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SITE SUPERVISION AND OPERATIONS

Dr Adewale Abimbola, FHEA, GMICE

www.edulibrary.co.uk

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AIM & OBJECTIVES

Aim: Risk Management and Assessment.

Objectives: At the end of the lesson, the students should be able to:

  • Discuss risk management principles.
  • Explain the steps to risk assessment.
  • Produce a risk assessment for a construction activity.

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Learning Outcome and Assessment Criteria

P5. Describe the key principles of construction project management.

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RISK MANAGEMENT

4

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INTRODUCTION - RISK MANAGEMENT

  • Effective risk management is presented as fundamental to successful project delivery and is treated as an integral part of project management, not a separate activity.​
  • The Risk Management Plan (RMP) aims to support achievement of:
    • Project objectives (capacity, flexibility, safety, sustainability),
    • Constraints (site access, planning conditions, existing neighbours), and
    • Key interfaces (utilities, adjacent buildings, occupiers, regulators).
  • It defines which categories of risk will be managed (e.g., project, business, event‑driven, health, safety and environment risks, etc.) and clarifies which are handled by the stakeholders (Table 1).

Table 1. Programme risk management responsibility matrix (SNC‑Lavalin, 2021).

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RISK MANAGEMENT PRINCIPLES – ISO 31000:2018

  • The ISO 31000:2018 guidelines provide a statement of risk management principles.
  • Its purpose is to embed risk management within both strategic decision‑making and day‑to‑day operational management.
  • The eight principles are summarised below:
  • The risk framework and processes should be tailored to the organisation and scaled to match the nature and level of its risks.
  • Stakeholders should be engaged in a suitable and timely way so that their views and knowledge inform risk decisions.
  • Risk should be managed using a clear, systematic and well‑organised process to support consistent outcomes.
  • Managing risk should be embedded in everyday management and decision‑making across the organisation, not treated as a separate activity.
  • The approach should look ahead and be capable of spotting, recognising and reacting to internal and external changes.
  • Judgements about risk should openly recognise gaps, uncertainties and limitations in the data and information used.
  • People’s behaviours, values, attitudes and organisational culture shape how risks are perceived and managed.
  • The risk management approach should be reviewed regularly and refined over time, drawing on feedback, learning and experience.

​

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RISK MANAGEMENT PROCESS

1. Establishing the context

  • Establishing context includes clarifying scope, objectives, performance targets, constraints, budget, timescales, key interfaces, contractual obligations, stakeholders and internal resource limits.​
  • Initial risk workshops, typically held monthly, at tender stage involving the consultant team and the clients, to align understanding of risks and responsibilities.

2. Risk identification

  • Risks are identified primarily through structured risk workshops involving technical and engineering experts, but also through day‑to‑day meetings, reviews and lessons‑learned activities.​
  • A three‑part phrasing is recommended for each risk: describe causes, define the risk event and outline potential impacts on project objectives.​
  • Both threats and opportunities are considered, and risks outside the project team’s control are escalated so that appropriate owners and actions can be assigned.

Figure 1. Risk management process, complaint with ISO 31000:2018 (SNC‑Lavalin, 2021).

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3. Risk analysis (qualitative and quantitative)

  • Qualitative analysis uses a probability–impact matrix (4X4 or 5X5) with defined categories of likelihood and impact to score and prioritise risks.​
  • Quantitative analysis assigns numerical cost and time impacts to risks to enable probabilistic modelling and assessment of potential effects on budget and schedule (SNC‑Lavalin, 2021).​
  • Tools such as Monte Carlo simulation and specialist software can be used to run these analyses for cost and schedule risk.

4. Risk evaluation and registers

  • Identified risks, their causes, impacts, owners and treatment plans are recorded in a structured risk register (Table 2), using standard templates and corporate tools.​
  • Probability and impact scores are recorded for both pre‑mitigation and post‑mitigation states, allowing the team to see how proposed actions reduce risk exposure over time.

Table 2. A sample risk register (SNC‑Lavalin, 2021).

Figure 1. Risk Management Process, complaint with ISO 31000:2018 (SNC‑Lavalin, 2021).

RISK MANAGEMENT PROCESS

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RISK MANAGEMENT PROCESS

5. Risk treatment and response strategies

  • Risk treatment covers planning and implementing appropriate responses, such as avoiding, reducing, sharing, transferring or accepting risks, and capturing opportunities where possible.​
  • Each Risk Owner is responsible for developing a treatment plan and assigning concrete actions with deadlines and Action Owners to carry it out.

6. Monitoring, review and reporting

  • Risks are monitored continuously through regular reviews of the register, progress meetings and periodic risk workshops, with updates to scores, status and actions as information changes.​
  • The plan provides for regular reporting, including risk dashboards and summaries for governance, enabling management to track key risks and overall risk exposure.

Figure 1. Risk Management Process, complaint with ISO 31000:2018 (SNC‑Lavalin, 2021).

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GROUP-ASSESSMENT TASK

You are part of the client’s project team at early detailed design on the construction of a three‑storey teaching block on an existing university campus.

  • Objectives:
    • Deliver within a £12m budget
    • Complete in 18 months to open at the start of the academic year
    • Achieve a specified energy performance target and a good student experience
  • Constraints and context:
    • Live campus with adjacent buildings in use
    • Tight urban site with limited lay‑down and access
    • Planning permission already granted, but several pre‑commencement conditions
    • Use of a modern façade system and significant MEP services.

TASKS

1) Clarify objectives

    • In groups of 3, list two to three project objectives in your own words (time, cost, quality/ performance, safety, sustainability, stakeholder satisfaction).
    • Briefly agree which objective is most critical and why.

2) Identify risks

For the provided risk owners, identify at least six uncertainties that could affect project objectives (both threats and opportunities if possible).

    • For each risk, write a short description using:
      • Cause – “Because …”
      • Event – “there is a risk that …”
      • Impact – “… which could lead to …”

Example:

      • “Because site access is shared with existing campus buildings, there is a risk that construction deliveries are delayed at peak times, which could lead to programme slippage and increased preliminaries costs..”

​

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GROUP-ASSESSMENT TASK

TASKS

3) Qualitative risk scoring

    • Use the provided 5×5 probability–impact matrix
    • Each group:
      • Assign a likelihood level.
      • Assign a consequence level on the primary objective affected (e.g. programme, cost, safety).
      • Calculate a simple risk rating (e.g., score = Likelihood × Consequence).

4) Risk treatment planning (10 minutes)

    • For the risks, specify the:
      • Response type (avoid, reduce, transfer/share, accept, or exploit if an opportunity)
      • One or two concrete actions, with when they should be done (e.g. “complete ground investigation before finalising foundations design”).

​

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RISK ASSESSMENT

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INTRODUCTION - RISK ASSESSMENT

  • Risk assessment is a systematic process of identifying, analysing, and evaluating potential risks associated with construction projects.
  • Risk assessment is a mandatory requirement under the Management of Health and Safety at Work Regulations.
  • The principles of risk assessment set out under Regulation 3 of the MHSWR 1999 are summarised as follows:
  • Every employer must make a risk assessment for their employees and non-employees who undertake or would be affected by their work. This also applies to every self-employed person.
  • Risk assessment must be recorded in writing when five or more people are connected to the project.
  • Risk assessment must be reviewed when working conditions change.
  • If young persons are employed, then specific risk assessments must be carried out in relation to risks to their health and safety.
  • Considerations should also be given to new or expectant mothers.

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RISK ASSESSMENT

Principles of risk prevention

They are adhered to by (principal) designers, (principal) contractors , and subcontractors.

  • (a) Avoid risks where possible.
  • (b) If not, evaluate the risks; determine the significance of identified risks, probability assessment, and establish risk tolerance levels.
  • (c) Then, put in place reasonably practicable safety measures to control the risks at source; Protective gear (PPE), training programs, designated pathways, safety protocols, etc.

Key Components of Risk Assessment

  • Identification: Recognising potential hazards, uncertainties, and challenges in the construction process.
  • Analysis: Evaluating the likelihood and impact of identified risks on the project.

​

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RISK ASSESSMENT

The five steps to risk assessment

  • The risk assessment process can be broken down into five main steps, as outlined by the HSE (IDERR) (Pearson, 2017):
  • Identify the hazards; site-specific hazards, design uncertainties, environmental factors.
  • Decide who might be harmed by these hazards; impact analysis, and risk prioritisation.
  • Evaluate the risks and precautions to be taken.
  • Record your findings.
  • Review your assessment and update the records.

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EVALUATION OF RISK ASSESSMENT

Risk rating of hazards

  • In assessing the risk from the hazard, they are rated by the likelihood that the hazard will cause harm and the severity/consequence if it were to occur.
  • Risk = Likelihood

X

Severity/consequence

Figure 1. Risk assessment matrix (Software Sustainability Institute, 2020)

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Risk rating of hazards

  • If the Risk Rating is between
  • Score 1 or 2 - Low, Continue with existing control, however, monitor for changes.
  • Score 3 or 4 - Medium Low, Requires attention to reduce the rating and regular ongoing monitoring.
  • Score 6, 8 or 9 - Medium High, Requires immediate attention to bring the risk down to an acceptable level.
  • Score 12 or 16 - High, Stop immediately. Risk is too high and not acceptable .

​

EVALUATION OF RISK ASSESSMENT

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RISK ASSESSMENT

Risk rating of hazards

  • The more complex the work, the bigger the matrix can become
  • Employers often use numbers on risk assessment forms as they take up less space.
  • A key is used to reflect what the numbers mean

​

  • Risk assessment sample HSE

http://www.hse.gov.uk/risk/controlling-risks.htm

​

Figure 2. A 5×5 risk matrix example (SafetyCulture, 2023)

Figure 3. A 5×5 risk matrix example (Dean, 2022)

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IMPORTANCE OF RISK ASSESSMENT

  • Proactive Hazard Identification: Risk assessment allows for the systematic identification of potential hazards before they can cause harm, ensuring a proactive approach to safety.
  • Enhanced Safety Planning: It facilitates the development of comprehensive safety plans, taking into account potential risks and allowing for the implementation of preventive measures.
  • Worker Protection: By identifying and addressing potential hazards, risk assessment plays a crucial role in protecting the health and safety of workers on construction sites.
  • Minimised Incidents: Minimises the likelihood of accidents, injuries, and property damage by addressing risks before they escalate.
  • Legal Compliance: Ensures compliance with safety regulations and standards, reducing the risk of legal consequences and liabilities.

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IMPORTANCE OF RISK ASSESSMENT

Cost Savings: Identifying risks early on allows for the implementation of cost-effective preventive measures, reducing the likelihood of costly incidents and associated expenses.

Improved Decision-Making: Risk assessment provides valuable information for project managers and stakeholders, enabling informed decision-making throughout the construction process.

Stakeholder Confidence: Thorough risk assessment and management instil confidence in project stakeholders, including investors, clients, and regulatory bodies, regarding the project's safety and success.

Continuous Improvement: Regular risk assessment fosters a culture of continuous improvement, encouraging the adaptation of safety protocols based on changing site conditions and project phases.

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GROUP-ASSESSMENT TASK

SCENARIO

Construction sites are full of physical hazards. On the site where you work, extensive crane operations are being carried out to construct a high-rise building in a busy urban area.

TASK

Produce the risk assessment, identifying hazards and safety precautions to be carried out.

[Use the risk assessment template provided]

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REFERENCES/BIBLIOGRAPHY