Project Risk Management Manage Project

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.

An important part to note and of which a project manager must be cautious of is the design procedure and steps. The project manager should at all times be present to monitor and ensure that it's the correct mixing of materials being done, it's the right quality of material being used, and it's the right amount of time being given to the treatment process in the different construction phases. In the event that this is not observed, and the building is erected, there's a high probability that the building will deteriorate at an early stage before its lifespan or even collapse as witnessed almost daily Zwikael and Ahn, 2011()

As a construction is ongoing, a major contribution to its success is the relationship between the different stakeholders. This includes the architect, the engineer, the owner, the contactor and the workers. In order to smoothly run the project and limit malice and incorporation, there should be a union and set goals and objectives between all these parties so as to ensure everyone plays their role to the best of ability avoiding the risk of organizational friction between the different partners. The project manager should see to it that all the parties play their roles in ensuring the construction sails through and meets the require standards and purpose Buys et al., 2011()

A neglected and most of the time brushed off risk is, working to a set reputation. This is very important as its image of the company and if not observed threats of competition from rising or already established companies are usually downfalls to the company. The work done and relationship between the contactors and the owners of the building is a crucial element in maintain a reputation and ensuring future work availability Ehrenfeld, 1996.

The project manager should ensure constant communication to the different parties and always give a clear progress report whenever a given phase of a project is being concluded. A project with a poor reputation does not always affect the project but also the manager whose future relies on the same Chris Hendrickson, 1998()