10 key risks

Monitor, plan and control

1. Delay in Completion

If supplies are delivered late, there'll be delay in the process. other forms of delay

may be

i.material availability

poor product management

accident

change order

inspection schedule.

Mitigation-Keep an open line of communication between all parties involved in the project

in order to minimise the effect of project delays.

2. Cost Overrun

construction contracts May be due to flexible payment in payment options.The project owner may lose
money if

the construction company doesnt abide by the contract.

Mitigation- Cost risk analysis must be done to avoid unpleasant financial risk.

3. Incompetent contractors

4. subcontractor default

Mitigation-Ensure that the programme of work is strictly adhered to by the contractors.

fore see possible default tendencies and be prepared to make alternative plans.
5. Environmental risks/Weather

Mitigation- conditions such as rain could do serious damage to supplies and completed work

do all you can to keep supplies out of reach of rain and plan critical tasks around the weather fore cast.

6.Design errors

7.Thefts

8.Loss of Paperwork- paperwork shuffle

Mitigation-Getting organised,

organise and automate all of your construction

paperwork.

9.Change of orders

Change or variation orders are unavoidable in construction

Mitigation- the change order is a mini contract and should be treated as a contractual risk in
construction projects.

dont rely on verbal agreement. document all matters and get it signed.

10. Safety hazards- Health and safety issues are ever- looming and shouldnt be under estimated.

Mitigation- Keep everyone updated on the safety hazards that may be present during each stage of the
project.

provide employees with plenty of training on safe work practices, basic first aid practises, selection of
appropriate PPE.

11. Labor shortages/Material shortages-finding the right manpower and materials which may be scarce
due to some external factors could impact the project

Mitigation- Do your best to keep the manpower on site

12. External risks

13. Final cost exceeds the project budget

the best laid plans could go awry with the final cost going above what was planned.

Mitigation- Create enough wiggle room in the budget.effectively manage changes and variations in the
project.

14. Poorly defined scope of work

Mitigation- if scope of work is vague and unclear, you are going to struggle to keep project on track.

keep good communication and a clearly laid out plan.

Mitigating the impact of inflation on building construction projects

1. Accelerate Schedules

If you have an upcoming project, assemble the people you need. Reach out to the architects, engineers,
subcontractors, and suppliers. Put the plan in place as soon as possible. Project management software
helps in communicating with project partners, sharing, and altering information in real-time, and storing
all necessary project documentation. This will make it easier to hit the ground running.

Secure the items you need from suppliers and try to lock in prices. Purchase whatever you can; storage
may be less costly than paying the increased costs of construction items months from now. Begin
construction as soon as possible.
2. Amend Budgets

Week over week, project costs and projected costs need to be reviewed to ensure the project stays on
budget. Adjustments need to be made as soon as an issue or potential issue is noticed.

Budget in larger buffers for cost overruns. In this environment, Project Management Advisors (PMA)
urge owners and developers to consider escalation contingencies of 10% to 15% per year.

3. Explore Alternative or Unconventional Materials

The results of inflation are not felt uniformly; some materials are experiencing greater price increases
than others. Alternative or unconventional materials provide an opportunity of providing the same
product while finding less costly materials.

For example, using prefabricated wall panels and framing systems in wood-framed projects can limit
material waste. And there are alternatives to concrete that can be acquired at a lower price compared
to ready mix concrete, such as timbercrete, ashcrete, and hempcrete.

4. Implement Lean Construction

Finally, implement lean construction practices to keep construction costs low. A builder with a lean
approach specializes in optimizing projects for efficiency and reducing waste during all stages of
construction. Studies show 57% of construction spending is equal to waste.

A part of lean construction is using pull planning instead (versus linear planning). A linear planning
process adjusts time frames only as issues occur. Pull planning involves creating a deadline, working
back from there to identify key milestones and potential roadblocks to achieving that deadline.