Level 2 Questions - Centrica SLP Flashcards Preview

Risk Management > Level 2 Questions - Centrica SLP > Flashcards

Flashcards in Level 2 Questions - Centrica SLP Deck (20)
Loading flashcards...
1

What were some of the risks identified on Centrica’s Smart Meter Lab Project?

1) Failure to agree preferred location

- From the outset of the project, the client was considering 2 key sites to relocate the laboratory to

- If the client could not agree a preferred location, this could result in abortive costs


2) Issues with procurement of submains distribution equipment (load bank unit)
- This would impact the programme and cause a delay

- Client would be liable as this was a nominated supplier


3) Client change risk – change in the size of the laboratory
- Mitigated at the outset, requirements identified based on layouts of new laboratory


4) Unknown existing cable conditions
- Guidance from MEP engineer

- Advised we should allow for 25% replacement of
cables and associated containment (based on age of building)

- Estimated based on schematics / layouts


5) Indicative allowance for additional preliminaries due to COVID-19 working restrictions

2

Give some examples of some risks you've priced in your risk registers?

1) Indicative allowances for an increase in steel prices
- steel (tonnes) * £1200 * 50%

2) Indicative allowances for an increase in timber prices
- timber * 20%

3) Indicative allowances for additional preliminaries

3

How did you assess the likelihood of each risk occuring?

This was assessed during risk management workshops whereby we assessed the likelihood as:

- Very low (0-5%) - extremely unlikely to happen

- Low (5-25%) - Low but not impossible

- Medium (25-50%) - Fairly likely to happen

- High (50-75%) - More likely to occur than not

- Very high (75-99%) - Almost certain to occur

4

Who was responsible for risk management on Centrica?

The PM was responsible for coordinating the risk management workshops and maintaining the risk register however we all had a responsibility with risk management

5

In what way would the client maintain most of the risk on a traditional form of procurement?

The client would maintain the risk on the design and quality

Time - Design Programme

Cost - Cost certainty

Quality - Control of design / quality

Quality - Performance of design team

Quality - Performance of main contractor

6

Did you advise of any other forms of procurement that would mean the client could retain less risk?

A single stage design and build route could have been adopted on Centrica

- Cost - Cost certainty, competitive, value for money

- Time - Reduced programme, earlier start on site

- Quality - poor, however measures to increase this

- Overall risk allocation to contractor

7

You say the client would retain most of the risk on a traditional form of procurement, why was this?

This was because the client was responsible for managing the design and ensuring quality / cost certainty

Time - Design Programme

Cost - Cost certainty

Quality - Control of design / quality

Quality - Performance of design team

Quality - Performance of main contractor

8

If the client would retain most of the risk, how was this managed?

This was managed by ensuring that:

- Time - enough time was allowed for in the design programme

- Cost - the design was tendered at stage 4 so fully developed meaning there would be little risk of client change / variations

- Quality - the design team was hand picked by the client and the design was taken to stage 4 before tendering

9

How often did you carry out risk management workshops?

How often did you review / update the risk register?

Risk management workshops were carried out on a monthly basis

The risk register was reviewed / updated on a 2 week basis

10

How did you analyse the risks on the project? How were these discovered?

The risks were analyzed through a number of methods such as:

- Project team discussions / brainstorming
- Site surveys / existing surveys
- Historic risks for similar projects

11

Speaking in terms of the NRM risk categories, what risks were included on your risk register?

Design development risk - Indicative allowance for additional preliminaries due to COVID-19 working restrictions

Construction risk - Unknown existing cable conditions

Employer change risk - change in size of laboratory

Employer other risk - failure to agree preferred location

12

How did you go about assessing the cost risk of each risk?

How did you quantify risk?

To assess the cost of each risk I would:
1) Discuss risk with design team
2) Seek market rates / benchmark data
3) time related = prelims * anticipated delay

To quantify the risk I used a simple method of assessment in order to multiply the cost of the risk occurring against the likelihood of the risk occurring

13

How did you calculate the contingency / risk allowances on centrica in the early stages?

For my feasibility estimate as a risk register was not yet produced, I used a % addition based on benchmark data / projects of similar size and scope

14

How did you calculate the contingency / risk allowances on Centrica when cost planning? How did the allowance change throughout the design stages?

The contingency / risk allowances were based on the priced risk register

15

What level of contingency was held on Centrica? What was the % on the overall project costs?

tbc..

16

Were any risks closed out throughout the design stages meaning that their cost could be omitted fromt the overall risk allowances?

Yes, the risk of failing to agree a preferred location was closed out and therefore no longer a risk on the project

17

You assigned a risk rating to each of the risks? Can you elaborate on this?

tbc..

18

What is the purpose of assigning an owner to a risk? What risks were different members of the project team responsible for?

By assigning an owner this meant each risk could be individually managed by someone who is responsible, meaning that its more closely monitored and mitigated

The risk allocation was between the client and the contractor; the risk register identified which risks were to be transferred to the contractor

19

How did you deal with contingency on this project?

In the early stages when producing a feasibility estimate, I based my risk allowances on a percentage addition as there wasnt a priced risk register

Once there was a priced risk register I used this as the basis for calculating the risk allowances

Throughout the design stages the contingency began to be reduced as more information was available meaning risks could be closed out

20

How did you establish your contingency at the various stages of design?

In the early stages when producing a feasibility estimate, I based my risk allowances on a percentage addition as there wasnt a priced risk register

Once there was a priced risk register I used this as the basis for calculating the risk allowances