Consider seasonal influences on construction.

Wet/dry season, snow, monsoon, etc.

Be prepared for this and plan accordingly, with allowance for unexpected weather.

Tagged with: monsoon • rain • season • snow • weather

Filed under: Construction • Planning • Risk

You must learn to say no to some requests from clients

If change requests from the client will make the design unsafe or unusable, you should refuse to change it. Otherwise you could still be sued as the designer for giving misleading information when your company is the expert (accepting a change could be deemed as approving it, even if you gave a warning that it would be unsafe or unusable).

Another instance to say no is if the client asks for changes that will increase the schedule but won’t approve the increased schedule. Get approval from the client for the extended schedule or cost before saying yes to the proposed change.

Tagged with: change • schedule

Filed under: Client • Contract • Cost • Design • Risk • Safety • Scope

A contract is a risk allocation and control device.

Remember the importance of the contract.

Tagged with: risk control

Filed under: Contract • Risk

Identify and Manage Risks Properly

• This enables you to reduce or eliminate risks.
• Helps you make plans for each major risk.
• Reduces the possibility of things going wrong in the project.
• If something goes wrong, you have a plan ready.
• Reduces stress on you as the project manager.
• Means you should rarely have to work overtime or on “emergency measures”

Tagged with: emergency • wrong

Filed under: Planning • Risk

Make sure to consider and allow for project commercial risks:

• Protect yourself with insurance
• Make risk plans (for specific risks)
• Evaluate possible risks (rate them)
• Work out likely percentages (probabilities) and build these in to the costs.
• Allow for loss of resources (team members sick, injured, quiting)

Tagged with: insurance

Filed under: Cost • Planning • Risk

Make sure as the manager of a project that you are aware of and understand not just the financial and contract risks, but also the technical risks of the project.

E.g.

• Flooding risks
• High wind loads
• Risks associated with the use of new or unproven techniques or technology
• Construction techniques that your company or workers have not done before

Tagged with: technical risks

Filed under: Risk

Put risk activities in your schedule (plan).

Your client is more likely to accept allowances for risk if you can show how it is worked out, how long it is for, and how the cost reduces/increases over time.

Tagged with: risk activities • risk allowance

Filed under: Planning • Risk

If your company is not involved with construction (but just design or inspection), make sure the contract states that the construction contractor is responsible for site safety, not the “engineer” or your company.

There should also be clauses so your company is also indemnified.

The construction means and methods and related safety should be the responsibility of the construction contractor. This must be in writing in the contract.

Your company should be included as additional insured on the contractor’s general liability insurance.

Liability coverage should define who it specifies as being covered. If it covers the “engineer” your company must document and include that it includes your company as well.

Tagged with: indemnify • insurance • liability

Filed under: Construction • Contract • Contractors • Documentation • Risk • Safety • Scope

If you believe a schedule required by the client is unreasonable, you should document your reasons for believing so, and inform the client of those concerns in writing.

If the client still chooses to go ahead with a schedule that you are not a party to (for example for their construction contractor) but using your company’s designs, you should inform them (with details) of your concern in writing.

This may reduce the possibility of claims and your liability in the event of contractor over runs.

If you believe a contractor’s schedule is unreasonable, you should also inform the client in writing.

Tagged with: claims • concerns • liability • overruns • schedule

Filed under: Client • Contractors • Planning • Risk

Always make sure that isolation or lock-out procedures are followed.

If an electrical contractor needs to access some wiring, they should follow a procedure of isolating or
de-energizing the circuit.

Electrical contractors should have written procedures they are supposed to follow, but many people (often non electricians) will skip isolating a circuit to do something that is simple of quick. Although this often seems ok and often works, there is a high risk of injury or damage to circuits.

Unpluging a power supply, isolating a circuit etc should always be done. Otherwise an accident will eventually happen.

If a valve should not be used, it should have a lock-out tag put on it. Especially if it is to be left unattended or if it contains dangerous or contaminated material (eg chemicals, sewage).

It is a good idea to carry a lock-out tag with you on site inspections, commissioning, or any site work you do. If you need to turn off a valve to open a pipe or equipment, you can easily put your lock-out tag on it for the few minutes you are doing the work. This reduces the risk of someone inadvertently turning the valve back on.

As a project manager you should not practice lazy or “save time” habits that others may often use. You are in charge of the project. You should set a good example, but also insist on proper procedures. This reduces risks, potential liability, and increases professionalism.

Tagged with: bad habits • isolation • lockout • lockout tag • procedures

Filed under: Risk

I find that having liquidated damages in a contract from my client helps me as a project manager.

Companies often want to avoid having liquidated damages in the contract.

However, as a project manager, I find it is a lot easier to get resources within the company to assist with the completion of a project if there are liquidated damages or penalties for late completion in the contract.

This makes senior management take the project more seriously. They are then less likely to reallocate resources away from your project and are more likely to give you resources to your project when requested.

Tagged with: liquidated damages • resources

Filed under: Contract • Risk

Avoid the use of superlatives in contracts and documents.

E.g. “all, make sure, assure, insure, as necessary”.

These can be interpreted as making a guarantee.
It would be better to use phrases such as “The company shall report observed failures of the contractor to the client”, instead of “The company will inspect all of the work to make sure it complies.”

This means you are not responsible for work you don’t do, you just report failures. If you leave the “make sure it complies” part, your company could be held liable for failures that are out of your control and not part of your work.

Generalisations should be avoided. Specifics are better.

Tagged with: generalisation • guarantee • liability • specifics

Filed under: Contract • Documentation • Risk

Be wary of low bids by contractors.

Get a number of bids. Compare and check why a low bid is so low.
If a low bid is accepted, be especially careful in your documentation, communication, contract conditions, and liabilities.

Be aware that by taking the lowest bid (especially if it is significantly lower than the others) you will be increasing the risk that the contractor won’t be able to deliver to the quality and schedule you require.

Tagged with: bid • contractor • Procurement • Risk

Filed under: Contractors • Procurement • Risk

Do a proper risk analysis before bidding for and accepting a project.

• Be especially aware of “first of its kind” projects for yourself, your company, or your industry (industry level is particularly risky).

• If the project is the first of its kind kind in that industry, the client should pay for prototyping, research, etc.

• Be wary of giving warranties on first of kind for that industry.

Tagged with: Risk

Filed under: Planning • Risk