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Project Management - Silver Fiddle Construction

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Question:

Discuss about the Project Management - Silver Fiddle Construction.

 

Answer:

Risks associated with the Project

Similar to the case in any business, individuals are a development association's most prominent asset. Development operations rely on upon the learning and aptitudes of individuals arranging what's more, executing the work. The nature of this most vital asset: individuals, is the thing that recognizes one group or organization from another. Having skilled administration set up to manage and coordinate operations is essential (Aminbakhsh, Gunduz and Sonmez 2013). Clearly, having a sufficient number of gifted also, untalented specialists to play out the work is an uncovered need. Finding and enrolling adequate quantities of gifted, skilled individuals is getting to be expanding troublesome. There are a few elements adding to this issue.

Development is regularly seen as being one of the slightest alluring commercial enterprises in which to work. Overviews among the country's childhood show development at the base of the rundown of callings that they would enter. Development by nature is hazardous, messy, hard work. Different commercial ventures or callings offer favored workplaces that are more clean, more secure, and for the most part more attractive (Banaitiene and Banaitis 2012). The pervasive development of innovation and the related commercial ventures that have taken after are pulling in the adolescent far from conventional commercial ventures. Therefore, there is an extreme deficiency of brilliant, skilled individuals willing to work in development.

There are persevering people making a generous commitment toward keeping the business moving and creating. There are in any case, inconveniences required with utilizing an outside workforce, to be specific dialect and social obstructions (Dainty and Loosemore 2013). The undeniable issues in correspondence can prompt perplexity that can hamper efficiency and coordination. The dialect obstruction likewise forces extra security dangers.

Authority must be raised from among the specialists to help in viably organizing work exercises by giving the correspondence join amongst administration and work teams. This gives the chance to upward versatility and gives propelled people the opportunity to progress professionally (Harris and McCaffer 2013). Strengthening prompts elevated amounts of duty, excitement, self-inspiration, profitability, and advancement. Advantages to the worker incorporate sentiments of gratefulness, having a place, and increased self-esteem.

Strengthening empowers workers to settle on choices for which they are responsible and mindful. Research shows the level of strengthening influences profitability. An abnormal state of strengthening yields correspondingly higher profitability (Kelly, Male and Graham 2014). Strengthening of the workforce is one of the keys to enhancing development execution.

There are several risks associated with this project. These are follows:

Finance – Finance is one of the largest threats of any large constructions project that has to be carried out through a long period of time. The two main financial threats are running out of funds and termination of contract by the sponsor. Generally, in long term construction projects, several extra expenses are encountered due to several reasons. These reasons include extra work for some modifications within the design, damage of the structure during the overall construction process and others (Osipova and Eriksson 2013). For the second issues, sometimes, the sponsors lose interest in the project or get unhappy with the progress of the project. For this reason, they terminate their contract and move away. Due to this, the financial aspect of the company is dealt with a huge blow.

Legal Issues – Another major issue for the project is legal issue. There are several cases from which legal issues arise. These are as follows:

Land Dispute – There may be long drawn dispute going on over the ownership of the land that may cause the project to stop due to court orders. In this case, the project cannot continue further, thus generating massive losses for the company.

Illegal Ownership – Another major problem is the illegal ownership of land. In this case, the company may own the selected land illegally and the project will be forced to stop unless the company can prove otherwise.

Illegal Construction ­– Sometimes, there are cases when a company undertakes construction with valid permit from the local corporation and other higher authorities. In these cases, the project is forced to stop unless valid permit is provided.

Use of Poor Quality Materials, Construction Breakdown – In this case, due to poor quality materials, the construction structure may be break down completely. Due to this reason, legal hands come into the scene and stop the project from proceeding further.

The amount of regular exercises is creating at an irritating rate. Associations in all cases are at magnificent threat because of danger and other honest to goodness consequences (Osipova and Eriksson 2013). Not very many business ventures are introduced to more genuine perils from authentic issues than the advancement business. Improvement business is driven through legitimately restricting strategies that occasionally realizes talk about (Dainty and Loosemore 2013). Claims and question have been perseveringly on the climb for a significant period of time. A case is a requesting by a provisional laborer for additional compensation or time growth for occasions past the authoritative specialist's control. The authoritative laborer must exhibit capability and measure the related damages. Perfect notice of case in the wake of discovering impact is required. The proprietor has a commitment to give acceptable, exact data to the bidders, and is liable to the constructor when wrong data are given, extra things make in perspective of improper design, or the blueprint is inside and out changed after the understanding is stamped (beneficial change). Change in augmentation and differentiating or sudden site conditions are legitimization for a case. The diverse sorts of cases fuse deferment/unsettling influence, extra work cases, expanding speed, unfathomable probability of-execution, insufficient layout (misstep or oversight), impedance, and unrivaled learning claims. The business continues searching for less poorly arranged techniques for deciding civil argument and settling claims. The motivation is to reduction costs by reasonably deciding issues before they develop into arraignment (Dainty and Loosemore 2013). Elective inquiry determination (ADR) sharpens have been used with some accomplishment. ADR procedures fuse plan, tact, intercession, neutral aides, and Dispute Review Boards (DRB). ADR has demonstrated amazing worth in deciding issues according to the general slant of both sides. Nevertheless, now and again arraignment is unavoidable. It is typically undesirable, yet once in a while the best strategy for definitive determination (Aminbakhsh, Gunduz and Sonmez 2013). Claims when all is said in done are dreadful for the business. All social events must work to reduce the repeat and significance of cases. The project manager accept a central part in cases avoiding and determination. Claims avoidance begins in the pre-improvement arrange; a period with the best potential to effect cost. A boundless rate of cases could be avoided by making broad, definite, contract reports (Harris and McCaffer 2013). Preconstruction claims avoidance requires genuine report and constructability overviews. Careful thought should be given to the advancement means and systems in the midst of the design stage. Plots should allow improvement using the overwhelming methods and equipment, decide a level of workmanship unsurprising with the way of the assignment, and not require the constructor to expect commitment in regards to information that should be equipped by the originator. 7 Specifications should be essential and direct, clearly communicating what is typical. project manager commitment in the midst of preconstruction reviews is valuable. The constructor must have an unmistakable understanding of assertion necessities before advertising (Aminbakhsh, Gunduz and Sonmez 2013). Keys to keeping up a vital separation from cases in the midst of improvement consolidate incredible administrative techniques, straightforward correspondence, and promising examining.

Safety Issues – During the course of the project, several safety issues arise. In large construction projects, safety issues are related to the onsite workers as well as the neighborhood residents (Harris and McCaffer 2013). In large construction projects, due to natural hazards or construction failure, the structure may get destroyed taking lives of a large number of nearby residents, pedestrians and on-site workers.

Security Issues – Security issues in construction projects are mainly related to the security of the on-site workers and the construction materials and properties.

Construction sites are simple focuses for the local criminals; the high estimation of plant and hardware can prompt brisk and simple benefit for the effective criminal. Contingent upon territory, every site will have its own particular issues of concern.

Construction sites are liable to various dangers, against which security ought to be connected by the site administrator. These incorporate robbery, vandalism and conscious harm and terrorism.

Burglary is common. The high estimation of development plant and materials and the way of a development site, with its consistent change and development make this wrongdoing enticing for the entrepreneurial, and also the deliberately arranged wrongdoing.

Vandalism is additionally regular and may happen as an aftereffect of political or business worries with respect to the culprits also of careless desire for harm and annihilation.

Terrorism is possibly an issue also; not just is there a danger of politically-spurred assaults on development destinations to postpone or anticipate development; there is additionally a danger of terrorist pre-situating of gadgets or material to permit or perform ruinous acts after finishing of development.

Building and development destinations give a security challenge because of their consistent change; both physically in the worth and availability of the property they contain, and the successive access required by a wide assortment of outside contractual workers.

This aide is proposed to give a prescribed way to deal with security to be taken by site administrators both before and amid development and amid the handover of the development site to the possible site administrator, landowner or proprietor.

As each development site will contrast as far as scale, area, term of work and the security dangers it is most certainly not workable for a solitary manual for spread all potential outcomes. The methodology of this aide is to depict the procedures of danger evaluation and danger examination.

 

Others ­– There are many other issues related to large construction projects faced by construction managers. Some of these are as follows:

Time Constraints - Time is cash to proprietors, manufacturers, and clients of the developed office. From the proprietor's point of view there is lost income by not getting degree of profitability, income crunch, potential estrangement and loss of customers/inhabitants, amplified premium installments, and negative advertising sways. From the clients' viewpoint, there are monetary ramifications like proprietors. Delays in redesigning offices interpret into working at beneath ideal productivity bringing about higher client cost. Delays in building or restoring foundation contrarily influences organizations and the general population on the loose. Time suggestions from the constructor's point of view incorporate sold harms (negative) and motivation/disincentive installments (Harris and McCaffer 2013). Delays result in broadened overhead expenses and puts a smash on basic income. Augmenting venture spans constrains the constructor's holding limit and capacity to offer more work (open door cost). Wasteful time administration results in higher work and hardware costs. A notoriety for late culminations is awful for business, particularly in arranged work. In today's seriously time driven business environment, unrivaled arranging, booking, and control are crucial. The project manager is confronted with the difficulties of finishing high volumes of work inside tight time periods, and by and large limited assets. project managers should thoroughly arrange development operations and nearly screen progress. CPM plans and straight calendars are important instruments that give a few points of interest in overseeing development operations (Aminbakhsh, Gunduz and Sonmez 2013). Plan readiness obliges supervisors to thoroughly consider the undertaking earlier beginning the work and gives an organized way to deal with arranging. Far reaching plans give a method for imparting the work plan to others. Plans must be an exact depiction of the work plan to understand the full esteem. A decent, consistently overhauled plan in the hands of an equipped project manager is a capable instrument. Great timetables are basic to venture achievement; be that as it may, they are just a device. Calendars don't fabricate things; individuals manufacture things (Dainty and Loosemore 2013). Proactive instead of responsive control by the project manager is a key to remaining focused. Occasions or conditions that cause defers and require fitting activity incorporate climate, lower profitability than expected, conveyance issues, asset imperatives, changes in degree, and contrasting site conditions. The project manager must oversee or relieve these circumstances keeping in mind the end goal to convey a developed venture on time.

Environmental Issues - The effect of ecological issues on development has been raising following the 1970's. Today, proprietors and constructors will undoubtedly unmistakably characterized obligations and liabilities in regards to the earth. Almost all fragments and divisions of the business are influenced by one or more natural issues. Strict direction, allowing prerequisites, and authorization are intended to secure human wellbeing and the indigenous habitat (Kuo and Lu 2013). Inability to conform to natural control can bring about venture postponement or end, preclusion from future work opportunities, fines, common activity, and even criminal 6 arraignment. It is foremost that project managers have full information and comprehension of natural directions and license necessities. Significant Federal directions that apply to development exercises incorporate the Federal Water Pollution Control Act (Clean Water Act), Clean Air Act, Resource Conservation and Recovery Act, and the Comprehensive Environmental Response Compensation and Liability Act. Singular states, regions, and districts have laws that supplement or are much more stringent than the Federal directions (Banaitiene and Banaitis 2012). It is critical that proprietors perceive their support to-grave obligations. Ecological worries that effect development incorporate disintegration and sedimentation control, wetlands and parklands, releasing underground stockpiling tanks and tainted soil, lead paint evacuation, asbestos, dangerous waste, dust control, and clamor. These worries expand the association's danger, which the project manager must address and successfully oversee. Obliviousness of the law is no reason and can put the venture, proprietor, constructor, and project manager in peril.

Socio-Political Issues - Socio-Political weights have more impact on advancement than some time recently. Political weights and gathering affiliation impact open and to some degree, private part work. Weights transmit from bordering property proprietors and the overall public all over, including existing associations, foundations, and homes abutting the fabricated office. City affiliations and gathering bundles have more commitment to framework and advancement of open works endeavors, and more conspicuous impact on private work through the zone use and orchestrating process (Banaitiene and Banaitis 2012). The society has more conspicuous commitment through local consultative sheets that are secured in the midst of endeavor begin, diagram, and improvement. The project manager has significantly more important obligation to the overall public than past periods. Growing the amount of accomplices further befuddles a successfully complex system. Socio-political weights in like manner start from the NIMBY issue (not in my back yard) (Lingard 2013). The NIMBY issue discourages improvement and progression, and generally hampers advancement. The tangles brought on by the NIMBY issue exemplify the challenges going up against the project manager.

Worker Constraints - Similar to the case in any business, individuals are a construction project’s most noteworthy asset. Construction projects rely on upon the information and abilities of individuals arranging and executing the work. The nature of this most imperative asset: individuals, is the thing that recognizes one group or organization from another. Having skilled administration set up to manage and coordinate operations is essential (Kelly, Male and Graham 2014). Clearly, having a sufficient number of talented and incompetent laborers to play out the work is an exposed need. Finding and selecting adequate quantities of gifted, skilled individuals is getting to be expanding troublesome. There are a few elements adding to this issue. Development is ordinarily seen as being one of the slightest attractive commercial ventures in which to work. Overviews among the country's childhood show development at the base of the rundown of callings that they would enter (Kerzner 2013). Development by nature is risky, grimy, diligent work. Different commercial ventures or callings offer favored workplaces that are cleaner, more secure, and by and large more attractive. The pervasive development of innovation and the related commercial ventures that have taken after are pulling in the young far from conventional businesses. Subsequently, there is a serious lack of brilliant, skilled individuals willing to work in development.

Risk Assessment Form

Hazard

Type of injury or harm

People affected and any specific considerations

Current Control Measures already in place

Risk level

Low Med

High

Further Control Measures required

Implementation date &

Person responsible

Funds

Finance

Accounts Manager, Company Directors, Project Manager

Measures have been taken in every way for maintaining the financial aspects of the project

HIGH

Extra funds should be provided in case of emergency

PLEASE FILL

Legal Issues

Legal / Regulatory

Company authority

All legal formalities have been done

HIGH

Legal protection should be acquired

PLEASE FILL

Safety

Fatal Accidents

Workers, nearby residents / pedestrians

Proper safety measures have been taken

HIGH

Extra safety measures should be taken during construction

PLEASE FILL

Security

Loss of property

Company

Security personnel have been appointed

MEDIUM

Security assurance should be taken from local police station

PLEASE FILL

Commercial

Poor business

Company

Marketing procedures are underway

LOW

Customer-centric business should be executed

PLEASE FILL

Time Constraints

Extension of the original timeline

Project managers and workers involved in the project

Project is estimated to be finished within the fixed timeline

LOW

Care should be taken so that extra work will not be necessary

PLEASE FILL

Environmental Issues

Environmental hazards

Nearby areas, residents, animals living nearby, trees

Eco-friendly materials are being bought

MEDIUM

Environment guidelines should be applied with immediate effect

PLEASE FILL

Emergency

Fatal accidents, accidental hazards

Workers, nearby residents

Emergency contacts have been provided to all workers

HIGH

Emergency services like police, ambulance service and fire station should be made aware about the construction process

PLEASE FILL

Risk Response Matrix

RISK MANAGEMENT PLAN

Risk Ref. No. 

Risk Category

Impact

Likelihood

Rating

1

Finance

4-Major

3-Possible

High

2

Finance

5-Catastrophic

4-Likely

Extreme

3

Legal/Regulatory

5-Catastrophic

3-Possible

High

4

Safety

4-Major

3-Possible

High

5

Security

5-Catastrophic

5-Almost Certain

Extreme

6

Commercial

4-Major

3-Possible

High

7

Commercial

4-Major

2-Unlikely

Medium

8

Commercial

2-Minor

1-Rare

Low

 

RISK RESPONSE MATRIX

Risk Ref. No. 

Treatment Strategy

Treatment Description

Treatment Resources

Risk Owner

Deadline

1

Avoid

Unnecessary expenses are to be avoided, extra funds should be kept available to avoid fund shortage

Excess Funds

Project Manager, Company Director, Accountant

 Before the start of the project

2

Transfer

The sponsor should be changed and transferred to some other company

Sponsor Contract

Commercial Director, Finance Department

 After termination of one sponsor

3

Mitigate

The legal issues must be mitigated quickly with legal help and right procedures

Legal Obligations

 Lawyer

 As soon as possible

4

Avoid

Any safety loopholes are to be avoided during the course of the project

Construction Security

Resource Manager, Construction Manager 

Within 10-15 days for hardwares, 5 days for softwares 

5

Mitigate

Security issues are to be mitigated at the highest priority using proper safety equipments, security tools

Construction Security

Construction Manager, Security Experts

 As soon as possible (highest priority)

6

Accept

The company should accept the results and use it as a basis for further development

Survey Reports

Project Designer 

Within 6 months 

7

Accept

The company should accept the results and emphasize more on the residents’ demands

Sales Reports

Sales Manager 

Within 3 months 

8

Transfer

The company may transfer or relocate to an area with lesser cost or better base ground

Financial Reports

Marketing Manager

Within 6 months 

 

 

References

Aminbakhsh, S., Gunduz, M. and Sonmez, R., 2013. Safety risk assessment using analytic hierarchy process (AHP) during planning and budgeting of construction projects. Journal of safety research, 46, pp.99-105.

Ballarini, I., Corgnati, S.P. and Corrado, V., 2014. Use of reference buildings to assess the energy saving potentials of the residential building stock: The experience of TABULA project. Energy Policy, 68, pp.273-284.

Banaitiene, N. and Banaitis, A., 2012. Risk management in construction projects. INTECH Open Access Publisher.

Cao, D., Wang, G., Li, H., Skitmore, M., Huang, T. and Zhang, W., 2015. Practices and effectiveness of building information modelling in construction projects in China. Automation in Construction, 49, pp.113-122.

Dainty, A. and Loosemore, M. eds., 2013. Human Resource Management in Construction Projects. Routledge.

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

Huemann, M., & Silvius, G. 2015. Call for papers: International Journal of Project Management: Theme:“Managing projects & sustainability”.International Journal of Project Management, 33(71), 9-720.

Hwang, B.G. and Ng, W.J., 2013. Project management knowledge and skills for green construction: Overcoming challenges. International Journal of Project Management, 31(2), pp.272-284.

Kelly, J., Male, S. and Graham, D., 2014. Value management of construction projects. John Wiley & Sons.

Kerzner, H.R., 2013. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Kibert, C.J., 2016. Sustainable construction: green building design and delivery. John Wiley & Sons.

Kuo, Y.C. and Lu, S.T., 2013. Using fuzzy multiple criteria decision making approach to enhance risk assessment for metropolitan construction projects.International Journal of Project Management, 31(4), pp.602-614.

Li, J., Ding, Z., Mi, X. and Wang, J., 2013. A model for estimating construction waste generation index for building project in China. Resources, Conservation and Recycling, 74, pp.20-26.

Lingard, H., 2013. Design Risk Management: Contribution to Health and Safety. Construction Management and Economics, 31(6), pp.704-706.

McManus, J. 2012. Risk management in software development projects. Routledge.

McNeil, A. J., Frey, R., & Embrechts, P. 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press.

Neves, S. M., da Silva, C. E. S., Salomon, V. A. P., da Silva, A. F., & Sotomonte, B. E. P. 2014. Risk management in software projects through knowledge management techniques: cases in Brazilian incubated technology-based firms. International Journal of Project Management, 32(1), 125-138.

Osipova, E. and Eriksson, P.E., 2013. Balancing control and flexibility in joint risk management: Lessons learned from two construction projects.International Journal of Project Management, 31(3), pp.391-399.

Pryke, S., & Smyth, H. 2012. The management of complex projects: a relationship approach. John Wiley & Sons.

Sehrawat, N., Munsi, N., & Jain, M. 2014. RISK MANAGEMENT in SOFTWARE PROJECTS.

Taylan, O., Bafail, A.O., Abdulaal, R.M. and Kabli, M.R., 2014. Construction projects selection and risk assessment by fuzzy AHP and fuzzy TOPSIS methodologies. Applied Soft Computing, 17, pp.105-116.

Titarenko, B., Titov, S., & Titarenko, R. 2014, September. Risk management in innovation projects. In Applied Mechanics and Materials(Vol. 638, pp. 2338-2341). Trans Tech Publications.

Turner, J. R. 2014. The handbook of project-based management (Vol. 92). McGraw-hill

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

OR

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