RIsk Management

Risk Respone can define
1. Immediate respone - Alteration to project plan such identified risk is eliminate
2. Contingency respone - Provisio in project plan for course of action , and apply when consequences identified risk occur

Risk respone
Miscimmunication - risk reduction - conduct site meeting
Design alternative - Risk acceptance  - Client need brief cleary during design stage
Environment issue - risk reduction - Architect give AI to contractor
Workman Performance - RIsk reduction - Inspection to clerk work
Fluctuation Material price - risk transfer - contractor increase mark up pricing
Internal accident - risk reduction - Inspection of clerk of work
Unfavorable weather - risk transfer - contractor increase manpower

Risk respone
Immediate respone - RIsk is alternation to project plan such identification risk is eliminated
Contingency respone - Provision in the project plan for in case of unwanted  event happen under the estimate .

Miscommunication - Risk reduction - conduct site meeting
Design alternative - risk acceptance - client clearly brief during design stage
Environment issue - Risk reduction - Architect give AI instruction to contractor
Workman performance - risk reduction - Inspection of clerk work
Fluctuation material - risk transfer - contractor increase mark up pricing
Internal accident - risk reduction - Inspection of clerk work
Unfavorable weather - risk transfer - contractor increase manpower

RIsk respone
RIsk acceptance Risk reduction , risk allocation , risk transfer , removal


Risk acceptance
* Participant has decided to take on risk factor
* This decision may flow from
- ability manage risk to advantage
- Inability to allocate risk to thrid party
- Inability to avoid the risk


Risk acceptance
* Participant has decide to take on risk factor
* This decision may floow from
= Inability to manage risk to advantage
- Inability to allocate risk to third party
- Inability to avoid the risk


Risk Transfer
- involves shifting risk burden from participant to third party
- Can accomplish trhough contract or insurance
- Participant has risk burden will including allowance in their price .

Involves shifting risk burden from particpant to third party
Canj accomplishj through contract or insurance
Participant who has risk burden will including alloance in their price .

Transfer of construction risk
Client

Not all risk can transfer to third party ( if cannot)
- Avoid activity  which risk is associated
- Retain activity but take steps to reduce risk .



- avoid activity which risk is associated
- Retain acitivity but take steps to reduce risk

Risk allocation

• Construction clients is unwillingness to take project risk 
• They use contractual strength to allocate risk to contractor 
• Willingness of contracting party to assume risk is depend on : 

(a) magnitude of risk and its impacts 

(b) Ability of the party to bear consequences risk 

(c) Extent of benefit accruing from the risk 

(d) Ability to mitigate risk factor 

Risk allocation 

* Construction client is unwillingness to bear the project risks 

* They use contractual strength to allocate risk to contractor 

* willigness of contracting party to assume risk is dependi onm 

a) magnitude or risk and impact 

b) ability of the party to bear consequence risk 

c) Extent of benefit accruing from the risk 

d) Ability to mitigate the risk factor . 

Risk allocation 

Contractor - labour , machinery , and material availability 

Owner - Differing soil condition , Dewfective design , Change in work 

Shared - contract delay resolution