Schedule Risk Management - Construction Project Scheduling and Control - page 370

The reputation of the construction manager (CM), as well as the corporate cul-
ture, will affect project performance. If the CM defines success with minimum time
extensions as the only benchmark, there will likely be more conflict and a greater
need for dispute resolution efforts. In addition, the management abilities of the CM
directly affect many project tasks, such as the review of shop drawings and responses
to requests for information in order to resolve questions about the construction.
Work by outside or third parties can carry significant risks of influence on the
project's success. For example, a light rail station to be built on top of a parking garage
under construction by a different contractor will run an increased risk of completion
on time. The project manageement team, has no control over—and little ability to
influence—the completion of the parking garage, which quickly becomes vital to the
completion of the light rail project.
If an owner attempts to save money in preconstruction services by limiting the
extent of field investigation or the development of as-built data, there will be a higher
risk of discovery of unknown problems. The experience and competence of the archi-
tects and engineers who are handling the design of the project, as well as their quality
control during the development of the working drawings, directly affect the construc-
tion efforts and, consequently, the risk associated with the plans and specifications.
Even if the owner has been proactive during preconstruction investigations, there
is always a risk of unforeseen conditions. This can be a function of the type of soils
found, the local municipality, and its culture and history of keeping good records of
obsolete utilities. If the city in which the project is to be built has a history of requiring
contractors to remove all abandoned underground lines, there is a much lower risk of
encountering problems underground.
Most projects are affected by local weather conditions, which, when adverse, can
significantly impede the projects' progress. Most specifications require the contrac-
tor to take into account the normal local weather conditions during schedule plan-
ning, which includes normal adverse weather, but also allow for time extensions when
unusually adverse weather occurs. Different parts of the country and the world have a
wide variance in weather conditions, so planning or failure to plan for the risk of local
weather can significantly affect a project's success.
Local political situations, especially in volatile political climates, may hamper all
efforts to construct a project efficiently. Countries with unstable political or economic
systems will have higher risks in successful project completion than those with more
stable systems. Countries or regions subject to wars, terrorism, turmoil, or other types
of violence also run greater risks to successful project completion than others. If the
locality has a policy of requiring detailed investigation into environmental issues or
stringent or complicated bureaucracy, projects built in that locality will run a higher
risk of late permits and problems during construction.
Another potentially big risk on any project is the experience and reputation of the
project team for safe construction practices. Safety violations and accidents can shut
down a job completely. Even minor safety failures can distract the project team and
impede their performance. If a contractor has a poor safety record, the risk of delays
because of safety violations is increased and should be taken into account during the
schedule's development.