So what exactly should go on a risk register. Typically time is limited for identification of risks and more importantly time is even more limited in the future for reviewing and managing the risks. Once a risk gets on the risk register it should be reviewed, and in particular on a public project, any subsequent change in the wording, change to the impact or change to the likelihood all could have serious ramifications if it gets in the public domain. So it’s important to be conscious from the outset that the risk register should naturally capture the important issues but not perhaps be so comprehensive as to create a “rod” for the projects back for ever more that the project staff cannot maintain.
Design Build procurement offers a unique opportunity to identify alternatives to the design as presented by the Owner’s engineer, and to offer creative and cost effective means to complete the design and construct the project. Although a formal VE analysis is rarely performed by the DB team, alternatives are proposed, evaluated, costed and incorporated if they have merit. Part of the decision making is based on an informal risk evaluation that has three (3) perspectives: 1) Will the alternate disqualify from the project (non-responsive); 2) will the DB be successful in its implementation (especially if approvals are required) and 3) how will it impact upon schedule.
The new Yankee Stadium Station DB project had a cost of over $80 million dollars and was built specifically to offer a transportation alternative to those attending games at the new Yankee Stadium. Work included deep foundations is soft and seismically fragile soils including H-piles and drilled mini-piles, new track, new platforms, a new station building and new 260 ft. long enclosed pedestrian bridge
In addition to replacing the bridge over Whitemans Creek on Hwy 24 south of Paris Ontario, part of the project involved correcting the substandard vertical curves through the Whitemans Creek valley. This included lowering the highway by more than 3 m in some locations. One of the major concerns during design was how to manage the groundwater that would daylight during the foundations work and excavation without affecting Whitemans Creek itself, which is a sensitive pristine watercourse and a significant cold water fishery.
Achieving an appropriate balance of risk in any civil design and construction contract can be challenging under traditional design-bid-built or delivery strategies. While alternative delivery strategies can be faster, more innovative and less costly than traditional approaches these benefits are not always realized. Design-build procurement is one of many project delivery tools and, when applied correctly, can lead to significant financial and schedule success. When risks are "transferred" inappropriately, however, design-build or projects procured using non-traditional approaches can underperform and jeopardize use of this valuable strategy. Development of successful RFPs, contracts and project completion is dependent upon appropriate pre-RFP deliberation based on project-specific considerations. Examples of competing design-build bids on small infrastructure projects will be used to illustrate several key issues that owners, engineers, and contractors may face. The combined experiences from multiple "mega" projects will also be used to illustrate keys to development of successful projects in the context of various value for money assessment approaches.
A claim in the context of this presentation is the assertion of entitlement for compensation from one party of a Owners design or construction contract that the Owner disputes.
This session will provide an overview of Cost Risk Analysis (CRA) and describe how it can be an invaluable tool to help your keep projects on time and on budget. Cost Risk Analysis is a proven process that adds significant value to the infrastructure assessment process by providing:
John Counter Boulevard is a 3.6 km section of roadway that runs east-west within the City of Kingston. It accommodates large volumes of traffic serving local and regional traffic demand. The roadway has become a critical arterial providing an east-west transportation corridor midway between Highway 401 and downtown Kingston. This route will make up part of the corridor for a future third crossing of the Cataraqui River.
To address existing and future demand, the City is proceeding with plans to widen the arterial from 2 to 4 lanes. The Project offers considerable challenges including a proposed grade separation (road over rail) to be constructed in poor soils and through a wetland, contaminated soils issues, property and funding constraints. The estimated cost included in the ESR for the improvements was $32M (2003 Dollars). The City proposes to fund the project entirely through development charges.
MRC undertook a Risk Management Workshop and Risk Analysis in the early stages of their Preliminary and Detailed Design Assignment prior to the final selection of the grade separation alignment. Although not normally undertaken as part of a Risk Assessment Workshop, a brief Value Engineering brainstorming session was integrated with contributions from all of the Workshop participants. This presentation, a case study of MRC’s RECAP Risk Management Process, will include remarks on the integration of some Value Engineering in the Risk Management Process as well as some comments on the suitability to Municipal Government Transportation Projects.