ACECNJ/NJDOT/FHWA 2013 DESIGN SUMMIT

Presentation Team:

“Risky Business”

• Definition of Risk

• What is Risk Management (RM)

• Constructability

• Risk reviews relationship

• Integration of Risk Management at NJDOT

• Constructability & Risk review

• Route 202 over Passaic

What is Risk?

A risk is defined as a future event, that

can be either an opportunity or threat, that

could occur and has a direct impact on

the success of a program or project

Event

The things that may happen sometime in

the future that will trigger an opportunity

or threat

Opportunity

Benefit to our ability to deliver

the program or project and

achieve an objective

Threat

Detriment to our ability to

deliver the program or project

and achieve an objective

Five Recognized Steps:

1. Plan for Risk

2. Identify Risk

3. Analyze and Prioritize the Risks

4. Plan and Execute Response Strategies

5. Monitor, Evaluate & Adjust

A failure to plan…is a plan to fail!

Identify the context

Product – The Scope Statements will document the

extent of Risk Management on each project

Plan for

Risk

Identify

Risks

Prioritize

Assessed

Risks

Plan and

Execute

Response

Strategies

Monitor,

Evaluate

and Adjust

Communication and Consultation occur at each step

Analyze the Risks

Assess

Risk

Probability

Assess

Risk

Impact

For each identified Risk, ask the following:

• What are the possible risks to the project?

• What are possible benefits to the project?

• What are the challenges/barriers to the project?

Plan for

Risk

Identify

Risks

Prioritize

Assessed

Risks

Plan and

Execute

Response

Strategies

Monitor,

Evaluate

and Adjust

Communication and Consultation occur at each step

Analyze the Risks

Assess

Risk

Probability

Assess

Risk

Impact

Product – Risk Statements are documented within the

Risk Register

What events could affect the project?

• Impacts?

• Likelihood?

Plan for

Risk

Identify

Risks

Prioritize

Assessed

Risks

Plan and

Execute

Response

Strategies

Monitor,

Evaluate

and Adjust

Communication and Consultation occur at each step

Analyze the Risks

Assess

Risk

Probability

Assess

Risk

Impact

Product – Each Risk Statement will be analyzed and

documented within the Risk Register

• Use Matrix on previous slide to determine criticality (or

lack thereof) of risk statements – relative status

• Product – Each Risk Statement, once analyzed, will be

prioritized within the Risk Register

Product – Each Risk Statement, once analyzed, will be

prioritized within the Risk Register

Plan for

Risk

Identify

Risks

Prioritize

Assessed

Risks

Plan and

Execute

Response

Strategies

Monitor,

Evaluate

and Adjust

Communication and Consultation occur at each step

Analyze the Risks

Assess

Risk

Probability

Assess

Risk

Impact

For each threat the response strategy is to:

For each opportunity the response strategy is to:

• Avoid

• Accept

• Mitigate

• Transfer

Plan for

Risk

Identify

Risks

Prioritize

Assessed

Risks

Plan and

Execute

Response

Strategies

Monitor,

Evaluate

and Adjust

Communication and Consultation occur at each step

Analyze the Risks

Assess

Risk

Probability

Assess

Risk

Impact

Product – Response Strategies and Response Plans

are documented within the Risk Register

• Exploit

• Accept

• Enhance

• Share

• Monitor status of risk strategies & response plans

• Document adjusted risk strategies & response plans

• Monitor action plan status performance for lessons

learned and best practices

Plan for

Risk

Identify

Risks

Prioritize

Assessed

Risks

Plan and

Execute

Response

Strategies

Monitor,

Evaluate

and Adjust

Communication and Consultation occur at each step

Analyze the Risks

Assess

Risk

Probability

Assess

Risk

Impact

Product – Response Strategies and Response Plans

are documented within the Risk Register

Constructability &

Risk Relationship

Time-driven Performance

Risks• Agencies controlled by funding and

political commitment deadlines

• Designers judged by performance of

deliverables

• Construction contracts governed by

milestones, performance windows and

time-of-the-essence clauses

Transportation Project

Special Risk Factors

• Cost/Schedule are driven by how something is

constructed versus what is constructed

• Public in, around and through the construction

site

• Restricted work windows and work zones

• Maintenance and protection of traffic – work

zone safety for the public and construction

crews

Risk Management

Tools & Process

Can be performed at any stage, concept thru construction!

• Risk Register

• Constructability Reviews

• Value Engineering Reviews

Risk Constructability

Common Elements

Multidiscipline Teams:

• Architects, Engineers, Construction Managers

• Procurement: Contract options, funding, legal

• Specialists: Environmental, HAZOPS, Police, etc.

• Operations Personnel: Maintenance, plant engineers

• Contractors: Means & Methods, MOT/MPT, etc.

FDOT – Miami Intermodal Center

Example 1

Combined RM/VE Workshop

FDOT MIA-MIC

Example 1

NYSDOT – Work Zone

Safety InitiativeDOT HQ - Review Region Projects

• Tech Design Not Reviewed

• Maintenance of Traffic Only

• Review Work Zone Layouts

• Review Work Windows

• Review Traffic Alternatives

• Review Work Flows

• No Costs Considered

Example 2

NYSDOT – Work Zone Safety

Initiative

Workshop Teams:

• DOT HQ Construction Managers

• FHWA Construction Managers

• State/Local Police

• Contractors

• Specialty Consultants – Traffic, IT, etc.

Example 2

Goal to reduce risk by improving worker and public safety.

Take-Away Points

• Everything involves risk – risk cannot be eliminated, but it can be managed

• RM documents (risk register, etc.) are not end products – they are tools to be used throughout the life of a project. They are tools to help manage risk

• Value Engineering and Constructability Reviews are processes to help manage risk

Example 2

Integration of Risk

Management at NJDOT

Objectives• Identifying risks early = opportunity to manage the

risk

• Reduction in design changes and scope = cost

savings

• Quality contract documents = enhanced project

success

Current Practice

• Project Managers, Designers & SMEs are performing

informal project risk management without consistent

procedures or practices and without consistent

documentation

• Project Managers, Designers & SMEs are performing

project risk management without coordination of effort

• Risks may be identified, but may not actually lead to

implementation of response actions

Formal Risk Management

• Risk Management will occur from Problem

Screening through Construction

• Risk Management will be scalable

• Coordinated effort

• Central and Accessible Repository

• Compatible with the Capital Project Delivery

process and CPD activities

Leverage current best practices:

Interactive Communications

Design Communications Report (DCR)

with

Future State:

Formal and structured process allowing for opportunity to

mitigate threats or embrace opportunities on projects

Formal Risk Management

Benefits

• Risks are formally documented and evaluated so the Project

Team does not manage by crisis when a risk is realized

• Allows for prioritization of high probability and high impact

risks

• Enhances communication between the Project Team and

encourages a robust and diverse exchange of ideas and

solutions

• Strategy can be tracked and monitored for effectiveness

Next Steps

• Risk Management Process Pilot Program

• Monitor the Process for Refinement

• Implementation with Training

Constructability Review

& Risk Management:

Case Study

Route 202 over Passaic River

WEATHER DELAYS

Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning

Risk Category Risk Impact

Risk Rank Unique ID # Risk Statement

Initial Risk Owner Risk May Occur In

Risk Probability

Schedule Cost

ScheduleScore

CostScore

FinalScore

Risk Response Strategy

Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated

Final Result Post-Construction

1 1As a result of Weather delays during

construction which may occur, which would lead to schedule delays

Construction Construction 5 - Very High 10 - Very High 4 - Moderate 50 20 70 Accept ThreatHave a contingency of 2 days not shown in the

contract documents that will allow for unforeseen issues such as weather delays.

Contractor and NJDOT Plan Implemented 4/9/2013We were lucky and there were no weather delays. Future jobs can base this risk off of historical weather data.

1 2

As a result of what can be considered a weather delay which may occur, which would

lead to conflict regarding schedule time extensions

Construction Construction 5 - Very High 10 - Very High 4 - Moderate 50 20 70 Accept Threat

Define in the specs that the RE will determine if the project is delayed due to weather. Since it is a 24hr schedule, allow for hourly delays with impacts to working crews. Give additional time to allow mob and demob detailed in the spec.

Contractor and NJDOT Plan Implemented 4/9/2013

Although this was included in the spec and not used, all involved with construction agreed was the best approach to weather delays.

FABRICATION

Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning

Risk Category Risk Impact

Risk Rank Unique ID # Risk Statement

Initial Risk Owner Risk May Occur In

Risk Probability

Schedule Cost

ScheduleScore

CostScore

FinalScore

Risk Response Strategy Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated

Final Result Post-Construction

2 14

As a result of the prefabricator requiring more than the 5.5 months allotted in the schedule for fabrication due to unforeseen delays in material deliveries or backlog in orders which may occur,

which would lead to project schedule delays

Construction Construction 5 - Very High 10 - Very High 1 - Very Low 50 5 55 Accept ThreatHave a contingency of 2 days not shown in the

contract documents that will allow for unforeseen issues.

Contractor and Designer

Plan Implemented 4/9/2013

This risk almost delayed construction and proved to be critical. There is little control over the fabricator's schedule. If KK didn't push to get the job out to bid, this would have definitely delayed the schedule.

CRANE MALFUNCTION

Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning

Risk Category Risk Impact

Risk Rank Unique ID # Risk Statement

Initial Risk Owner Risk May Occur In

Risk Probability

Schedule Cost

ScheduleScore

CostScore

FinalScore

Risk Response Strategy

Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated

Final Result Post-Construction

4 12

As a result of the on site cranes malfunction requiring new cranes to be brought in which

may occur, which would lead to schedule delays

Construction Construction 3 - Moderate 10 - Very High 1 - Very Low 30 3 33 Mitigate Threat

Identify if a backup crane is available and the mobilization time required prior to bridge

demolition. Prepare a design that allows for a standard size crane to be used so a replacement can readily be found.

Contractor Plan Implemented 4/10/2013

We did have a crane breakdown on the project. The contractor was able to find an alternate crane, get it delivered and still construct within schedule.

UTILITY INTERFERENCE

Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning

Risk Category Risk Impact

Risk Rank Unique ID # Risk StatementInitial Risk Owner Risk May Occur In

Risk ProbabilitySchedule Cost

ScheduleScore

CostScore

FinalScore

Risk Response Strategy

Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated

Final Result Post-Construction

4 16As a result of Utilities not moved in adequate time for construction which may occur, which

would lead to schedule delaysConstruction Construction 3 - Moderate 10 - Very High 1 - Very Low 30 3 33 Mitigate Threat

Have advance utility relocations take place removing this item from the critical path

Designer and NJDOT Plan Implemented 4/9/2013Utilities were moved through advance construction through direction and coordination by Amercom

PLACEMENT OF UNITS

Risk Rank & ID Risk Statement & Category Risk Analysis Matrix Risk Response Strategy & Response Planning

Risk Category Risk Impact

Risk Rank Unique ID # Risk StatementInitial Risk Owner Risk May Occur In

Risk ProbabilitySchedule Cost

ScheduleScore

CostScore

FinalScore

Risk Response Strategy

Risk Response Action Plan Final Risk Owner Action Plan Status Risk Last Updated

Final Result Post-Construction

11 10

As a result of Precast abutments being out of alignment when placed on piles which may

occur, which would lead to improper construction and delays

Construction Construction 2 - Low 4 - Moderate 2 - Low 8 4 12 Mitigate ThreatAllow the design of the bearing seat to be slightly oversized to compensate for the

misaligned abutments.

Contractor and Designer

Plan Implemented 4/10/2013Abutments needed some adjustment in the field but it did not impact the schedule or final outcome.

11 11

As a result of Prefabricated superstructure units being out of alignment when placed on bridge which may occur, which would lead to

improper construction and delays

Construction Construction 2 - Low 4 - Moderate 2 - Low 8 4 12 Mitigate ThreatAllow the design of the bearing seat to be slightly oversized to compensate for the

misaligned abutments.

Contractor and Designer

Plan Implemented 4/10/2013Final placement of superstructure lined up very well