Académique Documents
Professionnel Documents
Culture Documents
Part 5: Cost Risk Management By Ted Garrison Garrison Associates www.TedGarrison.com www.StrategicPlanningforContractors.com www.NewConstructionStrategies.com
can go wrong?
How can we prevent the problem? Focus on Triple Constraints Costs Schedule Performance (Quality) What risks due we have that can t control?
MEASURE
IMPROVE Target process Design solutions to fix/prevent problems Create innovate solutions Use technology and discipline Develop and deploy implementation plan
ANALYZE
Data collected/process map Determine causes of defects Identify gap between current and goal performance Identify sources of variation
Is It Working?
YES
YOU IDIOT!
YES
You re SCREWED!
YES
NO NO
NO
Hide It
NO PROBLEM!
RA Plan Contents
List major risks unique to Project
Prioritize the list (biggest risks first) You must address how the risk impacts the project to not be completed on time, not finished within budget, or may be a source of dissatisfaction for the client Must be a unique risk to the current project Must explain why the risk is a risk
RA Plan Format
The RA Plan must NOT exceed 2 pages. Should not include brochures, marketing information, or product names! It shouldn t include technical data. It s not about shifting risk back to client. However, must identify risks the contractor can t control.
(c) 2008 Garrison Associates 11
Contingency Methods
2 Common Contingency Approaches: Percentage of entire project. Percentage of individual items or tasks.
14
Why is it important?
Allows contractors to track unresolved client issues Allows contractors minimize risk Allows contractor a means to document all client decisions
50% M
Efficient Construction
M R
Measure again
Action Steps
Please turn to the inside of the front cover of the resource guide. Write down 1 to 3 action steps that you want to immediately implement from Part 5 of this program.