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05 TTSS Solutions WG Report Volume 1_Feb05

05 TTSS Solutions WG Report Volume 1_Feb05

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Published by: jess_norwood on Sep 07, 2011
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11/14/2013

As previously mentioned the risk registers were based on qualitative assessment and no
monetary value was therefore ascribed. In order to determine an appropriate level of
contingency at this stage previous risk registers for large projects involving underground
works undertaken by Thames Water were reviewed. These risk registers had been compiled
between the outline design and pre-construction stages of their respective projects. The
methodology for these risk registers is based on a compilation of hazards together with an

Thames Tideway Strategy

7. Potential Solutions

84

Solutions Working Group Report
Volume 1 - February 2005

assessment of the likelihood including an estimate of the potential cost. A statistical analysis
of this leads to an overall estimate of the potential extra cost that a project may be subject to.

Typically this value was found to be in the range of 25% to just over 30% of the budget cost
(excluding any contingency values) for the project. It was therefore considered appropriate to
adopt an overall contingency value of 30% for all the options considered in this investigation.
EC Harris carried out an audit of the derivation of budget estimates and also considered that
this level of overall contingency was appropriate at this stage.

This contingency value should be considered to represent the following items:

• Items of a more detailed nature that have yet to be investigated.
• Items that have been neglected or omitted.
• Potential additional cost to items already included but subject to additional cost by
realisation of risk.

Thames Tideway Strategy

8. Technical Studies

85

Solutions Working Group Report
Volume 1 - February 2005

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