Risk Management Plan For The Queen's Wharf Brisbane Project Essay.

Discuss the findings and discussion goes beyond lecture materials

Description of Queen's Wharf Brisbane Project

Risk management is very essential for any type or size of construction project [1]; [2]. For this reason, risks must be identified, analyzed and evaluated so as to establish the most appropriate techniques of preventing or managing these risks [3]. This is the only way that the objectives of a construction project can be achieved [4]. The engineering project investigated in this report is Queen’s Wharf Brisbane that is being delivered by Destination Brisbane Consortium. The Consortium is preparing this risk management plan so as to prevent and manage potential risks in this project. The risk management plan is prepared in accordance with AS/NZS ISO 31000:2009.

Queen’s Wharf Brisbane is a mega construction project that is expected to transform the central business district of Brisbane (and Queensland as a whole) forever and make it a world-class destination for investors, tourists, artists, etc. The project entails construction of three residential towers, five new 5-star hotels, a departmental store, 50 restaurants, bars and cafes, riverfront moonlight cinema, pedestrian bridge, sky deck, and Queensland Hotel & Hospitality School, among others [5]. There will also be public space equivalent to 12 football fields. Currently, Queen’s Wharf Brisbane comprises of several underutilized heritage buildings, neglected riverfront land and obsolete government buildings. Another objective of this project is to connect Brisbane River, Botanic Gardens, Queen’s Street Mall and South Bank [6].

The project is being delivered by Destination Brisbane Consortium (a joint venture), which comprises of Star Entertainment Group, Chow Tai Fook Enterprises and Far East Consortium [7]. Once completed, the project is estimated to create over 8,000 jobs and attract about 1.39 million visitors to Brisbane annually. The project is estimated to cost $3 billion and it is expected to be completed in 2022. Figure 1 below shows the masterplan proposed Queen’s Wharf Brisbane resort development. During peak construction, there will be 2,000 jobs for local residents [8]. This project has numerous benefits to the local community and society, including creation of employment and business opportunities.

Considering various constraints of this report, the risk management plan prepared by Destination Brisbane Consortium only focuses on construction risks with particular attention on occupational and public health and safety.

This risk management plan is prepared by following the standard procedure provided in the AS/NZS ISO 31000-2009 (Principles and Guidelines) together with IEC/ISO 310010:2009 (Risk Assessment Techniques). The process entails various sections as shown in Figure 2 below. The plan aims at identifying, analyzing, evaluating and treating/managing various construction risks of Queen’s Wharf Brisbane; reduce all major and significant risks to tolerable levels; train all employees on how to identify, reduce, avoid and manage risks; and monitor and review risks continuously throughout the project period.

Risk Management Plan for Construction Risks

For the risk management plan to be effectively implemented and its objective attained, Destination Brisbane Consortium has resolved that it must involve all relevant stakeholders. This will be attained by preparing a multi-directional communication and consultation plan. Communication and consultation plan helps in ensuring that all internal and external stakeholders of the project are fully informed about the activities and their responsibilities in the risk management plan [11]. This includes information about the harms of risks and benefits of managing them [12].   

The main objectives of communication and consultation plan are as follows:

• Ensure that stakeholders receive complete information about risk management on time
• Share knowledge about risk hazards and risk management training
• Collect opinions from stakeholders on how risks should be managed
• Collect feedback from stakeholders about challenges experienced in managing risks
• Inform all stakeholders about their responsibilities in managing risks
• Understand and balance the interests of various stakeholders
• Keep stakeholders about all activities or developments associated with risk management

All stakeholders involved in construction projects always have unique interests and different levels of power. Those with high power have great influence on the project than those with low power. It is important to identify the interests and powers of each stakeholder so as to know the stakeholders to prioritize for the project to be completed within stipulated time and budget [13]. Destination Brisbane Consortium will communicate more frequently with stakeholders who have more power than those with less power. The various means of communication and consultation to be used include: voice calls, videoconferencing, emails, letters, internal and external memos, social media, newspaper, radio, television, postal services, telegraphs, fax, etc.

According to risk management guidelines provided in AS/NZS ISO 31000:2009, it is very important to define the context of the organization, including internal context, external context, stakeholders (and their roles & responsibilities), risk criteria, and risk management policy.  

Destination Brisbane Consortium is private joint venture between The Start Entertainment Group (lead partner), Far East Consortium and Chow Tai Fook Enterprises. The Consortium has many years of experience in property & hotel development, hospitality, entertainment and consumer & retail markets, both in Australia and across the world. They were successfully selected by the Queensland Government, through competitive tendering, in 2015 to execute the Queen’s Wharf Brisbane project.

The Start Entertainment Group is a listed company on Australian Securities Exchange (ASX) Top 100 that owns and operates The Star in Sydney, The Star Gold Coast and Treasury Brisbane. It also manages Gold Coast Convention and Exhibition Centre. The Group owns 50% of Queen’s Wharf Brisbane.  

Far East Consortium is a Hong Kong-based developer that is among the biggest in Asia and Australia. Their areas of specialization include hospitality, property and car parks. The Consortium owns 25% of Queen’s Wharf Brisbane.

Chow Tai Fook Enterprises is a private Hong Kong-based hospitality and consumer investment company. The company has many years of experience and track record in infrastructure and tourism projects in over 50 cities spread across Asia, Greater Asia, Americas and Europe. The company also owns and operates about 60 hotels worldwide and very big departmental stores in China. The company owns 25% of Queen’s Wharf Brisbane.

Multi-Directional Communication and Consultation Plan

The combined experience, resources and networks on the ground of these three multinationals is very critical in completing the project as planned and ensure that it achieved its objectives.

The area where Queen’s Wharf Brisbane is being constructed has been underutilized for many years despite it being an urban zone. This area is known for its warm subtropical climate, rich culture, and European and indigenous heritage. After numerous consultations, Queensland Government found out that the only way for Brisbane to restore its lost glory is by formulating a redevelopment plan. The government then came up with Queen’s Wharf Brisbane that is aimed to put Brisbane on the global map as an entertainment, leisure, tourism and business destination. This project will repurpose and replace the forgotten heritage buildings with spectacular modern architecture. This is an iconic development that will serve millions of people from Australia and all over the world. It will create thousands of job opportunities for local residents, create business opportunities for local and international investors, attract 1.39 million more tourists every year, restore Brisbane’s lost heritage and cultural glory, generate tourism revenue of $1.69 billion each year, and generate revenue of over $1 billion to the government annually [16].

The fundamental goal of preparing this risk management plan is to prevent or minimize all possible construction risks that may affect successful completion of Queen’s Wharf Brisbane project as planned. The details of risk assessment process to be followed in completing this is provided in section 4. The main tasks in the process are to identify, analyze and evaluate possible construction risks. Risk management plan typically provides a structured framework that should be used by relevant stakeholders to ensure that risks are managed appropriately to avoid or reduce their adverse effects on project implementation. All construction risks assessed in this plan will focus on occupational and public health and safety.

It is bulky to consider all potential construction risks in this project therefore Destination Brisbane Consortium will identify risks to be analyzed and evaluated using the risk acceptance criteria provided in section 4.2.3.

Identifying and categorizing stakeholders (as either internal or external stakeholders) is a very important step in establishing risk management context of this risk management plan. The various stakeholders involved in this project are as shown in Table 1 below

Table 1: Stakeholders

For the risk management plan to be implemented successfully, it is very important to define the roles and responsibilities of each stakeholder. Table 2 below shows key roles and responsibilities of various stakeholders in Queen’s Wharf Brisbane project

Defining Risk Management Context

Table 2: Key roles and responsibilities of stakeholders

Based on the principles and guidelines provided in AS/NZS ISO 31000:2009, the main focus of this section is on risk identification, risk analysis and risk evaluation. The techniques used in performing these tasks are those provided in IEC/ISO 31010:2009 [17].

There are numerous risks associated with construction projects. These risks have varied effects on project execution. The risks to be considered in this report are only those that will pass the risk acceptance criteria provided in section 4.2.3.

Inappropriate materials and equipment, environmental risks, disruptions, delayed deliveries and utilities, among others.

Risks can be identified using different techniques. The methods chosen to identify risks in this risk management plan are: checklists, direct observations and brainstorming [18]. These methods are appropriate considering the vast experience of Destination Brisbane Consortium in construction industry. The most preferred method is checklists, which is used to identify primary risks, while direct observations and brainstorming methods are used to identify additional risks. Risk identification checklist is provided in Appendix 1.  

Destination Brisbane Consortium has used Australian standards to prepare this risk management plan. As stated before, the risks covered in this plan are occupational ad public health and safety risks.

A risk register has been created to keep a record of all risks identified. This register will be reviewed and updated throughout the lifecycle of the project. The risk register is provided in appendix 2.

This process mainly involves establishing the likelihood that the identified risks will occur, and their consequences in case they happen. This helps in determining severity of the risks.

Rating of risks, in terms of likelihood and consequences, is done using a qualitative risk assessment matrix. The matrix assigns a score to each likelihood and consequence using a five-rating scale, as shown in Table 3 below. This rating is used to identify risks that should be prioritized.

Table 3: Qualitative risk assessment matrix

Brief descriptions of the symbols in Table 3 above are provided in Table 4 below

Table 4: Symbol description

Destination Brisbane Consortium has many years of experience in construction industry and therefore understands all these risks. The Consortium has identified various controls as provided in Appendix 3

The criteria helps in identifying risks that should be focused on [19]. From the Failure Mode and Effect Analysis (FMEA) analysis provided in Appendix 3, some risks have very high values of RPN. The consortium should therefore focus on these risks: water contamination, asbestos and airborne toxins and fibres.

Key Stakeholders and Roles and Responsibilities

The main purpose of risk evaluation is to identify risks that should be prioritized by the organization so as to establish the best methods of treating them.

The method used to evaluate risks in this risk management plan is As Low As Reasonably Practicable (ALARP) principle. This method helps in identifying risks that should be prioritized in terms of treatment [20]. It also helps to determine the need for further treatment of risks considering the benefit realized when these risks are treated [21]. 

After applying ALARP principle method, six risks have been identified as those that need further treatment. These risks are: water contamination, asbestos, airborne toxins and fibres, unintended collapse, working at height, and manual and material handling.

Risks can be treated by avoiding, minimizing, transferring or accepting them [23]. Each of the 6 risks that have been identified as those that should be prioritized may require a unique treatment method.  

Destination Brisbane Consortium will adopt one or a combination of the following treatment options so as to minimize the likelihood or consequences of the risks identified: staff training, proper application of set rules and regulations, risk transfer to appropriate parties, prepare a contingency plan, and regular audits, among others. Treatment methods for various risks are provided in Appendix 4.

Each risk can be treated using different options. Determining the most suitable treatment option for each risk in terms of time, cost, expertise and feasibility may not be possible at this stage. Nevertheless, Destination Brisbane Consortium will use the following steps to ensure that the most effective treatment option is chosen for each risk:

• Identify possible treatment options/methods
• Establish benefits of each option and its disadvantages (in terms of risk level after treatment, cost and time requirements and impacts)
• Choose the best treatment option/method
• Establish scenarios when the treatment option/method should be implemented
• Monitor effectiveness of the option and keep results records

Many engineering projects fail due to inappropriate management of risks [24]; [25]. Australian standards requires that risks should be monitored and reviewed continuously. This helps in ensuing that risks are properly managed [26]. It should also be noted that new risks keep on arising hence they can only be identified and treated through continuous monitoring and review [27]. The Consortium will us the control given in Table 5 below to ensure continuous monitoring and review of risks

Table 5: Periodic monitoring

 Monitoring activities for various risks have been provided in Appendix 4

The risk manager can close a risk as long as certain conditions have been fulfilled. The decision to close a risk is very important and should be done after comprehensive analysis and consultation [28]. In this plan, any risk will be closed if the following conditions are satisfied:

• Recommended treatment options have been successfully implemented
• The risk level has been significantly reduced to acceptable level
• The treatment action taken does not result to reoccurrence of the risks

Nevertheless, the top management of the consortium should have to review and approve the closure of risks. Once a risk is closed, it will be properly documents and all records kept.   

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