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VALUE MANAGEMENT AT RIBA

STAGE 1
PART 2: VALUE MANAGEMENT AT RIBA STAGE 1
Table of Contents
Presenting study proposal...................................................................................................................3

Brief of the project.........................................................................................................................3

Site information.........................................................................................................................3

Expected outcomes..................................................................................................................4

Explaining the benefits of study.......................................................................................................4

Presenting a proposed agenda for workshop study...........................................................................6

Identifying the workshop participants..............................................................................................6

References.........................................................................................................................................8
Presenting study proposal

Brief of the project

The first proposal involves the replacement of sloping coverings of the timber shingle on the
roof. The flopping coverings are supposed to be replaced with solar tiles that would be
effective in producing electricity. However, as per the second proposal, some of the partition
walls are supposed to be replaced with bricks of plastic bottles. The bricks of plastic bottles
are supposed to be produced by the local community in a community-building event (Amin
and Abanda, 2019). On the other hand, the third proposal deals with the utilization of
reclaimed timber for the partitions in the interior in the replacement of metal stud partitions.
Site information
Proposal 1
● Solar tiles are considered to be an efficient technology for producing sustainable
energy.
● The durability of solar tiles as well as the stylish look is considered to be another
significant characteristic of the solar tiles.
● It also involves the possibility of receiving ‘SEG tariffs’ with the exportation of
excessive energy.
● Dummy tiles can also be used in shaded areas.
● The average expenses for the tiles are considered to be around 26 GBP per square
foot.
Proposal 2
● This proposal is supposed to facilitate collaboration with the local community and
deliver value to the business at the domestic level.
● It is also supposed to promote the recycling of plastic material as an effective
construction material.
● Moreover, the plastic bottle bricks are considered to be held by filling material.
● The plastic bottles of the same sizes are supposed to be sorted and collected for the
bricks.
Proposal 3
● Carbon emissions are supposed to be reduced as per the proposal.
● It is considered to play a significant role in achieving LEED certification.
● However, the sorting and collection of efficient timber is considered to take a long
period of time.
● Quick adjustments during the building lifecycle are supposed to be feasible as per the
proposal.
Expected outcomes
Proposal 1
● Value for ‘Through-Life Cost’ is supposed to be improved by saving electricity costs.
● The sustainability value is considered to be improved because of the preservation of
finite energy sources.
● The esteem value and exchange value are also considered to be improved.
● However, the costs for capital are considered to be increased as the maintenance of
solar panels costs a lot.
Proposal 2
● The community value is considered to be increased for the efforts and contribution of
the local community in the making of plastic bottle bricks.
● The popularity of the building is also supposed to be improved because of the
innovative idea.
● The value for sustainability is also considered to be increased because of the
utilization of recycled material.
Proposal 3
● Environmental sustainability is supposed to be promoted in this project as utilization
of reclaimed timber is likely to curb deforestation.
● The flexibility value and the value for capital cost are also supposed to be enhanced
for Wood@Aldingbourne.
● The esteem and exchange values are considered to be improved because of the
utilization of eco-friendly reclaimed timber.

Explaining the benefits of study

The use of the RIBA framework can be understood from the initial stage. In this response as
stage one is regarding starting a project brief based on clients requirement, hence add the
initiation of a project using RIBA framework engagement from clients and along with
understanding clients demand gets ensured. As seen from the project brief that clients want to
ensure the maximum level of comfort for guests, using RIBA framework the implementation
and work breakdown structure to complete the project were systematically arranged to meet
clients demand. Hence, from a project manager’s perspective the RIBA framework helps a
project manager to understand the amount of resources, cost, time and associated risk in the
project (Banawi et al., 2019). Therefore, RIBA ensures clients' demands get easily
implemented towards project outcomes along with diminishing communication issues
between PM and client. Additionally, the BCIS is also an interesting part of the project body
that enables an architect to get an overview about financial resource requirements, along with
cash flow at every stage in a project body. Hence, from the initial stage of a project, architects
have detailed information about sites, location and working space for the project. Hence,
information extracted using BCIS and applied with RIBA, can help a project manager or an
architect to put costing at every stage in the project work (Amin and Abanda, 2019).
Therefore, up to this point, from introducing brief to a client, an architect not only ensures
meeting all demands, but can also explain cost and associated risk with consequences to the
clients. Hence, clients can get a clear justifiable explanation on which measurable and
achievable expected outcomes get generated.
In the given project of Citizen M hotel, workers and other engineers are working; thus
sharing the resultant brief with the workers does not help them to understand the client's
actual demand. Additionally, since workers are like a frontline body for this project; hence,
any ground level practical risks can also be identified by them based on client demand.
Hence, before starting the actual project work the RIBA framework ensures that with proper
objective and measurable resources, risks get highlighted, on which practical expected
outcomes get generated. Apart from that in PID or project integration documents, the RIBA
framework works as a fundamental building block by contributing accurate information
(Wevill, 2019). Therefore, through building a PID document, a project manager can
successfully lay out clients' demands in front of stakeholders and divide their roles and
responsibilities accordingly.
Hence, implementing a document based project progress report not only helps a project
manager or PM to meet client requirements accurately but can also help to control the overall
project progress. Additionally, clear understanding of roles and responsibility can help
stakeholders to create a systematic communication link between them that can decrease
stakeholder risk in the project. In response to the Citizen M hotel project, the stage one of
RIBA will help to create proper work breakdown structure in the initial stage of this project.

Presenting a proposed agenda for workshop study

The purpose of a project agenda is to create a proper aim or a direction in a project that will
help the project manager to align necessary tasks, roles and responsibility of stakeholder,
resources, time in the project properties. The primary agenda for this project will be to
identify major risk and uncertainty involved in this project. As emphasised by Holden (2019),
identification of uncertainty earlier does not indicate changing the project expectation rather
than creating an alternative plan to mitigate those risks and two achieve the project agenda.
Some of the key uncertainty that had been identified in this project was related to poor review
and feedback regarding the hotel services. Apart from that some of the other major reasons
involved behind this uncertainty include the involvement of low flexibility in the project
contribution that lead to increasing uncertainty in project lifespan. In response to this, to
maintain certainty in project life-cycle along with limiting uncertainty in various parts of the
project the OPEX agenda will use. According to Alnaggar and Pitt (2019), the involvement of
an OPEX cost agenda will help to make time for complexion part of the project. Hence to
limit uncertainty in the project life cycle, the selected agenda will work similar to critical path
management in a project. Additionally, from the project brief analysis, a CAPEX was
identified that will be used to ensure cost effectiveness before starting a project. In order to
ensure suggested agenda implementation, coordination with subordinator will be utilized in
this project to reduce completion of the project with limited cost and liability. As PMs have a
primary expectation to complete the project in less time and resources by analysing market
trends and customer feedback, a proper agenda is necessary.

Identifying the workshop participants

There are basically two main participating teams identified as consultant team and designer
team. The purpose of a designer team is to develop a practical project layout plan that will be
specific, measurable, achievable, and time bound (Ostime, 2019). Hence the role of a
designer team in this process is to create a map for citizen M hotels that can be used to create
different tasks, process to complete this project.
Consultant team Designers team
Acoustic consultant Lead or main architect

BIM consultant Principal architect

Sustainability consultant Junior Architect

Specification consultant Interior designer

Security consultant Landscape architect


Fire engineer Civil architect
NA Structural architect

NA Consultant specialist
Table 1: Team involvement in project
(Source: Developed by Student)
The above table is clear about the presentation of team members in each team. Based on the
analysis of the project over these are the main stakeholder that had been identified in the
consultant and designer team. As seen in the design a team with a consultant specialist
involved. The role of the consultant specialist is to maintain clear and structural
communication between these two teams. The purpose of the consultant team is to
communicate with the client and with the designer team to mitigate any communication gap
and give the client an abstract overview of practical expectations. The consultant team will
also help the designer team to identify various market trends and analyse consumer demands
based on their feedback.
References

Alnaggar, A. and Pitt, M., (2019). Towards a conceptual framework to manage BIM/COBie
asset data using a standard project management methodology. Journal of Facilities
Management.
Amin, K.F. and Abanda, F.H., (2019). Building Information Modelling Plan of Work for
Managing Construction Projects in Egypt. Journal of Construction in Developing Countries,
24(2), pp.23-61.
Banawi, A., Aljobaly, O. and Ahiable, C., (2019). A Comparative Review of Building
Information Modeling Frameworks. International Journal, 2(2), pp.23-49.
Holden, P., (2019). Construction: A Practical Guide to RIBA Plan of Work 2013 Stages 4, 5
and 6 (RIBA Stage Guide). Routledge.
Ostime, N., (2019). RIBA Job book. Routledge.
Wevill, J., (2019). Law in Practice: the RIBA legal handbook. RIBA Publishing.
VE (Value Engineering) Analysis of Quarry
House
Table of Contents

Introduction................................................................................................................................3

Value Engineering for Quarry House Building.........................................................................3

Information Phase...................................................................................................................3

Budget for Citizen M Building...............................................................................................3

Function Phase........................................................................................................................4

Creativity Phase......................................................................................................................5

Evaluation Phase....................................................................................................................6

Decision Analyzing Phase......................................................................................................8

Decision-Making Phase..........................................................................................................8

Chosen Alternative Material...................................................................................................8

Conclusion..................................................................................................................................9

References................................................................................................................................10
Introduction

Officials indicated throughout November 1989 that a significant portion of the Departments
of Health as well as Social Security's head office operations would be relocated to Leeds. The
relocation's primary goals were to reduce expenses associated with housing and salaries, as
well as to make it simpler to attract and retain high-quality employees. Consequently, Quarry
House, Leeds, was built to house some 2,100 staff members of the Benefits Agency's Central
Services, the Central Adjudication Service, as well as the NHS Executive, underneath an
agreement with Norwest Hoist.   An audit of this construction was conducted by the National
Audit Office. The building's office spaces have been constructed and outfitted at a level equal
to private sector headquarters.   About 1,850 square meters (9%) of office space was fewer
than what the divisions had requested. This was due to the design's incorporation of enough
allowances for circulation space as well as for machinery as well as equipment. The
Divisions discovered these flaws during extensive space planning, but it was too late to revise
the designs. In order to make up for this shortfall, the Government agencies embraced the
contractor's offer to convert roof space earmarked for future extension into workplaces at
little or no expense to the Departments themselves. However, the divisions did not conduct a
financial evaluation of this construction, although acknowledged that it enabled them to fulfil
their deadline for occupancy of the facility as well as avoid the risk of protracted and costly
litigation. Nevertheless, there was still a 2% shortfall, and this, along with a boost throughout
the magnitude of the Benefits Authority as well as an upsurge throughout the demand for
cellular office buildings through the NHS Manager, led each one of the divisions to sublet
separate locations area in another construction site throughout Leeds at a cumulative yearly
rent of S705,600.

The venture's scope includes the managing of the project's expenditures. Value engineering
seems to be a method that may be used. "VE or else Value Engineering (VE) is a technique
that assists in selecting the best possible options for a project based on a multidisciplinary
approach. Prior to investing in a project, the corporation must prove its value in order to get
the best return on investment (Ekanayake, and Sandanayake, 2017). In terms of cost,
durability, as well as reliability, VE is the ideal option for these purposes.

Buildings throughout many nations have become more cost-effective due to the apparent
advantages that VE gives to construction projects. The capacity of VE to assist in the design
procedure and save costs significantly is one of its benefits. A typical architect's fee is
between 28 as well as 43 percent of the project's overall expenditure. A building project may
benefit from incorporating VE into the design process in order to keep costs down (Kissi et
al., 2017).

Value Engineering for Quarry House Building

Information Phase
The "value engineering" procedure begins with the gathering of information. Just a few
instances of the sorts of information gathered as well as recorded include project planning,
scheme advancement, venture difficulties, as well as venture expenses. Quarry House’s
(departmental building of the healthcare building of the UK) architectural works contributed
to around 40% of the entire budget. Wall, doorway, flooring, as well as sanitary works may
be evaluated using value engineering focusing upon Pareto's rule, which says that one
cumulative expenditure may indeed be up to 80% assessed (Karunasena and Gamage, 2017).
Table 1 shows the buildings’ layout budget as well as Pareto evaluation.

Budget for Citizen M Building


SL 1 2 3 4 5 6 7
No.
Detail Wall Door Floor Sanitary Equipme Paint Ceiling
s of Making Making Making Making nt Making Making
the Making
Work
Budg 1,16,16,9 97,76,56 76,68,96 44,67,78 34,46,83 26,46,88 13,53,53
et ($) 00 5 7 7 5 6 2

Cost 28% 24% 16% 11% 11% 7% 4%

Table 1: Budget of Quarry House building.

(Source: Created by the Learner)

Pareto evaluation investigates each preceding analysis's component of work independently.


Every one of the building sub-works, including the construction of the wall, door building,
flooring, as well as sanitation, has been thoroughly inspected. Here are the results of the
Pareto evaluation as depicted in the following figure: (Figure 1).
Figure 1: Pareto Analysis of Sub-Works.

(Source: Karunasena, and Gamage, 2017)

Function Phase
This information may be used to identify which building venture tasks are most likely to add
to the project's overall expenditure. A value or else cost analysis should always be completed
for each work component in order to ascertain which component has the most significant
impact upon the total cost of the project. The work might well be subject under "value
engineering" (sometimes referred to as cost minimization designing) if the C/W proportion is
greater than 1. (Shahhosseini, Afshar, and Amiri, 2018). The table illustrates the finished
tasks' C/W findings. Table 2 shows that the C/W ratio is more extensive than just one for
every one of the four workforce components discovered inside the Pareto evaluation method.
The following may be evaluated via value engineering:

Cost to Worth Analysis

SL No. 1 2 3 4

Detail Work Work Work Work


of the of Wall of of of
Work Door Floor Sanitary
C/W 2.34 1.06 1.25 1.29
Table 2: Cost to Worth Analysis Table.

(Source: Created by the Learner)

A FAST or else function analysis system technique design is needed to identify the


equipment's principal as well as auxiliary roles following a value engineering assessment.
The research's function analysis system technique or else FAST diagram is seen in Figure 2.

Figure 2: FAST Diagram Analysis of Citizen M Building.

(Source: Shahhosseini, Afshar, and Amiri, 2018)

Creativity Phase
Some new concepts are indeed being given to overhauling the existing layout at this point.
Figure 2's FAST graphic reveals exactly whatever the suggested substitute substance is
expected to accomplish. Engineers must think about the following considerations while
making the final choice:

• Initial Cost or else sum reimbursed initially

• Ongoing Costs

• Expenditures due to the maintenance

• Reliability

• Quality
Each work item is tested with three distinct substances. Percentages, as well as shape, may
differ somewhat from the initial concept, in any case.

Evaluation Phase
LCC or else Life cycle cost assessments will be utilized to investigate alternate approaches
centered on predicted interest rates and building age in more depth (Lee, 2018). Any
reductions that may be ascribed to using a different material are included in the overall cost
of the LCC method. A 35-year average lifespan was assigned to the building. Consider the
following when calculating the LCC:

To calculate the starting price, Ministerial Regulation No. 11/2013 stipulates that the market
pricing research is used according to the regulations. Depending on the store layout supplied
by the owner, the price per unit will indeed be increased mainly by the size of the sub-work
component (Lee, 2018).

With Kirk's repair as well as the operation plan, a building's materials or element replacement
costs are determined. The next step seems to be to return the replacement value towards its
initial state.

In terms of marketplace capitalization, the expense of retrieving the car will be recouped in
35 years.

Ten percent of the initial rate for "Property, Operation, Maintenance, and Energy Cost"
(POMEC) is spent on operating and maintenance expenditures (Suranata, Wahyuni, and
Triswandana, 2019).

For example, the current marketplace value of any alternate material used throughout the
creation of an artwork determines its value. An average of 3% in cost savings may be found
via alternative channels, as per the LCC (see Table 3).

Cost Saved by Using Alternative Materials

SL W 1 2 3 D 1 2 3 F 1 2 3 Sa 1 2 3 4 5 6
No a o l ni
. ll o o ta
W r o ry
o W r W
r o W or
k r o k
k r
k
De   Br W C   Gla Gl W   W 6 W   Spri C L H D W
tail ick or er ssw ass o or 0" or nkl l o a u as
ed wo k a ork pa r k b k er o w n al tef
W rk on m for nel k fo y fo wit s e d T ul
or on th ic slid wo o r 6 r h e r S o
k the e w ing rk f p 0" P fixe t b h w
ins in or doo on g ar ce ar d a o e
ide si ks r the l q ra q posi t w r
de fo sin a u m u tion h er B
pl r gle s et ic et a a
ast T do s fl fl s n r
eri oi or w o o ki d
ng le a or or rt s
t ll s se in h
w s t g o
al u w
l p e
r
Alt   8 -2 8   13 3 1   2 4 3   10   1 2 1 4
er 4 7 8 9
nat
ive
1
Alt   11 0. 1   7 4 1   3. 8 1   11 1 2 4 2 2
er 43 7 0 4 0 4 3 4 9
nat 5
ive
2
Alt   14 0. 2   14 7 1   4. 1 1   12   2 3 1 3
er 13 2 7 2 3 5 2 8 3
nat 9
ive
3

Table 3: Cost Saved from Alternative Materials.

(Source: Created by the Learner)

Decision Analyzing Phase


Venture budget expenses might be reduced by using a new idea evaluation method. As a
result of a lifespan cost investigation to determine which resources can save maximum cost,
the alternate option to substitute the outstanding layout will be picked based on the
information presented in Table 3.
Decision-Making Phase
In order to see whether there exist any better cost-effective alternative solutions to the
existing architecture, an investigation is conducted (Park, 2017). The most cost-effective
substitute substance is chosen to save expenditure. Table 4 shows the results of the decision
that was made.

Chosen Alternative Material


S W 1 2 3 D 1 2 3 F 1 2 3 S 1 2 3 4 5 6
L a o l a
N l o o n
o. l r o it
W W r a
o o W r
r r o y
k k r W
k o
r
k
D   Br W C   Gl Gl W   W 60 W   Sp Cl L H D W
et ic or er as as or or " or ri os o an ua ast
ai k ks a s s k k x k nk et w d- l ef
l w fo mi w pa of wi 60 fo ler er Sh T ul
W or r c or ne gl th " r wi - o o
or ks in w k l as in st pa th ba w w
k fo si or fo w s se on rq fi th er er
r de ks r or w t e ue xe an -
in pl fo sli k all fl w t d d B
si as r di on s oo ar sk po sh ar
de ter T ng th rs e irt sit o
w in oil do e fl in io w
all g et or si oo g n er
s w ng r
all le se
do t
or up
C   “ “ “   “ “ “   “ “ “   “ “ “ “ “ “
h Al Al Al Al Al Al Al Al Al Al Al Al Al Al Al
os ter ter ter ter ter ter ter ter ter ter ter ter ter ter ter
en na na na na na na na na na na na na na na na
Al tiv tiv tiv tiv tiv tiv tiv tiv tiv tiv tiv tiv tiv tiv tiv
te e e e e e e e e e e e e e e e
rn 3” 2” 3” 3” 3” 3” 3” 3” 3” 3” 1” 2” 2” 2” 3”
at
iv
e
Table 4: Chosen Alternative Material.

(Source: Created by the Learner)

Conclusion

It has been shown that "value engineering" can improve the construction of walls, doors,
floors, as well as sanitary services at Quarry House building, which is the departmental
building of the healthcare building of the UK. The process improvement as well as value
engineering study performed primarily on stated pieces of work lowered the overall job's cost
by 8%. This could save the construction up to € 3,071,397,239 throughout total costs.
Substituting a new element for the original layout seems to be the cheapest option.
References

Ekanayake, E.M.A.C. and Sandanayake, Y.G., 2017. LiVE approach: Lean integrated value
engineering for construction industry. Built Environment Project and Asset Management.

Karunasena, G. and Gamage, K.R., 2017. A decision-making formula for value engineering
applications in the Sri Lankan construction industry. Journal of Financial Management of
Property and Construction.

Kissi, E., Boateng, E.B., Adjei-Kumi, T. and Badu, E., 2017. Principal component analysis of
challenges facing the implementation of value engineering in public projects in developing
countries. International Journal of Construction Management, 17(2), pp.142-150.

Lee, J.S., 2018. Value engineering for defect prevention on building façade. Journal of
Construction Engineering and Management, 144(8), p.04018069.

Park, R.J., 2017. Value engineering: a plan for invention. Routledge.

Shahhosseini, V., Afshar, M.R. and Amiri, O., 2018. Value engineering practices in
infrastructure projects: a case study of Ilam Gas Refinery's water transmission system at Reno
Mountain, Iran. International Journal of Construction Management, 18(5), pp.351-363.

Suranata, P.G., Wahyuni, P.I. and Triswandana, I.W.G.E., 2019, December. The usage of a
value engineering method for implementing green construction on the post graduate’s
building at Warmadewa University. In Journal of Physics: Conference Series (Vol. 1402, No.
2, p. 022003). IOP Publishing.
Risk Management Report
Table of Content
s
Introduction..............................................................................................................................14

Internal risks in the project.......................................................................................................14

External risks in the project......................................................................................................15

Recommendations....................................................................................................................16

Conclusion................................................................................................................................17

References................................................................................................................................18
Introduction
An incident that might entail a detrimental influence on the venture is alluded to be a risk.
Technology, as well as resources, are equally vulnerable to risk. Both internal and external
risk types exist in project management. The dangers might come from any origin. Risks from
both the project's internal as well as external sources may have a significant impact. As a
result, firms employ sound risk management techniques. The managing risk might be one of
the techniques. The risk may be prevented, and indeed the project can succeed if risk
management is appropriately implemented (Reza, 2018). The report will include the most
significant project-related internal as well as external risks. The study will also provide
suggestions for dealing with both internal as well as external concerns.

Internal risks in the project


The cost risk seems to be the most significant intrinsic risk of a venture. This is a type of risk
when the project's expenditure exceeds the estimate by a large margin (Sadeh, Mirarchi, and
Pavan, 2021). In this case, the project's customer is concerned about the danger of cost
overruns resulting in a decrease throughout the standard of the work. There is also a
secondary consequence of cost risk. As a consequence, the project's timetable might be in
danger if appropriate finances are not available to complete it.
Labor scarcity is another internal danger. The workers' input is required for the buildings'
proper design. Efforts made by workers with high morale may help the project succeed.
However, a lack of human resources might lead to the project's collapse. Workers in the
construction of the building play a critical part in ensuring the project's success. The customer
should be informed of the project's lack of human resources. The success of a team is largely
dependent on the abilities of its members. The involvement of the group seems to be essential
in order to deal with any challenges that may arise throughout the project. The customer, on
the other hand, must contend with the possibility of low labour.
Performance, dependability, and availability are all characteristics of a project's technical
aspects (Meredith et al., 2020). The right building design necessitates the use of cutting-edge
technology. Many problems might arise if the project uses old technology. Additionally, the
show utilizes the most recent technological advancements. The use of cutting-edge
technology may make or break a project. The building's architecture is beset by a slew of
antiquated technological issues for the customer. The project's success depends heavily on the
performance of the project's operations. The performance of the project is additionally
boosted by the use of modern technology. There are additional hazards associated with
outdated technology. It is defined as the threat of the project failing to meet its stated
objectives. A typical danger of the building's layout is that it might be hacked. There is a
connection between the danger of poor performance and the risk of high expenses (Jung and
Han, 2017). This results in the project's failure for the customer.
The contributions of each member of a team are critical to the success of a given project. A
project's success might be jeopardized by shoddy workmanship. As a result, the project's
ability to deliver on time and on the budget is at stake, too. The success of the building
depends on overcoming all of the dangers throughout the project. The project's progress may
be hindered by inherent or else internal hazards.

External risks in the project


There seem to be a variety of external dangers that a venture may encounter. If the project
fails because of these exterior risks, not only will profits be lost, but the enterprise itself may
be destroyed. The project's most significant external risk seems to be the strategic threat. In
this context, directors' judgments on the organization's goals are considered to be the primary
source of risk (Harvey, Rattray, and Van Hemert, 2021). This project's customer is dealing
with two sorts of strategic risks: short-term as well as long-term. The project's outcome is
influenced by short-term strategic risks. The customer is preparing for the construction of a
brand-new building. In this building development project, the competitive risk includes
anxiety as well. The long-term strategic threats are those that might have a detrimental
influence mainly on the project's long-term strategic objectives. Strategic risk evaluation
relies heavily on an organization's ability to implement an effective plan. A project's risks
may be mitigated by using appropriate techniques.

There must be a suitable place for the building to be built within the area of the project. It is
also the client's goal to make the building stand out from the competition by expanding its
facilities. The client's strategy is facing competition. As a result, the venture faces a
significant exterior risk from the competition. It is impossible for a customer to manage
external hazards. However, he has the ability to manage external dangers via proper
preparation. The customer used a number of helpful technologies in the process of
conceptualizing the building. However, it failed to deliver any practical consequences. As a
result, the customer bears the brunt of this strategic risk.
The facility is located in an area that is susceptible to floods. As a result, the customer is
taking on a significant risk from the outside world. Despite the location's suitability for the
building's construction, floods might cause significant damage to the project. As a result, the
project faces a significant external risk from environmental factors.

The cost of most things has risen during the last several years. Prices for commodities such as
petroleum have been at their lowest levels since the financial crisis of 2008. Raw material
acquisition is adversely affected by all of these changes. To blame, there has been a decline in
predictability. If prices rise, the project's cost will increase. A reduction in expenses would
help its part of the project.

Construction's supply chain includes everything from manufacturing to transportation (Ansah


and Sorooshian, 2017). As a result of the ongoing need for resources, the process is difficult
to follow. It is possible to minimize costs and increase productivity on a project by using
unstable supply networks. Project delays may be caused by unfavourable circumstances, such
as terrible weather or the insolvency of a supplier. In the event that this was to occur, the
business would be badly affected. The consumer advises that raw materials be procured from
convenient and trustworthy areas.

Recommendations

Proper assessing and analysing the risks

The consulting company, Quarry House thinks that the internal and external risks can be
meted out by thorough assessment of the risks that are involved. There are short term and
long term risks that the customers of the project are dealing with. As per the views of
Demirkesen and Ozorhon (2017), the construction of a new project involves a lot of anxiety
and the project management needs to look after that. The stakeholders of the project need to
evaluate the risks that are associated with the project to carry it out successfully. For instance,
the labourers should be appointed in greater numbers so that the project does not get delayed.

Thorough evaluation of people involved

The stakeholder management is an influential part of risk assessment as wrong people


involvement may spoil the project. The involvement of people like project manager, finance
manager, sponsors and labourers should be able to discern the proper outcome for the project.
If the stakeholders are not determined or dedicated to the fulfilment of the project, the risks
may be greater of failure of the project. For instance, the finance holder may make extra
charges to make his own profit or the labourers may not be reliable for the success of the
project. Thus, the project manager should at first ensure that the stakeholders are reliable for
getting involved in the construction of the building.

Thorough analysis of financial situation

The project undertaking involves a great capital involvement which needs to be thoroughly
analysed prior to the start of the project. As per the views of Smith et al. (2018), the sources
of risk may come from various ways and capital investment is one of the primary parts of it.
The customer of the project remains anxious about the overrunning of the cost for which a
thorough budget planning is very necessary. The estimated cost or expenditure regarding the
project completion needs to be carried out prior to anything. Furthermore, the time table for
the project needs to be determined to avoid delays. Hence, the risks can be mitigated by some
prior considerations of completing the project.

Conclusion

The project undertaking involves various risks to be assessed and it is involved in every
single activity involved in it. The report has completely evaluated the risks that are associated
with the construction of the building of the consultancy company. The consultancy company
has provided proper framework and designs along with economic recommendations to carry
out the project successfully. In addition to it, the framework has offered numerous
information on the variables that are to be considered in the project of construction. The
significance of risks and the assessment of risks play a vital role in framing a well-organized
project planning. The delineation of the risks provide the customer of the project with
necessary outcomes that may occur if the risks are not met. Thus, from the planning
framework of the project this may be concluded the initiative taken is likely to succeed.
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Risk Management Essay
Introduction

Global warming is a growing concern affecting globally. Rapid industrialization has brought
about enormous problems causing climate change. The essay evaluates the contribution of the
construction industry in meeting the risks of climate change in Nigeria. It evaluates the
factors in which the construction industry contributes to the growth of climate change and
studies the impact of climate change on the construction industry. The essay also analyses the
risk management procedures taken up by the construction industry to prevent climate change
and illustrates the environmental protocols followed in Nigeria to keep in check the climate
change by the construction sectors.

Factors in which construction industry is leading to climate change

Energy usage by the buildings

The construction sectors play a crucial role in driving the economic development of the
country. The construction, as a result, remains an integral part of any country like Nigeria.
Based on the opinions of Depietri and McPhearson (2017), the research proved that the
country has carried out several high profile projects of constructions in the last two decades.
The buildings consume energy which is mainly sourced from electricity, generated from the
cola power. For instance, the buildings radiate high heat into the air which is a big cause of
climate change. Furthermore, the usage of air conditioning has elevated the consumption of
energy by the buildings to a high extent in Nigeria.

On the other hand, the buildings require various appliances which consume energy and
release harmful emissions sometimes. For instance, lighting is a necessary element in a
civilized society and when a light is turned off, it releases GHGs, harmful emission for the
environment. Thus, with increase in the buildings more energy is consumed and more it gives
rise to climate disruption in Nigeria.

Activities associated with construction

The buildings or construction activities also emit harmful gases like Carbon dioxide during
its construction. As per the views of Roe et al. (2019), the activities of construction are
associated with huge pollution by carbon emission activities. As per the research it has been
proved that lack of political stability in a country is a major cause behind delaying of high
profile projects. The delayed construction of buildings keeps on affecting the environment for
a long time which is overlooked in many cases. At present the government of Nigeria is
trying to meet the gaps in the management of controlling human population as a result of
which the constriction activities can be brought to a stabilized condition. Based on the
opinions of Diaz and Moore (2017), controlling the human population is an essential control
factor needed to keep the growth of construction in check. Furthermore, the construction of
buildings needs to be carried out under proper training so that the pollution can be reduced to
some extent. However, the political turmoil always put hindrances in developmental activities
of construction. As a result, the activities of construction cause environment change by
causing immense pollution.

Impact of climate change on construction industry

Climate change brings considerable risks in the commercial part of the construction project
cycle. The change of climate brings direct impact on the construction industry through the
weather change and indirectly it impacts on the construction project by causing delay, extra
expense for the delay, labourers’ safety and many other expenses. As stated by Byers et al.
(2018), the experts of project management need to examine their experiences to secure a
proper functioning of the projects. The buildings or the construction projects shed essential
impact by late or improper scheduling of the projects. The decision makers need to be aware
of the climatic parameters which are essential in undertaking the construction activities. For
instance, the rainfall, direction of wind speed or the humidity are to be measured before
selecting the construction site. Such prior assumptions are to be undertaken so as to reduce
the risks of delay and unnecessary environmental degradation.

The research has brought to the limelight that stakeholders should keep in knowledge various
factors that determine the construction facilities in a site. The weather predictions need to be
clear for which the government of Nigeria needs to take proper steps for making the
predictions clear. Hence, the construction projects need to be properly scheduled.
Figure 1: The factors in construction industry that promote climate change

(Source: Byers et al. 2018)

Managing risks caused by climate change

Providing weather protective gear

The risks of climate change due to construction activities are mitigated using some mitigation
strategies. As opined by Seddon et al. (2020), the environment control activities are
encouraged as per recent research to control the environment disruption through various
factors. Nigeria is prone to flooding due to erosion, deforestation and other environmental
factors, and as a result the construction activities should imply some protective gears to
control the impact on the environment. The protective gear involves the use of solar panels
which can absorb the sun rays and convert it into energy. Many buildings are now
constructed by placing solar panels on the outside which is extremely useful in preventing the
impact on the weather.

Scheduling projects in proper construction season

The project delays shed a considerable impact on climate change as the emissions go on
taking place. Specific climate change is caused as a result of global warming which is a direct
effect of construction activities. Based on the opinions of Blanchard et al. (2017), the
construction industry is facing a huge problem in their project developments due to
amplification in the weather change activities. Therefore, the construction projects must be
scheduled examining the weather conditions of the place. It will help to reduce the delays in
the construction of the projects. The estimated cost of the construction projects delays are
higher for the project holders which they have to pay as compensation. Therefore, it is
required to prevent the delays in construction by scheduling the projects on time and
completing accordingly without much delay.

Meeting political risks

The construction industry of Nigeria faces political turmoil to a great extent. The political
risks prevent the effectiveness of performance of the organization and the profit margins have
lowered considerably. As per the views of Ehsani et al. (2017), effective policies are needed
for the construction industries to function effectively. Although some high profile projects
were successful, the rising political tensions of Nigeria keep the projects in halt and cause
extreme delays. Since Nigeria is not yet properly developed, it needs to frame policies for
carrying out effective construction without delays. The policies help the organization to meet
the organizational goals effectively without much hindrance.

Environment control protocols in Nigeria

The environment protocols are essential for controlling climate change by various policy
frameworks and legal frameworks. The steps in the risk management process are crucial to
undertake by implying environment safety policies. As stated by Cramer et al. (2018),
environment control policies are essential for construction industries to maintain an effective
risk mitigation process. The structure of the buildings impact on the environment as it poses
ecological impacts, energy impacts and material impacts. The environment acts like the Act
of Federal Environment Protection Agency of Nigeria under section 38 of 1991 includes
water, air, land and all the human beings and animals that lie in it. It studies the
interrelationship among them and examines the impact of construction on all the elements of
nature (Elri-ng.org, 2021). Building of construction projects in Nigeria shed both direct and
indirect impacts on the ecological systems.

Effective protection of the environment is crucial to the sustainable development process.


The process of identifying, evaluating and managing the risks are measured by
Environmental Impact Assessment (EIA) which illustrates the decision makers about all the
possible impacts of carrying out a construction project on the environment. Based on the
opinions of Seddon et al. (2020), environmental degradation is highly geared up by the
construction activities and for this reason the decision makers need to study the impact
thoroughly before undertaking such activities. The National Environment Pollution Act of
1969 has empowered many government agencies to actively monitor the compliance
activities that are taking place in specific countries like Nigeria. The construction activity
causes poor air quality which the decision makers need to consider before undertaking such
projects. To meet this need the delays need to be reduced in the construction activities which
stand as an active environment protocols in this case. Hence, the environment protocols need
to be strong for the construction activities.

Conclusion

Nigeria has undertaken various construction projects for its economic development. The
essay has discussed the factors and consequences of construction projects on climate change.
Risk management plays a remarkable role in maintaining the risks faced by construction
sectors of Nigeria. The essay evaluates various procedures of risk management for reducing
climate change by the construction industries. The government protocols play a vital role in
keeping the constriction in check and promote environment friendly activities. Increasing
attention is paid widely to control the potential impact of climate change due to construction
projects, mainly in cities. Thus, the essay sheds light ways in which government protocols
should take an active part in reducing the climate change impact by controlling construction
activities.
References

Blanchard, J.L., Watson, R.A., Fulton, E.A., Cottrell, R.S., Nash, K.L., Bryndum-Buchholz,
A., Büchner, M., Carozza, D.A., Cheung, W.W., Elliott, J. and Davidson, L.N., (2017).
Linked sustainability challenges and trade-offs among fisheries, aquaculture and agriculture.
Nature ecology & evolution, 1(9), pp.1240-1249.
Byers, E., Gidden, M., Leclère, D., Balkovic, J., Burek, P., Ebi, K., Greve, P., Grey, D.,
Havlik, P., Hillers, A. and Johnson, N., (2018). Global exposure and vulnerability to multi-
sector development and climate change hotspots. Environmental Research Letters, 13(5),
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Lionello, P., Llasat, M.C., Paz, S. and Peñuelas, J., (2018). Climate change and
interconnected risks to sustainable development in the Mediterranean. Nature Climate
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Depietri, Y. and McPhearson, T., (2017). Integrating the grey, green, and blue in cities:
nature-based solutions for climate change adaptation and risk reduction. In Nature-based
solutions to climate change Adaptation in urban areas (pp. 91-109). Springer, Cham.
Diaz, D. and Moore, F., (2017). Quantifying the economic risks of climate change. Nature
Climate Change, 7(11), pp.774-782.
Ehsani, N., Vörösmarty, C.J., Fekete, B.M. and Stakhiv, E.Z., (2017). Reservoir operations
under climate change: storage capacity options to mitigate risk. Journal of Hydrology, 555,
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Elri-ng.org (2021). A Synopsis Of Laws And Regulations On The Environment In Nigeria.
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Roe, S., Streck, C., Obersteiner, M., Frank, S., Griscom, B., Drouet, L., Fricko, O., Gusti, M.,
Harris, N., Hasegawa, T. and Hausfather, Z., (2019). Contribution of the land sector to a 1.5
C world. Nature Climate Change, 9(11), pp.817-828.
Seddon, N., Chausson, A., Berry, P., Girardin, C.A., Smith, A. and Turner, B., (2020).
Understanding the value and limits of nature-based solutions to climate change and other
global challenges. Philosophical Transactions of the Royal Society B, 375(1794),
p.20190120.

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