Construction Quality Risk Management Of Projects – Importance And Strategies

Project Information

In this new era of technology the process for online courses and online study are implementing each but simultaneously the traditional concept of study is not becoming obsolete. This project is about the design and safety Risk management plan in the construction of Stockholm University building in Sweden. Different risks may occur during the implementation of such university buildings.

Thus proper risk management program should be developed for resolving these risks.  This project depicts the importance of using project management methodologies is the constriction field so that within estimated budget and time the contractors and the subcontractors can deliver  the project as per the demand of the owners or clients.

Stockholm University comprises of two scientific area. This includes humanities and social science and natural sciences. It comprises of about 35,000 students at four various faculties. They are natural sciences, mathematics, humanities and laws. The building interior, design and architecture are required to be supportive enough from the business perspectives. In order to accomplish the construction project successfully the project activities are to be designed and structured considering certain safety measures.  The safety measures are needed to be implemented for both the human resources and construction site.  Safety is referred to as a control process for all recognized hazards to achieve an acceptable risk level (Jamshidi et al.  2015).  During the design and execution of the construction project both design and safety risk management program is required to be considered in terms of risk register and risk treatment program.

The scope of the project is to design a risk register and a risk management plan for mitigating the challenges of a university construction project in Sweden. After identifying the construction based risks proper risk mitigation plans are also needed to be designed by the project executives. The overall performance of the construction projects in terms of cost, quality and time are getting interrupted rather negatively impacted due to these risks. As the size of the project will increase the complexity will also increase simultaneously (Sovacool, Proudlove and Green 2017). Another scope of the construction project should be managed throughout the construction project. The design bid build project fails to deliver offers whereas; cooperative works are offered by the design-build projects.   

Phase 1: Aggregation of land with proper zoning and planning

Phase 2: Supply as well as land target releasing

Phase 3: Developing concept of Building Modeling information (BIM) for designing the construction outline of the university building

Scope of the Project

According to the University design and safety structure, it is defined that, both the interior and the safety measures for the associates are not properly measured by the project heads. In order to implement the construction project successfully, it is mandatory for the project manager to design a proper risk management plan and risk register and the objectives for this construction project are as follow:

•    To incorporate the concept of Building Information Modeling (BIM) for designing the interior of the university
•    To identify the Human resource related risk and the design level risks
•    To develop accurate safety measures for the labors who are working on the project

In this section, a detail risk management plan is designed considering Australian ISO 31000:2009 Risk management standards.  In the year of 2009, the International Organizational for Standardization (ISO) was designed by the developers (Zhao et al.  2016).  A risk is an effect rather uncertainty on the objectives whereas; risk management is a set of coordinated activities used for directing and control and risks f the business organizations.  In order to manage different construction project based risks risk management framework is an architecture that can manage the risks effectively. The principles of the ISO 31000: 2009 are as follows:

•    It has the ability to protect and create values
•    It is an integral part of all organizational process
•    Effective project level decisions can be tailored with the best available information
•    It is responsive, dynamic and iterative to make changes  

In other words, risk is an unwanted situation that has a specific impact which gives a negative impact on the regular process. The processes that are to be sequentially followed for mitigating the construction level risks are as follows:

Identification of risks: It is the first phase of risk management, and the project managers are responsible for identifying the risks initially. As soon as the project managers will identify the risks that quickly the process of mitigation of those risks will be easier.

Analysis of the risks: In this phase, the identified risks will be properly analyzed by the construction project head (More and Hirlekar 2017).   

Prioritization of risks: Based on the negative impact the risks are to be ranked and depending upon the ranking the mitigation strategies are designed. According to the prioritization, the risks are pointed as high, medium and low.

Risk monitoring: In this phase, the risks are monitored by its respective resources.

Risk mitigation strategy: This is the last phase of a risk management program. In this phase, the risks are sequentially mitigated through proper strategies.

The elaborating of external and internal communications has been turning into effective requirements of a quality management system. Here this occurs as per the ISO 9001:2015 standard. As per this latest standard, a communication plan has been identifying those who require information, as they need that and how that data must be supplied (Vu et al.  2016).

Project Objectives

Here, the managers have been liable for communication planning. They must recognize and share those who are involved in that project in a structured manner. Here, the stakeholders must be communicating items across the project life cycle and who is liable as far as transmitting information is concerned.

The manager responsible for communication planning should identify and share the following with those involved in the project in a structured way: who are the project stakeholders, what should be the communication items throughout the life of the project and who is responsible for transmitting the information.

Here, the initial step is to include every stakeholder on the project. These stakeholders are parties included in that project like service providers, project managers, architect, engineers, common contractors and clients. Having this list, the planes are able to think of ideas that are to be communicated (Mathew, Tran and Nguyen 2017). This involves timeline, budget status, notable changes, future problems, accomplishments and project progresses.

As the initial communication themes are outlined, the requirements and themes of every stakeholder, the breaking down can start that is required to put communication plans to practices. Here, every item of communication has been affecting project success that is to be listed and then ranked (LIAO, NIE and Xing 2016). Further, there must be various regular items that can be repeated weekly and daily, along with occasional items. This includes reporting different unelected events across the projects.

The first one is the resource risk. Here the equipment and materials should be involving various important risks. These productivity and availability of resources needed for constructing the project are the risks that are appropriate for contractors to assume. Next, there is project member risk. Here team risks have been referring to issues related to project team members. This rises uncertainties of outcomes of the projects. This includes them member turnovers, insufficient knowledge, staffing the building upon, insufficient knowledge among team members, motivation corporation and issues regarding communication of teams (Omran, Shafie and Kulaib 2015). Then there are risks with stakeholders. These have been belonging rightfully to names of stakeholders. This is to be retained by stakeholders. It happens to the extent that they are influenced by methods of constructions. This must be determined by contractors and suppliers are to be created to control by contractors. Further, there are designer risks, where expansion of construction has been placing huge burdens on designing professions. Here, the first performance of the training standards has been facing difficulties. As far as contractor risks are concerned, the general and prime contractors have been analyzing best abilities of sub-contractors, and thus they are able to bear risks of not analyzing risks sufficiently.

Risk Management Process

As far as external content is concerned, there are supplier risks that are default from various obligations of different suppliers. Next, there are risks with construction sites. Here, accident exposures at work-places are inherent in nature of work and best analyzed by contractors and the insurance and security advisors (Zhang, Xiong and Li 2015). Moreover, negotiations in changed orders and resolution that are due to dispute resolution are notable risks as project construction goes on. Here communication is very vital for every construction periods, and this happens as the construction work gets finished. Further, connections between contractors with subcontractors along with suppliers are also needed.

Here, risks and uncertainty ratings determine the vitality of sources of risks. These are risks regarding project goals. It is analyzed by estimating a probability of occurrences and vitality of risk effects. Additionally, risk analysis gets accomplished through estimating the possibility of occurrences and importance of risk impacts (Hughes, Champion and Murdoch 2015). Moreover, risk control establishes plans that decrease or eradicates origins of risks and impacts of uncertainties on project deployments.

Here, risk factors in this construction sector in Sweden is huge. These risks have been coming from various sources, temporary project teams. This consists of employees from various enterprises, sites of constructions and many more. These risks have been coming from various sources. Here temporary project teams are comprised of employees from distinct enterprises. Further, complexity and size of objects of constructions are rising that is added to these risks. However, it must be reminded that construction developments, management and technology solutions are distinct (Martinez-Fiestas et al.  2017). Besides, particular projects, firms and buildings have been witnessing various levels of risks. Ere, these variables can be determined for contributing risk levels. This can be classified into various subgroups, such as enterprise, project and industry-specific risks.

Stakeholders Name	Job description	Discussion on their activities
A.J. Smith	Head of contractor	First of all the contractors must be treated essentially by the project managers. They have been directing university building in Sweden, from initial planning to ultimate approval. Here, they have been owing to their own staffs comprised of skilled tradespeople and hiring sub-contractors. They have been supervising project timelines, controlling tasks and budgets with different stakeholders like regulatory bodies. This is to assure that the building meets every code requirements.
I.M. Jospeh	Funding agent	Here, the clients have been the eventual owners of buildings. Here they have been typically funding agents of those project (Jebelli,  Ahn and Stentz 2016). Besides, there are some real estate developers funding building developments and selling them. Moreover, they have been holding estate developing funds for buildings. They have been selling them and has been holding the title owners as the project is still within construction. Further, clients in this university project have been a real major state to commercial building develops. Here, the university authority has been directing the style, content an entire look and feel of the building. This must be in conjugation under available, timeline and budget resources.
S.M. Brown.	Government agent	Here the government of Sweden are the additional stakeholders. They have included a various level of governments in constructions. Further, local governments have been proving permissions and providing the green signal for the latest developments (Liu and Guo 2014). Apart from this, state and federal governmental bodies have been setting various standards for security, fire and various residential and commercial codes of buildings.
Y. John	Labor union head	Apart from this, as far as unions are concerned, unionized labors has been plating roles in construction projects. Various skilled trade contractors and employees that are sub-contracted are the unionized workers. These contractors have been working in consolations along with assuring and union of project human resources. This is managed with accordance of process and policies in the union.

Here the primary aim of the policy is to assure a sustainable growth of business having stability in the University of Sweden. They have been promoting proactive approaches, to report, resolve and evaluate risks related to the university. For achieving the primary objectives, the policy has been establishing disciplined and structured approaches to risk managers. This is to guide decisions on issues related to risks (Wang et al.  2016). Apart from this, the main aim of the risk management policy lying here is to assure that every present and future risk exposures of the university are determined. They are to be managed, properly mitigated, quantified and analyzed. Moreover, they have been establishing systems for risk management process of the university and assured implementation. Besides, they have been assuring uniform and systematic analysis of risks related to projects. Besides, they have been enabling complains about regulations properly, that must be applicable to adopting best practices. At last, they must assure growth of business having economic stability.

Communication and Consultation Plan

Risk identification

Here the management of risk has been determining potential events at various negatively and positively affecting university’s capability in implementing to achieve their aims and goals of performances. Further, adverse events and representation of risks have been assigned as a distinct identifier (Schofield et al.  2017). This process of identification must be carried out such that expansive identification of risks must cover all operations and then support functions that are to be put together and been dealt with.

Risk identification method

This must be done through undertaking consultative basis. This must trace drivers and reasons for high-risk elements and helps in creating proper actions of mitigations. Apart from this, university management must be considered qualitative and quantitative methods to analyze the likelihood and effect of recognized risk elements. This must be done with the finite time that is score based on polled opinions from analyzing event logs from previous happenings (Gilbert et al.  2017). Here, the effect is calculated on the basis of the potential of risk effect over cost, profit and revenue and so on. This consists of composite scores of effect and a different likelihood that are to be tabulated orderly, known as risk register.

Scope of the construction based risks

As the potential risks are identified, the potential risks of the project, one requires to sit down and then go through every risk. This must be on the possibility to turn into reality. This has been affecting what must be happening during the project life-cycle. Further, the high probability and impact risks are to be identified as the risks having low probability a low effect is tackled (Musa et al.  2016). Moreover, factoring the quantity of work, money and time of every risk has been needing to be managed effectively. Thus, as the risks are ranked properly, they must be reviewed carefully with others, and it is to be determined as the university can accept, transfer, reduce or eliminate every risk.

Risk register

This must be shared among project stakeholders. This must be helpful for those involved in a project for being aware of prototyping and issues supplying means of tracking reactions to challenges. At the this Stockholm University, it can be used to flag the latest project risks and create suggestions regarding what action courses have been resolving issues.

Risk analysis method

This can be categorized into two constituents. Here, there is no other tool to carry out various stages. Here, the initial phase of qualitative analysis is identification. It can be considered as an important process as any risk is determined as it is possible to do anything. It can be gained through interviewing primary members of the team of the project. Here, organizing meetings that are brainstorming have been meeting every interested party (Chen et al.  2015). As these risks are determined, as qualitative analysis takes place, this proper to enter into the detailed qualitative analysis. This enables the effects of risks to get quantified against three primary criteria f project success. These are performances, time and costs.

Stakeholder’s Analysis

First of all, risk management is a creative method involving the identification, evaluation and mitigation of the effects of risks events. It is formal that is formal having work processes and informal having no formal methods and processes. Here, formal risk evaluation has included expert, brainstorming and checklist inputs. Here, risk breakdown structure, followed by work breakdown structure has been identifying risks as per activities (Qazi et al. , 2016). Again, risk evaluation has been prioritizing various risks that are identified and having potential effects as any event occur. Lastly, risk mitigations have been involving the deployment and development of plans in avoiding, transferring, sharing and reducing risks of projects. Apart from this, contingency plans have been including developments of alternative plans for responding to various occurrences of risk events.

During the course of the project, there have been various times on which the project can find itself in a situation that they must realize a specific element as the project. As this risk is determined, the university must find out the next course of action. This is to deal with or decrease those risks. Besides, they must determine the identification of the best course of actions to get deviated from previous determined project management plans.

It is the procedure to recognize and measure risks. This basic practice must be deployed to the operations of construing Stockholm University. At this step, they must analyze the highest ranked risks. They must set out plans to evaluate and change those risks for achieving acceptable risks (Wang, Dai and Ning 2015). Here, they can minimize the possibilities of adverse risks and develop scopes. The university must develop mitigation strategies, preventive plans and different contingency plans.

Risk evaluation method

Here, risk can be ranked during evaluations. The university must make decisions as risks are acceptable or not. These risks are to be included to project risk register. Here, risk has been all about uncertainties. As any framework is put around uncertainty, one can de-risk the risks of the project. Through managing and determining a comprehensive list of unpleasant surprises, project risks and reduced plans, risks can be evaluated.

Key risks that are to be treated

The risk treatment must be done through risk elimination. Here, in the current scenario of the university, there must be no proceeding on a different basis. Next, risk reduction must be made by undertaking future analysis or any due diligence. Then risk transference can be done that must be insurance, contractual and legal (Schofield, Larsson and Ward 2017). Lastly, risk retention can be done through internal management of risk, huge deductible and self-insurance.

Establishment of the Project Contents

Probable risk treatment approaches

Here the contractor must be addressing risks needing the capability of claiming escalations as any access to that site is not available under particular timeframe. This is able to make the tendering conditions on sunset dates. Then, after this, the ability to renegotiate any fixed sum price.

Effective option for risk treatment

Here, the contract needs contractors to accept complete risks of every condition of the site. Here the guidelines would take no liability for the accuracy or completeness of any data.  This must be provided to contractors and reliance on information as asked by own risks of the contractors.

Process

In order to make risk management an effective element of a university’s philosophy and culture, the university should be documenting and collecting knowledge and expertise. This must be done through constant reviewing and monitoring of treatment plans, relevant records, reviewing of events. However, this data has been pertinent towards information risks. Here, technical details that are concerning with operational issues of underpinning tools are needed to be filtered out (Wildavsky, Lockhart and Coughlin 2018).

Risk tolerability criteria

Failure probability	Possible rates
Extreme high	>=1 and 2
Very high	1- 5
Repeating failures	1-9
High rate	1-22
Medium high	1-85
Medium	1-350
little low	1-1998
Lower	1-14000
Remote	1-190000
Rarely possible	<=1-1,400,000

Figure 1: Tolerability of risk for this project

(Source: Sovacool, Proudlove and Green 2017, pp-127)

Apart from this, being an extremely valuable data resource for an organization, the records of those processes are a vital aspect of effective corporate. This must be inclined with, business needs, regulatory and legal records, an expense of developing and maintaining those records along with advantages of re-using information.

This plan would be deployed as any unexpected event occur. This can be done though affecting budget restrictions and resulting in unexpected negative events. This must be simplifying the matters and make them smoother. They must allow project teams to own the project and processes of management.

Conclusion

In the above report, various integrated processes of risk management and analysis are helpful for prioritizing the university building development project at Sweden. The study has integrated and expanded expertise to deal with a resource and Legal, social, financial and environmental issues of conservations are also elaborated in this report. It has presented strong evidence in claiming paradigmatic transformation of a discipline of project management as needed. Here, the demonstration implies the intimate relation between practices and theories. This should be generated under the project management of Stockholm University. Besides, practices and theories have been developing concurrently. Moreover, the report helps in presenting bigger, complicated and quick projects, where traditional project management is counterproductive. This generates self-inflicted issues that undermine performances.

Internal Context

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