Analyzing the Potential Risks Associated with the Housing Construction Project - Assignment Example

First Last Number 5/17 Project Management INTRODUCTION Housing Construction and infrastructural project sector has become one of the most prominent sectors of growth and development across the globe. The sector has huge growth potential in future market, with increased innovation and an increase rate of spending and disposable incomes amongst customers. Hence, in order to gain an understanding of the actual business environment and management of projects undertaken for construction purposes, there is a need to analyze various risks and costs associated with conducting the business in construction industry in Abu Dhabi. The study is aimed at housing construction project in Abu Dhabi in relation to the development of a building project (Gray 300-320). Thesis statement. Taking these aspects into consideration, the study is aimed at developing a project scope statement that would highlight the scope of the construction project undertaken, apart from developing a work breakdown structure. The work breakdown structure would help in providing a comprehensive understanding of the work to be allocated into several dimensions with the purpose of undertaking the construction project. Furthermore, the study will also develop a project network with the purpose of complete forward and backward passes, apart from computing the slack and identifying the critical path. The critical path would help in analyzing the longest way of carrying out the construction work, which would consequently help in determining the success of the project undertaken as part of the overall project management. In subsequence, the study will estimate the project cost using ratio method for top-down analysis, besides identifying and analyzing the potential risks associated with the undertaken project. In addition, the study will discuss at least five different risks associated with the construction project undertaken in Abu Dhabi, which can act as a hindrance for the construction project in future. Furthermore, the study will also implement a risk assessment form that will analyze the risks identified in relation to the project and will finally develop a risk assessment matrix structure to outline the solution and deal with the risks. Risk assessment response matrix would highlight the risk management measures that would help in mitigation of the risks associated with housing and construction project. 1. TO DEVELOP A PROJECT SCOPE STATEMENT AND TO REVIEW IT WITH THE CUSOMERS 2. TO DEVELOP A WORK BREAKDOWN STRUCTURE OF THE PROJECT 3. TO DEVELOP A PROJECT NETWORK, TO COMPLETE THE FORWARD AND BACKWARD PASS, TO COMPUTE THE SLACK AND IDENTIFY CRITICAL PATH Tasks Duration (D) Early Start (ES) Late Finish (LF) Late Start (LS) Early Finish (EF) Total Float (TF) A 10 days 0 10 0 10 0 B 02 days 10 12 10 12 0 C 09 days 12 21 12 21 0 D 08 days 21 29 21 29 0 E 03 days 21 24 21 24 0 F 10 days 21 31 21 31 0 G 08 days 24 32 24 32 0 H 06 days 24 30 24 30 0 I 04 days 30 34 30 34 0 Since, A>B>C>D>G>I is the longest path, therefore it’s on the critical path From the figure drawn above, it can be interpreted that the critical path for the construction of house will be A>B>C>D>G>I, since it is the longest arrived at path that highlights the progress of housing construction as part of the undertaken project. Moreover, the housing project would expand from the step of excavate, foundation, frame, electrical, interior until the completion of the landscape. The critical success path will help in ensuring success of the construction and housing project undertaken in Abu Dhabi. Moreover, the critical success path would assist in developing the future construction plans associated with constructing the house with the help of best possible and available resources. 4. TO ESTIMATE THE PROJECT COST USING THE RATIO METHOD FOR TOP-DOWN ESTIMATING OF PROJECT COST To build a double-storied building, figures for cost price per square feet of house was considered hypothetically, and in subsequent, it was determined to be $300 per square meter. The total area allocated for construction of house is 400 square meters. Hence, the total cost for the project undertaken will be $120,000 ($300 per square meter*400 square meters). Furthermore, knowledge of the total area allocated for the house, i.e., 400 square meters apart from the cost per square meter, i.e. $300 per square meter, it can be determined that the project will take approximately 60 days to complete. Hence, its project cost for the construction of house in Abu Dhabi would cost $120,000 as can be determined through the top-down approach. Moreover, the time required for constructing the building is 60 days, which has been determined with the help of top-down approach (Sears, Glenn Sears, Richard Clough, Jerald Rounds and Robert Segner 190-210). 5. TO IDENTIFY AND ANALYZE THE POTENTIAL RISKS ASSOCIATED WITH THE PROJECT. TRY TO COME UP WITH AT LEAST FIVE DIFFERENT RISKS. USE A RISK ASSESSMENT FORM TO ANALYZE IDENTIFIED RISKS. DEVELOP A RISK RESPONSE MATRIX TO OUTLINE HOW YOU WOULD DEAL WITH EACH OF THE RISKS. There are numerous risks associated with the constructing house, which can play a key role in hindering the continuity and construction work. Hence, there is a need to identify the risks associated with the construction of house in Abu Dhabi. The following section herein highlights a number of risks associated with the housing construction projects (Smith, Nigel, Tony Merna and Paul Jobling 110-120). One of the prominent risks associated with construction of houses in Abu Dhabi is the presence of high degree of confined spaces. Confined spaces result in decline of the actual area for construction and can hamper the process of construction of house, which can impose a negative impact on the progress of the construction process. Additionally, noise and vibration are another potential risks associated with the construction of houses in Abu Dhabi. This can further play a key role in distracting workers to carry out their job roles effectively and can delay the progress of house construction. Contaminated ground is another risk associated with construction of building, which is associated with the subsurface geotechnical and geological atmosphere surrounding Abu Dhabi (Jha 145). This can play a key role in hindering the constructing work and can lead to the downfall of undertaken construction project. Moreover, collapse of the excavation site can also be considered as a significant risk associated with construction projects. Collapse of the excavation site can further lead to huge financial losses and is thus, considered as a major risk associated with the failure of construction projects. Inappropriate availability and usability of raw materials in construction of house can serve as another major risk influencing the construction work. This can delay the construction work and might lead to its failure or inappropriateness in future. Moreover, the constructed building would face high risks in future, which might result the final completed house to occupy an inappropriate structure (Hajdu 150-170). Risk Assessment Form Risk Assessment Response Matrix It can be understood from the above diagrammatic presentation that the risks consist of a number of elements that can play a key role in hindering the construction of building in Abu Dhabi. There is a need to understand the various risks that play a key role in determining the success or failure of construction project. One of those risks associated with construction work is the presence of confined spaces, which can hinder the construction work to a substantial extent. The risks involving confined spaces can be further addressed with the help of prior planning and assessment of the building location and appropriate allocation of space. Another potential risk associated with the construction of house is the factor involving high noise and vibration, which can be mitigated with the help of allocation of light equipments and use of labor-intensive techniques. Furthermore, the risk of contaminated ground can be addressed with the help of prior assessment and monitoring the location of area and removal of wastages. Additionally, the risks associated with the collapse of excavation site can be mitigated with the help of mechanized and sophisticated equipments, with the purpose of measuring the appropriateness and design of building. Finally, the risks involving inappropriate availability and use of raw material can be addressed with the use and employment of appropriate raw materials and allocation of resources accordingly. Works Cited Gray. Project Management 4E (Sie). India: Tata McGraw-Hill Education, 2009. Print. Hajdu, M. Network Scheduling Techniques for Construction Project Management. New York: Springer Science & Business Media, 2013. Print. Jha, Kumar Neeraj. Construction Project Management: Theory and Practice. India: Pearson Education India, 2011. Print. Sears, S. Keoki, Glenn A. Sears, Richard H. Clough, Jerald L. Rounds and Robert O. Segner. Construction Project Management. U.S.A.: John Wiley & Sons, 2015. Print. Smith, Nigel J., Tony Merna and Paul Jobling. Managing Risk in Construction Projects. U.S.A.: John Wiley & Sons, 2013. Print. Read More