Identified Risks for the Construction of Bahria University Boys Hostel Project

Term Paper Submitted for the Partial Fulfillment of the Course of Project Risk Management (PRM) for the degree of MS in Project Management (MS-PM) at Bahria University Islamabad

Tauseef KhanBaseer AhmedSadaf NazNazneen Zehra

MSPM-Section C

Department of Management SciencesBahria University, Islamabad

NoRisk CategoriesCause RiskEffect

1Project ManagementDue to unique infrastructure of the buildingThe drawings may not be delivered on timeForcing schedule delay and potential deviation from design control approach

2PlanningImproper Planning of resources( Material, Machine)Over estimation of resourcesTotal Project cost over run

3Improper Planning of Resources(Machine, Material)Underestimation of resourcesProject would be behind the schedule

4Lack of proper planning regarding coordination between the home and site officeMay result in equipment already dispatched from the sub-suppliers works, with access to the site not properly established Causing a delay in the equipment reaching the site and consequently causing project schedule slippage

5Faulty Planning of Human resourceMay result in the over deployment of personnel at the site Leading to cost overrun and mismanagement of project.

6Faulty PlanningMay result in under deployment of personnel at the siteLeading to a delay in the project schedule

7DesignImproper Design of hostel building Design unapproved by CDA(NOC)Redesigning of building drawing will leads to cost and time overruns

8Improper engineering design discovered during the construction of the main deckMay cause design problems and errors such as equipment out of dimension and not fitting rightResulting in the work needing to be down, generating additional risks as well as cost

9Due to recent revision in applicable standardsDesign parameters may changeWhich may lead to scrapping of design done or major revision of those design

10Improper packing and handlingMay cause damage during storageResulting in breakage of equipment, necessitating repair or replacement

8SecurityImproper provision of security at siteMay result in theftCausing a time and cost increase for the project

9DesignImproper engineering design discovered during the construction of the main deckMay cause design problems and errors such as equipment out of dimension and not fitting rightResulting in the work needing to be down, generating additional risks as well as cost

10DesignDue to incorrect scaling of road maps or site mapsThe quantity take-off estimate may be less or more than the actualResulting in cost overruns

11SupplierThe inefficiency of the supplierMay cause payment disputes between supplier and his employeesLeading to a delay in the project schedule

12Due to a reliance on the owner-supplied as-built drawingsThe Contractor may be carried away by wrong/outdated inputsResulting in a claim by us to owner for damages

13Strict rule and regulation of CDA regarding design NOC Design process take longer time then plannedProject would go behind the schedule

14Due to the existence of separate design and implementation teams, and because the implementation team has not been able to comment on the designSome of the design might not be able to be implemented in the real worldLeading to changing scope very late in the project

15The contractor refers to the deign as living document and has no formal change control processSuch features could be added in the design that the customer wont preferResulting in decreased customer satisfaction

16Because the contractor does not conduct internal design reviewsDesign elements may not be discovered until development is substantially completeCausing rework and/ or schedule slippage

17Due to lack of participation by stakeholders in the design reviewThe design may not accurately depict the intent of the requirements from the stakeholdersWhich may lead to poor quality

18ScopeInadequacy of planning, or planning lead time.Poor definition of scope breakdown, or work packages.Inconsistent, incomplete or unclear definition of quality requirements.Inadequate scope control during implementation.Changes in scope to meet project objectives.

19ScopeAcceptance criteria for the project are unclearWhich could lead to difficulty in obtaining sign-off on key milestonesResulting in additional work that is beyond the cost budget

20Scope Due to not having a solid scope management processScope creep could occurCausing additional work or rework and dissatisfied customer

21Scope Due to not completely understanding business requirementsThe functional and technical evaluation groups might have their recommendations changed by upper managementResulting in distrust and confusion

22ScopeLack of communication between stakeholdersCould result in change of scope and/ or reworkCause delay in project

23ScopeTool requirement isnt confirmed by the customerCould result in changing scopeCausing an unknown amount of rework and delay

24ScopeThe team members opinions are not listened toLeading to an incomplete scope of workResulting in the need to re-scope the project

25

ApprovalDue to the city plans examiner being illThere may be delay in acquiring the building permitsWhich would lead to a delay in the start of excavation for the project

26ApprovalDue to record building starts, the building rough-in inspectionMay take 20 days to obtain versus the standard two daysWhich would delay the start of insulation installation

27ApprovalInfrequent meetings of the capital approval committeeMay cause delays on capital spending approvalsResulting in delay in project

28ConstructionDue to the legal surveyUndisclosed easements or other encumbrances could be identifiedLeading to a delay in the completion of the staked survey for the project

29ConstructionDue to frost in the soilThe flatwork would need to be delayed until the ground thawsWhich would delay the start of flatwork

30ConstructionDue to rain the night before flatwork was to be placedThe foundation may need to be pumped outWhich may cause a delay in the start of the inside flatwork

31Construction Due to pilferage of job site materialsThere may not be enough gravel to grade the basement for the placement of concreteWhich may delay the start of inside flatwork

32ConstructionDue to hitting inadequate bearing soil in the excavationEngineering may determine that piers, instead of spread footing, are required to adequately support the structureWhich could lead to a delay in the completion of the foundation

33ConstructionDue to heavy rain the night before the footings were to be pouredThe excavation may fill up with water would need to be pumped outWhich would delay the start of the foundation

34ConstructionDue to high winds during framingThe framing carpenters may not be able to tilt walls upWhich would delay completion of the framing

35ConstructionDue to rain during framingThe framing carpenters may take the balance of the day offWhich would delay completion of the framing

36ConstructionDue to lumber not showing up the appointed time during framingThe carpenter may have to make workWhich could delay completion of the framing

37ConstructionDue to half the carpenters not showing up for the work the first day of huntingThe work may slow down to 20 percent that dayWhich would delay completion of the framing

38Improper or inadequate soil assessmentMay result in unplanned subsoil standards Causing a delay in commencement of construction and re planning required for construction

39Due to heavy rains and extremely wet and heavy soil The weight 0f the soil could cave in portion of the foundationWhich would result in a delay in the completion of the backfill while rework is done

Due to excavator busy on other project Excavator might be delayed on arriving on the siteWhich would lead to delay in completion of the backfill.

40ConstructionDue to the excavator having an equipment failureExcavator may be late in arrivingWhich may lead to a delay in completion of the backfill

41ConstructionDue to a mistake at the millThe windows may not be completed in time to arrive at our job on the designated dayWhich may result in extra labor man hours delaying completion of the framing and an additional charge by the framing carpenter

42ConstructionDue to number of drivers not showing up for work at the lumber yardThe first load of lumber might be late in arriving on the projectWhich could delay the start of framing

43ConstructionDue to a new forklift operator at the lumber yardThe lumber may arrive loaded in reverse orderWhich could delay the start of framing

44ConstructionDue to a remote siteThe lumber delivery driver have trouble finding the location of the projectWhich may delay the delivery of a critical load of lumber

45ConstructionDue to lumber being stolen from the job site the night before the framing was to have startedThe framing carpenter may only be able to work part of a day while a reorder is placedWhich would result in a delay in the completion of the framing

46ConstructionDue to rain the night before the ground rough plumbing is to be installedThe foundation may need to be pumped outWhich may lead to the late mobilization of heavy equipment and late start of the project

47ConstructionDue to several plumbers not showing up at the plumbers shop for work on a FridayThere may not be a plumber available for our jobWhich would delay the completion of the ground rough plumbing

48ConstructionDue to heavy rain the night after the ground rough plumbing is installedThe plumbing could floatWhich may delay the start of inside flatwork

49ConstructionDue to insufficient soil testing prior to constructionUnderground water may be discoveredWhich would delay the project and could result in extra cost to resolve the problem

50ConstructionDue to improper testing for hazardous materialsLatent contaminations could be discoveredAnd may result in extra cost and time for remediation of hazardous materials

51ConstructionDue to upgrading an operating facilityThe coordination of shutdown may be required to minimize impact to the ongoing operationAnd could result in delay to the schedule

52ConstructionDue to having to relocate public utilitiesIt may be necessary to coordinate and schedule the public utilities involvedWhich may result in delays due to the untimely response of public utilities

53ConstructionDue to not properly monitoring the submittal progressSubmittals may be forgotten until they impact the projectAnd lead to late equipment or material deliveries

54ConstructionDue to renovating an operating waste water treatment facilityExcessive wet weatherMay cause flooding into areas under renovation

55ConstructionDue to paint being applied to building when temperature or humidity are not being closely monitoredPoor quality of paintCustomer dissatisfaction

56ConstructionAs the result of allowing the construction manager to self-perform the concrete workThe supplier may optimize durations for the concrete work and minimize durations for the finish trades such as electrical and mechanicalWhich could lead to delays in finish and turnover of an area

57ContractMisinterpretation of the contractMay cause a delay due to the dispute between the client and the customer regarding paymentLeading to a delay in the project implementation

58Misinterpretation of the contractMay cause disputesWhich lead to void contract

59Misinterpretation of contractMay cause dispute between the company and contractorsWhich leads to start the new contracting process

60ContractDue to lump sum contractThere may be some conflict about work items or quantities that the supplier states were not included in lump sum quoteWhich could result in extra cost and schedule impacts

61Contract Due to a lack of contract review meetings with the customer at the start of the project There could be contradictions in contract interpretations by all project team membersResulting in an adversarial relationship with the customer

62ContractDue to poor company practicesContractors may go bankruptResulting in lost schedule/ litigation/ execution of the performance bond provisions

63ContractorBecause the supplier has significant staff turnoverNew resources may have to be sourced and brought up to speed during developmentWhich could add at least a month to the project and possibly much more

64ContractorContractor has been downsizing for many years and continues to do soThe contractor may choose to reassign resources among its projectsWhich could involve a substantial schedule delay as new resources are sourced and prepared

65ContractorThe references for the contractor were never checkedMisrepresentation of the contractors capability by the contractors representativesLeading to poor performance

66ContractorThe supplier has been experiencing weakening financials for many yearsThe contractor could be bankruptCausing in the abandon of the project

67ContractorBecause the supplier has no established design methodologyThere is a high risk that multiple design cycles could be required before ending beginsWhich could cause development to start late, leading to overly optimistic activity durations in order to provide a customer acceptable completion target

68contractorDue to contractor not having required management systems in place at the time of executionThe requirements of the contract could be executed incorrectlyResulting in rework when the quality is checked by the client

69 contractorDue to the lack of support from the customer and the contractorThe schedule data may not be provided in any confident levelWhich could lead to schedule delays

70contractorDue to the contractors inexperienceThe contract administration may be poorly managedCausing an increase in non-reimbursable expenses

71ContractorThe inexperience of the contractorMay lead to an overall risk of overruns to the expended man hours for the projectWhich could result in a lack of commitment by management to push forward project management concepts

72

ContractorDue to the contractor not utilizing any project management softwareThe high risk of cost and man hour overruns may be evident but not be quantifiedResulting in reimbursed costs

73ContractorThe contractor was selected without competitionWhich may lead to poor contractor selection to perform the needed activityResulting in additional management by the customer of the contractors activities

74CommunicationDue to poor e-mail or voice communicationImportant information cannot be communicated to the stakeholdersWhich could cause in project slippage

75Communication Due to language differencesThe definition of roles and responsibilities for the project team may not be fully understoodWhich could result in failure to select the best resources

76CommunicationIf we do not have frequent oral and written communication with our stakeholders and other team membersWe wont be able to take proper stakeholders input and inform them about the project statusResult in conflicts and other delays in the project

78CommunicationIf we do not have frequent oral and written communication with our stakeholders and other team membersWe wont be able to take proper stakeholders input and inform them about the project statusResult in conflicts and other delays in the project

79Communication Due to language differencesThe project manager may not adequately communicate requirements or schedules to project team membersWhich could result in a delay to the project

80CommunicationBecause there is no comprehensive communications management planSerious problems could linger at a lower level of project responsibility than they shouldDelaying the project and increasing stress on both customer and supplier teams

81CommunicationDue to insufficient knowledge transfer of requirements to suppliers, consultants, and staff working on the projectDetailed knowledge may be overlooked Resulting in incomplete design efforts

82CommunicationAttention is not given to communicatingConversations and documentations may be misinterpretedLeading to incorrect actions or decisions being made that could change scope, increase cost, extend time frames, and or cause a project to fail or be cancelled

83Communication Due to lack of communication and documentation flowTimely and pertinent project data may not be communicated within the project teamResulting in inconsistent reporting of data to both the customers and contractors management

84Project ManagementDue to no written information on past projectsAdditional time for collecting data may be neededResulting in less time being spent completing work

85Project ManagementDue to a reorganizationPeople may spend time discussing the effect of the reorganizationWhich will result in project delay

86Project ManagementDue to the existence of separate design and implementation teamsNot all of the business areas are involved in determining the scope of work for the projectWhich could result in the system not being able to address all of the business requirements

87

Project ManagementExtra documentation on a project is required in order to coordinate all activities of the teamCausing a failure to properly record and report all project informationResulting in work being redone, sometimes several times

88Project ManagementDue to lack of support from the ManagementErrors in key project management processes may occurWhich could result in rework

89Project ManagementThe objectives of the project are not communicated and understood by all stakeholders properlyCausing communications to breakdownLeading to the failure of the project

90Project ManagementInability to measure project objectivesMay undervalue the contributions of the projectThe overall program would not be seen as a success by business

91Project ManagementDue to change controls with new requirements being defined late in the development phaseDevelopment of the changes may extend past the planned implemented dateWhich may delay the planned implementation date and also increase cost

92Project ManagementDue to the existence of two companion projectsThere may be a lack of coordination between the projectsCausing some misalignment requirements and design

93Project ManagementThe evaluation time for tools/ method is shorter than the company has ever had to deal with in the pastThough this schedule has been approved by management, the reality of the timeline might not be adequateResulting in delays

94Project ManagementBecause the contractor uses only a pure waterfall model for development Opportunities for fast tracking the project may be missedThereby not taking advantage of time savings that could accrue to the project

95

Project ManagementChanges to customer requirements after analysisIf accepted through change management processCould impact subsequent project milestones

96Project management Due to not reviewing the lessons learned documentation from a previous similar projectCertain previously identified constraints may not be consideredWhich may impact the projects quality, scope, schedule and cost

97Project ManagementDue to untimely responses from the stakeholders regarding the requirements issuesThe requirements gathering process may be delayedWhich may lead to a delayed project schedule

98Project managementDue to not properly identifying the appropriate stakeholders at the beginning of the projectCertain information may not be available for project planningWhich may result in a low quality implementation

99Project ManagementDue to not obtaining approvals on various documentation or phase existsThe project team may not be able to move forward with planned milestonesWhich may delay the project schedule

100Project ManagementA lack of project charterMay lead to a lack of a common vision internally or with the customerResulting in an argument over what is and is not in the scope of work

101Project ManagementDue to failure to develop process documentation in a timely fashionQuality assurance may not grant permission for work to go forward on the projectWhich could lead to significant delays in scheduling

102Cost Due to inaccurate forecastingThe cost for the product or service might be higher than expectedWhich could lead to additional costs

103

Cost Estimating errors, including estimating uncertainty.Lack of investigation of predictable problems.Inadequate productivity, cost or change control.Poor maintenance, security, purchasing, etc.Impacts of accidents, fire, theft.Unpredictable price changes.

104Cost Because a contingency reserve was not allowed on the budgetThere may be a huge increase in changesWhich could lead to a large number of variances and change requests which could take a long period of time to either get authorized or approved

105The trying to please a customer at any cost mentalityMay lead to additional hidden project changesResulting in a risk of increased costs to the projects

106The lack of empowerment from project management to execute project activities as requiredMay lead to a lack of attention to project management during executionResulting in total confusion on the project

107Due to no formal system to capture rework for the projectProject costs may become overrunResulting in unjustified increases in the man hours expended versus budgeted

108QualityBecause there is no quality management planProblems might arise in the quality of the end productResulting in the low quality product and rework

109Quality Poor attitude to quality.Substandard design/materials/workmanship.Inadequate quality assurance program.Performance failure or environmental impact.

110Quality Due to bad processes or other issuesHistorical data may be inaccurateWhich would lead to bad output and lowered quality of deliverables

111

Quality Due to postponing quality assurance until the end of the projectA substantial amount of rework may be discovered at the endWhich would lead to a slip in the delivery date

112Quality Standards not yet agreed upon for the materials to be usedCustomer might not be satisfied from the standard after the project completionLeading to customer dissatisfaction

113Supplier Due to an increase in supplier costs for materialsProject initiating may be delayed while new suppliers are identifiedWhich could lead to delays in the other projects or could increase the costs if increased prices are accepted

114SupplierDue to exceedingly defective equipment and vehicles delivered by the supplierAdditional deliveries may needed to correct defectsWhich could result in additional cost and delays

115SupplierA single supplier for key componentsMay lead to non-availability or not meeting requirementsCause project failure

116Transit RisksDue to Road block or other damages to roads etcMay cause a delay in consignments reaching the siteCausing slippage in the project schedule and/or liquidated damages for delay

117Transit RisksA hike in petrol or diesel prices or changes in service tax and other governmental policy changesMay cause a transporters strikeResulting in no movement of goods, slippage in project schedule, liquidated damages for delay

118Transit RisksA short circuit or improper handling of flammable materialMay cause a fire in transitResulting in a delay of project supplies, slippage in schedule, liquidated damages for delay

119Transit RisksGovernmental policiesMay cause a trade a suppliers countryResulting in a delay in supplies, slippage in project schedule, liquidated damages for delay

120Transit RisksUnscrupulous truck suppliers/ no securityMay result in a loss of trucks/ consignmentsCausing a delay in supplies if a consignment is not found, necessitating reorder, and increase in project cost and a time delay

121Transit RisksFaulty PlanningMay result in using an improper route surveyCausing a delay in supplies reaching the project site, leading to slippage in project schedule

122TransitDue to customs requirements and restrictionsKey equipment and supplies may be delayed in transitWhich could cause delay in the project

123TransportThe transportation time was calculated based on good road conditionsBut poor road conditions existLeading to a delay in reaching to the project site

124TransportDue to poor transport availabilityProject team will not be able to the project site on timeWhich could result in a delay to the project

125TheftThe economy of the country is poor with many people living at the poverty levelCausing a theft of propertyWhich could lead to additional cost to protect the property

126Human resourcesConflict not managed.Poor organization, definition or allocation of responsibility, or otherwise absence of motivation.Poor use of accountability.Absence of leadership, or vacillating management.Consequences of ignoring or avoiding risk.Strikes, terminations, organizational breakdown.

127HRDue to the increased number of contractorsTeam turnover and personnel changes could slow the projectCause delay in the completion of the project

128HRThe company is currently reviewing the benefits programs it offers to employeesWhich may lead to major changes in benefits programsWhich can cause decreased employee morale and productivity

129HRConfusion about team roles and responsibilities May lead to internal conflict and confusionResulting in decreased productivity

130HRDue to gender based discriminationA female project manager assigned to a project may find she is not considered an equalThis will compromise her ability to effectively manage projects

131HRThe project manager is perceived to be biasedWhich may lead to a decrease in this teams continuity and productivityWhich could jeopardize the project and eventually lead to dismantling the team

132HRDue to inadequate trainingThe project team might not be properly trained to meet the project requirementLow productivity

133HRDue to not having a de-staffing planCosts may overrunResulting in a large number of personnel changing to the project after the project contract expiration date

134HRDue to simultaneous learning curvesHuman resources may be less productiveResulting in higher costs and a lengthy project schedule

135HRGender HarassmentA Female project manager may feel uncomfortable working environmentThis will lower her /efficiency /motivation to work.

135ResourcesDue to the team not being co-locatedSome work might be duplicatedRequiring additional work to determine which work should be completed

136ResourcesBecause the contractor intends to use the same resources on other projectsThese resources may not be available when neededProject may not be delivered on time

137ResourcesDue to insufficient resources allocation on the projectThe project objectives might not be metResulting in a delay in project

138ResourcesDue to poor planning in obtaining resources to support various project phasesResources may not be available when neededWhich could negatively impact the project schedule

139ResourcesIf the Project Manager is not given the proper authorityHis effort could be underminedProject objectives could not be met

140

EconomyThe current economic climate has many changes in the value of currencies in use on the projectWhich could cause a large fluctuation in the value of moneyPosing the risk of additional costs

141EconomyDue to high inflationHigh fluctuation in the prices may occurWhich could result in additional costs

142ElectricityDue to a facility power outageA lighting failure may occurWhich could cause delays

143SiteDue to stockpiling soil in an area of extensive excavationGeotechnical problems such as unforeseen pressure against sheeting could occurAnd cause out of plumb problems with sheeting

144Technical RisksDue to varying site conditionsScope change may occurWhich may lead to cost and/ or schedule overrun

145Scheduling Errors in estimating time or resource availability.Poor allocation and management of float.Scope of work changes without due allowance for time extensions/acceleration.Early release of competitive product.Specific delays, e.g., strikes, labor or material availability, extreme weather, rejection of work.Which may lead to delaying in the project completion date

146Schedule risksDue to unexpected issues discovered during the construction phase of the projectThe length of time that project remains in this stage could increase significantlyWhich could result in higher costs and delays in project delivery

147ScheduleDue to not requiring deliverables such as schedules to be pay items on the schedule of valuesSchedules may not be submitted as specifiedWhich could make it difficult to establish baselines and properly quantify progress

148RequirementsDue to lack of participation and focus by the stakeholders defining the requirementsGaps may exist in the requirement definitionsWhich may result in a low quality implementation

159LegalIf tax and other legal requirements are unclearWe wont be able to fulfill the legal requirementsIt will cause a legal problem

150LegalDue to not understanding labor laws and regulationsImproper procedures may be followedWhich could result in legal problems

151

Political PressureLocal politicos, unruly elements, etc.May cause access to site to be denied or challenged

Resulting in delay in the start of construction, leading to slippage in the project schedule

152Improper packing and handlingMay cause damage during storageResulting in breakage of equipment, necessitating repair or replacement

153SecurityImproper provision of security at siteMay result in theftCausing a time and cost increase for the project

154

SafetyDue to one of the carpenters cutting himself badly with a sawProduction could stop the subsequent emergency first aid and excavation of the injured man to the hospitalWhich would delay completion of the framing

155WeatherDue to environmental effectsAdverse weather conditions may occurWhich may lead to delaying in the project completion date

156Safety/ travelDue to traveling timeframes being at nightPersonal injury may occurWhich may lead to not meeting our planned stopping points on schedule

157Bureaucracy/ approvalBureaucracy in the suppliers organization/ long approval processes/ incompetent personnelMay cause a delay in the owners approval of suppliersLeading to a delay in placing orders, a delay in project supplies, a slip in project schedule, and liquidated damages for the delay

158Bureaucracy in the suppliers organization/ long approval processes/ incompetent personnelMay cause a delay in the suppliers input for engineeringLeading to a delay in detailed engineering, a slip in project schedule, and liquidated damages for the delay

159Environmental Due to bad or cold weatherConstruction personnel may lose productivityResulting in additional costs to make up schedule/ additional personnel/ lost schedule float

160CustomerBecause a good relationship with the customer cannot be maintainedThere is a lack of trustWhich may require more meetings and provision of extra support and guidance

161

TerrorismDue to terrorismFacilities could be damaged or project team members may be killed or kidnappedResulting in a delay to the project and/or increased cost

162Sponsor Due to change in the priorities of the sponsorThe sponsor may refuse to continue fundingWhich could lead to delay in project or an abandoned project

163StaffDue to having staff that is not properly trainedSlow progress may occurWhich could lead to project delay

164StakeholderDue to stakeholders not buying inA gap between what is critical and what is not may occurWhich could lead to a no-go decision for launch

165Lack of Risk ManagementBecause the contractors team has no previous experience with formal risk managementIt is highly likely that workarounds could be employed for problems that could have been avoided or mitigated or transferred to another contractorResulting in lowered morale/ or missed deadlines and higher cost and lower quality

166OrganizationalDue to a recent reorganization and huge growth, a substantial number of new employees could be affected by a current projectAll stakeholders may not be aware of the requirements definitionWhich may result in scope creep and project delays

167EnvironmentalDue to severe weather conditionsHeavy rains may occurWhich could result in delays

168EnvironmentalDue to cutting of trees at construction siteBad effect on environmentEnvironmental agencies or NGOs can sue

169construction may cause environmental pollutionBad effect on environmentEnvironmental agencies or NGOs can sue