Risk management strategies for a kitchen remodeling project

Kitchen Remodeling Project: Mitigating Future Risks

Please Betty You initiating assembly risk opportunity plan. The plan finalized reflection impact risks opportunities identified addressed activity 7. Your challenge activity review template basic portions risk opportunity plan omissions errors, oversights.

In order for the kitchen remodeling project to succeeds, there is need to ensure there if effective risk management in order to guarantee an increase in the opportunities available and that risks that arise are mitigated to reduce their effects on the project Beans, 2011.

The type of risk, degree of impact of the risk, likelihood of the risk, prioritization of the risks, tasks that have been effected to date, and mitigation strategies for the risk are important in developing the final risk management plan. This helps to ensure the project manager understands all that is expected and foreseen for the project and also that they develop an effective strategy for any unforeseen risks.

For this kitchen remodeling project, twenty-three risks have been identified based on the different phases and activities to the undertaken by the project. For each of the risks, the likelihood, assumptions based on the risk, tasks effected to date, mitigation strategy, and priority have been evaluated to make sure the risk management plan is as comprehensive as possible. Table 1 below shows all 23 risks identified for this kitchen remodeling project.

High likelihood risks

The risks with the highest likelihood of occurrence are exceeding of budgeted costs, the project being behind schedule and some aspects of the work needing to be redone. This is because the project is being undertaken by different stakeholders with different roles to play and even though all aspects such as budget, time required and design of the project have been evaluated, there may be some issues as a result of unforeseen circumstances.

The project may run into high costs as a result of the cost of some items being underestimated in the budget or some required items not being included in the budget at all. Furthermore, in trying to meet the changing building regulations, the owner of the house may have to make changes to the design that require workers to be compensated for more days than budgeted or more material to be purchased to comply. Cost cutting will be very important to ensure the costs are kept as close to budgeted values as possible. Earned value management processes will also be used to mitigate this risk Alviniussen, Jankensgard, & forskning, 2009()

Time is a limited resource and the project may experience delays from other stakeholders such as suppliers and workers or even the owner of the house, which lead to the project being behind schedule. It is important for timelines for the project to be specified. These should cater for any delays and also appropriate milestones with reasonable deadlines should be developed to ensure the project can be timed and when seen to be falling behind schedule, appropriate corrective measure are undertaken.

The owner of the house has specified high standards of the work to be completed therefore where these are not met, there is the risk of having to redo the work. It is important for this risk to be kept in check since it will delay the project and will also lead to increase in costs for the project. It is important for the owner of the house to regularly monitor the work being done to identify any places where the project is not meeting their specifications for immediate corrective action to be taken. This will prevent delays this risk from arising.

These three risks are highlighted because bearing their highest likelihood means they can occur at any point in the duration of the project. Therefore, they need to be monitored unwaveringly to ensure they do not occur. These risks also bear the highest impact therefore should they occur, they could disrupt the project completely. These three risks thus need to receive highest possible attention from the project manager.

The owner is present

The owner should be involved in the project so that they can give feedback about the project and how they want the overall design of the kitchen to be. Regular communication should be present between the foreman and the owner.

Medium

Sudden changes in weather conditions

Low

The weather conditions are sometimes unpredictable and these may lead to losses on the part of the project as a result of damage to property and appliances.

Weather conditions are being monitored regularly.

Weather conditions should be monitored regularly and insurance for the kitchen remodeling project should be sought to shoulder the cost of any damage that occurs during or after the project.

High

Change in building regulations

Low

Building regulations may change as regulators are continuously striving to tighten the sector and also as a result of public pressure.

All applicable building permits and approvals have been sought for the project. An inspector is also expected to monitor the project to ensure it meets the building regulations.

Building regulations are being monitored regularly and the project is being monitored to ensure it is within legal limits. The inspector is also expected to provide a report of the project and where suggestions are made, these will be implemented with urgency.

Medium

New appliances emerging

Medium

Technology changes very fast and during the duration of the project, new appliances that are better than those in the market may be invented.

The project has sought quotations for the required appliances from electronic stores and the different brands and types of machines have been compared to find the best options.

Before purchasing the machines, the project will be involved in continuous monitoring of new technologies to ensure that the best option is chosen for the kitchen. Regular communication with suppliers and stores is important to achieve this.

Medium

Changes to the overall structure of the house

Low

The remodeling project may lead to structural changes in the house as a result of trying to expand the kitchen and drilling holes for different appliances and fittings.

The overall design of the kitchen has been made in such a way that there is minimal change to the overall structure of the house.

The kitchen remodeling project needs to be monitored continuously to ensure there are minimal changes to the overall strucutr eof the house. There should also be continuous and regular communication with the workers to ensure they comply with this.

Medium

Social acceptance risk

Low

Friends and relatives who visit the kitchen may not like the new kitchen. They may give suggestions for changes to be made to the kitchen.

Friends and relatives were consulted when making the final designs of the kitchen. Their input was considered in making the final decision.

Where possible, friends and relatives will be kept at a distance from the project to ensure they do not interfere with the work being done. However, their input will be sought as the project progresses and where valuable, changes will be made.

Low

Access to credit

Low

The project may exceed the budgeted amount thus require the owner to take out credit to be able to complete the remodeling.

Budgets have been prepared carefully and a considerable amount has been set aside for contingencies that may arise.

Alternative sources of financial support such as friends and relatives should be evaluated to find alternative sources of funding for the project.

Low

Reduction in space available in the kitchen

Medium

The amount of space in the kitchen available for cooking and washing may decrease when more chairs or sitting is added to the kitchen.

Sitting space in the kitchen has been carefully planned in order to bring the least possible reduction in space available in the kitchen.

The installation of appliances and setting up of the sitting area should be monitored continuously to ensure the space available for other things is sufficient.

Low

Workers quitting or getting other employment opportunities

Low

Since the project is operating on a tight budget, some workers may find better paying opportunities.

Workers have been contracted for the duration of the project so any worker who decides to quit is effectively in violation of their contract and faces legal action.

The focus of the project tis on worker satisfaction to make sure they are happy and do not plan to leave the project.

Medium

Delivery of wrong fitting material

Low

The supplier may get some items wrong and deliver wrong materials for fittings.

In the ordering process, due caution has been undertaken in processing the orders to ensure they are correct.

All orders delivered by suppliers will be checked against the project requirements to ensure the right material is delivered. Where wrong material is delivered, the supplier will be asked to replace them immediately.

Low

Loss of documentation for the project

Low

The project involves a lot of paperwork and it may get lost or damaged leading to loss of documentation.

A computer-based record system is being implemented and offsite backups are available.

All paper-based documents received will be scanned and stored electronically to reduce likelihood of loss. This information will be backed up securely to ensure copies are available.

Medium

Understaffing

Low

The work to be undertaken may be underestimated leading to understaffing.

An evaluation of the project was undertaken before it began to identify numbers of workers required.

The project will be continuously monitored to ensure that any staffing shortages existing are filled as soon as possible.

Low

Inexperienced staff

Low

The staff hired for the project may misrepresent their qualification or an oversight may occur leading to hiring of inexperienced staff.

Worker hiring procedures are based on the needs of the project.

The project foreman and owner of the house will check the background and conduct reference checking to ensure the workers' CVs are truthful.

High

Inappropriate milestones are set

Low

The milestones for the project that have been set may be inappropriate as a result of oversight or wrongful estimation of the time required.

The project milestones have been developed carefully and checked against the needs of the project.

The project's milestones should be updated as the project progresses to ensure they are appropriate and can be met in the stipulated time.

Medium

Shift in financial obligations and priorities

Low

The financial priorities and obligations of the owner of the house may change leading to lack of finances for the project

The budget for the project has been prepared and sufficient finances for the project sought

The budget and spending during the duration of the project should be monitored to keep record of amounts spent. Financial obligations should be monitored regularly.

Medium

Unforeseen risks

Low

Unforeseen risks are unexpected and therefore not captured in this risk management plan.

All risks have been evaluated and opportunities identified to ensure none is overlooked or missed.

An appropriate insurance plan will be sought for the project to ensure that the financial burden of unforeseen risks is transferred to an insurance company.

High