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(RISK-1053) Goal Orientated Risk Management Practices for Construction Projects

Primary Author: Jean G. Hansen, PE CFCC PSP

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

Abstract: This paper addresses the benefits of augmenting a project’s management program with specific goal orientated risk management tasks during the pre-construction and construction phases. These tasks are applicable to owners, designers and contractors. This paper presents how to identify and manage the goal orientated, contract-based risks inherent in contract requirements, cost estimates and schedules; risks that are not addressed through insurance. The techniques and tasks learned here can assist in the equitable and timely resolution of issues that would otherwise adversely impact the success of a project.

This paper explores:
  • The criteria for a successful project from each party’s perspective
  • Project success goals and why a comprehensive understanding of them by the entire management team is critical
  • The advantages of reviewing project procedures and practices early
  • Key requirements for estimates and preliminary scheduling that allow for later evaluation and preclude disputes
  • The difference between allowances and contingencies, why both should be re-evaluated over time and when these evaluations should take place
  • What elements are evaluated in a review of contractor schedules
  • The importance of “real time” resolution of potential disputes