Essay on "Manage Project Risk"

Essay 5 pages (1447 words) Sources: 8

[EXCERPT] . . . .

Project Risk Management

Manage Project Risk

Project management is the application of skills and knowledge in activities with the intentions of satisfying the client's needs and objectives set for a certain project. Project management happens in different phases, which include the, conception phase which is including the nurturing of an idea, the definition phase which entails documenting the idea, the planning and organizing phase that involves the project planning in details plus involvement of all stake holders, the implementation phase that entails the project undertaking and work are done, and lastly the project clean up phase that sees all the documentations filed, tools and materials cleared and handover of the project Zwikael and Ahn, 2011()

A core function of the project manager requires them to identify and analyze of risks through risk assessment procedures. This process goes a long way to see to it that the project not only runs smoothly but also is involved in ongoing and future projects. Risks that need critical scrutiny and constant observance are those that are rated as moderate and high impact risks in order eliminating the threats facing the project McAllister et al., 1977()

There are several risks involved in the construction projects and specifically in domestic single dwelling building sites. A very common risk that always affects most projects is the economic instability which comes about as a result of funds depletion or termination from the source. In every construction project, every cost details are usually displayed in bills of quantities document from the foundation to the finishing, and it's the role of the project manager to see to it that every phase is well built and within budget Teilans et al., 2011.

The contractor, on the other hand, while bidding for the project must ensure that budget is flexible and accommodates the exchange rate fluctuations and economic inflations that might cause a rise in cost of materials and standards of living Hillson et al., 2006()

Human health and environmental protection is also a major potential risk to projects. The public health sectors in conjunction with environmental agencies have the powers to revoke a project as long as it does not meet the specified and required standards. In most countries, environmental impact assessment has been introduced, and this gives the community and the surrounding bodies a voice to raise concerns and even terminate projects believed to be of public and environmental health concern Gurcanli and Mungen, 2009.

This greatly affects the projects as the committee or stake holders inclusive of engineers have to change the dimensions and this is an automatic increase in budget cost and termination period of the project.

In order for a project to come to its completion there must be a full time supply of resources, in the construction project the material, machinery and manpower are the major and most relied upon resources and with a fluctuation or depletion of any usually leads to a lag or pause of the construction process Chris Hendrickson, 1998.

As a project manager, one is supposed to forecast such hurdles and be prepared in advance to tackle them by setting up constant supplies channels, ensuring that there's no loss of access to the essential resources, estimating the material use and depletion according to the phases of construction and ensuring constant health of the workers and substitute in case of unavoidable circumstances Zwikael and Ahn, 2011()

A major risk factor to consider in the construction industry is the weather changes. A construction project should run concurrently with the weather changes as there are sections to be constructed with different temperature and different seasons Teilans et al., 2011.

Failure to observe this factor, a company might incur more costs trying to repair damages caused by the weather changes. On the other hand, the technological risks involved in construction include the ever evolving building plans that once used before may no longer be valid at present Ehrenfeld, 1996.

These usually applies to renovations and modifications of the buildings whereby if one not careful enough to lay down plans that are executable, one might end up bringing down sections during construction so as to adopt a different and advanced construction in order to meet the standards. This is usually costly and time consuming hence making it a vital aspect to be considered by the manager.

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