Launching a Successful Construction Risk Management Plan

Launching a Successful Construction Risk Management Plan

As your clients in the contracting business are fully aware, successful project management requires planning, organizing, controlling, and management of both the crew and all material resources throughout the life of the project. This is the only way in which to achieve the goal of successfully completing the work. It all begins with a solid construction risk management plan in order to determine what inherent risks exist and how to avoid them, or at least reduce the occurrence of these sorts of problems.

This generally involves dealing with constraints, both organizational and human, as well as uncertainty and complexity. It is the job of the project manager to deal with the project requirements and the project team, along with other stakeholders or interested parties. Each project is different by nature, and all projects should be seen as a temporary endeavor with definitive start and end dates.

As the leader, the project manager must take charge

The project manger is responsible, directly or indirectly, to ensure that the project is successful. Motivating and working with the team members to use the resources necessary for project success is crucial, as well as striving to meet their intended deadlines. This requires effective communication between all of the involved parties.

Construction projects are by nature, complex, and require a general understanding of design, construction, and management techniques. They involve a number of processes, procedures, goals, and objectives. Expectations often run high, promises are made, contracts are signed, schedules and budgets must be met or restructured, and plans must be followed.

This takes an awful lot of coordination, which includes dealing with supply chains, stakeholders, and the list goes on and on. The systems created during the construction risk management plan to manage the flow of information, resources, and decisions are rife with potential concerns.

The project manager must come up with a plan that has to be realistic as well as flexible enough to allow for unexpected changes to occur. Variability, uncertainty, and change are a project constant, and coordination and communication among those parties is critical to the success of the project.

Before any project begins, as an agent, you should speak to concerns regarding the proper insuring of all parties, which is the cornerstone of any construction risk management plan.