Consulting

Project Risk Assessment

Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on at least one project objective. A risk may have one or more causes and, if it occurs, one or more impacts

Risk management is the systematic process of planning for, identifying, analyzing, responding to, and monitoring project risks. It involves processes, tools, and techniques that will help the project manager maximize the probability and results of positive events and minimize the probability and consequences of adverse events as indicated and appropriate within the context of risk to the overall project objectives of cost, time, scope and quality. Project risk management is most effective when first performed early in the life of the project and is a continuing responsibility throughout the project’s life cycle.

The project risk management process helps project sponsors and project teams make informed decisions regarding alternative approaches to achieving their objectives and the relative risk involved in each, in order to increase the likelihood of success in meeting or exceeding the most important objectives (e.g. time) sometimes at the expense of other objectives (e.g. cost). Risk management encourages the project team to take appropriate measures to:

• Minimize adverse impacts to project scope, cost, and schedule (and quality, as a result).
• Maximize opportunities to improve the project’s objectives with lower cost, shorter schedules, enhanced scope and higher quality.
• Minimize management by crisis.

The Project Risk Assessment will be in a workshop forum, using PHA Pro V8 to record the finding of the discussions.

The workshop commences with the assembled team using the pre-determined guidewords populating the worksheets and identifies the hazards, determines the cause, consequence, and safeguards for each hazard.

Typical project hazards include (the actual list used will be project specific):

Design Risks

• Design incomplete
• Unexpected geotechnical or groundwater issues
• Inaccurate assumptions on technical issues in planning stage
• Surveys incomplete
• Changes to materials/geotechnical/foundation
• Hazardous waste site analysis incomplete
• Unforeseen design exceptions required
• Design not up to correct standards
• Unresolved constructability items
• Complex hydraulic features
• Unable to meet disabled access requirements
• Project in a critical water shortage area and a water source agreement required
• Incomplete quantity estimates
• Unforeseen construction window and/or effects of climatic conditions
• New or revised design standard
• Construction staging more complex than anticipated

External Risks

• Landowners unwilling to sell
• Local communities pose objections
• Unreasonably high expectations from stakeholders
• Political factors or support for project changes
• Stakeholders request late changes
• New stakeholders emerge and request changes
• Threat of lawsuits
• Increase in material cost due to market forces
• Water quality regulations change
• New permits or additional information required
• Reviewing agency requires longer than expected review time
• Changes to storm-water requirements
• Permits or agency actions delayed or take longer than expected
• New information required for permits
• Environmental regulations change
• Controversy on environmental grounds expected
• Pressure to deliver project on an accelerated schedule
• Labour shortage or strike
• Construction or pile driving noise and vibration impacting adjacent businesses or residents

Environmental Risks

• Environmental analysis incomplete
• Availability of project data and mapping at the beginning of the environmental study is insufficient
• New information after Environmental Document is completed may require re-evaluation or a new document (i.e. utility relocation beyond document coverage)
• New alternatives required to avoid, mitigate or minimize impact
• Acquisition, creation or restoration of on or off-site mitigation
• Environmental clearance for staging or borrow sites required
• Historic site, endangered species, riparian areas, wetlands and/or public park present
• Design changes require additional Environmental analysis
• Unexpected concerns from local population
• Project may encroach into the Coastal Zone
• Project may encroach onto a Scenic Area
• Project may encroach to a Wild Area or area of special scientific importance
• Unanticipated noise impacts
• Project causes an unanticipated barrier to wildlife
• Project may encroach into a floodplain or a regulatory floodway
• Project does not conform to the government requirements for air quality at the program and plan level
• Unanticipated cumulative impact issues

Organizational Risks

• Inexperienced staff assigned
• Losing critical staff at crucial point of the project
• Insufficient time to plan
• Unanticipated project manager workload
• Internal “red tape” causes delay getting approvals, decisions
• Functional units not available, overloaded
• Lack of understanding of complex internal funding procedures
• Priorities change on existing program
• Inconsistent cost, time, scope and quality objectives
• Overlapping of one or more project limits, scope of work or schedule
• Funding changes for fiscal year
• Lack of specialized staff (biology, anthropology, geotechnical, archeology, etc.)
• Capital funding unavailable for right of way or construction

Project Management Risks

• Project purpose and need is not well-defined
• Project scope definition is incomplete
• Project scope, schedule, objectives, cost, and deliverables are not clearly defined or understood
• No control over staff priorities
• Consultant or contractor delays
• Estimating and/or scheduling errors
• Unplanned work that must be accommodated
• Lack of coordination/communication
• Underestimated support resources or overly optimistic delivery schedule
• Scope creep
• Unresolved project conflicts not escalated in a timely manner
• Unanticipated escalation in right of way values or construction cost
• Delay in earlier project phases jeopardizes ability to meet programmed delivery commitment
• Added workload or time requirements because of new direction, policy, or statute
• Local agency support not attained
• Public awareness/campaign not planned
• Unforeseen agreements required
• Priorities change on existing program
• Inconsistent cost, time, scope, and quality objectives

Right of Way Risks

• Utility relocation requires more time than planned
• Resolving objections to Right of Way appraisal takes more time and/or money
• Right of Way datasheet incomplete or underestimated
• Need for “Permits to Enter” not considered in project schedule development
• Acquisition of parcels controlled by a Government Agency may take longer than anticipated
• Discovery of hazardous waste in the right of way phase
• Seasonal requirements during utility relocation
• Utility company workload, financial condition or timeline
• Expired temporary construction easements
• Inadequate pool of expert witnesses or qualified appraisers

Construction Risks

• Inaccurate contract time estimates
• Permit work window time is insufficient
• Change requests due to differing site conditions
• Temporary excavation and shoring system design is not adequate
• Falsework design is not adequate
• Unidentified utilities
• Buried man-made objects/unidentified hazardous waste
• Dewatering is required due to change in water table
• Temporary construction easements expire
• Electrical power lines not seen and in conflict with construction
• Street or ramp closures not coordinated with local community
• Insufficient or limited construction or staging areas
• Changes during construction require additional coordination with resource agencies
• Late discovery of asbestos materials or lead deposits
• Experimental or research features incorporated
• Unexpected paleontology findings
• Delay in demolition due to sensitive habitat requirements or other reasons
• Long lead time for utilities caused by design and manufacture of special components (steel towers or special pipe)

Engineering Services Risks

• Foundations utilizing Cast-In-Drilled-Hole or Cast-In-Steel-Shell pile 30” in diameter or greater may require tunneling and mining provisions within the contract documents and early notification to government agencies
• Bridges constructed at grade and then excavated underneath may require tunneling and mining provisions within the contract documents and early notification to government agencies
• Hazardous materials in existing structure or surrounding soil; lead paint, contaminated soil, asbestos pipe, asbestos bearings and shims
• Piles driven into fish habitat may require special noise attenuation to protect marine species
• Access to adjacent properties is necessary to resolve constructability requirements
• Existing structures planned for modification not evaluated for seismic retrofit, scour potential and structural capacity
• Foundation and geotechnical tasks (foundation drilling and material testing) not identified and included in project workplan
• Bridge is a habitat to bats or other species requiring mitigation or seasonal construction
• Condition of the bridge deck unknown
• For projects involving bridge removal, bridge carries traffic during staging
• Verify that all seasonal constraints and permitting requirements are identified and incorporated in the project schedule
• Complex structures hydraulic design requiring investigation and planning
• Assumptions upon which the Advance Planning Study is based on are realistic and verification of these assumptions prior to completion of the Project Report
• Design changes to alignment, profile, typical cross section, stage construction between Advance Planning Study and the Bridge Site Submittal
• Unexpected environmental constraints that impact bridge construction
• Unforeseen aesthetic requirements
• Delay due to permits or agreements, from Government agencies for geotechnical subsurface exploration
• Delay due to Right-of-Entry agreements for geotechnical subsurface exploration
• Delay due to traffic management and lane closure for geotechnical subsurface exploration