OCTOBER 7, 2021

ASSIGNMENT 3: PROJECT RISK

MANAGENT
CT 3611-CONSTRUCTION PROJECT MANAGEMENT

Objectives & scope of the assignment:

• Identify risks for the type of project to each group, classify them to respective category,
assign them probability of occurrence and impact on project.
• Prepare risk assessment matrix and extract top 10 risks based on score.
• Provide risk mitigation and management strategy for these 10 risks.

Group- 4
Devarsh Shah (UG180151)
Khush Tiwari (UG180283)
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Table of Contents
1 Introduction ........................................................................................................ 2
1.1 Project details: ............................................................................................. 2
1.2 Risk Identification: ...................................................................................... 2
1.3 Identifying top 10 Risk:............................................................................... 3
1.4 Solution for the above 10 Risk: ................................................................... 6

Devarsh Shah UG180151- 1.1 Project details, 1.2 Risk identification

Khush Tiwari UG180283- 1.3 Identifying top 10 Risk, 1.4 Solution for the Risk
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1 Introduction
1.1 Project details:
➢ Project name: 300 MW Solar Park, Modhera North Gujarat
➢ Client Organisation: Adani power limited
➢ Project scale: 300 MW solar energy production hub
➢ Land area required: 1500 acres or 6070285 sq.mt.
➢ Location: Modhera, Gujrat
➢ Serving locality: Domestic Power to Mehsana district
➢ Project timeline:
o November 2021 to March 2022 (Planning and Designing)
o March 2022 to January 2024 (Construction period)
o February 2024 (Open for Energy production)
➢ Budget: 1200 cr.

1.2 Risk Identification:

Sr.no. Risk description Operating Probability Rate of impact
department occurrence on project

1. Scope of Project is not Client Low Medium

defined

2. Function of project is Planning team Low Medium

over specified

3. Project brief is having Client Medium High

insufficient data

4. Project sequence is Project manager Medium Medium

incorrect

5. Over budgeting Accounts High High

6. Lack of communication, Project manager Medium High

causing lack of clarity
and confusion

7. Market Fluctuation Business team High Medium

8. Unavailability of Technical team High High

technology

9. Whether problem Technical team Medium Medium

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10. No proper workmanship Contractor Medium High

11. Lack of manpower Contractor Medium High

12. Legal issues related to Client Medium Medium

project permission

13. Land acquisition issue Client High High

14. Theft of high value Project manager Low Low

material

15. Delay in material Stakeholders Medium Medium

transport

16. Error in Material Project manager Low High

estimation

17. Pending Government Client High Low

certification

18. Error in project Project manager Low High

scheduling

19. Additional work from Client Low Low

client side

20. Wrong selection of Planning team Low High

material

1.3 Identifying top 10 Risk:

➢ Project brief is having insufficient data:
Insufficient data results into confusions related to project deliverables. The data of a
project is like keywords with acts as stages of work to do.

➢ Over budgeting:
Over budgeting happens when less experience in Field is there. But this can put the
project in big risk of drained out of money for the client. This is one of the aftermath
of less data available.

➢ Lack of communication, causing lack of clarity and confusion:

Lack of communication is the major issue seen in any disturbed project. This thing
is negative result of project management. Because of this the project might enter into
vulnerable problems that may abandon the whole project.
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➢ Unavailability of technology:
Unavailable technology in local is fair to be, because some high-end systems are not
available at every location. Usually, these types of projects happen at rural locality
far away from urban areas which may result into delay in technology reach or
sometimes unavailability also.

➢ No proper workmanship:
New type of project means new type of construction methodology. This thing is main
statement to this risk. Workmanship is required at its high-end level because of
project sensitivity.

➢ Lack of manpower:
Lack of manpower is vulnerable risk which should not happen after the contract is
awarded but if happens then the project gets timeline is ruined.

➢ Land acquisition issue:

Land acquisition issue is seen very commonly in such scale project. This is the point
of acceleration, if from beginning the project is delayed then it’s difficult to bring it
back on track.

➢ Error in Material estimation:

Material estimate error are likely to happen before of less experience. But this may
put the project in material black out or may result in over budgeting.

➢ Error in project scheduling:

Project schedule should be made with coordinators from each department. But if this
is handled in wrong way then the project will be deliverable on the promised date.

➢ Wrong selection of material:

Wrong selection of material is seen when the construction work is at its full strength.
If the material is wrong then the project might have to face re-programming.
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Budget
3% Risk 1
4% Risk 2
17% 8%
Risk 3
7% Risk 4

17% Risk 5
11%
Risk 6

11% Risk 7
13%
9% Risk 8
Risk 9

Quality
2% Risk 1
5% 4% Risk 2

14% Risk 3
Risk 4
36%
Risk 5
14%
Risk 6
Risk 7

5% 18% Risk 8
2% Risk 9

Time
2% 2%
Risk 1
8% Risk 2
6%
Risk 3
17% 11%
Risk 4
Risk 5
11% 15%
Risk 6
Risk 7
11%
17% Risk 8
Risk 9
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1.4 Solution for the above 10 Risk:

➢ Project brief is having insufficient data:
o Coordinate with client-side officials
o Ask for verified data at stages of planning.
o Explain the necessity of data for planning & Design of project

➢ Over budgeting:
o Before finalizing the budget consult with financial experts who could
advise you better keeping the future of it in mind.

➢ Lack of communication, causing lack of clarity and confusion:

o Conduct regular interdepartmental meetings for better involvement
with each other.
o Any projects require full attention and hand to hand work pattern. This
will mainly help in improving the quality of work.

➢ Unavailability of technology:
o Technology which is required should be consulted first with experts
and then with market analysis data the decision is to be taken over it.
o Market study is also to be conducted for knowing the local technology
in efficient way.

➢ No proper workmanship:
o Involve more and more skilled workers in technical tasks. Run skill
training sessions for other workers with help of experienced workers.

➢ Lack of manpower:
o This is risk on Contractor side which is required to be checked before
taking Contract. If such condition happens then an arrangement of
bringing workers from nearby workers hub.

➢ Land acquisition issue:

o Land acquisition is to be done with full government permission in
presence of local security officials. Notice with information about the
project and land should be sent & published prior the acquisition.

➢ Error in Material estimation:

o Material estimation is the biggest task and most delicate stage in the
project. It's to be done with full attention and precision with advise of
experienced person.
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➢ Error in project scheduling:

o Project scheduling is to be done with coordinators of every working
department without any miscommunication. The work is required to
be done under guidance of expert.

➢ Wrong selection of material:

o Wrong selection of material will reflect in over budgeting of project.
To avoid this the best way is to follow the specifications provided by
the material supplier or manufacturer. There you can analyse and
select the best material for your project.