Niagara Fall Construction Project Case Solution

Risk Identification

Following are the possible risks that affects the undertaking of Niagara Fall Construction Project;

Rikert would not be able to meet the deadline for handing over the property to the proposed buyer if he
would not be able to catch the construction deadline of detached double garage. There are various
factors that effects the completion of the required construction project within the estimated time frame.
If Rikert had not delivered the project before 30th august, he might default on the sale proceed of the
home.

Risk during the planning stage relates to the processing of the permit application & its acceptance. If the
permit were not issued within two to three weeks from bylaw authorities, Rikert would not be able to
get permission from the city department. Also, there is a risk that the application would be returned
with the objection, as this would be highly probable, and if such happens than the foundation phase
would be further delayed.

In foundation phase, Rikert needs to locate any infrastructure that could be damaged as result of
construction activity that may lead to significant financial penalties if not proceed with due care & found
guilty in the end. After locating infrastructure, an inspection would be needed, but it could be a delay
due to the timing of the inspection team. Structure phase is all about carrying on construction, but the
risk would be due to the untimely delivery of raw material in the finishing phase.

Risk Assessment

Risk assessment is about evaluating the seriousness of the risk those identified earlier. The risk of default
on the sale of the house is high as the time needed from submitting building application to obtaining
aperm it is relatively high therefore it is right to be said as decisive factor in this case,moreover it is
beyond the control of Rikert. He might able to save some time from construction side, but the availability
of some construction material & approval from authorities possess high risk.

Also if he tries to save time by increasing number of labor it might increase its cost and the project would
financially become unfeasible therefore it needs to becritically assessed and then opted, based on the
cost benefit analysis.

Risk Mitigation

The risk could be brought to an acceptably low level by undertaking the following actions:

Rikert has an option for the zoning variance as this will save considerable time for him in order complete
the construction project, whereas if he chooses to go for applying first for obtaining approval from bylaw
& then submitted application to get permission from city, and they imposed some revisions that would
most probably be expected in this case then he would not able to meet the timeline.

Therefore zoning variance would be recommended to catch up the timeline. This will save time to focus
on the construction of the detached double garage. Rikert can mitigate the risk of financial penalties by
acquiring the services of a subcontractor; this will transfer the potential risk to the outsourced third

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 party contractor. It can contract the Lafarge Concrete in advance and take appointment prior to the
inspection work in order to save time as this will normally take a day to deliver the concrete.

Similarly, at the finishing stage it can further secure time by taking prompt decisions, such as using steel
roofing instead of asphalt shingle this would save the day further and needed fewer labor hours to
complete the roofing process

If Rikert manages to save time than he might able to reduce cost by undertaking construction work by
himself also in the early two weeks of August his son James would also be expected to come on his
vacation he also committed to give him support in his development project

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