Site Construction risk managementRisk Management is the technique of reviewing a construction project with the aim of determining the risks it poses on its workers and the success of the project, projecting the probability of risks occurrences, its effects and what can be done to prevent these risks (Cote, 2003). Risk management is vital to all contractors and must be implemented to prevent lawsuits from clients or workers or even the risk of losing the contract altogether. Risk management therefore requires a strong working program of safety rules, which are strictly followed by all employees on site of the construction.
In some companies, before any construction begins, employees undergo intense training on site to ensure that they are following the company’s safety rules and regulations and also, to keep them on the lookout for any potential dangers on site. Not all projects are same, hence each project is required to have its own special program on safety and regulations of the construction site and ensure employees adhere to it. By law, all contractual companies are supposed to document their reported on site incidents both serious and of the lost time variety.
Clients wishing to employ a company’s services will always ask for a record of reported incident rate to evaluate the contractor’s potential for hiring. If a company has a bad reputation or if the reported incident rate is high, then the possibilities of winning that contract are less. Risk management is therefore important in defining the success or failure of a company. A risk manager is able to develop an effective risk management plan through exposure and identification of risks that balances the needs of the client with the company’s financial records as well as the contingencies that comes with t he risks.
There are several major steps that must be taken in a company’s risk management plan: The risks must first be identified and then the project plan is laid out to minimize the risks. The projects objectives are then planned and risks evaluated to meet those objectives. A framework for recognizing and reporting risk is then defined. A plan for analyzing the risks involved with each particular project is then developed (Cote, 2003).
Site construction risk and uncertaintyUncertainty management in construction can be described as a process of managing the perceived dangers, opportunities and their risk implications but also managing the various sources of uncertainty, which give rise and shape risk threat and opportunities. Risks and uncertainty are two different terms. In uncertainty, it is not easy to predict the dangers involved in a project, but in risks, it is possible to predict the dangers that could happen in a project. However, the two terms can be used interchangeably because they are both used to describe uncertainties in a project.
An uncertainty in a construction project comes from many sources and often involves many people. Lack of proper project documentation or the use of unreciprocated terms or definitions can cause uncertainties in a project and often results in misunderstanding between workers or its managers, waste of time and quality of work. If a company’s’ procedures are not followed and the project is implemented without any proper procedure may lead to waste of time, duplication of work and uncoordinated team work and may eventually result to the ruin of the project.