨𝐫 𝐩𝐫𝐨𝐣𝐞𝐜𝐭 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 𝐚𝐧𝐝 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲. 𝘽𝙪𝙩 𝙝𝙤𝙬 𝙙𝙤 𝙮𝙤𝙪 𝙨𝙥𝙤𝙩 𝙩𝙝𝙚 𝙞𝙣𝙫𝙞𝙨𝙞𝙗𝙡𝙚? How can you prepare for challenges that seem to come out of nowhere? ① Start with a thorough 𝗿𝗶𝘀𝗸 𝗮𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 that goes beyond the obvious. Involve your whole team to gain multiple perspectives. ② 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 a continuous monitoring strategy to catch issues before they become problems. ③ Cultivate a 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 of open communication where team members feel empowered to voice concerns and observations. 𝘕𝘰𝘸, 𝘐 𝘸𝘢𝘯𝘵 𝘵𝘰 𝘩𝘦𝘢𝘳 𝘧𝘳𝘰𝘮 𝘺𝘰𝘶: 𝐇𝐚𝐯𝐞 𝐲𝐨𝐮 𝐞𝐧𝐜𝐨𝐮𝐧𝐭𝐞𝐫𝐞𝐝 𝐚 𝐑𝐢𝐬𝐤 𝐁𝐥𝐢𝐧𝐝 𝐒𝐩𝐨𝐭 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬? 𝐇𝐨𝐰 𝐝𝐢𝐝 𝐢𝐭 𝐢𝐦𝐩𝐚𝐜𝐭 𝐲𝐨𝐮𝐫 𝐰𝐨𝐫𝐤? #ConstructionManagement #RiskManagement #ProjectSuccess #LeadershipInConstruction ~~~~~~~~~~~~~~~~~~ 📈 Check out my profile every day at 6:15 am PST for more posts about how you can boost profits through proactive, strategic risk management. ⏮️ Subscribe to my newsletter, “Construction Risk Rewind,” out every Sunday at 6:15 am PST. 🧭 𝐑𝐞𝐚𝐝𝐲 𝐭𝐨 𝐠𝐞𝐭 𝐩𝐫𝐨𝐚𝐜𝐭𝐢𝐯𝐞 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮𝐫 𝐫𝐢𝐬𝐤 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲? 𝘚𝘩𝘰𝘰𝘵 𝘮𝘦 𝘢 𝘋𝘔 𝘢𝘯𝘥 𝘭𝘦𝘵'𝘴 𝘵𝘢𝘭𝘬 𝘢𝘣𝘰𝘶𝘵 𝘩𝘰𝘸 𝘸𝘦 𝘤𝘢𝘯 𝘸𝘰𝘳𝘬 𝘵𝘰𝘨𝘦𝘵𝘩𝘦𝘳. 👇 P.S. 𝚆𝚑𝚊𝚝 𝚜𝚝𝚛𝚊𝚝𝚎𝚐𝚒𝚎𝚜 𝚍𝚘 𝚢𝚘𝚞 𝚎𝚖𝚙𝚕𝚘𝚢 𝚝𝚘 𝚞𝚗𝚌𝚘𝚟𝚎𝚛 𝚊𝚗𝚍 𝚖𝚒𝚝𝚒𝚐𝚊𝚝𝚎 𝚝𝚑𝚎𝚜𝚎 𝚑𝚒𝚍𝚍𝚎𝚗 𝚛𝚒𝚜𝚔𝚜?