Risk Management.

2. Stages of a project

• Concept identification and formulation of the needs.

• A project is launched as soon as a certain need arises.
• Possible solutions are identified to meet the needs.
• These proposed solutions have to be communicated to the project manager and formulated, along with the expected risks involved in the scope of the project.
• Depending on company policy and expertise the steps up to the design can be done internally or put up for tender.
• The outsourcing includes a great amount of risk, which will be elaborated on later.

• Feasibility study.

• The identified risk factors of a project has to be quantified so that risk can be conveyed to all parties involved in tender and feasibility study of the project.
• As soon as a monetary value can be allocated to the probabilities of the risks involved, an accurate feasibility study can be done.
• In performing a feasibility study it is important that one is critical and very descriptive concerning risk quantification. It is better to earn a profit because of being too thorough than suffer a loss from being too modest.

• Conceptual and detail design.

• Most of the risks will become clear when putting concepts on paper.
• These risks have to be accurately noted and communicated so they can be provided for in the detail design.
• Steps have to be taken and decisions made to minimize or avert these risks.
• The liabilities of the customer, project manager, contractor, and service providers have to be clearly stipulated after the design has been completed.

• Contracting, construction and commissioning implementation.

• A lot can be put on paper and not implemented in the actual construction of a project, therefore contracting of reliable people with work of outstanding quality (referenced from past projects) should be done.
• During the construction phase careful attention should be paid to adhering to the safety measures as laid down by the industry.
• Careful supervision will ensure that not contractor tries to cut corners in order to earn a greater profit and those risks addressed in the design phase are isolated.
• Constant communication between contractor and the consultant will ensue that new risks are timely identified and assessed.
• Attention should be paid to the deadlines for phases of the project to ensure that construction is running on schedule.  
• Payments should occur on time with exception if workmanship is of unsatisfactory standard.  

• Operation, Maintenance, Upgrading and Decommissioning

• Great responsibility lies on the foremen and engineers in charge of a project to see to that safety regulations are adhered to during the operating phase of a project.
• Risky environments should be identified, communicated and clearly marked to improve awareness under the workforce.
• Very often maintenance falls second to the meeting of production targets. This is an extremely high risk and negligence of maintenance can lead to fatalities.
• From time to time upgrading of plant should be done which doesn't only boost reliability, but ensures that the most recent safety devices are in place.
• On decommissioning the correct procedure should be followed. This is the stage were risk related liabilities unnecessary complicate proceedings.  

3. Time

• Time = Money
• When setting up the contract, realistic deadlines should be negotiated with the relevant parties.
• The monetary value of unmet deadlines should be estimated and the contractor penalised for time lost.
• The probability of lost time due to external factors must be included and the implication of liability assigned to a party.
• Payment for work done should take place at the agreed times unless work is of unsatisfactory fashion

4. Costs

• "The lowest tender normally has it wrong"; is a good description of how costs can be reduced by cutting corners and thereby rocketing the risk.
• If thorough quantification of risks is done, a good idea of what the implication of the monetary compensation should be if risks are to be managed successfully.
• When a project is put up for tender, the risk factors should be accurately conveyed to the contractor.  

5. Environmental related aspects

• A proper environmental study during the design period will ensure that all possible risks related to the environment is assessed and quantified. The liable parties can also be identified.
• Special attention should be paid to ensure that no infringement is made to environmental laws which could invoke unnecessary legal proceedings.

2.        The Risks of Civil Engineering Projects

4. Technical

• A lot of the technical risk involved is discovered in the commissioning phase of a project.
• This is where shortcomings in the design are discovered and improvisations have to be made, which often lead to tragedy.
•  If second grade material or plant is used in order to meet budget restraints, this risk falls on the shoulders of the contractor for the liability period.
• Supervision during the development of the project should see ensure that the risk of the project manager is minimised in future.

1. Project (cost, time, quality)

• There is always the possibility that cost time and quality is played off against each other.
• Often one of the aforementioned is compromised at the sake of the other.
• The actual cost of a project can never be determined at the closing of the contract.
• It is in the interest of the financer that the consultant contracts reliable contractors with outstanding past experience.
• A noble contractor (if such should exist) will not compromise on quality should deadlines not be met.
• Work which is overdue, holds financial implication for the client. He should see that the project is on track.

1. Performance requirements under threat

• The basic performance requirements under threat are those when commissioning has taken place and figures are not met such as designed.
• This could be the responsibility of either the contractor due to poor workmanship or the designers who have erred.
• It is important that all work is carefully monitored and logged so that liabilities between parties can be determined.
• Maintenance should be of prime importance. The performance of a well-kept plant is of much higher monetary value than the down time due to breakdowns of neglected plant.

3.         Procedure to address the risks in Civil Engineering Construction

• Choose the best team. In sport a team is chosen after trials and the best performers are included. Nothing changes in business.
• It is the responsibility of the project manager to convey to all members of the team that risk aversion is one of his top priorities.
• Follow the methodologies and standards set to identify and isolate risks in the different divisions and phases (as set out in 1.ii) of the project.
• Quantify and communicate these risks down to the lowest level of the team.
• Consider alternatives to optimise the management of these risks.
• Revise all decisions.
• Make sure risk liabilities are allocated to the various parties and they are fully aware thereof.
• Do adequate supervision in all divisions to make certain no corners are cut.
• Act promptly if an unknown risk arises and do needed justification.
• Do not sign off any work if it is not 100% satisfactory.