It is important for all construction professionals to recognize that at its most basic level, risk will increase with the complexity of the project. In this video, explore different factors that can introduce complexity into a project and how this impacts risk.
- Let's start by revisiting that risk versus reward concept. … As a project gets more complex, the risk goes up, … therefore, so should the reward. … Let's look at a building contractor, … one doing vertical construction work. … In that case, something like a big box store … or a spec warehouse building is less complex than a lab … or science facility at a university, … or a high-end multistory residential project. … The margin on these less complex jobs … that planned profit built into the price is generally going … to be lower than it is on the more complex projects … because you're essentially taking on less risk. … Think about it, if I'm hired to build a 100,000 square-foot … spec warehouse for an owner, no interior build out … in my contract, just the big rectangle box … with minimal sight work, there are not a lot … of moving parts there. … There aren't that many trades or work items, … not many potential unforeseen conditions, … and each work item is fairly straightforward … to the respective trades involved. …
- Defining risk
- Identifying the role of the construction manager
- Analyzing risk
- Controlling risk
- Managing challenges: scope, safety, communication, and more