Report Writing Sample -RISK AND SAFETY MANAGEMENT

Table of Contents

1 Introduction 3

2 Identified Risks and Opportunities 3

3 Assessment of Risks and Opportunities 4

4 Risk Response Options 5

5 Guidance on Residual Risks and Appropriate Risk Monitoring 6

6 Conclusion 7

REFERENCE 9

1 Introduction

Risk and safety management is critical to any construction project, potentially impacting workers, stakeholders, and the surrounding environment. Effective risk and safety management strategies can minimise the likelihood of accidents, injuries, and property damage, leading to smoother project execution and improved outcomes (Zhou et al., 2015).

As the project manager of the proposed two-storey office block project located in Wellington Circle, Aberdeen, it is essential to identify and manage the various risks and opportunities that may arise during the design and procurement stage of the project.

This report outlines the key project risks and opportunities and proposes response options to mitigate or leverage them. The structure of this report on risk and safety management will be based on the Identified Assess, Handle, Monitor, and Report (IAHMR) risk framework.

figure 1: Risk Management Process

2 Identified Risks and Opportunities

Risk identification is identifying, diagnosing, and documenting a project’s risks. According to Levy (2018), the risk identification process creates an inventory of the project’s risks. For this particular project, the identified risks are as follows:

1. Business Case Risks: One of the significant risks in the project’s business case is the possibility of an economic downturn or recession affecting the demand for office space in the area. According to a report by CBRE (cited in Jones, 2019), a leading real estate services firm, the Aberdeen office market has been affected by the recent downturn in the oil and gas sector, resulting in a decrease in demand for office space. Additionally, unexpected cost increases due to changes in legislation or regulations may arise. For instance, environmental regulation changes may increase waste management and energy consumption costs during the construction and operation phases. On the other hand, the site’s location near the dual carriageway and services presents an opportunity for businesses seeking accessible office space. In a study by Verhetsel et al. (2015), accessibility is crucial for businesses when choosing office locations. Jones (2019) also noted that incorporating sustainable construction and procurement methods in the design solution can enhance the project’s appeal to environmentally conscious businesses, resulting in increased demand for office space which is yet another opportunity for the project.
2. Commercial risks: The congested location of the site during peak times could impact the delivery of materials and equipment to the site. Furthermore, the absence of site investigations could lead to unforeseen site conditions, such as hazardous materials and unsuitable soil conditions. According to a study by Guzman et al. (2020), construction projects in congested urban areas face higher transportation costs and logistical challenges due to traffic congestion and limited accessibility. This can lead to delays in material and equipment delivery and increased costs associated with transportation and storage. In addition, conducting site investigations is necessary for the project team to be aware of potential hazards or constraints that could impact the project’s budget and schedule.
3. Health and safety risks: Large pylons near the site, habitats nearby, and a large lake may present hazards to workers and the public. Incorporating Sustainable Urban Drainage Systems (SUDS) due to heavy rainfall within the area may also lead to flooding. Therefore, it is crucial to implement robust health and safety measures to minimise the risk of accidents and injuries.
4. Security risks: The security concerns for the site may cause delays during the construction phase, leading to schedule slippages. According to a study by Al-Sawalqa et al. (2019), delays in construction projects often result from security concerns, which can significantly affect project schedules and budgets.

3 Assessment of Risks and Opportunities

Risk assessment evaluates risk and its possible impact on a project (Li, 2014). Thus, the risk analysis output is either a risk value or a rating. For this case, the identified risks and opportunities have been assessed based on their likelihood of occurrence and potential impact on the project’s objectives.

The risk matrix approach was used to assign the likelihood and impact figures. According to Hopkin (2018), the risk matrix approach involves assigning numerical values to the likelihood and impact of the risks and then plotting them on a matrix to determine the level of risk.

The likelihood refers to the probability of the risk or opportunity occurring, while the impact refers to the severity of the consequence if it occurs (Li, 2014). The following table summarises the risk and opportunity assessments:

Table 1: Risk Matrix

The risk assessment matrix relied on information about the case scenario and past studies with similar scenarios. For example, in our risk assessment table, a likelihood score of 5 and an impact score of 3 were assigned to the risk of unforeseen site conditions due to the absence of site investigations.

This means that the risk is considered to have a high likelihood of occurring and a moderate impact if it were to occur. This conclusion is also validated by literature that suggests that insufficient site investigations can result in project delays and increased costs (Doloi et al., 2012).

Similarly, a likelihood score of 2 and an impact score of 4 were assigned to the opportunity of incorporating sustainable construction and procurement methods. This means that the opportunity has a low likelihood of occurring but a high impact if it were to occur.

This assessment is based on literature that suggests that incorporating sustainable construction methods can lead to long-term cost savings and environmental benefits (Akadiri et al., 2012).

4 Risk Response Options

The risk response phase of risk management focuses on decisions on the proper method to manage the risk and involves implementing risk mitigation measures (Levy, 2018).

In the construction project context, risk response is a critical aspect of project management, which involves identifying potential risks and developing strategies to mitigate their impact. The risk response options for the current case are thus:

1. Business case risks: To mitigate the risk of an economic downturn, the project team should conduct a thorough market analysis to understand the demand for office space in the area. This analysis should consider factors such as population growth, employment trends, and other economic indicators that could affect the demand for office space.

By conducting this analysis, the project team can develop a more accurate forecast of the demand for the building, which can inform decisions about the project’s scope, timeline, and budget (Sacks et al., 2013). In addition to the market analysis, regular reviews of legislation and regulations that may impact project costs should be conducted to identify potential cost increases proactively.

For example, changes in building codes, zoning laws, or environmental regulations could require additional design or construction work, increasing project costs. By monitoring these changes and staying current on relevant regulations, the project team can identify potential cost increases early on and develop strategies to minimise their impact.

2. Commercial risks: To address these risks, the project team could consider implementing prefabricated construction methods, which can reduce on-site disruption during the construction phase and minimise the impact of site congestion. In addition, conducting site investigations during the design stage can help identify potential site hazards, such as underground utilities, contaminated soil, or unstable slopes.

Also, adequate mitigation measures can be implemented to address these issues (Royal Institution of Chartered Surveyors, 2020). Furthermore, the project team could explore using Building Information Modeling (BIM) and other digital tools to optimise material and equipment delivery and minimise on-site waste (Jones, 2019).

BIM can help identify potential clashes or conflicts in design and construction sequencing, allowing the project team to address these issues before construction begins. Regarding opportunities, the project’s location near the dual carriageway and services presents an opportunity for businesses seeking accessible office space.

Additionally, adopting sustainable construction and procurement methods can enhance the project’s appeal to environmentally conscious businesses and investors (United Nations Environment Programme, 2019).

1. Security Risk: Therefore, it is essential to implement adequate security measures to mitigate the risk of theft and vandalism. Employing security measures such as CCTV cameras, manned guards, and secure storage facilities can help ensure the safety and security of the construction site and its workers. This will improve construction efficiency and timely completion, reducing the risk of schedule slippages.
2. Health and safety risks: Providing protective gear and training workers on hazard identification can help minimise the risk of accidents and injuries. Additionally, incorporating appropriate drainage solutions, such as porous pavement and rain gardens, can help manage stormwater runoff and reduce the risk of flooding. This will help ensure the safety and well-being of workers and the public and reduce the risk of legal liabilities and negative publicity.

5 Guidance on Residual Risks and Appropriate Risk Monitoring

Even after implementing the proposed response options, some residual risks may remain. Residual risks are the potential risks that remain after implementing risk mitigation measures (Smith et al., 2014). According to Smith et al. (2014), these risks can be caused by unexpected events, changes in the external environment, and unanticipated impacts of the implemented risk management strategies.

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Identifying and managing residual risks is crucial to ensure the project’s objectives are met and remain on track. In the case of the proposed two-storey office block project in Wellington Circle, Aberdeen, residual risks could emerge because of the complex nature of the project and the diverse range of stakeholders involved.

Failure to identify and manage these risks could lead to project delays, increased costs, and, in extreme cases, project failure. Therefore, developing a robust residual risk management strategy that can mitigate potential risks effectively is essential.

The residual risks identified in the proposed two-storey office block project should be monitored continuously to ensure they do not escalate to an unacceptable level. Appropriate risk monitoring can be achieved through the following steps:

1. Establish a risk monitoring plan that includes the risk monitoring approach, the frequency of monitoring, the responsible parties, and the reporting mechanism.
2. Continuously evaluate the effectiveness of the risk response strategies implemented and identify any new risks that may arise.
3. Determine the appropriate risk response strategies for the residual risks identified.
4. Ensure that the risk monitoring plan is integrated into the overall project management plan to ensure alignment with project objectives.
5. Communicate the results of the risk monitoring process to all stakeholders to ensure transparency and facilitate informed decision-making.

6 Conclusion

The proposed two-storey office block project in Wellington Circle, Aberdeen, presents several risks and opportunities that must be identified and managed effectively. This report has identified key project risks and opportunities, assessed their likelihood and impact, proposed response options, and provided guidance on managing residual risks and appropriate risk monitoring.

The report has considered multiple perspectives, including business case, commercial, programme, health and safety, and environmental risks. The report highlights the potential opportunity to incorporate sustainable construction and procurement methods, which can reduce the project’s carbon footprint and meet BREEAM’s ‘excellent’ rating.

The use of prefabricated construction is also identified as an opportunity to minimise congestion issues in the area and lead to faster and more efficient construction. The report also highlights various risks associated with the project that need to be addressed, such as the lack of site investigations, security concerns, and potential supply chain vulnerabilities.

The report suggests several response options to mitigate these risks, including conducting site investigations, implementing appropriate security measures, and establishing contingency plans for supply chain disruptions.

By adhering to the planned risk and opportunity management principles and effectively communicating project risks and opportunities to stakeholders and the workforce, the project team can mitigate risks and leverage opportunities to achieve a successful project.

REFERENCE

Akadiri, P.O., Chinyio, E.A. and Olomolaiye, P.O., 2012. Design of a sustainable building: A conceptual framework for implementing sustainability in the building sector. Buildings, 2(2), pp.126-152.

Doloi, H., Sawhney, A., Iyer, K.C. and Rentala, S., 2012. Analysing factors affecting delays in Indian construction projects. International journal of project management, 30(4), pp.479-489.

Guzman, L.A., Arellana, J. and Alvarez, V., 2020. Confronting congestion in urban areas: Developing Sustainable Mobility Plans for public and private organisations in Bogotá. Transportation Research Part A: Policy and Practice, 134, pp.321-335.

Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Jones, C., 2019. The impact of political risk on real estate investment: evidence from the Scottish “neverendum”. Property Management, 37(5), pp.610-626.

Levy, S.M., 2018. Project management in construction. McGraw-Hill Education.

Li, W., 2014. Risk assessment of power systems: models, methods, and applications. John Wiley & Sons.

Royal Institution of Chartered Surveyors. 2020. Site investigations and ground conditions for development. Retrieved from https://www.rics.org/globalassets/rics-website/media/knowledge/research/research-reports/site-investigations-and-ground-conditions-for-development-rics-research.pdf

Sacks, R., Perlman, A. and Barak, R., 2013. Construction safety training using immersive virtual reality. Construction Management and Economics, 31(9), pp.1005-1017.

Smith, N.J., Merna, T. and Jobling, P., 2014. Managing risk in construction projects. John Wiley & Sons.

United Nations Environment Programme. 2019. Sustainable procurement implementation guidance for the construction sector. Retrieved from https://www.oneplanetnetwork.org/sites/default/files/Sustainable%20Procurement%20Implementation%20Guidance%20for%20the%20Construction%20Sector%20-%20Web%20version%20-%20Final%20-%20June%202019.pdf

Verhetsel, A., Kessels, R., Goos, P., Zijlstra, T., Blomme, N. and Cant, J., 2015. Location of logistics companies: a stated preference study to disentangle the impact of accessibility. Journal of Transport Geography, 42, pp.110-121.

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.

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