Risk Management

RISK MANAGEMENT:

RISK MANAGEMENT

Construction projects are inherently risky. RSG knows that each project will have risks associated with safety, cost, quality, schedule, environmental compliance, and operations. Our approach to construction risk management is to plan and prepare contingency plans. Each Risk Management Plan will include a description of each probable risk, probability of occurrence, mitigation measures, an action plan for each mitigation measure, the methodology to measure the effectiveness of each measure, and the frequency of review and updating. The status of each Risk Management Plan will be included in the Project Construction Manager’s monthly project status report to the Client’s representative.

Our detailed perspectives of discernible risks that are required to ensure the success of the project are as follows:

Public Safety
Environmental Safety
Owner Cost
Schedule Impacts
Material and Installation Defects
Worker Safety
Public Access & Convenience

As the CM, the RSG Team as a whole must examine each task and determine the possible risks in each of these areas and work with the Client’s staff and the Contractor to eliminate or reduce the discernible risk in each area.

CONSTRUCTION INSPECTION

RSG’s inspection procedures include detailed review and analysis of shop drawings, engineering drawings, and approval of contractor’s pay requisition. We advise the contractor of the various change orders and field revision as necessary per project or Client requirements.
We prepare detailed plan reports, final approved plans, specifications and construction estimates. Our staff provides detailed progress reports throughout the life of the project.

QUALITY ASSURANCE

In accordance with the Client approved QC/QA plan, inspect, monitor, and document the activities of the contractor, subcontractors, and suppliers to ensure compliance with the requirements of contract documents.

Review the contractor’s quality control plan Meet with contractor to define and interface Client quality program to contractors program.
Define quality roles and staff assignments as necessary.
Establish processes to allow for proper implementation of the quality plan.
Develop written procedures to implement the approved Client QC/QA plan in the field. Generate a comprehensive QC/QA matrix for each of the specifications.
Implement the approved project QA procedures.

CLAIMS AVOIDANCE

The RSG team’s approach to claims avoidance begins with preventing claims by assuring the development of properly conceived contractual terms that clearly assign risks to the parties best suited to deal with them, and complete, coordinated design drawings and specifications detailing the technical and operational requirements of the Contract Documents. Claims avoidance actions during construction should entail:

Get an accurate baseline schedule and updates. The baseline schedule will help discourage submittal of time-related claims by accurately identifying critical work items and quantifying resource requirements planned for each item of work.
Carefully monitor and rapidly respond to correspondence, submittals, RFIs, and RFSs to identify potential problems and minimize the Contractor’s opportunities to claim delays.
Pro-actively manage the procurement, fabrication, quality assurance and delivery of Client pre-purchased equipment and material.
Maintain open communication and an open mind when listening to the Contractor’s ideas or complaints and work with the Contractor to solve problems early.
Participate proactively in “partnering” with the Contractor during the term of the contract.
Maintain a “tough but fair” attitude with the Contractor to assure that the Client is not taken advantage of and the Contractor is treated fairly, particularly on change orders issues.
Be as knowledgeable as the Contractor as to the “history” of the project and maintain thorough and comprehensive records.
Maintain constant job “presence” at the worksite and in the offices to allow constant observation of the work and quick response to problems.

CHANGE MANAGEMENT

The Construction Manager is responsible for managing the change management process in conformance with the requirements in the Contract Documents, leading the negotiation of cost and/or time impacts, and providing recommendations for the disposition of Change Requests. The Office/Field Engineer assists the Project Construction Manager in managing the change process, maintains all change request files, and records of negotiations and maintains the Change Log. The Project engineer will support the preparation of owner requested changes and review of all technical Change Requests.

NEGOTIATION of CHANGES

The RSG team’s approach to change request negotiations is to negotiate fairly and openly using the Contract Documents as the basis of any settlement. The goal should be to answer the change request within one payment cycle. The construction Contract Documents will include requirements for the necessary documentation that must be used and accompany all change requests.