CHEE6420 : Risk And Safety Management

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04-11-2020

Course Code: CHEE6420
University: The University Of Newcastle

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Country: Australia

Question:

Scenario
Client: A Special Purpose Vehicle/Consortium, (Private)
Project: New Prison
Location: Remote Rural Location
Form of Contract: Form of Private Finance, (Design, Construct and Operate for 30 years)
Market Conditions: Very Buoyant/High Demand
Scenario Description: The Client is a consortium of multiple private companies who build and operate prisons and other public service buildings. The latest agreement with the public "Department of Prisons" is to design, construct and operate a 1,000 cell prison that can accommodate male, female and juvenile detainees serving custodial sentences of over 3 years.
The Client has carried out early feasibility and design studies, (up to RIBA Stage 3), and the proposed design solution involves the following:
" Demolition of derelict industrial/farm buildings on the site
" Upgrading a 3km track to form a highway standard access road and corridor for utilities provision
" Initial security considerations
" Significant extent of prefabricated construction, including precast concrete cell block construction, M&E service risers, etc.
" No site investigations to date. Land is in the area of former coal mines.
" Separate "demolition" contract and "main works" contract, (both contracts intended to be managed by the same Client Design /team and funded from the same overall project budget)
" Remote location
" Phased hand-over of the facility, (i.e. phase 1 consists of 1nr houseblock and all ancillary buildings, perimeter wall, etc; phase 2 consists of 1nr houseblock and phase 3 consists of 2nr small houseblocks)

Requirements
As part of the RIBA Stage 3 Report, the Client requires a Risk and Opportunity Report to be prepared which as a minimum:
" Identifies key project risks and opportunities from various perspectives, (including but not limited to business case, commercial, programme, health & safety, etc risks)
" Assessment of the risks and opportunities identified
" Proposed mitigation options for risks and opportunities identified
" Potential supply chain vulnerabilities
" Planned Risk and Opportunity Management principles for the remainder of the design and procurement stage of the project
All of the above should be clearly addressed within a paper produced by you as an INDIVIDUAL submission. You should therefore take care when exchanging ideas, etc. with other members of your cohort (see plagiarism link below).
You should adopt an appropriately concise format (an executive summary, for example, is NOT required) and include full referencing.
You are also encouraged to make innovative use of graphical material as part of the paper.
You should submit an illustrated,

Answer:

The identified project Risks

The scope of the project is clear, however, there are major risks associated with the project. The risks are identified from the various perspectives, which include the business case, commercial, program, health and safety risks (Loosemore et al. 2012). The major risks associated with the project with the project are as follows-

There is a certain health and safety risk associated with the demolition of derelict industrial and farm buildings resent on site. Although the demolition works will be done on according to the project plan, it is essential for the management team to ensure proper safety of the workers. Since the site is particularly large, a considerable amount of time is needed to be allocated for this demolition work (Zhou, Goh and Li 2015). Choice of skilled labours is a major opportunity for the project team for improving the process of project implementation.
The excavation is to be done by ensuring proper security measures. However, there are certain technical risks associated with the demolition works on the site as the site is located in a remote rural location where it is difficult to transfer the modern machineries. Furthermore, the land is in the area of former coal mines. Since there has been no site investigation till date, there is a possibility for the project to face these technical risks (Walker 2015). The remote location of the site adds to the difficulty level of excavation and development of the new prison.
Apart from the safety risks of the labours, the project might face the risk of resource shortage since it is quite difficult to get labourers who will be ready to work in such adverse conditions.
There is a considerable amount of financial risks associated with the project. Since the site is located in a remote location and is very difficult to access, it is quite possible that the cost of transport of the materials and cost of hiring the labourers and workers exceed the cost that was predetermined for the same task.
The project plan includes separate demolition contract and the main work contract. The separate demolition contract and the main work contract can result in the difference in the opinion among the two contractors resulting in a schedule risk (Kerzner and Kerzner 2017). The demolition contract will be followed by the main work contract and any delay in the demolition work can result in the delay of the entire project. Therefore, the project is expected to involve a schedule risk.
There are certain commercial risks associated with the project as well. This might arise as a consequence of schedule risks. Since the project is a high priority project, any delay in the schedule might result in commercial risks. The chances of the project in facing this risk are quite high since there has been no site inspection till date. Without site inspection, it is quite difficult to calculate the time required for demolition works since it includes precast cell block construction and M & E service risers.

These are the major risks associated with the project of developing and building new prison. Apart from these identified risks, there are several opportunities associated with the project which are as follows (Park and Kim 2013)-

Since the feasibility test of the project has been carried out already, there are very less chances of project failure.
The market condition of the project is very buoyant and of high demand.

2. Risk Assessment

There are certain risks associated with the project which is identified in the previous section. The assessment of the identified risks is necessary in order to determine the priority of the risk and the risk mitigation approach. This is needed in order to address the high priority risks in an urgent basis so that it has a very little impact on the successful execution and implementation of the project (Zou and Sunindijo 2013). The assessment of the identified risks is represented in the following table-

SL. No	Risk Description	Likelihood	Impact	Priority
1.	Health and Safety Risk	High	Medium	High
2.	Technical Risks	High	High	Medium
3.	Resource Shortage	Medium	Medium	Medium
4.	Financial Risk	High	High	High
5.	Schedule Risk	Low	Medium	Medium
6.	Commercial Risks	Medium	Medium	Medium

Table 1: Representing the Risk Assessment of the identified project risk

The above table gives an overview of the likelihood of occurrence, impact and priority of the risk identified for the project. The likelihood of occurrence of health and safety risk in this project is quite high. This is mainly because of the remote location of the site and the difficulty in accessing the different parts of the site. Although the impact of this risk on successful project completion is considerably less, the priority of mitigating this risk is high as well since the safety of the workers is the responsibility of the project implementation team. The technical risks associated with the project are high as well and the impact of the risk is high. This is because the technical difficulties associated with the project can result in project delays. The risk assessment matrix further provides the idea of likelihood of occurrence, impact and priority of the resource, financial and the schedule and commercial risks associated with this project.

The opportunities identified for the project should be addressed with highest priority as the success of the project largely depends on them. Furthermore, the project is of very high demand in the market and therefore the opportunities of the project are needed to be addressed in a proper manner.

3. The risk mitigation approach for the identified risks

The approaches of risk mitigation include identification of the risk, assessment of the impact of the risk, analysis of risk prioritization and risk mitigation (Zhou, Whyte and Sacks 2012). The different risks mitigation approaches for the identified risks are as follows-

Risk	Mitigation Approach
Health and Safety Risk	Risk Avoidance, is the risk mitigation approach for mitigation of the health and safety risk. Risk Avoidance is one of the easiest ways of risk mitigation (Badri, Gbodossou and Nadeau 2012). In order to avoid the health and safety risk associated with the project, it is necessary to hire skilled labours who are used to work in heights and in extreme conditions.
Technical Risks	Risk Reduction is one of the recommended risk mitigation approaches for mitigation of technical risks. This risk mitigation approach is associated with taking proper steps in minimizing the identified risk by taking proper measures. In order to reduce this risk, the skilled and well trained labours are hired who can work even in extreme conditions
Resource Shortage	Risk Reduction is the risk mitigation approach that is recommended for the project. The shortage of resource is mainly because of the remote location of the construction site. The need for proper management of this risk is high and can be mitigated by ensuring that resources are gathered in advance before that start of the main works
Financial Risk	Financial risk should be avoided by proper budget estimation and proper resource estimation for the project.
Schedule Risk	The schedule risks associated with the project can be transferred to the contractor who would be in charge of providing the compete project work within the set schedule
Commercial Risks	The commercial risks should be avoided by preventing the occurrence of the schedule risks (Lock 2017).

4. Potential Supply Chain Vulnerabilities

The vulnerabilities associated with the supply chain are as follows-

Since there is a risk of resource shortage, it is quite possible that the project is not completed in time.
The remote location of the site can possibly delay the project implementation process.

5. Planned Risk and Opportunity management Principle

For the remaining design and the procurement stage of the project, it is recommended that a planned approach will be undertaken (Haimes 2015). The site inspection should be done prior to the design phase and the project procurement is subjected to the availability of the adequate resources and project implementation on schedule.

Conclusion:

The report discusses the different risk a project that is associated with the development of a prison can face. The major reason of occurrence of such risk is the location of the site along with some technical constraints. The report discusses the different process of risk mitigation and the vulnerabilities associated with the project.

Introduction:

A risk and opportunity report is to be prepared for a special purpose vehicle/consortium, which is a consortium of multiple private companies who built and operate prisons and the other public service buildings. The latest project of the client is to design, construct and operate a 1000 cell prison for accommodating male, female and the juvenile detainees who will be serving a custodial sentence of over 3 years. The designing of the prison involves, demolition of derelict industrial or farm building on the site, upgrading a 3km track to form a highway for accessing the roads and corridors of utility provision. The project will also consider the initial security consideration as well. The report gives an overview of the risks and opportunities associated with the project. The key project risks and opportunities are identified and the mitigation approaches for the identified risk is suggested in the report (Harris and McCaffer 2013). The report further evaluates the potential supply chain vulnerabilities and planned risk and opportunity management principle in the report. The different risks associated with this project are elaborated in the following section.

References:

Badri, A., Gbodossou, A. and Nadeau, S., 2012. Occupational health and safety risks: Towards the integration into project management. Safety science, 50(2), pp.190-198.

Haimes, Y.Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.

Harris, F. and McCaffer, R., 2013. Modern construction management. John Wiley & Sons.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Lock, D., 2017. The essentials of project management. Routledge.

Loosemore, M., Raftery, J., Reilly, C. and Higgon, D., 2012. Risk management in projects. Routledge.

Park, C.S. and Kim, H.J., 2013. A framework for construction safety management and visualization system. Automation in Construction, 33, pp.95-103.

Walker, A., 2015. Project management in construction. John Wiley & Sons.

Zhou, W., Whyte, J. and Sacks, R., 2012. Construction safety and digital design: A review. Automation in Construction, 22, pp.102-111.

Zhou, Z., Goh, Y.M. and Li, Q., 2015. Overview and analysis of safety management studies in the construction industry. Safety science, 72, pp.337-350.

Zou, P.X. and Sunindijo, R.Y., 2013. Skills for managing safety risk, implementing safety task, and developing positive safety climate in construction project. Automation in Construction, 34, pp.92-100.