3.8 Risk Management

Question 1

What is a risk?

Answer 1

Probability or threat of liability, loss or any other negative occurrence

Question 2

Example of risks?

Answer 2

Contractor - Materials/weather
Client - Funding fo the project

Question 3

Example of oportunity?

Answer 3

Coventry AQP - overlap with other delopment saving time in site clearance

Question 4

What are the risk management routes?

Answer 4

Avoidance
Reduction
Transfer
Sharing
Retention

Question 5

What is qualitative and quantitative risk management?

Answer 5

Used to analyse the significance of risks.
Qualitative - not including costing i.e. (Very High, High, Medium…)
Quantitative - costing up the risk

Question 6

What are risk quanitification techniques?

Answer 6

• Probability trees - used for dependant risks (linked)
• Monte Carlo - computer generated simulation
• Percentage addition - percentage of cost plan
• Simple Method - a likely cost x probability
• Probabilistic method - similar to simple x3 for best, likely and worst cases added up

Question 7

Who is responsible for updating the Early Warning register?

Answer 7

PM and Contractor add to the register
PM revises the EW Register to incorporate the EW meeting notes.

Question 8

What are Early Warning Notices?

Answer 8

Clause 15 notify the other ASAP of :
-increase in the total of the Prices
-delay to key dates
-delay to completion
-impair the perfomance of works in use

Question 9

What is time risk allowance?

Answer 9

Time a contractor adds to an activity duration to account for potential delays and risks