A NEW APPROACH TO ASSET THE VALUE OF “BUILDING CONTROL”…

Scope of the Project• Objectives of the Project:– Give a better understanding to CEBC members of the

involvement of the stakeholders in the risk management process (RMP) and the efficiency of systems in every country in Europe

– Help CEBC to develop policy and strategic decisions (field of BC, and so on)

• Deliverables:– Figures of involvement in RMP– Key Performance Indicator of RM systems– Suggestions of strategic and tactical decision to CEBC

• Base line expectation : Complete by end 2015• Project manager : L.Peinaud

Project specifications• Phase 1 : – Set information about risk management process (RMP) for

different countries – Kick off : June 2014 / To be complete by: February 2015

• Phase 2– Set Key Performance Indicator for RM system and for

different countries– Kick off : November 2014 /To be complete by April 2015

• Phase 3– Compare KPI and RMP model, analyze the key factor and

make suggestion to CEBC policy committee– Kick off : November April 2015 /To be complete by October

2015

PHASE ONE - ASSESSMENT

PHASE 1-1

SET A MODELGlobal presentation

Phase one 1/2• What have we done ? The first step was to define an easy and understandable model.

A model has been settled and tested by a group of CEBC members (UK Scotland and England, Norway, Cyprus, Belgium, Germany and France) from June 2014 to September 2014 and the result is a 3D CEBC model.

• The test shows that the main improvement consist to improve the:

- Definition of the type of building to be studied

- Team approach rather than individual to asset the involvement

- Preliminary explanation of the risk management process

- Definition of the type of risk concerned

- Definition of stakeholders

Phase one 2/2

3D CEBC model• The 3 axis of the model are :– Activities of the RMP (according to ISO 31000)– Stakeholders– Involvement of stakeholders per activity

Stakeholder

Process of risk management

Asset of involvement

• Different kind of building– One or two storey residential building– Multi storey residential building– Retail or industrial building– Project over 100.000.000 euros

PHASE 1-1

SET A MODELRMP and assessment of involvement

Activities of the RMP• The activities are :

– To define the risk criteria– To analyse the risk (risk assessment)– To choose a strategy according to the risk analysis– To implementi actions in accordance with the strategy– To monitor the actions planed– To manage the process

Risk criteria

For each stakeholder and for each kind of

project1 2 3 4

Does the stakeholder concerned define the risk criteria?

For more than 60% of the

projectsFor more than

30% of the projects

For more than 10% of the

project

For less than 10% of the project

Does the stake holder concerned is involved in the definition of risk criteria ?

For more than 60% of the

projects

For more than 30% of the

projects

For more than 10% of the

projectFor less than 10%

of the project

Risk assessmentFor each

stakeholder and for each kind of

project1 2 3 4

Does the stakeholder concerned organise and manage the risk assessment?

For more than 60% of the

projectsFor more than

30% of the projects

For more than 10% of the

project

For less than 10% of the project

Does the stake holder concerned participate in the risk assessment ?

For more than 60% of the

projects

For more than 30% of the

projects

For more than 10% of the

projectFor less than 10%

of the project

Does the stakeholder ….

Strategy after risk assessmentFor each

stakeholder and for each kind of

project1 2 3 4

Does the stakeholder concerned decide the strategy?

For more than 60% of the

projectsFor more than

30% of the projects

For more than 10% of the

project

For less than 10% of the project

Does the stake holder concerned support the analysis prior the decision?

For more than 60% of the

projects

For more than 30% of the

projects

For more than 10% of the

projectFor less than 10%

of the project

Implementing actions in accordance with strategy

For each stakeholder and for each kind of

project1 2 3 4

Does the stakeholder concerned design the actions to be implemented?

For more than 60% of the

projectsFor more than

30% of the projects

For more than 10% of the

project

For less than 10% of the project

Does the stake holder concerned implement the actions ?

For more than 60% of the

projects

For more than 30% of the

projects

For more than 10% of the

projectFor less than 10%

of the project

Does the stake holder concerned check the actions planed ?

For more than 60% of the

projects

For more than 30% of the

projects

For more than 10% of the

projectFor less than 10%

of the project

Monitoring actions planed by independent party

For each stakeholder and for each kind of

project1 2 3 4

Does the stakeholder concerned check the actions planned in term of effectiveness?

For more than 60% of the

projectsFor more than

30% of the projects

For more than 10% of the

project

For less than 10% of the project

Does the stakeholder concerned check the actions planned in term of efficiency ?

For more than 60% of the

projects

For more than 30% of the

projects

For more than 10% of the

projectFor less than 10%

of the project

Managing the processFor each stakeholder and for each kind of

project1 2 3 4

Does the stakeholder concerned organise and manage the risk criteria definition?

For more than 60% of the projects

For more than 30% of the projects

For more than 10% of the project

For less than 10% of the project

Does the stakeholder concerned organise and manage the risk assessment?

For more than 60% of the projects

For more than 30% of the projects

For more than 10% of the project

For less than 10% of the project

Does the stakeholder concerned record the data of the RMP ?

For more than 60% of the projects

For more than 30% of the projects

For more than 10% of the project

For less than 10% of the project

Does the stakeholder concerned prepare and share the review of the process

For more than 60% of the projects

For more than 30% of the projects

For more than 10% of the project

For less than 10% of the project

PHASE 1-1

SET A MODELStakeholder

Client - Owner

CLIENT The owner of the building.The one who paid designer’s fees and works

RISK MANAGER WORKING FOR CLIENT

Paid by the client to help him to manage the RMP

ANALYSIS EXPERT FOR RISK ASSESSMENT

Paid by the client to provide skill for risk assessment

EXPERT MONITORING RISK MANAGEMENT IMPLEMENTATION ACTIONS

Paid by the client to provide information about actions planed

INSURANCE COMPANY COVERING THE RISK FOR BUILDING IN CASE OF DEFECT

Providing guaranty in case of risk transfer

Design team

DESIGN TEAM MANAGER The one who coordinate and organize the teamDESIGNER Including self checking of his work and

productionDESIGNER INTERNAL CHECKING Include in the companyDESIGNER EXTERNAL CHECKING Paid by the designer to provide checking of

productionSKILL’S CERTIFICATION Body that qualify the skillORGANISATION CERTIFICATION Body that qualify the organisationAPPROVAL BY PUBLIC AUTHORITIESINSURANCE COMPANY COVERING THE RISK FOR BUILDING IN CASE OF DEFECT

Providing guaranty in case of risk transfer

Contractor, builder

TEAM MANAGER The one who coordinate and organize the teamCONTRACTOR Including self checking of his work and

productionCONTRACTOR INTERNAL CHECKING

Include in the company

CONTRACTOR EXTERNAL CHECKING

Paid by the contractor to provide checking of production – Not include in the company

SKILL’S CERTIFICATION Body that qualify the skillORGANISATION CERTIFICATION Body that qualify the organisationAPPROVAL BY PUBLIC AUTHORITIESINSURANCE COMPANY COVERING THE RISK FOR BUILDING IN CASE OF DEFECT

Providing guaranty in case of risk transfer

Material production industries (MPI)

MPI Including self checking of his work and production

MPI INTERNAL CHECKING

Include in the company

MPI EXTERNAL CHECKING

Paid by the MPI to provide checking of production – Not include in the company

SKILL’S CERTIFICATION Body that qualify the skillORGANISATION CERTIFICATION Body that qualify the organisationPRODUCT CERTIFICATIONAPPROVAL BY PUBLIC AUTHORITIESINSURANCE COMPANY COVERING THE RISK FOR BUILDING IN CASE OF DEFECT

Providing guaranty in case of risk transfer

Administration (central and local)

PRODUCT OF REGULATIONS

CHECKING PRIOR PLANNING OR BUILDING PERMIT

CHECKING DURING WORKS Compliance with regulation

CHECKING PRIOR COMPLETION

CHECKING AFTER COMPLETION

PHASE 1-1

Example

Example of 3D model

Example of comparative assessment

PHASE 1-2

DATA COLLECTION

"With A Little Help From My Friends »

PHASE TWO – KEY PERFORMANCE INDICATOR

Preliminary• Analysis of previous case studies.One particular survey has been made for EC in 2006 by BWA (Benchmarking of Construction Costs in the Member States) and been recommended by Mr Paparella.After a short talk, we agree that the model was good but inefficient because data required are not available.

What do we need ?• The project team needs.We must find some case study more operational such as the cost of non quality for a project or for different type of projects.It is important to collect previous case studies that you have heard or been involved in! Let us know…and be involved!

Another axis should be to ask IFC to support the project and more generally to develop the supporting network.We need you for that.