Implementing risk management

Project interest in brief

Recent incidents of (almost) failing construction projects, such as at Bos and Lommer, not only raise questions about the causes and costs of the failure, but also damage the reputation of the sector and even lead to social unease. Principals such as engineering consultants and construction companies want to reduce failure costs, time overruns, and the associated damage to reputation. In the case of public works, a change is currently also taking place in how projects are commissioned. The role of government as a traditional principal is increasingly shifting from ‘tender specification to functional specification’. This allows market parties to add their specific value, whereby some of the project risks also move to these implementing parties. Against this background, it is preferable for all involved parties to develop and implement effective methods of risk management, methods that make the various project phases clearer and more manageable (from the earliest planning stage through to project delivery and use).

Systematic approach to risk management

In the first phase of Delft Cluster, a methodology was developed for risk management in municipal practice. This methodology however, known as IQ-Delft, is never or hardly ever used by municipal project leaders. To change this situation and to ensure that available concepts and tools are actually used, the second Delft Cluster phase focuses on implementing existing risk management concepts and tools. Within the construction world, risk management methods have until now mainly concentrated on the technical aspects of the ß (scientific) component, such as (software) tools. However, the human factor or ? component (organisation, communication, and skills) appears to be far more important for the success or failure of a project. If a new risk management method really wants to be successful, then it must incorporate both the ß and ? components. In addition, particular attention must be given to implementation. The implementation of new working methods seems to be especially hindered by organisational-cultural aspects and the role of individual professionals and their teams, and not so much because of a lack of (software) tools.

Click here to read about the project case: Reeuwijk (the Netherlands) 

The interest

Failure costs in the construction industry are high. It is estimated that they account for approximately 25% of total construction costs. If we are aiming to reduce these failure costs, then good risk management tools alone will not suffice. It is also vital that we understand the connection between the different types of risks, the phasing, and the possibilities for steering project management towards specific topics (more information).

Products of knowledge

GRIP on municipal projects – a working method and course Lessons in dealing with risks What is it? A package of methods and tools to support municipalities when managing risks related to urban construction problems. The information is also available as a PAO course: ‘Risk management in municipal construction projects’. What can we use this for? The complexity of municipal construction projects continues to increase. How do you deal with unavoidable uncertainties and the (unrealistically) high expectations of those involved? The experience from numerous cases is brought together and made accessible. The lessons learned can now be adjusted (in a custom-made way) to help teach how to deal with risks. Relevant subjects include: • The roles of officials, managers, councillors (three perspectives of the risks) • Organisation (organisational embedding of risk management) • Principal-contractor relationship (different roles). Who will be interested? Municipal managers, heads of project management bureaus, and officials. More information brouwer@mbdso.nl mmooiman@orange.nl dirk.pereboom@deltares.nl r.gremmee@pao.tudelft.nl

Community of practice - GRIP for public organisations Learning to use risk management What is it? Municipal and provincial officials who are interested in risk management come together throughout the country to share their experiences. What can we use this for? Using a field case as an example, the problems faced by middle government when using or implementing risk management are discussed on location. An external expert provides new up-to-date knowledge in the field of risk management. Who will be interested? Officials who are professionally involved in the realisation of municipal and provincial construction projects. More information dirk.pereboom@deltares.nl

Knowledge mediation for area development Breaking through impasses What is it? Acting as an independent body, TNO supervises controversial planning projects. By means of knowledge mediation, we help people to break through impasses by means of structured discussions. Our approach is to establish systematic processes in order to integrate the viewpoints and ideas of government, stakeholders and the public in an accepted and feasible solution. All those involved make use of their own know-how, as well as the knowledge of experts. What can we use this for? In controversial planning projects, it is often the case that the options for a solution are discussed repeatedly. Interested parties often state that the initial investigation is unsatisfactory in relation to these options.  There may be disagreement about the independence of researchers, as well as the relevance of the research questions, the correctness or interpretation of input data, or the poor public availability of research results. The result is that decision-making is slow, or that no party is particularly satisfied with the compromises that are reached. Such situations can be prevented by ensuring that interested parties hold structured discussions  and jointly build up a shared knowledge base. It is recommended that a mediation approach is chosen for controversial (and often politically sensitive) development projects. This creates new possibilities, helps to regain trust, and saves a great deal of time. Who will be interested? Aldermen and managers. More information marc.rijnveld@tno.nl

Learning history Learning from the past What is it? Evaluating construction projects by means of a ‘Learning History’ involves describing a change in direction or an event, with the focus on allowing the entire organisation to learn from it. Three large construction projects were evaluated using this method in Oost-Watergraafsmeer.   What can we use this for? Three large construction projects have been evaluated using this method for the first time. It appears to be an ideal working method for organisations that do not wish to change history but do want to learn lessons from it. The learning history is a story consisting of three layers: • The first layer describes the actual events that occurred. • The second layer gives the perceptions of those involved by means of their own statements. • The third layer comprises questions and observations from experts that were not involved. The intention of this layer is to set those who were involved thinking. Who will be interested? Those responsible for large projects (managers, calculation committees, and directors) More information mario.willems@tno.nl michiel.brouwer@mbdso.nl

Community of Practice – integrated risk management for underground construction Trust in underground construction What is it? Professionals share their experiences. What can we use this for? By sharing experience of risk management for underground construction projects in urban areas, risk management becomes part of the normal work process. Who will be interested? Professionals from the public and private sector, technical engineers as well as project leaders, who are involved in underground construction projects in urban areas. More information erik.mischgofsky@deltares.nl

Making risk management more professional The innovative embedding of risk management What is it? An innovative approach for the routine use of existing risk management methods within organisations. What can we use this for? By applying tools that have been developed, organisations can take the next step in making risk management more professional. This approach provides insight into the nature of obstacles encountered in the routine use of risk management. It also indicates how the correct conditions can be created, for both the individual professional as well as the organisation. Who will be interested? Professionals and managers who are responsible for effectively dealing with uncertainties in construction projects. More information martin.vanstaveren@deltares.nl

Urban Strategy Development Tool for interactive urban planning What is it? An interactive system for use in the support of designs, which shows the combined effects of urban interventions on air quality, noise, accessibility, safety, green areas, and water. What can we use this for? Urban Strategy directly links possible interventions in the built-up environment with various environmental effects. By simultaneously linking different files, the environmental effects of design alternatives can be presented interactively. For example, roads that are to be closed, new housing that is to be built, or transport routes that will be changed. The results are presented in 3D displays (useful during interactive planning), together with tables and graphs (suitable for reports). Who will be interested? Town and country planners, planners and environmental specialists from municipalities. More information ab.schelling@tno.nl

Geocheck soil remediation Approaching risks and balancing probabilities for contaminated soil at every moment of the project What is it? Quality control for consultancy, research and design. Soil remediation seldom progresses as planned. Problems arise in many projects leading to delays, with the result that costs soon exceed the estimated cost by some 100%. The risks can be well mapped out beforehand by testing the conceptual model for the contamination situation and the planned approach. This means that a practical balance can be made, using the ever-increasing understanding of contamination behaviour, the most modern remediation techniques, and experience from the field. What can we use this for? Using Geocheck, the choice for the most cost-effective method can be tested and over-dimensioning can be avoided. In addition, realistic win-win possibilities can be checked, such as linking remediation with heat-cold storage. Available knowledge about soil and soil processes is applied in brief checks during soil remediation, so that the feasibility and practicality of the approach can be tested. Recommendations can be made to reduce the project risks, and to optimise remediation efforts with regard to factors such as cost efficiency and sustainability. Implementation support of the contents takes place during remediation. Who will be interested? Project developers, builders and authorised persons. More information jaap.olie@deltares.nl

AIO's

1. Dissertation research Sonja Karstens (more information)
2. Dissertation research Ellen van Bueren (more information)
3. Dissertation research Claudia Basta (more information) 
4. Dissertation research Martin van Staveren (more information).