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(RISK-849) Using Probabilistic Risk Based Scheduling to Balance the Project Triangle

Primary Author: Mr Daniel Feinblum

Audience Focus: Basic
Application Type: Experience-Based
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: The value of developing a project plan early in the genesis of a project is not a new concept in the construction industry. As the average project continues to become more complicated and requires higher levels of multi-national coordination during both design and construction, the potential cost of unplanned occurrences can dramatically impact the project's bottom line This potential requires a heightened focus on managing the balance among cost, schedule, and scope- the project triangle. Early identification and management of these unplanned occurrences, or the risk thereof, could allow for mitigation strategies to be put in place, thereby providing potential bottom-line savings in both time and costs.

This paper provides a brief overview of the concept of risk and the risk management plan as it relates to improving balance in the project triangle. A more detailed discussion is included on the implementation of schedule risk management, including the use of probabilistic risk-based schedules, and how and when these tools can be used most effectively to develop and adjust the project plan in an attempt to identify and mitigate potential risks to the project.