Should I Go or Should I Not Go? DPLE 175 January 18, 2017

Transcription

1 Should I Go or Should I Not Go? DPLE 175 January 18, 2017

2 RLI Design Professionals is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-aia members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

3 Copyright Materials This presentation is protected by US and International Copyright laws. Reproduction, distribution, display and use of the presentation without written permission of the speakers is prohibited. RLI Design Professionals

4 Course Description Why do firms take on projects that they think could be destined to fail? When you spend time analyzing the possibilities, you can start to see future problems. Our approach will guide you through the four steps of risk management carefully identifying, assessing, managing, and controlling the risks in projects when you re deciding if pursuing a project is a good idea.

5 Learning Objectives Participants in this session will: Understand how the type of projectand its delivery method can indicate future problems Learn to identify the different risks associated with a project s location Gain an awareness of how people involved in a project can have an impact on the overall assessment of risk Consider how different project processescan act as a forecast of potential issues

6 Definition Risk Probability or threat of damage, injury, liability, loss Caused by external or internal vulnerabilities May be avoided or mitigated through prevention

7 Go/No Go Matrix

8 How to Use It

9 Project

10 Project Risk Step 1 Identify Assess Mitigate Control

11 Project Risks to Consider Project type Knowledge of specific project Comfort with delivery method Management of pre-existing conditions Overall assessment of project/services

12 Project Risk Steps 2-4 Identify Example: Assess Delivery Method Design Build Design Bid Build Mitigate Control

13 Case Study Desert City Would you know how to design an HVAC system for this location?!

14 Place

15 Place Risk -Step 1 Identify Assess Mitigate Control

16 Place Risks to Consider General assessment of project location Concerns about specific location Knowledge of location Overall assessment of location based on external factors

17 Place Risk -Steps 2-4 Identify Example: Knowledge of Location Assess Mitigate Control

18 Case Study Hidden Hazards

19 People

20 People Risk -Step 1 Identify Assess Mitigate Control

21 People Risks to Consider People Assessment of client/owner Comfort level with client/owner Availability of dedicated decisionmaker (for client) General assessment of design/construction team members Financial evaluation of team members Overall assessment of team members

22 People Risk Steps 2-4 Identify Example: Assess Mitigate Financial Evaluation Insurance Limits Control

23 Case Study Rockridge Elementary School Which one has the deepest pocket?

24 Process

25 Process Risk Step 1 Identify Assess Mitigate Control

26 Process Risks to Consider General assessment of procurement process General assessment of contracting process General assessment of risk allocation process Risk-reward assessment Overall assessment of processes associated with the project

27 Process Risk Steps 2-4 Identify Example: Owner Assess Risk Allocation Contractor Designer HVAC MEP Interior Mitigate Control

28 Differing Site Conditions AIA Language A Concealed or Unknown Conditions. If the Contractor encounters conditions at the site that are (1) subsurface or otherwise concealed physical conditions that differ materially from Contract Documents or (2) unknown physical conditions of an unusual nature, that differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents Contractor shall promptly provide notice to the Owner and the Architect Architect will promptly investigate such conditions

29 Case Study Differing Site Conditions Risks belong with those parties who are best able to evaluate, control, bear the cost, and benefit from, the assumption of risks. Every risk has an associated and unavoidable cost which must be assumed somewhere in the process. Many risks and liabilities are best shared. Metcalf Construction Company v. United States

30 Final Assessment

31 Warning Signs Perceived (or real) need to get more projects on the books Inadequate tools to evaluate project risks Difficulty telling a client no

32 Impact of Ignoring Risk Increased costs Loss or reduction in profit Damage to reputation Insolvency

33 Take Away Manage Your Risk

34 RLI Procedure for Premium Credit Access On-Line Submit as Part of Renewal Receive Credit at Renewal

35 This concludes The American Institute of Architects Continuing Education Systems Program Alayne McDonald, Professional Development Coordinator Abbey Brown, Client Solutions Manager