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ACECNJ/NJDOT/FHWA 2013 DESIGN SUMMIT
ACECNJ/NJDOT/FHWA 2013 DESIGN SUMMIT Presentation Team: Risky - - PowerPoint PPT Presentation
ACECNJ/NJDOT/FHWA 2013 DESIGN SUMMIT Presentation Team: Risky - - PowerPoint PPT Presentation
ACECNJ/NJDOT/FHWA 2013 DESIGN SUMMIT Presentation Team: Risky Business Definition of Risk What is Risk Management (RM) Constructability Risk reviews relationship Integration of Risk Management at NJDOT
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- Definition of Risk
- What is Risk Management (RM)
- Constructability
- Risk reviews relationship
- Integration of Risk Management at NJDOT
- Constructability & Risk review
- Route 202 over Passaic
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What is Risk? A risk is defined as a future event, that can be either an opportunity or threat, that could occur and has a direct impact on the success of a program or project Event The things that may happen sometime in the future that will trigger an opportunity
- r threat
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Opportunity Benefit to our ability to deliver the program or project and achieve an objective Threat Detriment to our ability to deliver the program or project and achieve an objective
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Five Recognized Steps:
- 1. Plan for Risk
- 2. Identify Risk
- 3. Analyze and Prioritize the Risks
- 4. Plan and Execute Response Strategies
- 5. Monitor, Evaluate & Adjust
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A failure to plan…is a plan to fail! Identify the context Product – The Scope Statements will document the extent of Risk Management on each project
Plan for Risk Identify Risks Prioritize Assessed Risks Plan and Execute Response Strategies Monitor, Evaluate and Adjust Communication and Consultation occur at each step Analyze the Risks Assess Risk Probability Assess Risk Impact
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For each identified Risk, ask the following:
- What are the possible risks to the project?
- What are possible benefits to the project?
- What are the challenges/barriers to the project?
Plan for Risk Identify Risks Prioritize Assessed Risks Plan and Execute Response Strategies Monitor, Evaluate and Adjust Communication and Consultation occur at each step Analyze the Risks Assess Risk Probability Assess Risk Impact
Product – Risk Statements are documented within the Risk Register
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What events could affect the project?
- Impacts?
- Likelihood?
Plan for Risk Identify Risks Prioritize Assessed Risks Plan and Execute Response Strategies Monitor, Evaluate and Adjust Communication and Consultation occur at each step Analyze the Risks Assess Risk Probability Assess Risk Impact
Product – Each Risk Statement will be analyzed and documented within the Risk Register
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- Use Matrix on previous slide to determine criticality (or
lack thereof) of risk statements – relative status
- Product – Each Risk Statement, once analyzed, will be
prioritized within the Risk Register Product – Each Risk Statement, once analyzed, will be prioritized within the Risk Register
Plan for Risk Identify Risks Prioritize Assessed Risks Plan and Execute Response Strategies Monitor, Evaluate and Adjust Communication and Consultation occur at each step Analyze the Risks Assess Risk Probability Assess Risk Impact
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For each threat the response strategy is to: For each opportunity the response strategy is to:
- Avoid
- Accept
- Mitigate
- Transfer
Plan for Risk Identify Risks Prioritize Assessed Risks Plan and Execute Response Strategies Monitor, Evaluate and Adjust Communication and Consultation occur at each step Analyze the Risks Assess Risk Probability Assess Risk Impact
Product – Response Strategies and Response Plans are documented within the Risk Register
- Exploit
- Accept
- Enhance
- Share
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- Monitor status of risk strategies & response plans
- Document adjusted risk strategies & response plans
- Monitor action plan status performance for lessons
learned and best practices
Plan for Risk Identify Risks Prioritize Assessed Risks Plan and Execute Response Strategies Monitor, Evaluate and Adjust Communication and Consultation occur at each step Analyze the Risks Assess Risk Probability Assess Risk Impact
Product – Response Strategies and Response Plans are documented within the Risk Register
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Constructability & Risk Relationship
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Time-driven Performance Risks
- Agencies controlled by funding and
political commitment deadlines
- Designers judged by performance of
deliverables
- Construction contracts governed by
milestones, performance windows and time-of-the-essence clauses
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Transportation Project Special Risk Factors
- Cost/Schedule are driven by how something is
constructed versus what is constructed
- Public in, around and through the construction
site
- Restricted work windows and work zones
- Maintenance and protection of traffic – work
zone safety for the public and construction crews
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Risk Management Tools & Process
Can be performed at any stage, concept thru construction!
- Risk Register
- Constructability Reviews
- Value Engineering Reviews
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Risk Constructability Common Elements
Multidiscipline Teams:
- Architects, Engineers, Construction Managers
- Procurement: Contract options, funding, legal
- Specialists: Environmental, HAZOPS, Police, etc.
- Operations Personnel: Maintenance, plant engineers
- Contractors: Means & Methods, MOT/MPT, etc.
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FDOT – Miami Intermodal Center
Example 1
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Combined RM/VE Workshop FDOT MIA-MIC
Example 1
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NYSDOT – Work Zone Safety Initiative
DOT HQ - Review Region Projects
- Tech Design Not Reviewed
- Maintenance of Traffic Only
- Review Work Zone Layouts
- Review Work Windows
- Review Traffic Alternatives
- Review Work Flows
- No Costs Considered
Example 2
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NYSDOT – Work Zone Safety Initiative
Workshop Teams:
- DOT HQ Construction Managers
- FHWA Construction Managers
- State/Local Police
- Contractors
- Specialty Consultants – Traffic, IT, etc.
Example 2
Goal to reduce risk by improving worker and public safety.
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Take-Away Points
- Everything involves risk – risk cannot be
eliminated, but it can be managed
- RM documents (risk register, etc.) are not end
products – they are tools to be used throughout the life of a project. They are tools to help manage risk
- Value Engineering and Constructability Reviews
are processes to help manage risk
Example 2
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Integration of Risk Management at NJDOT
Objectives
- Identifying risks early = opportunity to manage the
risk
- Reduction in design changes and scope = cost
savings
- Quality contract documents = enhanced project
success
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Current Practice
- Project Managers, Designers & SMEs are performing
informal project risk management without consistent procedures or practices and without consistent documentation
- Project Managers, Designers & SMEs are performing
project risk management without coordination of effort
- Risks may be identified, but may not actually lead to
implementation of response actions
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Formal Risk Management
- Risk Management will occur from Problem
Screening through Construction
- Risk Management will be scalable
- Coordinated effort
- Central and Accessible Repository
- Compatible with the Capital Project Delivery
process and CPD activities
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Leverage current best practices: Interactive Communications Design Communications Report (DCR) with Future State: Formal and structured process allowing for opportunity to mitigate threats or embrace opportunities on projects
Formal Risk Management
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Benefits
- Risks are formally documented and evaluated so the Project
Team does not manage by crisis when a risk is realized
- Allows for prioritization of high probability and high impact
risks
- Enhances communication between the Project Team and
encourages a robust and diverse exchange of ideas and solutions
- Strategy can be tracked and monitored for effectiveness
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Next Steps
- Risk Management Process Pilot Program
- Monitor the Process for Refinement
- Implementation with Training
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Constructability Review & Risk Management: Case Study
Route 202 over Passaic River
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WEATHER DELAYS
Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning Risk Category Risk Impact Risk Rank Unique ID # Risk Statement Initial Risk Owner Risk May Occur In Risk Probability Schedule Cost Schedule Score Cost Score Final Score Risk Response Strategy Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated Final Result Post-Construction 1 1 As a result of Weather delays during construction which may occur, which would lead to schedule delays Construction Construction 5 - Very High 10 - Very High 4 - Moderate 50 20 70 Accept Threat Have a contingency of 2 days not shown in the contract documents that will allow for unforeseen issues such as weather delays. Contractor and NJDOT Plan Implemented 4/9/2013 We were lucky and there were no weather delays. Future jobs can base this risk off of historical weather data. 1 2 As a result of what can be considered a weather delay which may occur, which would lead to conflict regarding schedule time extensions Construction Construction 5 - Very High 10 - Very High 4 - Moderate 50 20 70 Accept Threat Define in the specs that the RE will determine if the project is delayed due to weather. Since it is a 24hr schedule, allow for hourly delays with impacts to working crews. Give additional time to allow mob and demob detailed in the spec. Contractor and NJDOT Plan Implemented 4/9/2013 Although this was included in the spec and not used, all involved with construction agreed was the best approach to weather delays. SLIDE 34
FABRICATION
Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning Risk Category Risk Impact Risk Rank Unique ID # Risk Statement Initial Risk Owner Risk May Occur In Risk Probability Schedule Cost Schedule Score Cost Score Final Score Risk Response Strategy Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated Final Result Post-Construction 2 14 As a result of the prefabricator requiring more than the 5.5 months allotted in the schedule for fabrication due to unforeseen delays in material deliveries or backlog in orders which may occur, which would lead to project schedule delays Construction Construction 5 - Very High 10 - Very High 1 - Very Low 50 5 55 Accept Threat Have a contingency of 2 days not shown in the contract documents that will allow for unforeseen issues. Contractor and Designer Plan Implemented 4/9/2013 This risk almost delayed construction and proved to be critical. There is little control- ver the fabricator's schedule. If KK didn't
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CRANE MALFUNCTION
Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning Risk Category Risk Impact Risk Rank Unique ID # Risk Statement Initial Risk Owner Risk May Occur In Risk Probability Schedule Cost Schedule Score Cost Score Final Score Risk Response Strategy Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated Final Result Post-Construction 4 12 As a result of the on site cranes malfunction requiring new cranes to be brought in which may occur, which would lead to schedule delays Construction Construction 3 - Moderate 10 - Very High 1 - Very Low 30 3 33 Mitigate Threat Identify if a backup crane is available and the mobilization time required prior to bridge- demolition. Prepare a design that allows for a
- project. The contractor was able to find
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UTILITY INTERFERENCE
Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning Risk Category Risk Impact Risk Rank Unique ID # Risk Statement Initial Risk Owner Risk May Occur In Risk Probability Schedule Cost Schedule Score Cost Score Final Score Risk Response Strategy Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated Final Result Post-Construction 4 16 As a result of Utilities not moved in adequate time for construction which may occur, which would lead to schedule delays Construction Construction 3 - Moderate 10 - Very High 1 - Very Low 30 3 33 Mitigate Threat Have advance utility relocations take place removing this item from the critical path Designer and NJDOT Plan Implemented 4/9/2013 Utilities were moved through advance construction through direction and coordination by Amercom SLIDE 37
PLACEMENT OF UNITS
Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning Risk Category Risk Impact Risk Rank Unique ID # Risk Statement Initial Risk Owner Risk May Occur In Risk Probability Schedule Cost Schedule Score Cost Score Final Score Risk Response Strategy Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated Final Result Post-Construction 11 10 As a result of Precast abutments being out of alignment when placed on piles which may- ccur, which would lead to improper