Risk Analysis of House Building Project - Click to Solution

Question: Discuss about the Risk Analysis of House Building Project? Answer: Introduction: This study concentrates on identifying and analyzing the risk that may occur in a house construction project. In addition, it includes the classification of the stakeholders and identification of team members. Brainstorm risk identification technique makes most impact at the unstructured level of the project. Cause Effect Diagram assists to direct the project in the right way at each step of development (Gymrek, 2013). Team Members and Stakeholders: To have a vision of the critical nature of the construction team helps to manage effectively a building project. Various builders, vendors, and consultant works together to complete a construction project. In a house construction project, the team member varies from one construction to another. Choosing the right depends on the following factors. Plot Attributes State of the Ground, Topography, etc. Construction Avenue. Design. House Building Process. Typically the team members in a regular house building project team are architect, surveyors, project manager, the primary contractor, decorators. The small category workers are stone masons, bricklayers, roofers, joiners, etc (Gymrek, 2013). Identifying stakeholders and their requirements are critical for any construction project. Different stakeholders obtain different objectives. Champions and user panel are the members of the client organization. Champions have the work of supervising the design quality throughout the project. User group consists of customers, visitors, community groups, etc. Neighbors, funders, local authority, are also stakeholders (Kunreuther et al. 2013). Risk Identification technique: To initiate and monitor a risk management program it is crucial to identify risks. The identification of risk includes many methods. This study mentioned three of them. Brainstorming: In the unstructured state of the project, this approach is most useful. The method reflects the process of capturing risks that assist in building the project based on others' design. To utilize this technique a team of particular members who have knowledge of the discussed ideas, related documentation and it also need a facilitator who knows how to lead the group as per risk process. A note taker gathers and stores the ideas discuss in each meeting (Van et al.2014). In the planning process brainstorming create a list observed strategies, the cause of the risks and areas of impact. Working Groups: This technique concentrates on assigning a group to a particular area to identify risks. It consists of a different group of peoples working on a specific topic within the project management for gathering information about possible risk. Engineering Templates: This technique uses sets of flow charts that are related to various development processes (Kunreuther et al. 2013). Brainstorm technique serves as the last option when no other options are left. This way the project management will always go the furthest way to identify any possible risk. Selection of Risk Diagram Technique: Cause and effect diagrams, System or process flow charts, Influence, SWOT analysis, Expert judgment are the different types of diagramming techniques. For identifying the risk the cause and effect diagram is selected. This chart is also known as Fishbone diagram and Ishikawa diagram. The CE Diagram gives solution for the needs of investigating risks for an impact. The implementation process of CE Diagram starts from the team meetings as it assists in directing team members' concentration toward a particular issue (McNeil, Frey Embrechts, 2015). In addition, it makes a picture of the issue without having concerns of a comparatively complex flow chart. Figure 1: Case and Effect Diagram of House Building (Source: Nasirzadeh Nojedehi, 2013) Impact Analysis of Risk: Project risks for a construction business are related and dependent on each other. The sources of the risks are performance, scope, environment, cost, local government, etc. The classification of project risk is as follows changes in the work, site access, level of details delivered, actual quantities of work, etc (Yang Shen, 2014). The risks can be categorized as per high probability and impact. Figure 2: Risk Impact and Probability (Source: Mindtools.com, 2016) Conclusion: The study concludes that use of the risk assessment techniques for a building construction prevents even the least possible risks. Though the process is very efficient, it is not capable of eliminating all the risks. The Cause and Effect Diagram becomes helpful when a group wants to find the cause of some problems. Risk impact and probability categorizes the risks and helps to determine to initiate the risk elimination process. References: Gymrek, M., McGuire, A. L., Golan, D., Halperin, E., Erlich, Y. (2013). Identifying personal genomes by surname inference.Science,339(6117), 321-324. Kunreuther, H., Heal, G., Allen, M., Edenhofer, O., Field, C. B., Yohe, G. (2013). Risk management and climate change.Nature Climate Change,3(5), 447-450. McNeil, A. J., Frey, R., Embrechts, P. (2015).Quantitative risk management: Concepts, techniques and tools. Princeton university press. Van Loon, M. H., de Bruin, A. B., van Gog, T., van Merrinboer, J. J., Dunlosky, J. (2014). Can students evaluate their understanding of cause-and-effect relations? The effects of diagram completion on monitoring accuracy.Acta psychologica,151, 143-154. Yang, R. J., Shen, G. Q. (2014). Framework for stakeholder management in construction projects.Journal of Management in Engineering,31(4), 04014064. Mindtools.com,. (2016).Risk Impact/Probability Chart: Learning to Prioritize Risks. Retrieved 21 February 2016, from https://www.mindtools.com/pages/article/newPPM_78.html