Schedule Risk Management - Construction Project Scheduling and Control - page 390

a number of runs with different resources, the best combination of resource quantity
and lead time was used to select the method of supply at the least risk to delivery needs.
Another project in which the author provided risk analysis and participated in the
schedule review was an airport construction project that required a separate project
to build a people-mover facility on the roof of the airport. This people mover was
designed to run passenger vehicles from the airport to a remote station that provided
central access to a number of other modes of transportation: buses, rental and private
car parking, and taxis. During the risk workshop, the construction of this station was
identified as under the control of the state Department of Transportation (DOT).
The qualitative analysis showed that the timing of the station's completion date was
unlikely and the consequence was catastrophic, with the combination impact forcing
this risk to the top of the priority list. During the prescheduling session with the con-
tractor, the master risk register was produced and this high-priority risk was discussed.
All agreed that steps should be taken to prevent the risk materializing by good com-
munication with the DOT and the contractor, and this was done by holding joint
periodic meetings between the project management personnel of both projects. The
risk response also required some level of incorporation of the risk into the schedule.
The contractor did this very well, ensuring that the sequencing was done so that the
start of construction in this station was pushed as late as possible and carried several
months of float. The risk workshop and resolution prevented later arguments and
potential high risks existing in the baseline schedule, and supported completion of the
project on time.
CONCLUSION
There are many other examples, however, the important point is that the use of a risk
management program increases the attention given to risks and provides an objective
and scientific approach to risk management that allows for better results in predict-
ing a project's completion. The contractor can plan demobilization and cash flow
more accurately, and the owner can plan for opening the facility and assumption of
maintenance and operations with a greater level of confidence.
Risk management is another tool in the scheduler's tool chest that will pay divi-
dends and promote more accurate and believable predictions of completion, but it is
a process that must start early and then continue until the end of the project. With a
commitment to risk management, schedulers who are trained in risk assessment, a
good risk management program, and involvement of the project management team,
any schedule can be developed into a risk-adjusted schedule that has a higher proba-
bility of being completed on the predicted completion date.
CHAPTER 14 EXERCISES
1. Compare the cost risk and time risk in any typical construction project; include
similarities, differences, and means of identifying the risks, and responses to each.