Risk management in construction
Construction projects are characterized as very complex projects, where uncertainty comes from various sources. Construction projects gather together hundreds of stakeholders, which makes it difficult to study a network as a whole. But at the same time, these projects offer an ideal environment for network and risk management research. Identifying and managing risks can be tricky, but not impossible with careful planning and execution. When a risk turns into reality it can disrupt and derail a project. In order to avoid disaster, you need to be able to properly assess, control and monitor risks once they have been identified.
Risks are not always a negative. Being able to effectively identify and manage risks can lead to increased profits, establishing good relationships with clients that result in more projects and being able to expand your business into new markets and sectors.
When risks come to fruition, they can have a serious impact on costs, schedules, and performance of your project which will lead to delays and disputes down the road. The good news is most of these risks can be managed and mitigated with proper planning and good project management.
When it comes to construction risk management on project sites, the cloud is especially helpful because it permits easy documentation. Cloud-based technologies allow users to make changes on the fly in real-time, as documents and information are stored in one spot that all users have immediate access to. Potential construction disputes and even litigation can be avoided by simply ensuring that information is being documented properly. If you are not using mobile technology out in the field, there is no better time than the present. That is because mobile technology does more than streamline communication and collect data, it can significantly reduce risk and it does this by making data more accessible to team leaders and project team members.
BIM software to mobile devices can go a long way toward streamlining operations on the jobsite, eliminating rework and keeping projects on time and budget. It is estimated that only about 40% of all contractors currently use BIM in the field. This number should be much higher to streamline efficiency and reduce risk. AI and machine learning also help in identifying jobsite risks that humans might not be able to assess.
Tracecost is cloud-based real time project management software that can be used on any connected device or PC. The software uses machine learning and artificial intelligence to enable end-to-end automation and documentation of the entire construction workflow, from design and documentation to equipment management and quality control. Most importantly, it helps project managers keep a tight control on delays; as they are able to pinpoint exactly who is responsible for the entire project team for not completing their tasks on time. The analytics of the available data helps define possible risks, improve project management, and reduce costs and time spent on working on a project. It helps to have a better chance to predict more profitable and prospective projects for implementation.
The key to effective risk management is ownership. Each risk must be owned so that there is clear responsibility and accountability for that risk and its associated action. It has become an axiom of good risk management that- the ownership of a risk should lie with the party ‘best’ able to control the risk probability and its impact. A solid risk management plan can save a project from a lot of trouble. Once a project team has contemplated the risk management plan, future projects will be easier to assess. Risk management plans can do much more than simply assessing project threats. Possibility of a terrifying accidents is minimised while the working on construction site.
It may be stated that risk Management is the core of project management. The success of every project depends on how efficiently and effectively the uncertainties are handled. Risk avoidance may include a review of the overall project objectives leading to a reappraisal of the project as a whole. Every project is unlike the earlier one, the problems are distinctive and their solutions are also different. Risk management will help in removing all risks from the projects. Its main objective is to ensure that risks are managed most effectively.